Qatar real estate trends: Demand for luxury apartments and grade office spaces drives the market, while villa rentals face a downturn

The Qatari real estate market is demonstrating resilience amid evolving dynamics, with luxury apartment rentals and premium office spaces leading the sector’s growth, according to the latest Qatar Real Estate Market Review by Knight Frank. These trends highlight the ongoing strength of the real estate market of Qatar as demand for high-quality properties continues to rise.

Over the past year, villa rents have dropped by 7.5%, averaging 15,085 Qatari riyals ($4,139) per month. In contrast, rents for luxury apartments have risen by 2.3%, reaching an average of 11,200 riyals monthly. Key areas such as West Bay and the Marina District have recorded increases of 9.6% and 3.2%, respectively, solidifying their appeal among expatriates and professionals.

The demand surge in premium locations, including Pearl Island and Lusail, highlights a preference for urban, compact living. Government reforms, including property-linked residency schemes and the introduction of freehold zones for expatriates, have further invigorated the residential sector. These initiatives have made Qatar an attractive destination for both living and investment.

However, villa rentals in neighbourhoods like Nuaija and West Bay Lagoon have seen steep declines of 20% and 9%, respectively, reflecting a supply glut and a shift in tenant priorities.

The office market tells a contrasting story. Prime office spaces have seen robust growth, with Grade A rents increasing by 3.2% over the past year. Government ministries, state-owned enterprises, and multinational companies have driven demand in key districts like Lusail and West Bay. Lusail has reported a 3% annual increase in rents, with rates reaching 92 riyals per square metre per month. Meanwhile, West Bay remains a preferred destination, commanding up to 150 riyals per square metre for premium office spaces.

This growth aligns with Qatar’s National Vision 2030, which focuses on sustainable economic diversification and infrastructure development. Plans to double the economy’s size are on track, supported by projected government revenues returning to 2014 levels.

The report also highlights a “flight to quality” trend, with tenants favouring modern, high-quality spaces over secondary locations. Rents in less central areas have fallen to 50-70 riyals per square metre, reflecting a shift toward contemporary facilities in bustling business hubs.

As Qatar continues to enhance its infrastructure and regulatory frameworks, the luxury and office property segments are expected to remain key growth drivers, reinforcing the country’s economic diversification goals under Vision 2030. These trends reflect the ongoing evolution of the real estate trends of Qatar, showcasing a shift towards sustainable and high-value developments.