Doha: Lusail’s Marina District is expected to supersede West Bay overtime as Doha’s central business district (CBD) due to the superior transport infrastructure, better parking provisions and more modern buildings in the district, said Cushman & Wakefield Qatar in its latest real estate market overview.
Cushman & Wakefield said in its third quarter (Q3, 19) Qatar real estate market report that Qatar’s overall office supply has grown to over 4.5 million sqm, approximately 45 percent of which is situated in West Bay and Lusail. New supply in the Marina District has increased competition within the market and has seen rental levels continue to decline throughout 2019, Cushman & Wakefield said in its third quarter Qatar real estate market report.
Hotel occupancy rates have also improved in recent months, as Qatar benefits from hosting events such as the 2019 IAAF World Championships. Overall 2019 figures will be further boosted by the 2019 World Beach Games and the FIFA World Club Championships which will be held in December.
Occupancy rates in hotels continued to recover during third quarter compared to the corresponding period in 2018.
Cushman & Wakefield estimate the total number of available rooms in Qatar reached more than 27,000 by the end of third quarter, contained in 130 hotel and hotel apartment establishments. As the competition in the hotel sector increases, some of Qatar’s most established hotels have temporarily shut for the refurbishment works in order to maintain their market position. Four and Five-Star hotels continue to dominate the Qatar hotel market, comprising more than 90 percent of overall supply.
In the residential market, rental reductions have resulted in prime residential locations such as The Pearl Qatar becoming more affordable. This has resulted in an increase in leasing activity in recent months.
In the retail market, tenants in retail malls are now increasingly able to negotiate attractive lease terms with the landlords as the increase in supply has seen vacancy rates increase.
