*Despite Covid-19 and slowdown in the growth of expatriate population, the annual fall in rents and capital values of residential units during 2020 was less compared to year-on-year (YoY) decline in 2019, the researcher said in its country report
Residential stock in Qatar stood at 303,015 units at the end of 2020 with the addition of some 530 units during the last quarter of the year, researcher ValuStrat has said in a report.
Despite Covid-19 and the slowdown in the growth of expatriate population, the annual fall in rents and capital values of residential units during 2020 was less compared to year-on-year (YoY) decline in 2019, it said.
In the last quarter of 2020, Phase 2 of Qetaifan Island North was launched with beach, waterfront and garden villas plots available for sale.
Barwa Real Estate launched construction works for a residential city spanning 1.1mn sqm in Al Wakra to be completed by 2022.
The project comprises more than 6,700 apartments, and workers accommodation extending to over 700,000sqm with 16,000 rooms accommodation extending to over 700,000 sqm with 16,000 rooms.
Approximately 1,300 hotel keys were added in Qatar during 2020, ValuStrat research said and noted the total supply is estimated to exceed 28,500 keys.
The supply of serviced apartments (branded and non-branded) is estimated to reach 9,300 rooms, ValuStrat said in its country report.
Revenue per Available Room (RevPAR) declined by an average of 20% annually for hotel and hotel apartments during 2020, it said.
Visitor arrivals year-to-date (YTD) in December 2020 was 581,659, down by 73% YoY, ValuStrat said.
As of fourth quarter (Q4) 2020, as per ValuStrat Price Index (VPI), the average residential capital value was QR693 per sq ft (QR7,455 per sq m), and fell by 1.3% QoQ, 3.4% over six months and 5.3% YoY
ValuStrat Price Index for residential rental values softened 0.6% quarterly, 2.3% over six months, 4.8% annually and 10.6% over two years.
The median monthly asking rent for residential units in Qatar was QR8,964, for apartments it was QR6,120, and for villas at QR11,100.
Gross yields for residential units averaged an overall 5.3%, equivalent to 6.4% for apartments and 4.7% for villas. The residential-price-to-rent ratio has been estimated at 20 years, ValuStrat said.
As of Q4 2020, total office stock was estimated at 5.4mn gross leasable area (GLA) sqm with the addition of 30,000 sqm GLA from the completion of an office tower in Lusail Marina.
Despite economic losses sustained by the majority of companies amidst Covid-19 and rising vacancy due to influx of supply, the annual rental decline was estimated at 7.5% during Q4, 2020 compared to a 17% YoY fall in Q4, 2019, ValuStrat said.