Construction sector set for 2.4% growth in 2027: Report
<p>Doha, Qatar: Qatar’s construction sector is forecast to grow by 2.4 percent in 2027, with improving sentiment in the real estate market offering support to the industry’s outlook, according to the latest report by Fitch Solutions.</p> <p>The data highlighted a notable shift in market sentiment in recent months, particularly following an improvement in Qatar’s Real Estate…
Doha, Qatar: According to a report by Fitch Solutions, Qatar's construction sector is expected to experience a modest 2.4% growth in 2027, buoyed by a positive shift in real estate market sentiment. This optimism stems from an increase in the Real Estate Price Index (REPI) of 5.7% year-to-date, as of October 1, 2026, according to the report.
Fitch Solutions attributes this positive sentiment largely to supportive legislation and dovish policies implemented in 2025, which have helped address the long-standing issue of oversupply in the market. However, the firm notes that the REPI has limitations as it measures average real estate sales price per unit sold, without differentiating between residential and commercial transactions.
The report suggests that the recent increase in the REPI might be due to households purchasing higher-value properties, which could inflate average transaction values without indicating significant growth in the broader housing market. In fact, data from the National Planning Council shows a slight decline in property values, while ValuStrat's independent housing valuation metric indicates that valuations have remained flat over the past year.
Fitch Solutions highlights that lower interest rates and strong global equity markets are fueling momentum in the high-end residential segment, where demand could benefit from improved financial conditions and increased wealth creation. Nevertheless, the report emphasizes that structural challenges, including high income and wealth disparity reflected in Qatar's Gini coefficient of 46.2, will continue to hinder the sector's recovery.
Looking ahead, Fitch Solutions forecasts a contraction of 4.3% in the construction gross value added (GVA) for the wider Middle East and North Africa (MENA) region in 2026. However, it anticipates a recovery of 4% in 2027. The report notes that the Gulf Cooperation Council (GCC) faces a distinct economic backdrop due to tightened financing conditions since the outbreak of the Middle East conflict, with institutions adopting a more risk-averse stance to manage liquidity effectively.
Written by urgent.news from The Peninsula Qatar's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
