Dubai / Emirates Business
A slowing economy hasnâ€™t had any sort of impact on Qatarâ€™s residential rental market, with a 7 per cent gain last year following on from the 14 per cent annual growth experienced in 2014.
But rental growth numbers are starting to pick up some slack, according to a CBRE report.
Growth â€œduring the second half of the year was around 5 per centâ€, and slipped further to just 1 per cent in the fourth quarter. â€œSmaller apartment units, particularly those within central locations, remained in high demand, although rental growth was actually most evident for secondary and more affordable locations,â€ the report adds.
Since 2014, the government has had a rental freeze for most commercial properties, though none exists for residential properties.
For tenants, the rental hikes are exacting a price. Reports of relocations and tenants opting to resize are gaining traction.
Those who can afford it are preferring options in locations such as Al Sadd, West Bay Lagoon and the Pearl Qatar.
Typical monthly rents for one- and two-bedroom apartments in Al Sadd range from 8,000â€”14,000 Qatari riyals, while those for West Bay Lagoon and Pearl Qatar homes range from 14,000-20,000 riyals.
â€œThe lack of affordable housing options has become an increasingly prevalent issue over the past two years amid escalating rental costs,â€ CBRE reports. â€œThe issue of affordability is further highlighted by the estimated 55,000 housing units which are currently being used for shared housing accommodation across the country.â€