Residential Real Estate Preferred Choice for Qatar’s HMWIs, Says Report

Qatar’s High Net-Worth Individuals (HNWIs) mostly prefer residential real estate, primarily driven by the natural human affinity to this sector, a recent report from global property consultancy Knight Frank said.

According to the inaugural report entitled “Destination Qatar 2023,” 30 Qatar-based HNWIs, each with a net worth of more than $500,000 (excluding their primary residence), have been surveyed to gauge the appetite for investing in the rapidly growing real estate market in Qatar. This exclusive group has a net worth of more than $155 million.

Almost 37% of the respondents in the survey cited residential real estate as their primary target. In second place is the office sector (33%), followed by retail (23%). The survey, carried out in partnership with YouGov, has been designed to measure and understand domestic appetite to invest and own real estate in Qatar.

Thirty Qatar-based HNWI, each with a net worth of over US$ 500,000 (excluding their primary residence) have been surveyed to gauge their appetite to invest in the rapidly growing real estate market in Qatar. Together, this exclusive group have a net worth more than $155 million.

The accompanying qualitative and quantitative analysis that accompanies the survey results goes beyond the raw data to offer an indicative steer on future capital allocation based on current preferences as sentiment is a far better indicator of future capital allocation than deals themselves.

When asked their expectations on capital value growth during 2023 from any residential investment, the largest proportion of HNWIs (32%) forecast price growth of 2%-4% this year. While residential values declined in some parts of Doha last year, apartments in Marina District and The Pearl registered a price growth of 20% and 15%, respectively, the survey found.

“The upmarket nature of these areas suggests that demand for luxury homes has been far less impacted than the mainstream market, mirroring a global trend of outperformance at the top end of the residential price spectrum,” the survey said.

Lusail First Choice

When it came to the most preferred residential property acquisition locations, Lusail has been named as the most preferred option by our HNWI respondents. In fact, 71% of those we surveyed already own a home here.

Lusail is Qatar’s first sustainable city and is being built as part of the country’s diversification drive to attract more tourists.

It offers a diverse selection of leisure and recreational developments, including the 1.3 sq km project, Qetaifan Island North, whose island precinct is being positioned as somewhat of a crown jewel in Qatar’s development drive and the most exclusive address in Qatar for the country’s wealthy. Qetaifan Island North will also host a 280,000 sqm water park, Meryal, complete with the world’s tallest water slide at 85 metres.

Lusail’s proximity to Doha means it is viewed as a ‘city within a city’. Lusail comprises 19 mixed-use entertainment, business, and residential zones, as well as four islands and a lagoon with two marinas. 25,000 residential structures are also due to be completed in Lusail, including high rise towers, as well as stand-alone family homes.

Lusail Marina (40%) and Lusail Waterfront (40%) have also been named as the most popular future target locations by most HNWI in Qatar looking for additional residential property. The Pearl and West Bay follow at 32% each.

Prime residential prices in Qatar range from $ 3,100 per sq m) in Al Dafna, to about $5,200 per sq m) in the highly sought after Lusail Waterfront.

“The majority of our HNWI respondents (36%) are only prepared to commit between $500,000-$750,000), while a fifth will spend between $ 750,000-$1 million,” the survey noted.

At the top end of the budget spectrum, 16% of HNWI were willing to spend over $4 million) on a residential purchase this year.

The average prices in Qatar start around $1,800 per sq m and climb to $ 5,500 per sq m, depending on the quality and location of the property. For branded residences, prices reach $8,200 per sq m). At the end of 2022, average villa prices reached around $2,000 per sq m), and average apartments stood at $ 3,700 per sq m.

The report also found that 30% of the HNWIs are interested in buying a residential property during 2023. A further 33% are looking to purchase within the next two to three years, and another 20% are looking to purchase within the next four to five years.