Housing rents hold firm as mortgage activity surges

Doha, Qatar: By the second quarter of 2026, Qatar's housing rental rates appeared to stabilize compared to previous quarters, yet residential rents still fell by 4.5 percent year-on-year, settling at QR8,100 per month. Although asking rents remained steady on a quarterly basis, net effective rents saw a slight decline.

Landlords turned to non-price incentives like extended grace periods and utility-inclusive lease options to retain tenants and minimize vacancy periods. Prime locations such as The Pearl Qatar offered substantial discounts to ensure immediate occupancies. In Q2 2026, there were 335 mortgage transactions across all property classes, a 15 percent increase from the previous quarter and an 8 percent rise year-on-year, totaling QR16bn in value, a 9 percent quarterly increase and 61 percent surge since Q2 2025.

Financing conditions were bolstered by the US Federal Open Market Committee maintaining the federal funds rate between 3.50 percent and 3.75 percent in June 2026. Qatar's Doha municipality led financing activity, accounting for 139 transactions worth QR14.2bn, the majority in terms of volume and value. Market expert Anum Hasan noted that while asking rents were largely unchanged, landlords increasingly provided longer grace periods, utility-inclusive leases, and targeted incentives, resulting in reduced net yields.

Apartment lease rates remained flat for the quarter but declined by 4.3 percent year-on-year to an average of QR5,600. Lease activity was prominent in both segments, driven by contract renewals. Demand for studios and one-bedroom units was supported by returning residents, while two-bedroom asking rents dropped by 2.6 percent both quarter-over-quarter and year-over-year as tensions, workforce adjustments, and temporary family relocations created additional inventory.

Villa median rents stabilized quarter-over-quarter but decreased by 5.7 percent year-on-year, with prices averaging QR12,250 for three-bedrooms, QR12,500 for four-bedrooms, and QR14,000 for five-bedrooms.

Despite rental yield adjustments, Qatar's ready-property sales and financing market displayed robust growth. Market expert Hasan highlighted that higher mortgage transaction volumes indicated sustained buyer confidence.