Qatar’s construction and real estate sectors entered 2026 on a stable footing, although the Iran-conflict temporarily dampened buyer sentiment and slowed transaction momentum, particularly in discretionary residential and investment-led segments. These segments play a key role in Qatar’s National Vision 2030, the country’s roadmap for economic diversification.
Despite these geopolitical headwinds, construction is expected to expand moderately in 2026 and 2027, supported by population and tourism growth, alongside government-backed infrastructure projects, including liquefied natural gas (LNG) expansion projects, renewable energy investment and urban development schemes. Private sector participation has been on the rise and demand remains steady for the refurbishment of infrastructure built for the 2022 FIFA World Cup. Nevertheless, the sector now faces a higher degree of delivery risk with the Iran conflict having disrupted Qatar’s LNG infrastructure, heightening uncertainty across regional shipping routes and input supply chains. While this is unlikely to derail the construction pipeline, the after effects of the conflict may affect some projects.
The real estate market stabilised during 2025, following a slowdown after Qatar’s hosting of the World Cup, with transaction activity gradually returning to more typical levels across key segments. Reflecting this trend, S&P Global Ratings reported in January 2026 that Qatar’s residential property sector was experiencing a moderate recovery. While sale and rental prices softened in late 2025, the underlying market drivers for the real estate sector remain robust. Population and tourism growth, a growing expatriate population, supportive regulations, ongoing urban developments and investor-friendly policies continue to underpin real estate demand.
Structure & Oversight
Qatar’s Public Works Authority (Ashghal) is responsible for the design, management, and delivery of major infrastructure projects, including transport, urban development, and water and waste management. The Ministry of Municipality (formerly the Ministry of Municipality and the Environment) oversees urban planning, land surveys, zoning, building regulations and permitting, and maintains real estate transactions records.
The Real Estate Regulatory Authority (Aqarat) regulates Qatar’s real estate sector, including the licensing of developers, development projects and related companies. The Real Estate Registration Department of the Ministry of Justice administers the legal and transactional framework for property ownership, including online applications for real estate registration and the issuance of title deeds.
Alongside these regulatory bodies, Qatari Diar serves as a key government-backed developer and investment vehicle. The company is the real estate arm of the Qatar Investment Authority. It works with developers and investors to advance strategic real estate projects in Qatar and abroad.
Construction Performance
In the decade leading up to the 2022 FIFA World Cup, Qatar’s construction sector was driven by approximately $300bn in investment as the country prepared to host the tournament. Following the competition, investment activity moderated, with the sector’s GDP contribution declining from 13.4% in 2021 to 11.3% in 2024.
However, signs of renewed growth have emerged. In the first quarter of 2025 the construction sector contributed QR19.2bn ($5.3bn), equivalent to 10.6% of GDP, representing year-on-year (y-o-y) growth of 4.4%, according to government figures. In the third quarter of 2025, construction was the fastest-growing industry within Qatar’s non-oil economy, expanding by 9.1% y-o-y. The construction market is forecast to expand from $54.5bn in 2026 to $66.7bn by 2031, at a compound annual growth rate (CAGR) of 4.1%, according to market intelligence firm Mordor Intelligence. In the near term, conflict-related volatility is likely to affect the sector primarily through project delays, higher procurement costs and pressure on contractor margins rather than through a broadbased slowdown in demand. Continued government investment in infrastructure programmes and urban development projects are expected to support activity and support project pipelines.
Qatar’s construction sector continues to play a central role in the country’s national development agenda, with sustained growth in buildings and infrastructure supported by both public and private sector participation. Maintaining high standards of quality, safety and sustainability will be essential to improving project delivery and creating a more attractive environment for local and international investors.
Construction Costs
The government regulates the pricing and supply of essential construction materials to help control costs and ensure availability for key projects. However, the prices for key construction materials – including steel, concrete and aggregates, remain higher than in neighbouring countries – according to 2025 research by Turner & Townsend, a global professional services company. Reflecting these cost pressures, Doha ranked as the Middle East’s second most expensive city for construction in 2025, with average costs reaching US$2,631 per sq metre, up from $2096 in 2024.
In response, Qatar has expanded domestic manufacturing capacity, contributing to lower steel prices in 2025, while concrete and timber prices remained broadly stable. Still, price instability in Qatar’s building materials market remains an issue. Its continued dependence on imported materials, such as cement and steel rebar, expose contractors to price volatility. The government-owned Qatar Primary Materials Company aims to increase annual aggregate production to 30m tonnes by the end of 2026 through the expansion of its Gabbro terminal. However, supply constraints persist and local sand reserves could be depleted in five years unless capacity is further expanded. At the same time, Qatar’s cement market is projected to grow from its valuation of $383.4m in 2024 to $462.3m by the end of 2029. The Iran conflict has further reinforced the case for greater domestic supply-chain resilience, particularly in aggregates, cement inputs and steel, as disruptions in the Strait of Hormuz tightened import availability and increased logistics costs for contractors.
