Market Insight

The Qatari construction market was valued at USD 42.19 billion in 2020, and it is expected to reach a value of USD 76.98 billion by 2026, registering a CAGR of 10.54% over the period of 2021-2026 (henceforth, referred to as the forecast period).

The revival in oil prices during 2018-2019 prompted growth in infrastructure projects in the region. However, with the economic downturn due to the pandemic, the current scenario is dragging the construction sector back to pre-2019 levels. The Qatari government has taken measures to curb the spread of COVID-19, and some of these may have an impact on the construction industry. These measures are going to affect labor, supply chains, and financing arrangements in the construction sector.

Construction activity in the country remains resilient, as government spending has continued on projects. The government’s aim to diversify the economy, emphasizing non-oil sectors, is expected to drive funding toward construction projects over the forecast period. Growth is expected to be driven by the country’s National Vision 2030 plan, under which the government aims to develop the manufacturing industry to diversify the economy away from its dependence on the oil and gas sector. Construction activity increased as preparations continued for the 2022 World Cup. Owing to the budget surpluses recorded in the past few years (2016-19), the level of public spending has also increased. The country’s construction industry is expected to benefit from investments made in preparation for the 2022 FIFA World Cup and Qatar National Vision 2030.


Qatar’s Housing Market is Gradually Improving

Qatar's residential real estate market is expected to grow at a compound annual growth rate of 13% during the forecast period. Qatar is one of the most vibrant economies in Middle East. The high GDP growth and influx of population, supported by employment opportunities and government policies are some of the factors driving the growth of the residential real estate sector in the country.

Qatar’s housing market remains weak, as it continues to be adversely affected by the economic and financial fallout from the ongoing COVID-19 pandemic. Supply continues to rise despite plunging demand, resulting in falling residential property prices. Qatar’s housing market is expected to continue to struggle during the remainder of the year, as the COVID-19 pandemic is aggravating the crisis in the region. 

In Q2 2020, transaction volumes for residential houses fell by 26.2% from a year earlier. The total value of residential transactions stood at USD 714.1 million in H1 2020. At The Pearl-Qatar and West Bay Lagoon, residential purchases dropped 20% in H1 2020 from a year earlier. In the first half of 2020, about 2,250 apartments and 700 villas were added to the market, bringing the total stock to 300,550 units. About 2,000 residential units were completed in The Pearl, Lusail, and West Bay.