Valustrat Qatar Real Estate Research Q1 2018-Final
st QUARTER REVIEW 2018 Qatar Real Estate Market www.valustrat.com VPI ValuStrat Price Index Residential Since the ValuStrat Price Index (VPI) began tracking in January 2016, Qatar residential prices have witnessed a fall in values. By benchmarking the index from Q1 2016 at 100 points, we found that values continue to fall displaying market corrections nationwide. The first quarter 2018 VPI displayed overall 9.4% annual and 1.6% quarterly declines. Villas and freehold apartments saw quarterly price declines of 1.6% and 1.7%, respectively. Whilst a few locations saw marginal declines, others experienced steeper falls. Quarterly capital depreciation between 0.4% and 2.7% was seen in clusters of Al Wakrah, Al Khor, Umm Salal Mohammad, Old Airport, Al Thumama, Al Waab, West Bay Lagoon, New Al Rayyan/Muaither and declines of 4% to 4.4% were seen in Ain Khalid/Abu Hamour and Umm Salal Ali. Gross yields for residential units averaged at 4.8%, with 6.0% for apartments and 4.2% for villas. ValuStrat Price Index 13 Villa and 3 Apartment Locations in Qatar [Base: Q1 2016=100] 120 100 100 96.3 94.2 90.9 89.8 87.2 84.9 82.7 81.3 80 60 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2017 2018 Source: ValuStrat 1 | Qatar Real Estate Market 1st Quarter 2018 Review MacroEconomicSnapshot • Government launched a second National Development Strategy (2017-2022) in which they prioritised six sectors; manufacturing, tourism, logistics, financial services, information and communication and scientific research • Real Gross Domestic Product (GDP) increased 1.8% YoY (QAR 204.2 billion), driven by growth in non-hydrocarbon sector of 3.7% YoY in Q4 2017 - latest estimates released by Ministry of Development Planning and Statistics • Population is estimated at 2.68 million 1,836,000 2,045,000 2,235,000 2,421,000 2,597,000 2,641,000 2,685,000 2012 2013 2014 2015 2016 2017 2018-Q1 Qatar Population Source: Ministry of Development Planning & Statistics Consumer Price Index vs.
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