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Posted On: 3 August 2010 05:58 am
Updated On: 12 November 2020 02:10 pm

Residential rents expected to decline further in Qatar

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Residential rents in Qatar are expected to decline further even as new building units continue to pour into the market, according to a new study. Real estate researcher Century 21 said Madinat Khalifa and Al Muntazah had seen a 5% decline in apartment rents last month. But other areas like Al Matar, Al Sadd and Najma had either seen “insignificant change” or “positive growth” in July. The “average monthly rate” in places like Bin Mahmoud is now below QR5,000 while it is about QR4,000 in Madinat Khalifa and Muaither. Villa rental rates have registered “minimal changes” from previous month with only Ain Khaled, Mraikh and Al Hilal facing more than 4% decline. On the other hand, villa rentals in Al Dafnah, Khretiyat and Abu Hamour have seen a growth of more than 4%. Century 21 said: “Summer season is expected to be heavy on real estate sector this year though effects are seen less acute than last summer.” According to the researcher, a “stabilisation trend” is expected in the market by the end of the current quarter. Although still pouring into the market, the pressure of supply volumes (residential units) is easing with many projects already delivering their stocks. There was a “slight decline” in real estate activity last month as most decisions related to property movements are usually delayed until the end of the summer season, the report said. Real estate sales market is still facing a “slowdown” though sales transactions are seen growing. July saw sales transactions exceeded QR300mn in weekly value, most of which were in land sales, according to Century 21. Villa sales transactions are seen in Doha suburbs areas such as Muaither and Khretiyat in addition to Al Thamama and Nuaija, it said. On office market performance, Century 21 said commercial office rental rates had seen “another decline” in July. However, the change was “slight” due to low activity on both sides of demand supply curve. “Large supply volumes of office space continue to lay pressure on leasing rates but an expected increase in demand by end of Q3, 2010 will ease the situation and open the door for a higher activity. “Low grade commercial properties are facing continuous pressure with most properties on offer enjoying high quality and premium services.” Office leasing rates faced less than 8% declines in July with most premium properties (high-rise office towers) being leased for less than QR200 per square metre monthly. “Stabilisation in commercial office leasing market is expected to lag residential properties in Qatar,” Century 21 said.