The total value of residential sales in Qatar rose by 43.5% year-on-year to QR26.6 billion ($7.2 billion) in 2025 against a backdrop of expanding supply and softening prices, according to the winter edition of the Qatar Real Estate Market Review from global property consultancy Knight Frank.

As in the first half of 2025, activity remained concentrated in key locations in Q4 2025, led by Doha recording 564 transactions with a combined value of QAR2.4 billion and Al Wakrah registering 387 transactions valued at QAR895 million.

At a neighbourhood level, villa prices increased by 6.5% in Al Dafna and by 5% in Al Kheesa in Q4 2025, said the Knight Frank in its report. 

This contrasted with Abu Hamour, which registered a 9.5% year-on-year decline despite commanding the highest average price (QR7,740 per sq m). Umm Salal Ali remained the most affordable villa market, averaging QR5,800 psm.

Across the country, apartment sale prices declined by 2% year-on-year, averaging QR12,865 psm, stated the report. 

The Waterfront (QR15,265 psm) and Viva Bahriyah, The Pearl Island (QR14,630 psm) recorded the highest pricing, reflecting continued demand for premium waterfront living. Values were also well supported in Qanat Quartier (QR14,590 psm), while Porto Arabia, The Pearl Island (QR11,787 psm), remains a more affordable option within The Pearl.

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," noted Durrani.

“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 reveals that Al Dafna’s prime location close to Doha’s business hubs and the Corniche continues to fuel price growth, while in Lusail, Al Kheesa’s competitive pricing, strategic location and community feel is finding favour among value-conscious buyers.

A modest market correction saw the average villa rental rate decline by 2.4% to an average of QR12,985 per month in Q4 2025, said Knight Frank in its report. 

Demand remains focused on prime communities, with West Bay Lagoon continuing to lead the market, averaging QR18,656 per month for a three-bedroom villa, rising to QR25,696 for five bedrooms, it added.

In Q4 2025, apartment lease rates declined by 7%, although demand remains robust in established, lifestyle-led districts. The Pearl Island commands the highest rents, with average monthly rates of QR8,440 for one-bedroom, QR11,645 for two-bedroom and QR15,500 for three-bedroom apartments. Fox Hills is the most affordable option, with one-bedroom units averaging QR5,875 per month.

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 QR15,500 and QR13,500 per month, respectively, reflecting pricing resilience in prime schemes," stated Partner.

Qatar’s office market saw grade-A rents ease by 1.4% in the 12 months to Q4 2025. The average rental rate now stands at QR90 psm per month, reflecting a more competitive leasing environment as supply expands and occupier requirements evolve.

Demand remains concentrated in prime locations, with West Bay – Prime achieving the highest rents at QR108 psm per month, followed by the Marina District at QR96 psm per month, and other districts in Lusail averaging QR90 psm per month.-TradeArabia News Service