Substantial public investment in a range of infrastructure projects has driven growth in Qatar’s construction and real estate sector in the decade preceding 2025. The development of several transport networks; new residential, retail and leisure spaces; and the expansion of Qatar’s industry in the lead-up to the 2022 FIFA World Cup has supported market growth. The government established new laws and regulations in recent years aiming to foster more collaboration between public and private entities, and open Qatar’s real estate market to higher levels of foreign investment. This includes allowing foreign residents buy houses in certain areas and creating free zones to boost international investment. The public financing of infrastructure projects, such as Qatar’s trade ports, tourist attractions and housing, is expected to spur greater private and foreign investment across the construction and real estate sectors going forwards.
Structure & Oversight
Several government and autonomous agencies oversee Qatar’s construction and real estate sector. The Ministry of Municipality and Environment (MME) is responsible for issuing building permits and construction certificates, as well as overseeing land and building regulations. The MME manages both the Engineers and Engineering Committee and the Tenders and Auctions Committee. The MME’s Land Acquisition Department oversees land transactions for both permanent and temporary use.
The Public Works Authority (Ashghal) was established in 2004 to plan and manage construction on all major Qatari infrastructure projects. Since Qatar’s government introduced Law No. 12 of 2020 Regulating Public-Private Partnerships (PPPs), Ashghal has increasingly worked with private companies to develop projects across the country. Property registration is managed by the Ministry of Justice, which oversees the implementation of licensing and accreditation procedures through its Real Estate Brokerage Affairs Department. In May 2023 the government created the Real Estate Regulatory Authority (Aqarat) to improve transparency, encourage investment and resolve disputes. Aqarat creates real estate policies and regulatory frameworks, as well as issues licences.
The government has progressively opened Qatar’s real estate market to foreign investors through the introduction of Law No. 16 of 2018 and Decision No. 28 of 2020, which permit non-Qataris to own freehold and usufruct properties – those with a 99-year leasehold. To support this initiative, the government established the Office for Non-Qatari Real Estate Ownership in Qatar in 2020 to oversee the expatriate homeowners sector. Additionally, the government has expanded the number of zones available for foreign buyers to 25, with nine freehold areas, including Lusail, The Pearl and West Bay. Foreigners who purchase property worth QR730,000 ($200,400) or more qualify for a residency permit. For purchases that exceed QR3.65m ($1m), buyers are entitled to permanent residency benefits, including access to education and health care services. Expatriates comprise approximately 88% of Qatar’s 2.9m population and the number of foreigners moving to Qatar is expected to continue in the coming years, increasing in line with economic growth.
Strategies
Construction and real estate policies are driven by the aims outlined in the Qatar National Vision (QNV) 2030 development strategy. The government has invested heavily in Qatari infrastructure in recent years, particularly in the lead-up to the 2022 FIFA World Cup, with financing of around $330bn in the decade preceding the event. The budget identified infrastructure projects with a value of QR53.9bn ($14.8bn) to be awarded between 2021 and 2023.
The MME aims to attract greater private investment in the sector between the years 2025 and 2045, benefitting from a greater openness to foreign participation across all sectors. The PPP law and the development of economic free zones are expected to draw in increasing levels of foreign investment across all sectors.
In its 2025 national budget, the government allocated QR210.2bn ($57.7bn) in expenditure, marking a 4.6% increase compared to 2024. The government plans to spend heavily on Qatar’s road networks and support major construction initiatives to attract both tourists and international investors.
Size & Performance
Construction and real estate is one of Qatar’s fastest-growing economic sectors, having achieved a 34% growth from 2015 to 2023. The Qatar construction market was valued at an estimated $68.7bn in 2025, which is expected to increase to $106.3bn by 2030, growing at an annual rate of 9.1% over that period. The sector has experienced moderate growth following the 2022 FIFA World Cup boom, driven largely by the expansion of the expatriate property investor segment, increased tourism and the continuation of long-term development projects, such as those outlined in the Transport Master Plan 2050.
Despite a positive mid-term outlook, Qatar’s construction industry was estimated to decline by 1% in 2024, due to higher interest rates, a drop in the issue of non-residential building permits, moderate weakness in the industrial market, an increasing budget deficit and a declining residential sector. The total number of non-residential building permits issued in 2024 fell by 3.6% year on year and permits for commercial buildings decreased by 69.5% year on year in the first eight months of 2024.
Public investment in the expansion of Qatar’s renewable energy sector, outlined in the National Renewable Energy Strategy, as well as oil and gas expansion projects, is expected to drive construction development over the next decade. One key project includes the construction of Qatar’s fifth independent water and power project, for which the government awarded South Korea’s Samsung a contract in November 2024.
