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Doha, Qatar: Qatar’s realty industry continues to grow positively as 253 mortgage transactions were recorded across all asset classes of available buildings during the second quarter of the year. Market experts at ValuStrat noted that there was an increase of 10 percent annual increase in the registered properties. However, the total value of the mortgage transactions reached QR12.
6bn, indicating a decrease of 11.7 percent Y-O-Y. Anum Hassan, country head of the Research department at ValuStrat stated: “Increased mortgage activity supported growing investor confidence, despite higher interest rates.
” Meanwhile, the US Federal Open Market Committee has decided to keep its federal funds interest rate at the present target range of 5.25 percent to 5.5 percent as of June this year, the report mentioned.
In Qatar, Doha municipality experienced the highest number of mortgage transactions with 99 contracts and a total value close to QR10bn, while Al Rayyan saw 77 dealings amounting to QR1.8bn. Hassan said, “There was a notable increase in mortgage transactions during the quarter, despite high interest rates, with Doha municipality contributing approximately QR10bn to the total mortgage value.
” On the other hand, the ValuStrat Price Index – Residential Capital Values, stood steady Q-OQ but fell by 1 percent per annum at 96.6 points. This is compared with 100 base points as of Q1 2021.
“Real estate capital values demonstrated resilience in the second quarter, despite softening rentals. Meanwhile, the rise in tourism and entertainment projects may point towards a period of cautious optimism,” Hassan said. Valuations within the apartments segment continued to stabilise with no change compared to the previous quarter, reaching an approximate amount of QR10,265 per sq m.
These prices have invariably held steady since 2022. The sale rates for The Pearl amounted to QR10,390 per sq m, a fall of 1 percent Y-o-Y. The total values in Lusail reached QR10,130 per sq m, holding regular annual performance.
In the meantime, West Bay Lagoons witnessed nearly a 3 percent yearly drop, with values at QR9,530 per sq m. On the other hand, the villa market sank slightly by 1.1 percent on an annual basis but remained unchanged Q-O-Q, amounting to QR5,513 per sq m.
Villa rates in most of the key areas reported a stable performance as compared to last quarter except for Al Thumama and Old Airport as the prices plunged by 1.2 percent and 3.5 percent respectively.
The report also highlighted that the price-to-rent ratio was 20 years, and the gross yield for residential units was stable at 5.9 percent, while apartments registered 8.1 percent and villas registered 4.
8 percent..
