Qatar's real estate sector witnessed solid growth during the second quarter of 2025 clocking a 114% year-on-year increase in residential transactions for the three-month period, underpinning a resilient performance across the country’s real estate sector in the first half of 2025, according to global property consultancy Knight Frank. 

 

Both transaction volumes and values in the residential sector recorded strong year-on-year growth, stated the expert in the latest Qatar Real Estate Market Review.  

 

There were 1,844 residential sales in Q2, totalling QAR9.23 billion ($2.52 billion), representing a 114% increase compared to the same period last year with capital Doha emerging the best-performing municipalities along with Al Daayan and Al Wakrah.

 

Doha alone recorded QAR3.85 billion of transactions, up 126% year-on-year, while Al Daayan and Al Wakrah posted increases of 164% and 127%, respectively.

 

In terms of property values, the apartment sector led the way, with average sales prices increasing by 3.5% year-on-year to QAR13,270 psm. The most expensive apartments were located in Lusail’s Waterfront district (QAR15,131 psm) and Viva Bahriya on The Pearl Island (QAR14,987 psm). 

 

At the other end of the market, Porto Arabia registered the lowest average apartment price at QAR 11,696 psm, offering relatively accessible options in a prime waterfront setting, stated the property expert.

 

Villas saw a slight decline in values, with average prices down 4% year-on-year to QAR 6,745 psm. Among the key districts, Abu Hamour recorded the highest average villa price at QAR 8,434 psm, while Al Wukair remained the most affordable option at QAR 5,667 psm.

 

Knight Frank pointed out that the residential land segment also experienced robust growth in Q2. 

 

Renewed investor interest in land plots, driven by good long-term development prospects and relative affordability in emerging areas, delivered sales totalling QAR2.16 billion across 598 deals, up 85% year-on-year, it stated. 

 

Significant gains were observed in Umm Salal, where volumes increased by 218%, followed by Doha (134%) and Al Wakrah (102%), it added.

 

Faisal Durrani, Partner (Head of Research), Mena said: "Momentum in Qatar’s residential market is building again following a period of subdued activity after the FIFA 2022 World Cup. As challenges stemming from previously high interest rates and legacy oversupply diminish, we are seeing a positive shift in the market dynamics."

 

"The increase in transaction volumes, rising apartment values, and strong land sales activity suggest growing confidence among investors and end-users. As new supply pipelines slow and infrastructure investments continue, particularly in Lusail and surrounding zones, the market is poised for a greater stability the short-medium term," he stated.

 

The Qatari office market has remained relatively stable over the past 12 months, underpinned by steady demand from the public sector and a growing preference for high-quality modern office space.

 

Average grade-A office rents currently stand at QAR82 psm per month, with top-tier districts such as West Bay – Prime and Marina district commanding higher rates, said the property expert.

 

The public sector continues to drive office demand, with large occupiers such as Qatar Investment Authority, Qatar National Bank and Ooredoo expanding their footprint, particularly in Lusail’s premium office districts. 

 

This sustained demand has resulted in upward pressure on rents in Lusail, where monthly office rents in prime locations have increased by 3.5% over the last 12 months, reaching as much as QAR 115 psm in some areas, it stated.

 

West Bay, once the most dominant business hub, is witnessing a gradual relocation of major public sector tenants to Lusail, where newer buildings offer enhanced amenities and energy efficiency. Nevertheless, West Bay – Prime locations remain in demand and are achieving rents of up to QAR 109 psm, while the average across the district is QAR 80 psm, said the statement.

 

The private sector is also contributing to sustained activity, particularly from financial institutions and tech firms, which are favouring modern, flexible and sustainable workspaces. This demand is translating into rising interest in serviced offices and co-working spaces, especially from start-ups and SMEs seeking shorter lease terms and adaptable layouts.

 

Adam Stewart, Partner – Head of Qatar at Knight Frank, said: "Lusail continues to attract occupiers and establish itself as a next-generation business district with integrated lifestyle and retail offerings. We expect the rising demand for buildings that meet green certification standards, support hybrid working models, and offer smart building technology to continue."

 

"This trend mirrors global preferences for ESG-compliant office environments and will likely widen the performance gap between modern and legacy office stock across Doha’s business landscape," he added.-TradeArabia News Service