Some of the main principles driving the sector include sustainable development and digitalisation, as the MME encourages the use of renewable energy and sustainable materials, as well as the development of smart, technologically integrated buildings and cities. Infrastructure construction contributed around 30% of the construction market in 2024, driven by transport projects including the development of roads, bridges, rail networks and maritime projects.
Real Estate
Property demand in Qatar has shifted in recent years, with more Qataris and expatriates looking for affordable housing. Developers are responding to this by building more cost-effective houses and villas in areas such as Al Wakrah, Al Khor and Umm Salal. While demand for mixed-use properties – comprising residential, commercial and retail spaces – has risen among both families and professionals. Recent developments in this sector include The Pearl-Qatar and Msheireb Downtown Doha.
Major Players
The Qatari construction market is fragmented, with more than 700 active companies competing for projects across the country. Qatari owned businesses continue to dominate the market. However, more foreign companies have entered the market as Qatar has become increasingly open to foreign investment, notably from South Korea, the UAE and Turkey. There is a mix of major international conglomerates and smaller specialised organisations developing infrastructure in Qatar.
With the government encouraging greater private participation in the market, more domestic companies are pursuing joint ventures with international players to benefit from the strong government relationships and established networks local companies have with the technical expertise of foreign firms.
Some of the major organisations in the domestic construction market include QD-SBG Construction, Gulf Contracting, QDVC, HBK Contracting and AlJaber Engineering. Most of the industry leaders are focused on improving their technological innovation through the adoption of advanced technologies such as artificial intelligence and the provision of training on modern construction techniques, such as prefabrication and sustainable development.
Building Materials
Demand for building materials is increasing rapidly as Qatar develops a broad range of infrastructure in Doha and beyond. The country’s hardware and building materials market is expected to grow at an annual rate of 3.9% between 2025 and 2029, in line with the development of the manufacturing sector. In addition to the expansion of Qatar’s domestic production activities, the government has enhanced trade links through the completion of the major Hamad Port, connecting Qatar to more than 100 maritime destinations around the world, as well as the creation of economic free zones.
The steel sector is dominated by Qatar Steel, which was established in 1974 as the first integrated steel plant in the Eastern Arabia region. The company commenced commercial production in 1978 and became wholly owned by the Qatari conglomerate Industries Qatar in 2003. Qatar Steel became a member of the international standard and certification initiative ResponsibleSteel, alongside 150 other organisations worldwide, as it works to achieve the sustainable development goals set out in QNV 2030, such as the decarbonisation of operations. Qatar Steel and Bahrain Steel signed a $1.3bn supply agreement in February 2025, which covers 5m tonnes of steel over five years. The deal is expected to enhance industrial cooperation between the two countries and bolster the regional steel sector in support of sustainable growth.
Qatar National Cement Company (QNCC) was established in 1965 in response to Qatar’s growing demand for cement for construction. QNCC operates five cement plants, with a total production capacity of 14,500 tonnes per day (tpd) and clinker production capacity of 11,000 tpd. The firm also runs two sand washing plants, one with a capacity of 20,000 tpd and another designed to handle 20,000 tpd. QNCC chose manufacturing locations close to raw material deposits, such as Umm Bab and Al Boaadiat. It has expanded its product lines to also include sulphate-resistant cement, hydrated lime, calcined lime and washed sand.
QNCC witnessed a decline in sales revenue from QR460.7m ($126.4m) in 2023 to QR397m ($34.7m) in 2024, owing to the need to pay QR13m ($3.6m) to the Qatar General Electricity and Water Corporation (Kahramaa) under a take-or-pay clause, compared to the previous year when it was exempt from the payment. Net profit totalled QR160m ($43.9m) in 2024 compared to QR205m ($56.2m) the previous year.
Major Projects & Demand Drivers
The continued expansion of Qatar’s transport network is expected to drive demand in the construction sector in the coming decades, with plans to develop a national and cross-country rail network connecting with neighbouring GCC countries. Further demand will be seen from industry as more domestic and foreign companies invest in manufacturing and other industrial activities. Much of the industrial expansion is expected to take place close to Qatar’s ports and within its free zones as the country becomes an international trade centre between Asia and Europe.
The government aims to invest in infrastructure in areas beyond the capital city of Doha through the development of smart cities and other attractions. Lusail City, Qatar’s second-biggest city, is one of the government’s largest development projects and is expected to accommodate 200,000 residents upon completion. It features residential towers, commercial centres, retail spaces and entertainment zones. The project is being built with sustainable development in mind and incorporates several innovative technologies in order to attract both homebuyers and investors. Lusail is located around 23 km north of Doha and is connected to the capital via the Doha metro system. It is home to a tram network that consists of four lines, 25 stations and 28 electric trams.
