Qatar’s real estate market maintained overall stability during the first quarter of 2025, according to a recent report by ValuStrat. The sector was supported by steady residential capital values, a recovery in mortgage lending, and continued leasing activity across the commercial segment.

The number of residential unit sales increased by 13.2% compared to the previous quarter, while transaction values rose by 3.8% during the same period. High-demand areas like The Pearl and Qassar led the market, recording over a 50% jump in transaction values quarter-on-quarter.

Conversely, mortgage transactions for ready properties declined by 2% on a quarterly basis, though they remained stable at 37% year-on-year. Doha accounted for the bulk of mortgage activity, with 95 transactions valued at QAR 16.4 billion.

In the commercial sector, rental rates showed a downward trend across most areas, including prime business districts such as West Bay and Al Sadd. Grade A office rents averaged QAR 116 per square meter per month. Grade B/C rents held steady quarter-on-quarter but were down 1.9% annually to QAR 67 per square meter.

This decline in office rents is partially attributed to the addition of around 60,000 square meters of new leasable space in Q1, including Marina 31 in Lusail and Corniche Park Towers in West Bay. These additions brought the total office stock to 7.3 million square meters of gross leasable area.

The retail segment remained steady during the quarter, supported by the opening of Centro Mall and Outlet Village, increasing the total retail space to 2.5 million square meters. Average mall rents stood at QAR 182.5 per square meter per month, while street retail locations in areas like Al Sadd and Old Airport saw a 10% decline in rental rates.