Knight Frank: Qatar Residential Sales Surge by 50% as Prices Soften

Doha, Qatar: Residential sales activity in Qatar strengthened markedly in 2025, with the total value of transactions rising by 43.5% year-on-year to USD 7.30bn (QAR 26.6bn), despite a backdrop of expanding supply and softening prices. The findings are detailed in the winter edition of the Qatar Real Estate Market Review published by Knight Frank.

Market momentum remained concentrated in established residential hubs during Q4 2025. Doha led activity with 564 transactions valued at USD 659m (QAR 2.4bn), followed by Al Wakrah, which recorded 387 sales totalling USD 246m (QAR 895m). This pattern reflects sustained buyer focus on well-connected locations offering established infrastructure and community amenities.

Villa and apartment pricing trends

At a neighbourhood level, villa prices continued to show divergence. Al Dafna registered a 6.5% increase in Q4 2025, while Al Kheesa saw prices rise by 5%, underpinned by location advantages and competitive pricing. In contrast, Abu Hamour recorded a 9.5% year-on-year decline, despite commanding the highest average villa price at USD 2,125 per sq m (QAR 7,740 psm). Umm Salal Ali remained the most affordable villa market, with average prices of USD 1,592 per sq m (QAR 5,800 psm).

Apartment values across Qatar declined by 2% year-on-year, averaging USD 3,536 per sq m (QAR 12,865 psm). Premium waterfront districts continued to outperform, led by The Waterfront at USD 4,193 per sq m (QAR 15,265 psm) and Viva Bahriyah, The Pearl Island, at USD 4,019 per sq m (QAR 14,630 psm). Values also remained well supported in Qanat Quartier at USD 4,008 per sq m (QAR 14,590 psm), while Porto Arabia, The Pearl Island, offered relatively more affordable pricing at USD 3,238 per sq m (QAR 11,787 psm).

Faisal Durrani, Partner – Head of Research, MENA, said:

Average villa prices fell by 1% during the 12 months to Q4 2025, reflecting a more competitive pricing environment as supply expands and buyers become increasingly value-led. Despite this moderation, prime locations remain resilient, supported by steady demand for premium schemes. Indeed, overall residential transaction activity strengthened in 2025, with the number of deals increasing by 50% year-on-year to 6,831.

Although residential prices are softening, strong growth in transaction volumes highlights continued liquidity and demand in Qatar’s core residential markets and indicating stabilisation, rather than a market in retreat.Although residential prices are softening, strong growth in transaction volumes highlights continued liquidity and demand in Qatar’s core residential markets and indicating stabilisation, rather than a market in retreat.

Knight Frank’s analysis highlights Al Dafna’s proximity to Doha’s business hubs and the Corniche as key drivers of price growth, while Al Kheesa in Lusail continues to attract value-conscious buyers due to its strategic location, community appeal, and competitive pricing.

Rental performance reflects selective demand

Qatar’s residential rental market experienced a modest correction in Q4 2025. Average villa rents declined by 2.4% to USD 3,566 per month (QAR 12,985). Demand, however, remains concentrated in prime communities. West Bay Lagoon continues to lead the villa rental market, with three-bedroom units averaging USD 5,125 per month (QAR 18,656), rising to USD 7,065 (QAR 25,696) for five-bedroom properties.

Apartment rents declined by 7% during the quarter, although lifestyle-led districts continued to see resilient demand. The Pearl Island recorded the highest average rents, at USD 2,320 per month (QAR 8,440) for one-bedroom units, USD 3,200 (QAR 11,645) for two-bedroom apartments, and USD 4,259 (QAR 15,500) for three-bedroom homes. Fox Hills remained the most affordable option, with one-bedroom apartments averaging USD 1,615 per month (QAR 5,875).

Adam Stewart, Partner – Head of Qatar, said:

Rental performance varies widely by location, and while the softening of average rates picked up pace in the final quarter of 2025, this does not tell the full story. Qatar’s residential rental market continues to be shaped by tenant demand for well-located, lifestyle-led communities, with pricing remaining strong for larger villas in established neighbourhoods. In the apartment market, standout performers The Pearl Island and West Bay continue to attract premium demand, with three-bedroom units commanding an average of QAR 15,500 and QAR 13,500 per month, respectively, reflecting pricing resilience in prime schemes.

Flight to quality in the office market

Qatar’s office sector continued to experience a “flight to quality” in 2025, with grade-A office rents easing by 1.4% year-on-year to an average of USD 24.70 per sq m per month (QAR 90 psm). The softening reflects increased supply and more selective occupier requirements.

Prime locations remain the strongest performers. West Bay – Prime achieved the highest rents at USD 29.65 per sq m per month (QAR 108 psm), followed by the Marina District at USD 26.35 (QAR 96 psm), while other areas in Lusail averaged USD 24.70 (QAR 90 psm). Secondary locations continued to lag, with rents along the C/D Ring Road averaging USD 18.66 per sq m per month (QAR 68 psm), placing downward pressure on non-prime submarkets.

Stewart said:

Economic diversification in line with Qatar’s National Vision 2030 is supporting job growth and office demand, especially in the tech, green energy, and services sectors. These occupiers are increasingly seeking high-specification, modern buildings with advanced facilities, and we are seeing a clear shift towards prime locations in Doha and Lusail, pulling tenants away from older stock. This demand is also translating into rising interest in serviced offices and co-working spaces, especially from start-ups and SMEs seeking shorter lease terms and adaptable layouts.

Lifestyle and leisure underpin market confidence

Retail leasing conditions remained challenging, with average rents declining by 2.6% year-on-year to USD 54.70 per sq m per month (QAR 199). Lifestyle retail destinations continued to command the strongest rents at USD 72.80 (QAR 265), followed by prime malls at USD 56.30 (QAR 205), reinforcing the appeal of leisure-focused environments. Secondary malls face ongoing pressure as tenants increasingly gravitate towards newer lifestyle destinations such as Lusail Boulevard and The Pearl.

Tourism growth is further supporting Qatar’s retail and hospitality sectors. Visitor arrivals rose to 5.09 million in 2025, up from 4.91 million in 2024, representing 4% year-on-year growth and confirming continued recovery following the post-FIFA World Cup correction.

Hotel performance improved in parallel, with average daily rates increasing by 1.9% to USD 121 (QAR 443), occupancy rising by 3.3% to 70.1%, and revenue per available room climbing by 5.3% to USD 85 (QAR 311). Quality hotel supply reached 42,555 keys by the end of 2025, with a further 2,126 rooms expected in 2026, bringing total supply to 44,681 keys. By 2028, supply is forecast to reach 45,569 keys.

Amar Hussain, Associate Partner – Research, MENA, said:

Qatar’s retail sector, like others around the world is increasingly experience-led, with landlords and retailers placing greater emphasis on events, activations and pop-up concepts to drive footfall and strengthen dwell time, supporting leasing performance in well-positioned schemes. Demand is being further fuelled by Qatar’s expanding tourism base and the country’s growing appeal as a tourism destination, driven by enhanced infrastructure, global events and ongoing investments in hospitality and leisure.