by: Serban G. Spirea
Founder and Managing Director
That is the golden question, and we are here to answer this important query: should you buy or rent an apartment in Qatar when moving to this side of the world? We are here to guide you with questions and examples that will help you make the right decision for your own personal situation.
Questions you should ask yourself before taking the decision:
How long are you going to stay in Qatar?
What is your monthly budget for housing?
What is your monthly living and facility expenses?
What are the rental costs for your desired house compared to what the payment installments would be?
What is the ROI on your house – in case of a purchase?
Buying or renting a house in Qatar: A comparison
In the case that you are planning to live in Qatar for a timeframe ranging from a few months to under five or six years, then the right solution is leasing. This way, you have the maximum flexibility in choosing your location or changing your house based on necessities or job location.
The situation changes when you plan on living in Qatar for longer as you have to consider all variables: income, monthly rent versus paying for your own home, extra expenses, etc.
Renting an apartment in Qatar – a brief calculation
The average monthly rent for a three-bedroom apartment (fully furnished, suitable for families) is around QAR 16,000. So, in most cases, you will be paying QAR 192,000 in rent. To this, you should also add Qatar Cool (if applicable) and KAHRAMAA at an extra cost of QAR 17,050 year.
At the end of the sixth year, you have already paid up to QAR 1,227,600.In this calculation, we have not considered the fact that the landlord might change the rent or market depreciation, which can cause price variance.
Buying an apartment in Qatar
For a similar fully furnished, three-bedroom apartment, consider an average price of QAR 2,650,000 (in six years, the lease costs almost half of the value of the property). When buying your own apartment, you must give a 30 percent down payment to the bank, with the loan amount totalling to QAR 1,855,000.
Other variables to consider when buying an apartment
We have not exhausted the analysis about renting or buying an apartment in Qatar. We have considered the average rent or selling price for a fully furnished, three-bedroom apartment. The area is a big factor that influences the costs in both situations (lease or sale).
Also, you should consider your ability to pay either the monthly rent or the down payment and loans, depending on your monthly income and personal financial situation.
Is it worth investing in an apartment in Qatar?
It is, especially if you plan to remain here for five years or more. You can own your house, a property that might bring you 6 percent ROI. Besides, Qatar is a safe and stable country to live in.