By Mohammed Iqbal and Sidi Mohamed
DOHA: Rents of most high-end residential properties have fallen by 10 to 20 percent due to oversupply and relatively low demand in the market, say industry sources.
Villas and flats in the middle segment have also become cheaper.
However, affordable housing units, including those offered in partitioned villas, have not seen a significant fall in rents due to stable demand.
The decline in rents has been attributed to a lull in the market during summer, coupled with the exit of several expatriate workers from the country, who have lost their jobs in recent months. Many expatriate families have also left the country recently.
“There is a decline in building rents in the residential sector by 10 to 20 percent. Currently about 9,000 housing units are vacant in the market, awaiting customers. There is oversupply in the market and demand is low,” Khalifa Al Maslamani, a Qatari real estate expert, told The Peninsula.
For instance, a villa that was earlier rented out at QR15,000 a month is available at QR11,000. However, affordable housing units, falling in the QR3,500-QR4,000 range have not seen any noticeable decline in rents, he said.
Despite an ongoing crackdown on partitioned villas, such facilities exist in the market and are in high demand as they cater to the low- and middle-income segments, including single workers.
Al Maslamani said there is more demand for commercial properties compared to residential units.
He pointed out that with the current supply-demand equation in the market, it is nearly impossible for landlords to impose a further hike in rents in new tenancy contracts.
“Landlords cannot increase rents after the contract period in the current situation. If they do, they face the risk of losing their tenants since cheaper options are available in the market.
“Landlords cannot keep their properties vacant for long because they will have to pay back their bank loans every month,” said Al Maslamani.
A real estate agent based in Al Rayyan said a small house in the area with one room, hall, kitchen and bathroom is available at QR3,300 a month. It earlier cost QR3,500. He said there is a shortage and high demand for rooms for single workers.
A room with average space cost about QR2,300. Normally a group of workers hire it jointly and share the facility because a single person cannot afford to pay the whole rent on his own.
Another agent, subletting a property in Al Sadd, said he is afraid he would lose his tenants if he increased the rent.
“We have an agreement with the landlord to increase rents by 10 percent every year when we renew the contracts, but we are not sure whether we can implement it this year,” said the agent.
The Peninsula
