Qatar’s house prices up 2.22% y-o-y in Q1 2019
Surprisingly, Qatar's housing market is now showing some signs of improvement, as the government continues to effectively mitigate the economic and financial fallout of the ongoing blockade. The nationwide real estate price index rose by 2.22% during the year to Q1 2019, in contrast to last year’s 10.61% decline. Property prices rose by 3.21% q-o-q during the latest quarter.
Demand is rising again.
The number and value of residential sales in Qatar in the first two months of 2019 increased by 40% and 32%, respectively, compared to the corresponding months last year, according to DTZ Qatar.
Recently, the Qatari government approved Law No. 16 of 2018, which increases the number of freehold zones in Qatar from 3 to 10 effective last March 2019. This is expected to boost foreign demand further.
Residential supply reached 293,000 units in Q1 2019, with the completion of 3,000 apartments and villas in The Pearl, Lusail, Al Wukair, Abu Sidra, Baaya, Al Hilal and Sakhama, according to ValuStrat.
Rents, rental yields: no yields data is available in Qatar.
Recent news. The Saudis launched a sweeping economic and political blockade against Qatar two years ago. Qatar's politics are more liberal, and this irritates the Saudis, who want to control the region on the model of their highly repressive regime. In surprise move in December 2018, Qatar ended its nearly 60-year membership of the Organisation of the Petroleum Exporting Countries (OPEC) – the oil cartel dominated by Saudi Arabia.
The Qatari economy expanded by a modest 2.2% last year, from annual average growth of 2.1% in 2016-17, 4.2% during 2012-15, and 15.7% in 2008-11, according to the International Monetary Fund (IMF). The economy is expected to improve these coming years, with projected GDP growth of 2.6% this year and 3.2% in 2020.