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Did you know? Qatar’s real estate market cycle has four phases: Pearl Gates’ experts answer you.

It’s easy to get lost in the ever-changing ripples of Qatar’s real estate market, rather than riding its waves towards success and long-term profit. But once you identify and understand the four fundamental phases of its real estate cycle, you can more easily predict how much rental return you can expect from your investments. Plus, you will know the best time to sell or invest in a new property for sale in Qatar.

Our expert Real Estate Investment Advisor, Tony Wijesekara, has gathered extensive knowledge regarding the real estate cycle over numerous years in the local property industry. Watch his informative explainer video below for critical indicators or read on for more:

The four phases of Qatar’s real estate market cycle and how they influence your investing: 

1. Recovery – the best time for new investments

Property prices in Qatar are at their lowest in the first phase of the cycle, due to high unemployment rates and a large number of foreclosures. The property prices are at their lowest in this phase. From now on, rental prices begin to stabilise and new construction projects increase. Successful investments are likely to start soon as it’s the best time to buy low and then sell high in phase 2 or 3.

2. Expansion –  rental returns rise  

There’s a demand-supply in this phase. The market further improves as consumer confidence flourishes due to an increase in local job opportunities, which in turn, levels out the nation’s GDP. Demand for new property for sale in Qatar thus increases alongside construction projects and property prices. Rental prices also rise, which results in excellent monthly rental returns on investments.

3. Hyper-supply – low rental returns and exit time for some

Just as the name suggests, the hyper-supply phase is most commonly identified by an influx of properties entering the market. Prices skyrocket, and developers pick up speed on construction projects. As an investor, you may choose to sell due to lower occupancy rates and rental returns compared to phase 2.  

4. Recession –  great deals for opportunist investors

By this stage of the cycle, supply is much higher than demand. Occupancy rates are at their lowest, and rental prices fall below the average rate of inflation. You may wish to offer discounted rates on your rental property investments to retain tenants. Property prices in Qatar also fall to rock bottom prices, opening up opportunities for you to invest in affordable new properties. And once demand and occupancy rates start to increase, the entire cycle begins again. 

Is now the right time to invest in Qatar real estate market?

Qatar’s property market is recovering after some turbulence in recent years which can be categorised as the recession phase. Developers are continuing to supply homes in new communities such as Lusail City and The Pearl, and there are promising signs of peaking demand among consumers at the current time, pointing to a renewal of the cycle shortly. The market, therefore, has many affordable apartments available for overseas nationals and locals, resulting in a large number of low-cost investment opportunities for investors and end-users.

Savvy investors are informed about these phases of real estate behaviour and plan a smart investment portfolio for profits. Plus, you need to be aware that these stages of the property market are influenced by factors such as the economic, social and geographical conditions worldwide. As an investor, you can understand the real estate cycle and make your perfect investment at the right time.

The Pearl Gates is happy to help you

Don’t hesitate to get in touch with Tony on (+974) 5086 7771 for bespoke expert advice on investing in and navigating Qatar’s real estate market.

Start making your biggest investment dreams a reality with The Pearl Gates, local leaders in Qatar real estate. 

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