High Demand for Lusail Apartments in Qatar: Q3 2023 Real Estate Insights

High Demand for Lusail Apartments in Qatar: Q3 2023 Real Estate Insights

In the third quarter of 2023, Qatar’s real estate landscape has witnessed a surge in demand for apartments in the vibrant district of Lusail, marking a significant turnaround from the second quarter’s dip in rental rates. According to Cushman & Wakefield’s quarterly report, a combination of reduced rent and enticing rent-free incentives has contributed to the increased demand for apartments in both The Pearl Qatar and Lusail, particularly in August and September, coinciding with the start of the school year.

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As the market experiences a rise in supply, there is a noticeable discrepancy in occupancy rates. High-specification buildings with top-notch property management are emerging as sought-after choices for prospective tenants, even in the face of higher vacancy rates across the broader market, notes Cushman & Wakefield.

This year has seen a notable uptick in occupancy for newly constructed, upscale apartments such as Madinatna and Ezdan Oasis, which capitalized on strong demand during the FIFA World Cup 2022. These apartments are now offering appealing rental packages to attract new tenants.

In Doha, compound villas continue to enjoy consistently high occupancy rates throughout the year. According to the report, one-bedroom apartments at The Pearl Island typically lease for between QR7,000 and QR9,500 per month, depending on the quality and location of the building. Meanwhile, three-bedroom apartments on the Island can be rented for between QR13,500 and QR16,500 per month. In Fox Hills, one-bedroom apartments currently rent for approximately QR5,000 to QR6,500 per month, with three-bedroom apartments ranging from QR8,500 to QR10,000 per month.

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Contrasting with the same period in 2022, there was a 3.1% decrease in housing market sales transactions in July and August, as reported by the Planning and Statistics Office. The total number of sales transactions in 2023 has decreased by 24.5% so far, influenced in part by the implementation of Law No. 16 of 2018 in 2020. This law allowed foreigners to purchase real estate in Lusail, availing residency permits, and caused a spike in activity followed by a decline in sales.

In response to the evolving real estate landscape, Qatar has implemented measures to enhance market transparency and investor protections. The upcoming launch of a Real Estate Regulatory Authority (RERA) is expected to significantly boost transparency and legal safeguards for investors. Additionally, the Qatar Central Bank (QCB) has introduced amendments to real estate financing regulations, redefining loan-to-value rates and extending maximum mortgage terms for both Qatari nationals and expatriates, aiming to stimulate the residential sales sector.

These strategic initiatives set the stage for the development of Qatar’s real estate investment sales market in the coming years, reinforcing the nation’s commitment to a transparent, investor-friendly property landscape.

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