According to the sources from the industry sector in Qatar have stated that rents of old residential buildings and partitioned villas have fallen by 10 to 20 per cent over the past six months, as a larger section of people are now opting for buildings with better facilities and services.
The sources have also held that real estate experts are expecting a gradual population shift from Doha to outside areas, as a result of massive government investment in developing areas, as reported by The Peninsula.
Ahmed Al Arouqi, the general manager of Roots Real Estate, stated that the oversupply and relatively low demand for old buildings in areas like Najma, Mansoura and Old Airport has led to a fall in rents by 10 to 20 per cent.
He added that many people avoid old residential buildings as they fear that they can be demolished any time.
Another factor relates to the prices of land that remain very high in Doha and very few plots of land are available for developers. This has largely forced real estate developers to invest in outside areas where land is available at relatively low prices.
Al Arouqi also noted that there is slight decline in rents of villas and flats in some areas, ranging from QR 500 to QR1000.
He added that affordable housing units, falling in the QR3,500-QR4,000 range, have seen a slight decline in rents, in particular the old buildings.
As such, despite claims about oversupply, real estate giants like Ezdan and Barwa are still having a long waiting list of applicants, said another official from a leading real estate firm.
He added that big companies have a trend to give offers to customers making them more attractive to tenants than buildings and flats owned by individuals. These companies do not hike the rents frequently like small companies and individuals.