Qatar's real estate price index hit an all-time high, surging a record 42 per cent this September, compared to the same month last year, said a report.

The country's real estate prices has been steadily rising throughout this year except May, when the index fell marginally to 213.8 points from April's 216 points. The prices, however, rebounded by hitting 230.6 points, or 7.8 per cent, up in June, reported The Peninsula, citing Qatar Central Bank (QCB) data.

QCB quarterly update of the index touched a record 253.8 points in the month, rising much higher than Qatar's pre-Asian games levels of 192.2 points, and is up from 178.6 points recorded a year ago, the report added.

According to the QCB data, the real estate sector accounts for the highest share of bank credit in Qatar, after public sector institutions. However, the central bank's latest financial stability report noted the credit to the real estate sector was marginally down by 0.2 per cent during 2013, from a high 12.3 percent recorded during 2011-12.

The real estate prices were up 10 per cent higher on quarter-on-quarter and five per cent higher on month-on-month basis, it stated.

High land value was the main driver of overall real estate prices in Qatar. For instance, March witnessed land transactions worth an approximate QR2.8 billion ($768 million) making an estimated 67 per cent of overall transactions.

The ministry's weekly transaction data for September shows a steady increase in the transaction value. The transaction value between August 31 and September 4 recorded QR431 million ($118 million).

The transaction value jumped to a whopping QR1.49 billion ($408 million) during the week ended October 2, 2014, said the report.

The outlook for Qatar's real estate sector has been projected as 'strong' by various market analysts. Investments in the country's real estate sector are set to increase in the coming months, the report added.