Steps Real Estate
For the past two years, Doha has seen a change in real estate trends and the market. The year 2020 began with an ample supply of units that continued through the year into 2021, with a lowered demand in the market due to COVID- 19. However, market trends have shifted into internal tourism that was established with the increased demand of holiday homes.
The market of luxury furnished properties has seen a downwards move, with family long term rental agreements. Holiday homes on the other hand, have been a great change of scenery for families who are looking for a townhouse, bungalow, or chalet on the beach. This formed an internal increase in tourism for residents and increased the demand on holiday home properties. Moreover, with the restrictive opening of the entertainment industry in general such as malls and hotels and limiting movement of occupants, leasing activity dropped. In fact, several villa developments, and compounds in areas of Old Airport and Al Wakra, oversaw an overall drop in rental activities. However, investing in holiday homes for residents, in areas such as Lusail and West Bay, whether for sale or short-term rentals, became a trend in the market and a way to cope and vacation within borders.
With the 2022 FIFA World Cup approaching, it is very well expected for demand on holiday homes to increase. Adding a diversified internal economy and an increasing tourism, domestic and foreign, is set to increase real estate demand. Moreover, according to KPMG analytics, with a global spotlight surrounding Qatar and an estimated 1.5 million internationals expected to visit in 2022, sets out a positive upward trend for real estate.
This applies to residents as well, who aim to take advantage of this rising market, anticipating the rental demand increase for the following the 2022 FIFA World Cup and selection of available homes. In turn, buy to rent, as well as personal use is expected to increase in the second half of 2021, resulting in generous returns for current and new property owners.
The false assumption that after the 2022 FIFA World Cup, the market will depreciate is very much a myth, given that the real estate industry decreased but remained steady throughout the imbalance and turmoil the country has gone through with COVID-19 and the blockade. In turn the market can only increase over the next few years. With the gradual lifting of restrictions and international borders opening up, it offers more space for foreigners to return to Qatar for leisure, work, or investment.
As a future vision for Qatar, the trend of having a holiday home is expected to continue and become a new model lifestyle for nationals as well as residents. This will open a new type of tourism in the country that will attract foreigners to use and invest in as well. The demand is still present, the type of demand has changed. The search for additional living space and a more relaxed lifestyle has led many residents to move further out from the city creating a new destination of holiday villas or “the suburbs”.
Finally, with what has been discussed above and is expected to be seen in the coming trends, Steps Real Estate has listed several affordable quality holiday homes, seeking higher property standards and luxury interior, that can accommodate local investments that aim to take advantage of rising market as well as nationals and internationals who seek to vacation and experience Qatar, enjoying extraordinary amenities and a comfortable stress-free lifestyle.
This article was published as part of the sixth edition of Property Finder Qatar’s Trends Report