Qatar property market gains 5.7%, boosting construction growth prospects for 2027

Qatar’s construction sector is forecast to grow 2.4% in 2027 as improving property market conditions boost confidence in the industry, according to global data provider Fitch Solutions.

The outlook follows a 5.7% rise in Qatar’s Real Estate Price Index so far this year, reflecting a shift in market sentiment after years of sluggish property activity.

“This has largely contributed to growing confidence that the long-standing issue of oversupply has been addressed through supportive legislation and dovish policy (implemented in 2025),” a spokesperson from Fitch Solutions said.

Fitch Solutions emphasized that lower interest rates and strong performance in global equity markets are helping to build momentum in the high-end residential segment, where demand could benefit from improved financial conditions and greater wealth creation.

However, the broader property market has yet to see a similar recovery.

“Households are increasingly purchasing more expensive houses, pushing up the median transaction value without implying any significant growth in underlying asset value,” Fitch Solutions said.

Qatar’s property market has been experiencing a slowdown for some time. The Real Estate Regulatory Authority, Aqarat, recorded 8,350 sales contracts in 2025, with fewer than 1,000 apartments sold and completed. By comparison, Dubai averaged 180 completed residential unit sales per day.

Nevertheless, the report mentions that structural challenges are likely to constrain a more widespread recovery. “High income and wealth disparity, as reflected in Qatar’s Gini coefficient of 46.2 World Economics, will continue to weigh on the sector,” it said,

Fitch Solutions warned that income and wealth inequality would continue to weigh on the wider housing sector.

Beyond Qatar, Fitch Solutions also revised its outlook for the wider Middle East and North Africa (MENA) construction industry, forecasting a real contraction of 4.3 percent in construction gross value added (GVA) in 2026, followed by a 4 percent recovery in 2027.

“The GCC faces a significantly different economic backdrop,” the report said. “Since the Middle East conflict, financing conditions have tightened as institutions adopt a ‘risk-off’ stance to prioritize liquidity management.”

“We estimate that the residential sector, in terms of construction activity, may be especially sensitive to an increasing policy rate,” it added.

The report said financing conditions across the Gulf have tightened amid regional uncertainty, with financial institutions prioritizing liquidity and taking a more cautious approach to lending. Residential construction could be particularly vulnerable to higher borrowing costs, it added.