Residential rents in Qatar drop by 5 to 10% in 2016, says report

With the country readjusting to new economic realities brought about by lower oil prices, things have been in a flux.

While fuel prices have consistently increased over the last few months, a report says that house rents went down marginally last year.

Research firm DTZ said that rents in Qatar fell by 5 to 10% in the first nine months of 2016 before stabilizing to some degree in the final quarter, reported Gulf Times.

DTZ’s research titled ‘Qatar Q4 2016’ reported that reduced demand, coupled with an increase in supply of prime and secondary housing units, saw rental levels decrease in many residential neighbourhoods before stabilizing towards the end of the year.

The report stated that recent increases in oil prices, buoyed by OPEC’s agreement in November to control oil production, ‘restored economic confidence to Qatar following a period of uncertainty.’

While it may lead to an increase in demand for apartment and villas, it is unlikely that rents will increase again in the short term due to steady new supplies coming into the market in 2018.

There was an increase in demand for housing units in the city’s peripheral areas such as Ein Khaled, Abu Hamour and Muaither. Modern, good quality buildings are being developed here and leased at lower rents.

The completion of additional residential property in 2017 will help relieve upward pressure on rents, which has been experienced in recent years.

Meanwhile, demand for residential accommodation in areas like The Pearl-Qatar, West Bay, Al Sadd, and Bin Mahmoud has fallen from pre-2015 levels.

At the premium end of the market, rents in The Pearl Qatar and West Bay were impacted by the exodus of white collar workers following streamlining of government bodies. Rents went down by 5% to 10% in these areas.