Alongside materials costs, labour availability remains an important consideration for the sector. There was an estimated shortfall of over 40,000 skilled workers in the construction sector as of 2023. The construction sector relies heavily on foreign workers. More broadly, expatriates account for 84.5% of the total workforce, equivalent to around 2m workers. Qatar’s labour market has remained stable, with an unemployment rate of only 0.1% in 2024, the lowest rate among GCC countries. Looking ahead, Qatar’s hardware and building materials market is expected to grow at a CAGR of 3.9% between 2025 and 2029, largely supported by the demand for infrastructure projects. Growth could exceed current forecasts if the upgrades to energy-related infrastructure affected by the recent regional conflict generate additional demand for construction materials.
Energy Construction
While the recent conflict resulted in limited damage to infrastructure at Ras Laffan Industrial City, prompting repair works and highlighting the importance of asset resilience, the impact on Qatar’s long-term LNG expansion strategy is expected to be temporary. In the near term, reconstruction activity and resilience-focused investment are likely to complement existing energy infrastructure programmes rather than alter the broader trajectory of sector growth. Central to this long-term outlook is QatarEnergy’s North Field LNG Expansion Project, through which the government-owned company aims to increase LNG production to 142m metric tonnes per year by 2030, reinforcing Qatar’s position as one of the world’s leading LNG exporters. In October 2025, QatarEnergy announced plans to invest QR428bn ($114.1bn) by 2027. The programme is expected to support a peak on-site workforce of approximately 45,000 workers, providing a substantial pipeline of activity for contractors and suppliers.
Since 2021, QatarEnergy has awarded a series of major contracts to international engineering firms, including Japan’s Chiyoda Corporation and Paris-based Technip Energies. In December 2025, QatarEnergy awarded a contract worth more than $4bn to Italy-based Saipem and China Offshore Oil Engineering Company for the development of the North Field offshore natural gas area. Before that, in March 2025, India’s Larsen & Toubro was awarded a $4bn contract to build two offshore compression complexes, underscoring the opportunities for leading international engineering and construction companies in the country’s gas sector. Reflecting this momentum, the total value of construction contracts awarded rose by 4% to $23.1bn in 2025, driven primarily by LNG infrastructure projects.
The Iran conflict has increased the strategic significance of these projects by highlighting the sector’s dependence on LNG-related investment and imported inputs, potentially prompting greater scrutiny of project schedules, contingency planning and domestic supply-chain resilience. Renewable energy projects are also contributing to construction activity as Qatar seeks to generate 20% of its electricity from renewable sources by 2030. Backed by QR4bn ($1.1bn) in investment from QatarEnergy, these projects are expected to support the development of solar capacity and related infrastructure.
Public & Private Spend
As part of the government’s 2026 budget, Ashghal plans to issue infrastructure tenders worth QR49bn ($13.5bn). This comes in addition to a series of infrastructure projects valued at QR81bn ($22.2bn), announced in May 2025 as part of the authority’s five-year development plan through 2029. The plan also includes the expansion of public-private partnerships (PPPs), which have delivered over 5500 residential plots. This followed a May 2020 law regulating PPPs, making it easier for international companies to participate in public infrastructure projects, particularly those aligned with Qatar National Vision 2030, such as the building of telecom facilities, hospitals and sewage treatment plants. By 2030, Qatar is expected to award $85bn in PPPs, particularly in large-scale water infrastructure, as well as solar energy projects and storage facilities in free trade zones. Private investment in Qatar’s construction sector is projected to grow at a CAGR of 6% in 2025. Under the 2026 government budget, private sector tenders worth more than QR70bn ($19.2bn) are being offered. Nevertheless, public funding is the dominant source of construction investment, accounting for nearly 78% of activity in 2025.
Infrastructure Construction
Ongoing largescale transport projects continue to support the construction sector. In late 2025, Ashghal awarded a QR3.5bn ($960.6m) contract to French engineering firm Egis and its local partners, Qatar Building Company and Waagner Biro Bridge Qatar Association, for the operation and maintenance of more than 2300 km of motorways and roads and 23 tunnels. The second phase of the Doha Metro expansion is scheduled for completion in 2026, while expansion work at Hamad International Airport is ongoing and will increase passenger capacity to more than 65m annually. Additionally, in late 2025, Qatar and Saudi Arabia signed an agreement to build a 785 km electric high-speed rail line connecting their capital cities, expected to be completed by 2032. Ashghal’s Expressway Programme also continues to underpin activity, with around 800 km of roads and 115 km of sewer tunnel systems planned upon completion.
