A lack of supply in the residential market in Doha due to increasing expatriate inflow has led to an average annual rental increase of 16 percent, Asteco said on Tuesday.
Its Qatar Q3 2013 report said that on average two-bedroom units in The Pearl Qatar development have increased by nine percent compared with Q2 2013 and 16 percent year-on-year.
A two-bedroom apartment now costs on average of upwards of QR14,000 per month, closely followed by similar sized apartments in West Bay, which now command rents of up to QR12,000 per month, Asteco said in a statement.
“Leasing rates have most notably increased in The Pearl Qatar, where availability will continue to be scarce until the completion of a number of new towers, currently under construction,” said Jed Wolfe, managing director, Asteco Qatar.
He said availability of good quality villas is also limited, with rental increases apparent in most locations across Doha.
On average West Bay Lagoon is now the most expensive area to lease a four-bedroom villa at QR27,000 per month, up 16 percent year-on-year, while Ain Khalid and Al Waab, saw annual increases of 18 percent and 15 percent respectively.
“The expatriate influx has also driven further demand for serviced apartments, where occupancy levels have increased from long-stay guests,” added Wolfe.
Increasing rents in the freehold zones has led to an increase in expatriate tenants looking to purchase and a resurgence in investor appetites, the Asteco report said.
“According to figures from the Ministry of Justice (MOJ), the number of sales transactions fell from Q3 2012, however the overall value of transactions increased, indicating an increase in average property values,” said Wolfe.
In the commercial sector, a significant number of property deals have been agreed for office buildings in West Bay, which will lead to a decrease in availability of prime office space in the area, potentially driving rents upwards for the remaining space available, he added.