Property

Qatar residential rental market up 7% in 2015 – CBRE

Rental growth during the second half of 2015 was at 5%

PHOTO: Mat Green, head of Research & Consulting UAE at CBRE Middle East, said more tenants in Qatar are seeking out more affordable accommodation. Credit: Supplied

Real estate adviser CBRE has reported a 7% year-on-year rise in residential rentals in 2015 in Qatar despite the economic uncertainty and low oil prices.

According to the company’s H2 2015 report, rental growth during the second half of the year was at 5% while the growth in the final quarter was measured at 1%.

It said that areas like Al Sadd, West Bay Lagoon and the Pearl Qatar continued to attract demand from higher income groups of expatriates, with monthly rentals for one and two bedroom apartments in Al Sadd ranging from QR 8,000 –14,000 ($2,197 – $3,845) per month, and in West Bay Lagoon and Pearl Qatar ranging from QR 14,000 – QR 20,000 ($3,845 – $5,493) per month.

Total housing stock has seen an annual growth rate of 5% from 180,000 units in 2010 to 226,500 units at the end of 2015.

The report also states that 80% of future supply will cater to the upper mid – high income segments with rentals levels in excess of QR 7,500 ($2,060) per month, which would require a minimum household monthly income of around QR 25,000 ($6,867) per month.

Mat Green, head of Research & Consulting UAE at CBRE Middle East commented saying: “Albeit, this was down from the 14% annual growth achieved during the same period in 2014. Rental rate growth during the second half of the year was around 5%, although growth in the final quarter was measured at just 1%. Smaller apartment units, particularly those within central locations, remained in high demand, although rental growth was actually most evident for secondary and more affordable locations.

“There has been increasing evidence of tenant relocations and downsizing, with some occupiers moving into smaller units or choosing more affordable accommodation in less prominent areas of the city.”

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