The real estate price index in the State of Qatar decreased during the first quarter of 2023 by 4.89% on a quarterly basis to 212.24 points, as it reached 223.17 points at the end of the fourth quarter of 2022. According to Qatar Central Bank data based on figures and data of the Ministry of Justice.
The Qatar Central Bank has issued a real estate price index periodically since 2011 with the aim of measuring real estate prices in a documented manner to enable Islamic banks operating in the country to evaluate real estate credit portfolios.
During the year 2023, the real estate sector will go through a transitional phase of price evaluation in light of the increase in the supply of land, residential and commercial, after the completion of hosting the World Cup, in addition to the slowdown in the pace of business and construction.
Data from the Real Estate Registration Department at the Ministry of Justice during the first quarter of this year showed a decline in the value of real estate transactions by 9% to 4.4 billion riyals, with a number of deals estimated at 947 real estate transactions in various municipalities, and a decrease in real estate mortgages by 12% to about 13.7 billion riyals.
During the first quarter of 2023, the real estate transactions index achieved a total value of 4,418 billion riyals, for 947 real estate transactions. It achieved its highest levels during the month of February, with a total value of 2,040 billion riyals, and compared to the first quarter of 2022, we find that the number of real estate index recorded an increase. While January 2023 recorded a decrease compared to January 2022, with a total value of 1,141 billion riyals, while March 2023 recorded a decrease from March 2022, with a total value of 1,236 billion riyals.
The real estate market index revealed during the first quarter of 2023 that Doha Municipality, followed by Al Rayyan Municipality and then Al Wakra, are the most active in terms of financial value, as the financial value of Doha Municipality transactions amounted to 1,835,997,714 riyals. The third, with a turnover value of 477,208,927 riyals.
The indicators showed that the most active municipalities in real estate trading during the first quarter of 2023, according to the area index, were the municipality of Al-Rayyan by 32%, followed by the municipality of Al-Wakra by 23%, and the Doha municipality achieved 19% of the total area of transactions, while in the first quarter of 2022 according to the area index. Al-Rayyan municipality ranked first with 36%, followed by Doha municipality with 17%, and Umm Salal municipality achieved 14% of the total deal area.
The trading revealed the value of the top 10 properties for the first quarter of 2023, which recorded 7 properties in Doha Municipality, two properties in Al Rayyan Municipality, and one property in Al Wakra Municipality.
In the same context, the real estate bulletin of the Ministry of Justice stated that the volume of mortgage transactions that took place during the first quarter of 2023 amounted to 255 transactions, with a total value of 13,720,422.42 riyals, as the Doha Municipality recorded the highest number of mortgage transactions with 103, equivalent to 40.4% of the total number of real estate. Mortgaged, followed by Al Rayyan Municipality with 78 transactions, equivalent to 30.6% of the total number of mortgaged properties, then Umm Slal Municipality with 25 transactions, equivalent to 9.8%.
As for the value of mortgages in the first quarter of 2023, Doha Municipality came in the lead, amounting to 12,016,461,176 riyals, while Al Shamal Municipality recorded the lowest value, amounting to 3,660,000 riyals. And compared to the first quarter of 2022, we see that the municipality of Al Daayen is in the lead, amounting to 8,349,944,416 riyals, while the municipality of Al Sheehaniya recorded the lowest value, amounting to 1,030,000 riyals.
In view of the indicator of the movement of mortgage transactions by studying the ratio of the number of mortgaged properties to the percentage of their financial value, we find that the percentage of the number of mortgaged properties is greater than the percentage of the amounts of mortgage transactions in all municipalities that witnessed mortgage transactions except for the Municipality of Doha, where we find that the amounts of mortgage transactions achieved a higher percentage compared to to the average number of foreclosure transactions.
By tracking the movement and volume of mortgage transactions that took place during the first quarter of 2023, we find that Doha Municipality recorded 10 of the top ten mortgaged properties, and the volume of mortgage transactions for the top 10 properties reached 67% of the total value of all mortgage transactions that took place during the first quarter of 2023.
The real estate bulletin of the Ministry of Justice indicated that trading in the Pearl and Al Qassar area during the first quarter of 2023 witnessed a decrease in trading volume compared to the first quarter of 2022, as the number of deals reached 130 deals for residential units, with a total value of 277,993,546 riyals. While the number of deals reached 188 deals for residential units, with a total value of 336,755,862 riyals, during the first quarter of 2022.