Major urban developments, primarily concentrated in and around Doha, are also driving growth in the construction segment. These include the $45bn development of Lusail, a smart city north of Doha. The project’s residential, commercial, hospitality and retail components aim to attract 200,000 residents and 80,000 visitors, while supporting around 170,000 jobs across its 19 districts. Another major development is The Pearl-Qatar, an artificial island off Doha’s West Bay spanning 4m sq metres of reclaimed land and forming a key part of Qatar’s luxury real estate market. Government spending on sports infrastructure, including QR7.6bn ($2.1bn) allocated in the 2026 budget, will also support construction activity.
Commerce & Hospitality
Commercial projects accounted for nearly 35% of the construction market in 2025, while infrastructure remained the fastest-growing segment. Major office towers and mixed-use projects, such as Lusail’s financial district, lead government efforts to establish Doha as a regional financial leader. Looking ahead, data centres and financial tech campuses are expected account for a growing share of the Qatar construction market.
Rising tourism is driving higher hotel demand and supporting growth across the construction, real estate and hospitality sectors. Hotel occupancy rates rose to 69% in the third quarter of 2025, up 3.7% y-o-y. To meet rising demand, the number of hotel rooms across Qatar is set to increase to 45,569 by 2028, up from 42,555 in 2025. This reflects a moderate growth pipeline, supported by year-round sporting events, cultural festivals, and business and technology fora. Plans by Qatari authorities to submit a bid for the 2036 Summer Olympic Games could further boost the tourism and hospitality sectors.
Residential Real Estate
Qatar’s real estate sector ranks second after hydrocarbons in attracting foreign direct investment. The sector’s contribution to GDP rose from 5.4% in 2014 to 7.4% in 2024, underscoring its growing importance in the country’s economic diversification goals. In 2025, the total value of home sale transactions rose by 43.5% to QR26.6bn ($7.3bn), while the number of transactions increased by 50% to 6831, reflecting continued demand in core residential markets. However, villa prices softened by 1% and apartment prices declined by 2% compared with 2024, underscoring a more competitive pricing environment. This is a trend that is likely to persist as supply expands, with the housing market experiencing a supply and demand mismatch in 2025, especially in the low to mid-price range, according to research by global property consultancy Knight Frank. This, coupled with mortgage affordability issues, continues to exert downward pressure on house prices and rental rates in the near term.
In 2025, residential sales remained concentrated in Doha’s prime real estate areas such as The Pearl, a development on a large artificial island off the coast of Doha; Lusail City, a waterfront community 15 km north of Doha; and West Bay Lagoon, known for its luxury villas. In Doha, apartment sales recorded 559 transactions worth QR2.2bn ($603.83m), up 43% from 2024 to 2025. In 2025, the average property sale price per square metre in Lusail ranged from QR13,000 ($3568) to QR15,000 ($4117) for apartments, while villas in Al Waab and West Bay Lagoon ranged between QR9m ($2.5m) and QR15m ($4.1m). In terms of land prices, Doha recorded the highest with an average land price of QR380 ($104) per sq ft and Al Shamal reporting the lowest at QR170 ($46.66) per sq ft, according to KPMG.
Property prices have been weighed down by an oversupply following the construction boom tied to the 2022 FIFA World Cup, with surplus stock estimated at more than 80,000 units as of mid-2025. Residential housing stock stood at 400,000 units in 2025, comprising 246,000 apartments and 134,000 villas, according to Knight Frank. The after effects of the Iran conflict is likely to keep near-term residential sales uneven, with prime freehold locations more resilient than secondary stock as households and investors adopt a more cautious stance. In the residential rental market, meanwhile, overall villa rents declined by 3% in 2025. West Bay Lagoon continues to lead the market, with average monthly rents ranging from QR18,656 ($5120) for three-bedroom villas to QR25,696 ($7052) for five-bedroom villas. In the first quarter of 2026, apartment rents declined by 13% y-o-y, reflecting softer rental conditions.
