The outlook for real estate prices is uncertain, as they are likely to be caught between the negative impact of declining hydrocarbon wealth, the positive effects of the continued infrastructure expend- iture, and the impact of the diplomatic embargo. Prices of real estate eased in June 2018 to a new four-year low in further evidence that the steam was coming out of the housing market. The real estate index produced by the Qatar Central Bank shows that the index fell by 2.8% between May and June 2018 and by 16.6% in the year to June. According to the QCB, the index has been on a down- ward trend since it hit a peak at the end of 2015 and has been an almost continual decline since June 2017. It is now at its lowest level since June 2015. The slowdown in the real estate market was confirmed by agents DTZ Qatar which said that the overall value of real estate transacted in April and May fell by 11% on a year-on-year basis, reflecting a downward trend in real estate values. In a June 2018 update DTZ Qatar said there was a noticeable drop in prime residential rents in Q2, with some quoted rents up to 15% lower. Asking rents for vacant apartments in West Bay and the Pearl Qatar have typically dropped by 10%-15% over the past 12 months, with rent free incentives of one to two months now commonplace.