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Residential Rents Rise before The World Cup 2022

  • Publish date: Friday، 12 August 2022
Residential Rents Rise before The World Cup 2022
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The residential real estate sector had considerable growth in rentals during the second quarter (Q2) of the year, with apartments having the biggest increases, according to Cushman & Wakefield's "Qatar Q2 Real Estate Market Review." Residential rents are skyrocketing ahead of the FIFA World Cup Qatar 2022.

According to the survey, some asking rents have increased by more than 30% year over year as a result of an increase in short-term demands before the FIFA World Cup.

The rate of residential rent increases increased in April and May after growing by 5-7 percent in Q1 as landlords capitalized on a surge in demand associated with the FIFA World Cup in November and December, according to the research.

According to Cushman and Wakefield, by the end of June, apartment rents had generally climbed by more than 30% compared to the same period the previous year.

Tens of thousands of units have been reserved for both staff housing for businesses delivering World Cup-related services as well as fan housing, which is driving up rental costs.

Rents in upscale areas for apartments have been the most affected by rental rises. Standard two-bedroom Porto Arabia apartments with semi-furnished units that were on the market for QR10,000 to QR12,000 in 2021 are currently renting for QR13,000 to QR15,000.

According to the survey, apartment rents in central areas like Bin Mahmoud have regularly climbed by between QR2,000 and QR3,000 since 2021, showing an increase of more than 30% in some instances.

Additionally, villa buildings have seen an increase in rent in recent months. However, compared to apartment buildings, these increases have been more moderate as many of these properties already benefited from high occupancy and long-term tenants. Recent lease renewals have frequently included increases of between 3 percent and 10 percent.

Rents are anticipated to drop once more in 2023 as demand decreases and available properties come back on the market. "The rise in rent is based on a brief spike in demand related to the World Cup. Due to this, landlords have started to increasingly demand two-year leases for apartments in recent months. As some landlords try to get rid of their homes and profit from increased World Cup rents, there is also a growing trend of tenants not having their leases renewed when requested, according to Cushman & Wakefield.

A lot of attention has been paid to the availability of residential housing for World Cup fans traveling to Qatar in November. Barwa announced in May that the new Barahat Al Janoub affordable housing project will have a six-month lease.

Rents are anticipated to drop once more in 2023 as demand decreases and available properties come back on the market. "The rise in rent is based on a brief spike in demand related to the World Cup. Due to this, landlords have started to increasingly demand two-year leases for apartments in recent months. As some landlords try to get rid of their houses and profit from increased World Cup rents, there is also a growing trend of tenants not having their leases renewed when requested, according to Cushman & Wakefield.

A lot of attention has been paid to the availability of residential housing for World Cup fans traveling to Qatar in November. Barwa announced in May that the new Barahat Al Janoub affordable housing project will have a six-month lease.