December 12, 2016, Doha, Qatar: Rental activity at the Pearl Qatar is outperforming industry expectations in 2016, as lower prices are attracting long-term Doha residents to move to the high-end development from other neighbourhoods. Coreo Real Estate, one of Qatar’s leading real estate agencies, has reported these findings following its analysis of data from property listings across all developers and individual owners during the period 1 January to 1 November 2016. According to Coreo’s proprietary, rental prices have dropped by 8% from 2015, and if up-front free rent incentives are taken into account, the average value of a one-year lease has fallen by over 15%.
Misnad Al-Misnad, Director of Coreo, remarked that the fall in rents in 2016 reflects a rebalancing of the market. “With increased supply of properties at the Pearl, owners have resorted to providing promotions such as rent free periods to attract tenants in order to remain competitive in the market. With a better balance between supply and demand, we view the resulting adjustment in rental prices as being healthy for the real estate sector, and overall rental activity is higher than expected for 2016.
Senior Property Consultant Frederick Goss commented: “The Pearl’s desirability has led to properties vacated by departing tenants to be taken by other Doha residents, who have always aspired to live on the Pearl. This is the first time that many are able to afford the lower rental prices. There are great deals on offer today for those attracted to the offshore lifestyle”.
Mr. Goss added that prices may fall further in 2017, depending on the volume of new supply that enters the market. With a likely increase in housing stock on the Pearl in 2017, Coreo expects property developers and owners to compete on more than price.
Developers are likely to introduce new marketing tactics that focus on the delivery of superior property management services, and installation of high-end finishings that enhance the overall living experience of tenants.
Coreo is one of the real estate agency market leaders on the Pearl and recently opened a new office in Medina Centrale.