Lusail’s real estate market has rapidly expanded in popularity and it is now one of the most expensive areas in Qatar. The Waterfront development in Lusail achieved the country’s highest average sale price, of QR14,400 ($3940) per sq metre, in 2024. By contrast, the Fox Hills project in Lusail has more affordable housing options, with average apartment prices of around QR10,600 ($2900) per sq metre.
The government is also investing in constructing tourist attractions and expects to attract around 6m tourists per year by 2030. For instance, the development of a $3bn theme park is anticipated to boost regional tourism and support the economic diversification aims outlined in QNV 2030. Once complete, the Land of Legends Qatar will span 650,000 sq metres and is scheduled to open in 2028. The facility will include a variety of attractions – including rides, entertainment, dining, retail and hospitality options – with two luxury hotels. The real estate investment organisation Qatari Diar and FTG Development – the developer of the original Land of Legends in Turkey – are working together to build the theme park.
Subsectors
There has been notable growth across all segments of Qatari real estate over the last decade, driven by significant public spending and the opening of the market to foreign investment. Population growth and the increase in the number of expatriate workers in the country have driven housing demand. Meanwhile, significant public investment in infrastructure and industry has helped to establish Qatar as a trading centre, attracting higher levels of foreign financing across multiple sectors.
Qatar is divided by land use zones, including residential, environmental, industrial, logistics and large format retail, sport and recreation, and others. The zoning orders bolster the performance of the Municipal Spatial Development Plans. The regulations cover Doha, Al Rayyan, Al Shehaniya, Al Daayen and Um Salal and Al Shamal and are expected to be extended to the Al Khor and Al Wakra municipalities in the future.
Residential
Residential rental rates are expected to remain steady across most of Doha and surrounding areas in early 2025, with a modest growth forecast for premium properties in sought-after areas. The government and private developers have invested heavily in expanding Qatar’s housing stock, in line with population growth and the increase in demand for mixed-use properties. The number of homes is projected to increase from around 394,000 to nearly 408,000 by the end of 2026. This rise in housing supply has pushed prices downwards in recent years, although the population increase and growth in demand from expatriate workers are expected to contribute to more stable market prices in the future.
Lusail has become a popular choice for residential purchase, according to Knight Frank’s Destination Qatar 2024 report, with 47% of respondents choosing it as their preferred location. Around 22% selected The Pearl Island as their top choice. However, The Pearl Island, one of the leading locations for high-income households, experienced a 5.5% decrease in apartment prices between 2023 and 2024, with an average cost of QR13,290 ($3650) per sq metre.
Abu Hamour in the southwest of Doha is the city’s most expensive neighbourhood for villas, which average QR8610 ($2360) per sq metre. Meanwhile, Al Wakair offers a more affordable price of QR5755 ($1580) per sq metre. The government’s Decision No. 28 of 2020 increased the number of properties available for purchase by foreign buyers. Between August 2023 and 2024, the total volume of residential sales transactions rose by 12.6% to 867 deals, with a value increase of 12.8% to QR3.6bn ($988m).
In the rental market, villa lease rates fell by around 7.5% between August 2023 and 2024, to QR15,085 ($4140) per month. Rental prices fell more sharply in areas such as Nuaija and West Bay Lagoon, by around 20% to QR14,240 ($3910) and 9% to QR25,465 ($7000) per month, respectively. Average apartment rents rose by 2.3%, to QR11,200 ($3070) per month, demonstrating the diversification of Qatar’s housing demand beyond villas. Renters are attracted to well-maintained properties in prime locations, with older buildings in less well-connected locations seeing a fall in demand.
The rental prices in the popular neighbourhoods of West Bay and Marina District increased by 9.6% and 3.2%, respectively, thanks to an increase in demand from expatriates and professionals for modern amenities and accessibility to commercial centres. Families are typically attracted to housing units within proximity to schools, which is driving demand in certain neighbourhoods, such as Al Waab. More affordable areas, such as Abu Hamour and Umm Salal Mohammed, remain in high demand, with rents averaging approximately QR8550 ($2350) per month.
Leisure & Retail
The retail market has expanded rapidly in recent years in response to Qatar’s growing population and the increase in tourism. Approximately 881,000 sq metres of retail space have been developed since 2011. This sectoral expansion has helped establish Qatar as a retail destination in the Middle East and supported economic diversification in line with QNV 2030. This in turn is supported by festivals and events such as Shop Qatar (see Retail chapter).
There are two tiers of retail developments in Qatar consisting of high-end malls and older retail spaces in secondary locations. The latter has suffered from a decline in footfall, which has led to vacant stores. Major developments include Lusail Boulevard, Katara Plaza and Doha Port, which are home to luxury brands, restaurants and entertainment options.
