A 114% year-on-year increase in residential transactions during Q2 underpinned a resilient performance across the country’s real estate sector in the first half of 2025, according to the latest Qatar Real Estate Market Review from global property consultancy Knight Frank.

The report shows both transaction volumes and values in the residential sector posting strong year-on-year growth. There were 1,844 residential sales in Q2 2025, totalling QAR 9.23bn, representing a 114% increase compared to the same period last year.

Doha, Al Daayan and Al Wakrah were among the best-performing municipalities – Doha alone recorded QAR 3.85bn of transactions, up 126% year-on-year, while Al Daayan and Al Wakrah posted increases of 164% and 127%, respectively.

In terms of property values, the apartment sector led the way, with average sales prices increasing by 3.5% year-on-year to QAR 13,270 psm.

The most expensive apartments were located in Lusail’s Waterfront district (QAR 15,131 psm) and Viva Bahriya on The Pearl Island (QAR 14,987 psm). At the other end of the market, Porto Arabia registered the lowest average apartment price at QAR 11,696 psm, offering relatively accessible options in a prime waterfront setting.

Villas saw a slight decline in values, with average prices down 4% year-on-year to QAR 6,745 psm. Among the key districts, Abu Hamour recorded the highest average villa price at QAR 8,434 psm, while Al Wukair remained the most affordable option at QAR 5,667 psm.

The residential land segment also experienced robust growth in Q2.

Renewed investor interest in land plots, driven by good long-term development prospects and relative affordability in emerging areas, delivered sales totalling QAR 2.16bn across 598 deals, up 85% year-on-year. Significant gains were observed in Umm Salal, where volumes increased by 218%, followed by Doha (134%) and Al Wakrah (102%).

Faisal Durrani, Partner – Head of Research, MENA, said: “Momentum in Qatar’s residential market is building again following a period of subdued activity after the FIFA 2022 World Cup. As challenges stemming from previously high interest rates and legacy oversupply diminish, we are seeing a positive shift in the market dynamics. The increase in transaction volumes, rising apartment values, and strong land sales activity suggest growing confidence among investors and end-users. As new supply pipelines slow and infrastructure investments continue, particularly in Lusail and surrounding zones, the market is poised for a greater stability the short-medium term.”

PRIME OFFICES IN DEMAND

The Qatari office market has remained relatively stable over the past 12 months, underpinned by steady demand from the public sector and a growing preference for high-quality modern office space. Average grade-A office rents currently stand at QAR 82 psm per month, with top-tier districts such as West Bay – Prime and Marina district commanding higher rates.

The public sector continues to drive office demand, with large occupiers such as Qatar Investment Authority, Qatar National Bank and Ooredoo expanding their footprint, particularly in Lusail’s premium office districts. This sustained demand has resulted in upward pressure on rents in Lusail, where monthly office rents in prime locations have increased by 3.5% over the last 12 months, reaching as much as QAR 115 psm in some areas.

West Bay, once the most dominant business hub, is witnessing a gradual relocation of major public sector tenants to Lusail, where newer buildings offer enhanced amenities and energy efficiency. Nevertheless, West Bay – Prime locations remain in demand and are achieving rents of up to QAR 109 psm, while the average across the district is QAR 80 psm.

The private sector is also contributing to sustained activity, particularly from financial institutions and tech firms, which are favouring modern, flexible and sustainable workspaces. This demand is translating into rising interest in serviced offices and co-working spaces, especially from start-ups and SMEs seeking shorter lease terms and adaptable layouts.

Adam Stewart, Partner – Head of Qatar at Knight Frank, said: “Lusail continues to attract occupiers and establish itself as a next-generation business district with integrated lifestyle and retail offerings. We expect the rising demand for buildings that meet green certification standards, support hybrid working models, and offer smart building technology to continue. This trend mirrors global preferences for ESG-compliant office environments and will likely widen the performance gap between modern and legacy office stock across Doha’s business landscape.”

INTERNATIONAL HOSPITALITY HUB

Qatar’s hospitality sector added 718 hotel rooms in the first half of 2025, taking total supply to 41,463 rooms.

Approximately 60% of this supply consists of international branded hotels. Now recognised as a leading regional lifestyle and leisure destination, Qatar is on track to reach 44,562 hotel rooms by the end of 2027, in line with the government’s national tourism strategy.

Occupancy rates edged up by 0.3% to 70.7% over the past 12 months. Although the average daily rate softened by 0.2% to QAR 454, RevPAR (revenue per available room) increased by 2.9% to QAR 321.

Oussama El Kadiri, Partner – Head of Hospitality, Tourism & Leisure Advisory, said: “Occupancy has continued to grow across all segments, despite a slight increase in supply, driven by demand from regional tourists and business travellers. Upcoming events, such as the launch of Art Basel in 2026 and Formula 1 Qatar in November 2025, and enhanced airlift, are expected to boost international tourism. The country’s commitment to diversifying tourism experiences with high-end shopping, cultural centres such as Msheireb and Katara, and active promotion of conferences and exhibitions, is solidifying Qatar’s position as an international hospitality hub.”

This is also reflected in the retail market, where prime lifestyle assets continue to command the highest rents, averaging QAR 272 psm per month. These prime formats benefit from high footfall, strong branding and integrated food and beverage (F&B) offerings that enhance the customer experience. Similarly, lifestyle F&B units remained resilient with rents reaching QAR 231 psm per month, underpinned by consumer demand for dining and experiential destinations.

The tourism landscape remains healthy, following a 24.6% surge in visitors in 2024 to 5.05 million, up from 4 million in 2023. This growth is being fuelled by increased regional promotional campaigns and the continued development of cultural, retail and sports tourism offerings.

New destination retail venues in Lusail, Msheireb and Doha Port, have increased competition across all retail segments. However, developments offering curated tenant mixes, leisure integration and public realm enhancements have outperformed in terms of both occupancy and footfall.

Looking ahead, rental growth will depend on operators’ ability to adapt to evolving consumption patterns; growing demand for mixed-use, walkable destinations; and the role of placemaking to create experience-led environments that attract and retain tenants and consumers.