Qatar Mortgage Transactions Top $2.74 Billion in Q2 2025, ValuStrat Reports

Doha, Qatar – September 23, 2025 - Qatar’s mortgage market demonstrated steady growth in the second quarter of 2025, with total mortgage transactions exceeding $2.74 billion (QR10 billion), according to a recent report by ValuStrat. The figure marks a 5% increase compared to the first quarter of 2025, showcasing resilience in the market despite a 22% year-on-year (YoY) decline compared to the same period last year.

The Q2 performance was spread across 311 mortgage transactions involving various asset classes of ready properties. This represented a 5% quarter-on-quarter (QoQ) drop in transaction volume but a significant 20% YoY increase, indicating renewed confidence and long-term potential in Qatar’s real estate sector.

Doha Leads in Transaction Volume and Value

Doha continued to dominate Qatar’s mortgage activity during the quarter, recording 99 deals valued at QR6 billion ($1.64 billion), making it the highest both in terms of volume and value. Al Rayyan followed closely with 93 transactions worth QR2 billion ($547 million), reflecting the city’s ongoing role as a key real estate hub.

Other regions, including Al Khor and Al Wakra, also contributed to transaction growth, particularly in the residential villa segment. According to ValuStrat, The Pearl Island and Al Qassar saw dramatic surges, with sales values increasing by 198% and transaction volumes soaring 209% YoY, highlighting a growing demand for high-end properties.

Residential Price Trends and ValuStrat Price Index

The ValuStrat Price Index – Residential Capital Values (VPI) rose by 2% both quarterly and annually, reaching 98.4 points, based on a Q1 2021 baseline of 100 points.

Apartment Capital Values: Apartment prices remained stable compared to Q1 2025 but showed a 2% annual increase, averaging QR10,485 ($2,876) per sqm.

• The Pearl Island: QR10,620 ($2,912) per sqm (unchanged QoQ)
• West Bay Lagoon: QR9,600 ($2,630) per sqm (unchanged QoQ)
• Lusail: QR10,350 ($2,840) per sqm, up 1.6% QoQ

On a yearly basis, both The Pearl Island and Lusail grew by 2%, while West Bay Lagoon recorded a slight 1.4% decline.

Villa Capital Values:

• Villas experienced stronger growth with a 2.4% QoQ increase and 1.9% YoY rise, averaging QR5,650 ($1,550) per sqm.
• Muaither and Umm Salal Ali saw quarterly gains of 2% and 4%, respectively.
• The Pearl Island, West Bay Lagoon, and Ain Khalid reported declines of up to 3% QoQ, indicating a slight correction in luxury villa pricing.

Rental Yields and Price-to-Rent Ratio

The price-to-rent ratio for both apartments and villas rose to 20 years, indicating a slight increase in property values compared to rents.

Gross rental yields remained steady at 5.7%,

• Apartments contributed 8.1%,
• Villas stood at 4.5%.

This suggests that apartments continue to deliver higher returns for investors, while villas maintain moderate but stable yields.

Residential Supply and Future Pipeline

Qatar’s total residential stock reached 402,137 units by the end of Q2 2025, consisting of 254,108 apartments and 148,029 villas.

During the quarter:

595 new apartments were delivered to the market.

An additional 4,500 units are anticipated in H2 2025, with:

• 37% in Lusail,
• 37% in Al Waab,
• 24% on The Pearl Island.

The median ticket size for housing units rose to QR2.8 million ($769,000), reflecting a 3.7% QoQ increase, although still 1.8% lower YoY.

Surge in Residential House Transactions

The residential segment demonstrated robust growth:

• 30.9% increase QoQ
• 62.6% surge YoY

Al Khor and Al Wakra reported the highest number of residential villa transactions, underscoring demand in suburban and secondary markets as buyers seek larger homes with more space.

Outlook for Qatar’s Real Estate Market

ValuStrat’s report points to a stable yet dynamic real estate market, buoyed by mortgage activity and sustained buyer interest in key regions like Doha and Lusail. With upcoming deliveries focused in Lusail, Al Waab, and The Pearl Island, supply is expected to meet rising demand while offering diverse options across luxury and mid-market segments.

The continued growth of residential transactions, particularly in villas and high-end developments, positions Qatar as a competitive market in the region, while mortgage financing plays an increasingly vital role in shaping the sector’s evolution.