Cushman & Wakefield Conference Summary
Impact of Regional Conflict on Qatar’s Real Estate Market (May 2026)
Residential
Qatar’s residential market remained relatively stable in January and February 2026, with positive indicators across sales activity, leasing, occupancy levels, and prime rents. The market entered more of a holding pattern in March. Sales transactions remained broadly stable, supported in part by deals agreed prior to the conflict escalation. Q1 data showed a decrease in the number of sales from 369 in Q1 2025 to 328 in Q1 2026, alongside a drop in average price per square metre from QAR 13,921 to QAR 11,631. April transactions remained unchanged at 105 year-on-year, with prices declining from QAR 14,527 to QAR 13,688 per square metre. Rental levels were described as relatively stable, with landlords taking a “wait-and-see” approach, although early signs of tenant incentives were noted.
Demand trends indicated limited new residents entering the market, with some softening in the mid-market segment and vacancy reportedly increasing by approximately 5%+. Prime assets were noted to be maintaining occupancy and rental levels, while downsizing trends were observed, including families leaving. This has contributed to increased demand for temporary and flexible leasing options, including serviced and hotel apartments. Market participants highlighted that the duration of the conflict will be a key factor, with clearer impacts on rental and sales markets expected in Q2, Q3, and around September when families typically return.
Commercial
The commercial office market was described as having improved over the past 2–3 years, with vacancy rates reducing from approximately 20% to below 10% in key areas such as West Bay and Msheireb Downtown. Specific assets such as Tornado Tower were reported to have no full floors available, while Alfardan properties were performing strongly and Msheireb Downtown was described as close to fully occupied commercially. Around 60–70% of companies taking office space in West Bay were noted to be government or government-funded entities, with government support playing a key role in market stability.
Most tenants are currently locked into long-term contracts, meaning no immediate change in occupancy or leasing behaviour is expected. It was also noted that international companies in finance, media, and technology sectors are continuing their plans to establish or expand operations in Qatar. While it is considered too early to determine the full impact of the regional conflict, sentiment was generally positive, with many companies taking a long-term view and viewing the situation as temporary.
Hospitality
The hospitality sector was identified as the most affected by the current situation. While 2026 began strongly with increased occupancy and average daily rates, performance declined significantly from March onwards. Weekday occupancy was reported to have fallen below 20%, with overall occupancy estimated at approximately 30%–35%. Hotels have responded by reducing average daily rates and offering discounts, alongside cost-cutting measures such as temporary closure of food and beverage outlets and staffing reductions.
Resort hotels were partially supported by increased staycation demand, and hotel apartments were adapting by targeting longer-term residents. Overall, all hospitality performance metrics were expected to decline during 2026. In 2025, the market recorded 5.1 million visitors (+3.7%), occupancy of 71.3% (+2.6%), and an average daily rate of QAR 457 (+3.6%), providing context for the decline. Recovery in the sector was linked to improvements in international travel, tourism activity, and broader geopolitical stability.