Commercial Property
Economic diversification aligned with Qatar National Vision 2030 has supported job growth and, in turn, office demand, particularly in the tech, renewable energy and services sectors. There has been a clear shift toward prominent locations, with tenants relocating from older office stock in search of more modern buildings, serviced offices and co-working spaces. However, in January 2026, S&P Global Ratings noted that Qatar’s office segment remained subdued, with weaker demand leading to higher vacancy levels. In 2025, Qatar’s office market saw premium rents fall by 1.4%, with average rents ending the year at QR90 ($24.70) per sq metre per month, reflecting a more competitive leasing environment as supply expands. West Bay remains Doha’s primary office centre, with available space has declining to approximately 115,000 sq metres, equivalent to around 6% of total supply as of late 2025. While high-grade office demand should remain relatively defensive, regional uncertainty may cause delays in leasing decisions and further reinforce the ongoing flight to quality in Doha and Lusail.
Market Drivers
Qatar’s population is projected to grow by 50%, from 2.2m in 2014 to an estimated 3.3m in 2029, driving real estate demand. Tourism is also a growth driver, boosted by mega-events and growing hotel supply. Tourist arrivals to Qatar rose to 5.1m in 2025, up 4% from 4.9m in 2024. By 2030, Qatar aims to attract 6m annual visitors. The GCC Unified Tourist Visa, a regional scheme set to launch in late 2026, is also expected to boost tourism and hotel occupancy in Qatar. However, the effect of the Iran conflict-related caution in regional travel may have softened short-term gains in hospitality and related sectors such as retail and serviced accommodation, even as Qatar’s longer-term tourism targets remain intact.
At the project level, ongoing mixed-use residential developments are also driving growth in the real estate market, including Qetaifan Island North, comprising four private offshore islands near Lusail featuring residential, leisure and retail offerings. The Simaisma development is a tourism project spanning 8m sq metres, offering beachfront residential hospitality assets; and Gewan Island, a 400,000 sq metre development featuring 586 apartments designed to accommodate 3500 residents.
Foreign Ownership Laws
In 2020 the government eased its foreign property ownership rules to attract more investment into the real estate sector. The reform increased the number of locations where non-Qataris can purchase real estate outright. The law allows full ownership for foreigners in nine designated areas – West Bay, The Pearl, Al Khor Resort, Al Dafina, Onaiza, Lusail, Al Khruaij and Jabal Thulaileb. In 16 additional areas, non-citizens may obtain 99-year leasehold rights known as usufruct. Foreigners may also own property within selected residential complexes and malls across Qatar.
Several regulatory changes have been introduced in recent years to ease and encourage foreign residency. The “Qatar Residency by Investment” scheme, introduced in 2020 and commonly known as the golden visa, offers long-term residency to foreign investors who purchase property valued at a minimum of QR730,000 ($200,363) in 26 designated special zones. Permanent residency, with access to health care and education services, is available for property investments worth at least QR3.6m ($1m).
In February 2026, the government announced new residency pathways not tied to property investment. The scheme offers two five-year permits, one for entrepreneurs and another for business leaders, both renewable for up to 10 years. As Qatar positions itself as a leading global business destination, these measures are expected to support retail sector activity, rental demand and office occupancy – particularly in prime areas in and around Doha, such as West Bay, Doha’s main business centre; The Pearl; and Lusail city. Expatriates comprise 88% of Qatar’s 3.2m population as of December 2025, and the number of foreign residents is expected to continue rising in the coming years, supporting real estate demand.
Housing Finance
Financial incentives offered by developers in 2025, such as extended payment plans and property registration fee waivers, are helping to boost Qatar’s home ownership and sales, and support overall market recovery. Several new residential projects in Lusail are offering seven-year, 0% instalment payment plans. Qatar National Bank, the country’s major financial institution, offers home and land financing at rates as low as 3.5%. The maximum loan available to expatriates is QR3m ($823,410), for up to 15 years in designated freehold and leasehold areas. During the fourth quarter of 2025, mortgage lending saw an acceleration, with QR12.2bn ($3.5bn) of financing recorded across 359 transactions, most of which were concentrated in the Doha area.
Nevertheless, mortgage affordability in Qatar remains constrained by regulatory borrowing limits and high upfront capital requirements. The Qatar Central Bank sets debt burden ratios at a maximum of 50% of monthly income for expatriates and 75% for Qatari nationals, limiting the share of income that can be allocated to mortgages. In addition, expatriate borrowers are typically eligible for loanto-value ratios of around 70-75%, meaning buyers are required to provide upfront deposits of 25-30% of a property’s value, alongside the associated fees and valuation costs. Loan tenures are also capped at 25 years, influencing monthly repayment profiles.
