Acknowledging the expected supply to the Qatar real estate market in the upcoming year, the region’s leading consulting group ValuStrat has revealed that the country has as many as 12,400 hotel keys and 1,750 serviced apartments in the pipeline till 2022.
In its report reviewing the real estate market, the group stated that the country had a total of 29,858 keys as of the second quarter of 2021.
Sharing its outlook about the progress made by Qatar’s hotel sector during the second quarter of 2021, the report stated that “Cielo Hotel in Lusail, Bentley Luxury Hotel & Suites in West Bay, Banyan Tree Doha at La Cigale Mushaireb in Mushaireb and Marriot Executive Apartments City Centre Doha in West Bay were unveiled this quarter adding a total of 1,096 keys. Hyatt Residences West Bay was rebranded as Marriot Executive Apartments City Centre Doha.”
The market report further added that Qatar’s housing stock was approximately 306,515 units with the addition of 1,650 apartments and 150 villas during the quarter.
“As many as 4,900 units are planned to be handed over during the remaining quarters of 2021. Apartment supply consisted of 1,650 units coming from projects handed over in Lusail (Fox Hills, Erkhyah and Marina District), The Pearl (Al Mutahidah Towers and Abraj Bay Tower 2), Al Dafna, Luqta (residential complex), Umm Ghuwailina and New Doha,” the sector review report from ValuStrat detailed.
The report projected the country to add 575 units by end of 2024 after major projects situated in The Pearl, Lusail and Al Khor were awarded during the quarter.
With respect to the rents for various properties over the last year, the report remarked that “residential median asking rents declined marginally by 1.1 percent quarter on quarter, 2.9 percent over six months and 5.1 percent over a year. Median monthly asking rent for apartments fell 1.2 percent QoQ and 5.3 percent year on year.”
The report pointed out that a slowdown in the supply of villas has curbed the fall of villa rents, signaling a potential stabilization in the medium term. Median monthly asking rent witnessed a 0.5 percent quarter-on-quarter drop, a 4 percent drop on a year-on-year basis.
The industry report attributed faster absorption rates at The Pearl and Lusail for the relatively softer annual decline in rents the region faced compared to secondary locations.
Commercial Spaces
As per the report, an estimated 76,000 sq.m Gross Leasable Area (GLA) was completed during the second quarter of 2021, bringing the total workspace stock to 5.6 million sq.m.
Lusail saw its supply of offices exceed 1 million sq.m GLA as two office towers were added in Lusail Marina during the quarter. The reports expect the total new-builds in the zone to reach 1.2 million sq.m GLA by end of 2022.
The report remarked that “It is unlikely that existing private local and international companies will be expanding their office requirements in the medium term due to the adoption of flexible ‘work from home’ schedules.”
Retail Spaces
The report revealed that no addition was made to the existing organized retail stock (1.93 million sq.m GLA) during the second quarter of 2021. Almost 330,000 sq m GLA (Place Vendôme in Lusail and Doha Mall in Al Maamoura) of organized retail space is projected for completion in 2021.
“Msheireb Galleria officially opened hosting Monoprix as an anchor store, joining at least 30 pop-up shops and several art galleries. Al Meera opened two branches during the quarter including a first-ever floating supermarket anchored near Al Saffliyah Island. This is in addition to acquiring two community malls in Lusail, to open new branches during the remaining quarters of 2021,” the ValuStrat report stated.
The report further added that “increasing leniency of restrictions and promotions offered by retailers and landlords of shopping malls have been observed to boost footfall this quarter.”
“Occupancy for the retail sector was estimated at 70 percent. However, there is divergence in the recovery of sales with existing super-regional shopping centers recuperating faster compared to regional and community malls and unorganized retail spaces, the report declared.
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