Doha property market stable

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Giant teapot sculpture (dallah, or coffee pot monument) at West Bay towers  Corniche in Doha, Qatar. Property sales in Doha continue at a swift pace, with the total value of transactions increasing by an estimated 2% in the first quarter of 2013. Photo –Alexey Sergeev

Property sales in Doha have continued at a swift pace through the first quarter of 2013, with a 2 percent increase in the total value of transactions.

The latest Asteco Q1 2013, Qatar report says that compared with the fourth quarter 2012, there has been a 6 percent increase in total transaction value and an 8 percent growth in the number of villa transactions. During the same period, the total value of transactions for apartments fell by 56 percent. On the whole, there was a 2 percent decline in sales volume across all sectors.

The report highlights off-plan sales are making a steady recovery as some developers are selling units on payment plans in towers already under construction. Work on other notable infrastructure projects has gathered steam after the commencement of enabling work on the Doha Metro, awarding of QAR 2.3 billion contract for the Doha Expressway and the QAR 2.5 billion contract for Lusail Expressway.

While the market is showing no real movement in terms of sales activity, we are seeing a noticeable increase in the number of feasibility studies and valuations being conducted for development and finance, which is a clear indicator of increased market confidence as developers look to restart or commence construction in the coming months.” Jed Wolfe, Managing Director, Asteco Qatar

Compared to apartments in premium locations, the villa rental market has shown impressive performance. Small increases in rents have been recorded due to shortage of villa supply in prime waterfront locations.

There has been little movement in the office market as well during the past quarter because of oversupply. As a result, building owners have adopted more flexible leasing terms. Split-building leasing and floor or part-floor letting has grown in demand as businesses seek a cost-effective commercial solution.

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