The total office space supply is expected to reach 5.8 million square metres (sqm) by 2020, adding over 13 percent (700,000sqm) additional space to the 5.1 million sqm (estimate) by the end of this year, noted a latest report by a leading Doha-based consulting firm.
According to the ValuStrat’s third quarter 2019 review report the Gross Leasable Area (GLA) of Qatar’s office supply as of Q3 2019 stood at 4.685 million sqm, which expected to reach 5.1 million sqm by the end of 2019.
Some eight main office projects were completed this quarter (Q3) in several areas of the country, which include Doha Jadeed (New Doha), West Bay Lagoon, Mushiereb Downtown, Lusail, Nuaija and Al Wakrah comprising 145,000 sqm GLA.
On the performance of office space sector, the report said that the median office asking rents in Qatar fell 18 percent year-on-year (YoY) and 7 percent quarter-on-quarter (QoQ) understandably due to the yawning gap in supply and demand.
The reported noted that the existing over-supply and further quarterly influx of new commercial office spaces induced the most significant QoQ fall in rents in Lusail to QR90 per sqm per month, with rent free periods of up to 2 months being common place. Offices along the Salwa Road offered the lowest median monthly asking rent, with rates ranging from QR60 to QR100 per sqm for varying sizes, rent free periods here were offered up to a month, depending on varying contract periods.
Monthly asking rents in Al Wakrah and Al Khor municipalities ranged between QR50 and QR90 per sqm. And monthly asking rental rates in The Pearl Qatar ranged between QR110 and QR 140 per sqm, while asking prices averaged QR19,375 per sqm.
The stock of retail space is continuing to grow with the opening of new malls and commercial establishments. As of Q3 2019, the total supply of organized retail space reached 1.89 million sqm, with the newest addition of Al Waddan Mall (26,000 sqm GLA) in Mesaieed (Al Wakrah), The Galleria (44,000 sqm GLA) and Departmen Store (15,000 sq m GLA) in Msheireb Downtown (Doha). Retail chains like Al Meera, Monoprix and Lulu Hypermarket announced the launch of anchor stores in The Mall, Galleria Musheireb Downtown and Doha Mall, respectively. An estimated 548,000 sqm GLA (8 shopping centres) of organised retail space is estimated for completion by 2020.
The report noted that the saturation ratio of shopping centres in Qatar stood at 677 sqm per 1,000 capita, which is higher compared to the GCC average of 615 sqm per 1,000 capita.
However, the report also said that the performance of the retail sector was encouraging as a result of proactive actions by the government and private entities. Events such as ‘Summer in Qatar’ and Eid Al Adha, as well as outbound resident spending habits, contributed towards increased sales and footfall during the third quarter of 2019.
Countrywide monthly rents for medium line shops (between 100 sqm and 250 sqm) ranged from QR200-380 per sqm. While, monthly asking rents for shops (26-36 sqm) ranged from QR300-350 per sqm in the newly released Al Waddan Mall (Mesaieed).
Median monthly asking rents among street retail units within Doha stood at QR192 per sq m, down by 1.5 percent QoQ. In Lusail, asking rents ranged from QR80-170 per sqm for sizes 110-350 sqm. The mediain asking rents among street retail units outside Doha stood at QR 172 per sqm, down by 4.4 percent quarterly. Rent-free periods offered ranged up to 15 months for contract periods of up to 4 years.
