Skander Ben Legha
Co-Founder & Managing Director
FourCorners Properties
The real estate market has been gaining traction over the last few years, particularly during the COVID-19 pandemic, which some may find surprising. Property values rose and there was an increase in buyer demand. Ultimately, it made the housing market a unique bright spot, during what was a very difficult time. But the real estate market is always in flux, and real estate trends come and go. Throw in that this industry is highly localized, with the same conditions being witnessed across Qatar. Luckily, understanding the basics of the market can help you stay on top of all these changes.
Real Estate Prices
Property prices are influenced by several factors, including local buyer demand and the amount of housing supply that’s available for purchase. Low supply and high demand can cause housing prices to increase. Mortgage rates also play a role, as they vitally impact demand. When rates decrease, there is more interest in buying homes. When rates rise, demand somewhat falters.
Housing Affordability
Affordability is not just a result of house prices. Inflation, incomes, and interest rates all play a role in creating an affordable housing market. So, rising prices don’t always translate into homes becoming less affordable. If rates are particularly low or incomes are increasing, homebuyers might be able to afford more houses than they could have previously. Fortunately, that is exactly the scenario we’re seeing today. When factoring in rates, income trends, and inflation, consumer house-buying power was better than the previous two years.
Interest Rates
Mortgage interest rates play a big role in the real estate market, impacting demand, home prices, and affordability.
Property Inventory
Property inventory or the supply of homes that are currently available for purchase, is another important factor in the housing market, too. When demand is high and stock is low, a seller’s market is created, as home prices rise, and sellers have the upper hand in negotiations.
On the other hand, if stock is abundant, buyers tend to have the advantage. When you have more listings than buyers to purchase them, that’s when you have created a buyer’s market.
This slows down price growth and creates an overall, less competitive market.
The local real estate market is very safe for local and overseas investors, with different choices available in the market, and the possibility of receiving the benefits of a permanent residency, we can only say that despite the pandemic, this sector will always be one of the safest options for investment.
This article was published as part of the sixth edition of Property Finder Qatar’s Trends Report.
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