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CBRE - Qatar Real Estate Market Review Q3 2022

December 7, 2022

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  • Qatar’s GDP is forecast to grow by 5.2% in 2022, whereas its non-hydrocarbon sector is expected to grow by 7.6%.
  • In 2022 and 2023, employment is expected to record growth rates of 3.9% and 0.1% respectively.
  • After six consecutive months of deceleration and amid the start of the FIFA World cup event, Qatar’s Purchasing Managers’ Index recorded a reading of 48.8 in November 2022, up from the 48.4 level recorded the prior month.
  • Annual inflation reached 5.0% in October 2022, and will likely maintain this traction over the remainder of the year.
  • In the year to date to October 2022, the average occupancy rate saw a decrease of 14.6 percentage points.
  • Over the same period, the ADR rate increased by 13.4%, whilst the average RevPAR dropped by 3.2%.
  • From mid-November to late December we expect Qatar’s occupancy rate to reach close to full occupancy, given that over 1.2m fans are expected to attend the tournament.
  • The country’s aggregate number of hotel rooms stood at an estimated 37,000, with more than 6,000 rooms being added in 2022, according to STR Global.
  • Recent data from the Central Bank of Qatar revealed that, in October 2022, Qatar’s real estate price index dropped by 1.8% compared to the year prior.
  • According to the latest data published by the Ministry of Justice, in the year to date to September 2022, the total volume of residential transactions, reached 1,119, a decrease of 34.9% compared to the same period last year.
  • As at September 2022, median apartment prices stood at around QAR 13,400 per square metre.
  • Amongst the chosen communities, the Pearl registered the highest median sales rate per square metre, at around QAR 16,100, in the apartment segment of the market.
  • In the rental market, the median monthly apartment asking rent in Qatar reached around QAR 11,000, with median monthly rents spanning from QAR 9,000 to as high as QAR 14,000 depending on the location.
  • The highest monthly rental rates for apartments were found in the Marina District.
  • Retail sales are expected to grow by 4.2% in 2022.
  • In 2022, the country’s resident-based consumer spending is forecast to rise by 4.6%.
  • Despite higher levels of spending, from a real estate perspective, the retail market is seeing a glut of supply, with the average occupancy rate softening over the course of the year.
  • In terms of average rental rates, as at Q3 2022, super-regional malls asking rents varied from QAR 300 to QAR 350 per square metre, whereas regional and community malls ranged between QAR 200 to QAR 250 per square metre, and QAR 100 to QAR 150 per square metre, respectively.
  • In the year to Q3 2022, average office rents in core locations and non-core locations fell by an estimated 6.5% and 10.0% respectively.