“Real estate prices accelerated last year, despite the sharp drop in oil prices,” according to the IMF’s latest annual report
on Qatar. The report points out that “price growth gathered speed especially in the second half of 2014, with the December real estate values up by 35 percent year-on-year. Staff calculations based on transaction-level data from the Ministry of Justice point to the following broad trends:
- While the total number of real estate transactions has decreased from the 2013 peak, the total value of real estate transactions has dramatically increased, reflecting higher average prices and compositional changes.
- Land prices appear to have increased at the fastest pace, followed by villas where land is typically the most important cost component. Price increases have been slower for apartments and villas with extension (e.g., a guest house).
- While the Doha market experienced intermittent price hikes, price growth was recently strongest outside of Doha, given development projects and urbanization. For example, prices in Al Wakrah, a previously underdeveloped neighbor to Doha, have notably risen over the past year in light of its proximity to the new Hamad International Airport and the planned Doha Expressway route. Al Daayen has similarly experienced rapid price growth, due in part to its proximity to Lusail City and various 2022 World Cup projects.”