While some segments of Qatar’s real estate market faced challenges in 2024, these shifts have opened up new opportunities – particularly in the evolving villa segment, which is adapting to changing tenant tastes and market dynamics. Rental rates for villas dropped by 7.5% in 2024, averaging QR15,085 ($4140) per month. The steepest declines were observed in Nuaija (20%) and West Bay Lagoon (9%), reflecting a shift in tenant preferences towards compact, urban living – particularly in the high-end bracket. By the fourth quarter of 2024, both villa and apartment prices had fallen by 5% year-on-year, underscoring a sustained correction in the market shaped by a mix of interrelated factors.
Chief among these is the oversupply of housing, a legacy of large-scale development in preparation for the 2022 FIFA World Cup. While these developments enhanced national infrastructure, they also created a persistent supply-demand imbalance, placing downward pressure on property values and rental rates.
By contrast, luxury residences have shown resilience, maintaining stable rents due to steady demand in exclusive neighbourhoods. This has led to a two-tier residential market: premium properties continue to perform well, while mid-range and affordable segments are under strain from oversaturation, resulting in increasing competition among landlords and further downward pressure on rents.
However, prime-location apartments have emerged as bright spots. Areas like West Bay and the Marina District have become preferred destinations for expatriates and professionals, with rents rising by 9.6% and 3.2%, respectively. These gains highlight a shift toward urban living environments that offer convenience, amenities, and proximity to business districts.
GCC Customers
Qatar’s residential market is drawing interest from GCC nationals and regional expatriates. In 2025 $537.5m in private capital is set to be invested in residential real estate, according to Knight Frank. In comparison, residential sales in 2024 reached $3.2bn. A major driver of this investor interest is the development of landmark projects such as Lusail City and The Pearl, which showcase Qatar’s commitment to sustainable, high-end urban living.
Key Project
Lusail City, a 38-sq-km smart city north of Doha, features residential, commercial and diplomatic zones designed to accommodate over 200,000 residents. Major centres such as the Marina District, Fox Hills and Lusail Stadium are central to its urban plan. Backed by a $250bn development pipeline announced in 2025, Lusail continues to attract international investors with projects like Lusail Plaza Towers, Qetaifan Island and Seef Lusail. Infrastructure improvements – including a 19km, 25-station tram network and smart city technology – further enhance the city’s appeal.
In parallel with this momentum, Taameer Properties signed a 2025 agreement with Qetaifan Projects to develop seven prime plots – both seafront and inland – on Qetaifan Island North. These high-end residential ventures support Qatar’s strategy to position itself as a regional centre for luxury real estate. To attract global investors, Qatar has also introduced investment incentives. Property purchases above QR3.6m ($1m) now grant eligibility for permanent residency, a draw for high-net-worth individuals seeking long-term lifestyle and capital protection benefits.
In addition, property ownership laws and mortgage regulations were revised in 2023 to expand access for foreign buyers. These reforms align Qatar with international investment standards and enhance its reputation as a tax-efficient, politically stable destination for secure, income-generating assets. As a result, Qatar’s real estate market – valued at $485bn in 2024 – has become the country’s second-largest sector for foreign direct investment after energy. This rapid transformation signals a growing confidence in the long-term trajectory of Qatar’s property market, underpinned by its structural reforms, ambitious urban planning and strategic investor incentives.
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