Photo Credit: Miguel Hadchity
Dubai, UAE — November 2025 — Qatar’s residential market enjoyed double-digit annual increases in both the value and volume of transactions in the third quarter of 2025, but marked slower activity during the period.
According to the autumn edition of the Qatar Real Estate Market Review from global property consultancy Knight Frank, the total number of residential sales jumped by 57 percent year-on-year, from 1,070 in the third quarter of 2024 to 1,682 in the same quarter this year.
However, the total value of sales in the third quarter of 2025 was approximately QAR 5.9 billion ($1.6 billion), reflecting a 43 percent annual increase but slipping from QAR 9 billion in the previous quarter.
Faisal Durrani, partner and head of research for the MENA region at Knight Frank explained: “While there has been a slowing in transactional activity during Q3, the underlying drivers for residential demand in Qatar remain robust.”
He added: “A key indicator for this is the reduction in the contribution of the construction sector to GDP which stood at 11.3 percent at the end of 2024; down from 13.4 percent in 2021. The sector’s growth was catalysed by $300 billion in spending in the decade leading up the 2022 FIFA World Cup, but that is now abating, highlighting the diversified nature of the economy and that the drivers of growth and demand for real estate are shifting.”
Durrani said that demand for residential real estate is “centred on completed communities, or those that offer a waterfront lifestyle, or are lifestyle-led.”
He noted that developers are moving to sustain and generate demand through incentives such as extended payment plans and property registration fee waivers.
Doha remained the dominant market during the third quarter this year, recording 559 transactions with a total value of QAR 2.2 billion, an increase of 43 percent year-on-year. Al Rayyan followed with 378 deals totalling QAR 1.83 billion, up 61 percent on last year, while Al Daayen witnessed the strongest growth, with transaction volumes up 118 percent.
Adam Stewart, partner and head of Qatar, added: “Flexible payment plans, and government moves to boost home ownership and freehold investment are having a positive impact on the market. For instance, several new residential projects in Lusail are now offering seven-year, 0 percent installments, while residency eligibility begins with property purchases of QAR 730,000 ($200,000).”
In contrast, the lifestyle retail sector stands out, with average monthly rents for retail destinations that prioritise consumer experiences increasing by 11 percent between the third quarter of 2024 and the one of 2025 to QAR 268 psm, driven by the continued expansion of international luxury brands and experiential tenants.
Stewart said that several high-end fashion and jewellery concepts have launched new stores in Place Vendôme and Msheireb Downtown Doha this year, reinforcing Doha’s position as a luxury shopping destination.
“Our research shows this has emerged as a key USP for Qatar, especially among GCC (Gulf Cooperation Council) HNWI. Meanwhile, major public initiatives such as Shop Qatar, Lusail Boulevard activations and sporting tournaments, including the Formula 1, and the FIFA U-17 World Cup continue to positively contribute to retail and F&B demand,” he added.
These events generate spikes in footfall, according to Stewart, particularly across popular retail destinations such as Doha Festival City, Place Vendôme, and Msheireb Downtown, highlighting the powerful interrelationship of events, tourism and retail performance.
Tourism continues to be a key growth driver, with international arrivals to Qatar reaching 3.3 million in the first eight months of 2025, a 3.4 percent increase year-on-year.
Amar Hussain, associate partner, said: “As a result of the increased influx of tourists, the hotel performance indicators in Qatar have improved steadily over the past 12 months. Occupancy rates edged up to 69 percent in Q3, representing a 3.7 percent year-on-year increase. While the average daily rate softened slightly by 0.5 percent to QAR 429, revenue per available room rose by 3.1 percent to QAR 300 over the same period.”
The total quality room supply in Qatar stood at 41,750 keys as of August 2025, and Knight Frank forecasts this will increase to around 45,000 keys by the end of 2027.
Durrani concluded: “Qatar is doubling down on mega events to drive tourism growth, using a year-round mix of sports, culture and technology to smooth seasonality and sustain visitor inflows.”
He noted that plans are also beginning in earnest for a submission to the International Olympic Committee for the country to host the 2036 Summer Olympic Games.
“Together, these events reinforce Qatar’s positioning as a premier destination while deepening hotel demand, lengthening stays and broadening the visitor economy,” he said.
