Qatar's Rental Market Stabilises Amid Surging Mortgage Activity in Q2 2026

Qatar's residential rental market demonstrated signs of stabilisation in the second quarter of 2026, according to a recent report by ValuStrat. The median monthly rent for residential units across the country reached QR8,100, maintaining quarterly stability, although overall residential rents saw a 4.5 percent decline compared to the same period in the previous year.

While headline asking rents held firm quarter-on-quarter, the market experienced subtle downward pressure on net effective rents. Landlords increasingly resorted to non-price incentives, such as extended grace periods and utility-inclusive lease options, to maintain occupancy and minimise vacancies. In prime areas like The Pearl Qatar, some property owners provided substantial discounts to secure immediate tenancies, indicating a competitive environment.

In contrast to rental market adjustments, Qatar's ready-property sales and financing sectors exhibited strong momentum. Q2 2026 recorded 335 mortgage transactions across all ready property asset classes, marking a 15 percent quarter-on-quarter increase and an 8 percent year-on-year rise. The total value of these transactions reached QR16 billion, representing a 9 percent quarterly uptick and a significant 61 percent surge compared to Q2 2025. This robust activity was supported by the US Federal Open Market Committee maintaining its benchmark federal funds rate between 3.50 percent and 3.75 percent in June 2026.

Doha municipality emerged as the dominant hub for financing activity, contributing 139 mortgage transactions valued at QR14.2 billion, securing the majority share of both transaction volume and value for the quarter. ValuStrat's Head of Research, Anum Hasan, noted that while asking rents were largely unchanged, landlord incentives effectively reduced net yields. She also highlighted that larger homes faced pressure from family relocations and tighter household budgets, particularly in prime locations.

Lease activity for apartments remained flat quarterly but declined by 4.3 percent year-on-year, averaging QR5,600. The second quarter saw approximately 19,000 registered apartment lease contracts, a 1.5 percent quarterly increase. Demand for studios and one-bedroom units was boosted by returning residents, while two-bedroom asking rents fell by 2.6 percent both quarter-on-quarter and year-on-year due to factors like regional tensions and workforce adjustments. Villa median rents stabilised quarterly but decreased by 5.7 percent year-on-year, with median monthly rates at QR12,250 for three-bedroom villas, QR12,500 for four-bedroom units, and QR14,000 for five-bedroom layouts. Over 6,500 villa lease contracts were registered, with Ain Khaled, Al Wukair, and Al Gharrafa leading in activity.