The average monthly rental price of retail space fell by roughly 0.6% to QR206 ($56.54) per sq metre between 2023 and 2024. Retail spaces in high-end malls attract a rental price of between QR200 ($54.89) to QR300 ($82.34) per sq metre, compared to QR120 ($32.93) to QR160 ($43.91) per sq metre for less attractive and older locations. This price falls further for high street retail options, to between QR120 ($32.93) and QR160 ($43.92) per sq metre on average.
Hospitality
The hospitality industry has been a major driver of growth for both construction and real estate. The rising number of tourists Qatar attracts each year has spurred significant investment in hotels and attractions, such as the Qatar National Museum, the Museum of Islamic Art and Meryal Water Park. The tourism economy increased by around 31% in 2024, to QR81.2bn ($22.3bn), or 10.3% of GDP.
Tourism growth has been supported by favourable government policies, investment in infrastructure and greater awareness of Qatar as a tourist destination, particularly following the 2022 FIFA World Cup. The government introduced visa-free entry for citizens from 88 countries, enhancing access for visitors. There was a hotel room stock of approximately 40,000 as of April 2025, which is expected to increase to 47,290 rooms by the end of 2026. Around 1300 new rooms were built in 2023 and another 1100 are expected to be added in 2025, driven by the expansion of multiple international hotel brands. The average daily rate of a hotel room rose by 6% between January and September 2024, to QR431 ($118.30), with occupancy levels growing from 23% to 66% (see Tourism chapter).
Commerce & Industry
The total office supply in Qatar is estimated at around 7.4m sq metres of gross leasable area. Prime locations have seen an increase in rental prices in recent years, while secondary locations have experienced a decline. The public sector drives demand for office space and the government has invested heavily in the office stock for government-owned enterprises in popular business districts. For example, the government leased the World Trade Centre Tower on the Corniche, which is home to 58,000 sq metres of highly sought-after office space.
Lusail and West Bay continue to be the most popular office locations, with an average monthly rent of QR92 ($25.25) per sq metre in Lusail. Msheireb Downtown has also grown increasingly popular and Qatar Airways has announced plans to relocate its international headquarters to this area in 2025. Meanwhile, previously popular locations have experienced a fall in demand as new developments have been completed. This demonstrates the preference for high-quality, modern office environments. For its part, Dow Jones announced plans to open an office in Qatar in 2025, with several other international companies expected to launch operations in Qatar in response to the opening up of investment opportunities to foreign investors.
Qatar and Turkey became member states of the Integrated Industrial Partnership for Sustainable Economic Development in February 2025, joining Bahrain, Egypt, Morocco and the UAE. During the meeting of the member states, over $2bn worth of new industrial projects was announced, including a $1.3bn deal between Qatar Steel and Bahrain Steel.
Industry is a key driver is of the construction and real estate sector. The industry sector contributes around 25% of Qatar’s GDP, supported by the chemicals, metals and renewable energy industries. The government’s National Strategy for Manufacturing Industries 2024-30 outlines a goal to increase the industry sector’s contribution to QR70.5bn ($19.4bn) by 2030.
Mortgage & Housing Finance
Qatar has diversified its mortgage offerings in recent years. The mortgage market size stood at $1.4bn in 2025 and is expected to rise to $1.9bn by 2030, growing at a compound annual rate of 6.9% between 2025 and 2030. This growth will be driven by the digital transformation of the sector and favourable government policies.
The government has developed new initiatives to help encourage responsible lending and protect consumer interests, with regulatory updates driving change in the mortgage market. The real estate and construction sectors account for approximately 11.5% of loans in Qatar. Several major lenders offer housing finance options, including the Commercial Bank of Qatar, Qatar National Bank Group, Al Rayan Bank, Qatar Islamic Bank, Al Khaliji Commercial Bank, Doha Bank, Qatar International Islamic Bank, Barwa Bank, Ahli Bank and HSBC Bank Middle East. In the fourth quarter of 2024, 294 mortgage transactions were recorded, totalling QR24.8bn ($6.8bn) and marking a 168% increase from the same period in the previous year. This was largely driven by a decrease in interest rates from 6.25% in January to 5.1% in December 2024.
Outlook
Greater expansion is expected for Qatar’s real estate and construction sector following several years of substantial and sustained public investment in new infrastructure and housing. The introduction of a series of new laws and regulatory frameworks specifically designed to encourage and facilitate increased levels of foreign investment in the real estate sector is anticipated to lead a notable increase in private investment activity across the country. Although current data indicates a moderate oversupply of residential and commercial properties, the ongoing diversification of Qatar’s economy is projected to enhance long-term demand. Additionally, QNV 2030 will bolster investor confidence in the real estate market, particularly as the population is expected to grow steadily over the next decade. Continued public investment in Qatar’s transport sector will further contribute to the sector’s growth, following the completion of Hamad Port and several free zones. Meanwhile, higher levels of private investment in industry, and particularly in manufacturing, are also expected to drive construction demand.
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