Qatar’s Q1 Economy Grows 3.7%, Real Estate Among Key Growth Drivers

Qatar’s economy continued its upward trajectory in the first quarter of 2025, posting a real GDP growth of 3.7% compared to the same period in 2024. The National Planning Council (NPC) reported that GDP at constant prices reached $49.9 billion (QAR181.5 billion), up from $48.1 billion (QAR175 billion) in Q1 last year.

Real Estate Records 7% Growth in Q1

Among the standout contributors to this growth was the real estate sector, which posted a solid 7.0% increase in the first quarter. With an expanding population, ongoing infrastructure development, and demand for both residential and commercial space, real estate continues to play a central role in Qatar’s non-hydrocarbon economy.

The sector’s performance is closely linked to Qatar’s ambitious urban development strategies, including the expansion of mixed-use communities, retail destinations, and logistics hubs, efforts that are actively reshaping the country’s real estate landscape and attracting regional and international investors.

Non-Hydrocarbon Economy Strengthens

Real estate was part of a broader surge in non-hydrocarbon activities, which accounted for 63.6% of Qatar’s real GDP in Q1—equal to $31.6 billion (QAR115 billion)—up from 62.6% a year ago. The sector’s momentum was matched by:

• Wholesale and retail trade, up 14.6%
• Manufacturing, up 5.6%
• Construction, up 4.4%

The non-hydrocarbon economy as a whole grew by 5.3%, reaffirming Qatar’s commitment to diversification and reducing dependency on energy exports.

Hydrocarbon Sector Maintains Stable Contribution

While energy prices face global volatility, Qatar’s hydrocarbon sector maintained steady growth, contributing 36.4% of real GDP (approximately $18.1 billion / QAR66 billion), a 1.0% increase over Q1 2024.

The continued strength of Qatar’s real estate and construction industries, backed by state-led infrastructure and investment programs, is expected to bolster further economic expansion through 2025. These sectors not only support GDP growth but are critical to achieving long-term national development goals, including job creation, urban innovation, and global competitiveness.

As real estate demand rises, especially for mixed-use and high-end developments, Qatar is positioning itself as one of the most attractive and resilient property markets in the Gulf region.