04/12/2025 08:31 AST
Qatar's residential market continued to strengthen through the third quarter (Q3) of 2025, with recent data from Knight Frank revealing a widening performance gap between villa and apartment sectors, a surge in buyer activity, and growing momentum in key districts such as Doha, Al Rayyan, and Lusail.
Average villa prices fell 2 percent year-on-year to QR6,614 per square metre, reflecting ongoing supply pressures in mid-market neighbourhoods. Meanwhile, the apartment market saw average prices rise 3.4 percent to QR13,074 per square metre between Q3 2024 and Q3 2025.
Abu Hamour remains Qatar's priciest villa submarket at QR7,899 psm, followed by Al Thumama (QR7,564 psm) and Al Kheesa (QR7,350 psm), the latter also recording the strongest annual price growth at 5.7 percent.
Speaking to The Peninsula, regional experts stress that the industry is experiencing a growing demand, marked by a decisive shift in buyer behaviour and stronger investment sentiment. "The real estate sector is entering a new phase of growth as the villa market is going through a period of recalibration," said Mohammed Sohail, a Doha-based property analyst. "Demand is still there, but buyers are negotiating harder, especially in secondary suburbs where supply remains elevated."
On the apartment side, premium waterfront communities continue to command a clear price premium. Lusail's The Waterfront leads at QR15,096 psm, closely followed by Viva Bahriya on The Pearl Island at QR14,729 psm. Qanat Quartier (QR14,302 psm) and Marina District (QR13,299 psm) also performed strongly, while Porto Arabia remains the most accessible prime waterfront area at QR12,045 psm.
Qatar registered 1,682 residential sales in Q3 2025, a 57 percent jump from the same period last year, though down 6.5 percent from Q2's elevated levels. The total value of sales reached QR5.9bn in Q3, up 43 percent year-on-year, bringing year-to-date transactions to QR197.4bn.
"Developers have finally cracked the formula: make ownership easier, and buyers return in force," said Abdul Kareem, a regional investment strategist. "The new payment structures are especially appealing to young professionals and long-term expats." Moderating inflation also supported sentiment, with the non-oil PMI averaging 51.6 in Q3, indicating ongoing expansion.
Despite the buoyant sales market, mortgage activity cooled significantly in H1 2025. A total of 779 mortgage transactions worth QR19.2bn were registered, a 39 percent decline in value and a 12 percent drop in volumes compared to H1 2024.
Analysts attribute the slowdown to tighter lending standards and buyers shifting toward cash purchases supported by developer payment plans. "At this stage, banks are more cautious with investment units, but they have become more competitive for genuine end-users, which is helping keep the market stable," Kareem said.
Knight Frank expects prime, well-managed apartment developments to remain price-resilient through Q4 2025. He stated, "If the current momentum continues, 2025 could mark the beginning of a sustained new cycle for Qatar's residential market." "The fundamentals such as population growth, infrastructure delivery and investor confidence remain firmly in place," Kareem added.
The Peninsula
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