These structural factors interact with broader housing market dynamics, including a pipeline historically weighted towards higher-end villas and apartments. While property prices have moderated following the post-World Cup cycle and interest rates have stabilised, mortgage penetration is limited. Cash-based transactions remain dominant, accounting for some 75% of residential activity in 2025.
Sustainability & Smart Cities
Sustainability is becoming an increasingly important factor across Qatar’s construction and real estate sectors as developers, contractors and policymakers seek to balance economic growth with environmental objectives. In line with Qatar National Vision 2030, new developments are placing a greater emphasis on resource efficiency with waste reduction, reduced carbon emissions and the adoption of advanced construction technologies. Greater regional cooperation is expected to play a central role in advancing Qatar’s circular economy ambitions in the construction sector. Increased cross-border collaboration is also likely to accelerate the adoption of advanced recycling systems designed for local conditions and the sharing of best practices. This shift is now shaping project design, procurement processes and operational management across a wide range of asset classes.
Many large-scale developments are incorporating energy-efficient building systems, smart utility networks and district cooling solutions to reduce electricity and water consumption. Smart-city principles are increasingly embedded in major urban projects, particularly in Lusail, where digital infrastructure, intelligent transport systems and data-driven asset management are improving operational efficiency and enhancing the resident experience.
The adoption of building information modelling (BIM) and other digital planning tools is also supporting project delivery by improving design accuracy, reducing waste and streamlining coordination across project stakeholders. The adoption of digital BIM and integrated information management is improving collaboration across various disciplines and making outcomes on large-scale construction projects much more predictable. As Qatar’s construction sector continues to expand, these technologies are enhancing quality while also helping to reduce costs.
At the same time, sustainability considerations are creating new opportunities across the construction value chain. “Advanced architectural systems and façade technologies contribute to energy-efficient construction and improved performance in Qatar’s built environment,” Abrar Fayaz Khazi, CEO of Euro Systems Qatar, told OBG. “These components enhance building quality and resilience, supporting modern urban development trends.” Demand for environmentally responsible building materials, energy-efficient technologies and specialist engineering services is expected to grow as both public and private-sector clients place greater emphasis on long-term performance and lifecycle costs. As environmental standards continue to evolve and investors increasingly prioritise sustainability criteria, the integration of green building practices is likely to become a more significant driver of competitiveness within Qatar’s construction industry. “Collaboration across design, engineering and supply chain partners strengthens sector capabilities, ensuring that projects meet international performance benchmarks,” Khazi told OBG. “Optimised procurement and system integration deliver cost efficiencies and improve construction timelines.” In October 2025, the Ministry of Municipality launched an artificial intelligence-powered building permit system, reducing the time for the issuance of permits from 30 days to 120 minutes.
Expected Growth
While the medium-term outlook remains supported by Qatar’s planned LNG capacity expansion and public infrastructure investment, regional geopolitical tensions has introduced greater uncertainty into the near-term growth outlook. Nevertheless, the construction sector is expected to benefit as energy production and investment normalise. The real estate and construction sectors are projected to grow at a 4.7% CAGR through 2029, reaching a combined value of $45bn, reflecting growth and opportunities.
The 2026 Iran conflict means that the sector’s upside is now more likely to be shaped by delivery risk, imported-material inflation and the pace of energy-linked projects. Diversified private sector platforms that combine construction, technology and related services are strengthening Qatar’s resilience to external shocks in periods of uncertainty while supporting sustained economic growth. Closer integration across different industries is also reinforcing domestic value chains and encouraging broader participation throughout Qatar’s economy.
Qatar’s real estate market is expected to grow at a moderate pace, with an expected CAGR of 3-4% through 2027. While near-term performance may be more uneven than previously anticipated, the Iran conflict is likely to represent a temporary disruption rather than a reversal of the sector’s medium-term recovery trajectory. Looking ahead, Qatar’s resilient residential property sector is expected to continue to rebound gradually, as demand strengthens and macroeconomic conditions improve, strengthening housing prices. Growth is likely to remain concentrated in Doha’s prime locations over the long term.
Outlook
As Qatar advances economic diversification efforts under its national development agenda, demand for high-quality commercial, industrial and mixed-use real estate is expected to expand alongside growth in logistics, advanced manufacturing, financial services and technology-related activities. Continued investment in transport infrastructure, urban regeneration and smart city initiatives will further enhance the attractiveness of key economic centres. While regional geopolitical uncertainty may introduce short-term volatility, Qatar’s strong fiscal position, substantial sovereign assets and proven capacity to deliver large-scale projects provide a solid foundation for sustained construction activity and real estate development over the coming decade. Support from population growth, rising tourism inflows and continued energy-sector investment is also expected to underpin medium-term demand.
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