Thanks to slackening demand and oversupply of residential units, house rents have come down by between 30 and 35 percent, say real estate agents.

The demand for housing is usually low during the lean summer months but picks up subsequently. This year, though, property market operators say they do not expect any major improvements after the long summer break.

“Our estimate is that the rents are down anywhere between 30 and 35 percent since early this year, especially after a lot of new apartments and villas came on the market, ready for occupancy, in April,” said P N Baburajan.

There are hardly any enquiries for rented houses from newcomers. “All the enquiries we are getting are from families who want to shift to cheaper accommodation,” Baburajan said. These are the people who want to shift because they are paying high rents and, despite the slowdown, their landlords are unwilling to reduce the rates in line with the market trend.

“If someone is paying QR8,500 for a two-bedroom apartment and his landlord is willing to bring the rent down only by QR1,000, for instance, he would prefer to shift to a flat for QR6,000,” said another agent, Samuel.

According to Baburajan, the interesting part is that house owners who had stopped contacting real estate agents to rent out their properties when the demand peaked at historic highs roughly three years ago, are back in the market looking desperately for takers.

“This is a sure sign of oversupply,” said Baburajan.

Indeed, villas commanding monthly rents of QR18,000 are now available for QR13,000, said yet another real estate agent, who did not want his name in print.

Citing another example of oversupply, the agent said there were hardly any takers for a fully-furnished two-bedroom apartment in a good residential locality near Hamad Hospital although its going rate was slashed down to QR8,000 from QR11,000 a few months ago.

The market is gradually turning tenant-friendly, with reports suggesting that a small two-bedroom apartment in Umm Ghuwailina had been rented out for QR3,500. “I just heard of it on Thursday and I believe it,” said Baburajan.

He said more houses were expected to come on the market as families shifted from high-rental apartments to affordable ones and the situation was not expected to change after the summer break.