An additional 170,000sq m gross leasable area (GLA) is expected to be delivered in Qatar’s office segment by the year-end, ValuStrat Research said in a report.
An estimated 38,000sq m gross leasable area was added during the quarter with the completion of the Mercedes Flagship Commercial Complex, bringing the total stock to over 7.2mn sq m GLA.
One of the remaining Lusail Plaza Towers is anticipated to be completed by the year-end, with the final tower scheduled for delivery by mid-2025. Grade-A office inventory was concentrated in Doha Municipality, accounting for 61% of the total supply, while Lusail contributed an additional 31%, the report said.
Office occupancy at a country level was estimated at 63% with premium locations experiencing higher occupancy compared to secondary areas, ValuStrat said. The office sector showed consistent performance on a quarterly basis, reflecting no notable fluctuations, it said.
Citywide office rents averaged QR66 per sq m, steady from last quarter but down 2.2% year-on-year (y-o-y) Offices in Grand Hamad Avenue and West Bay declined by 13% and 6% respectively compared to last year, while remaining unchanged quarter-on-quarter (q-o-q).
Offices in Al Sadd witnessed a yearly increase of 4.7%. Other major locations like Lusail and Salwa Road observed annual declines between 3% and 7%, with no shift compared to the second quarter (Q2).
According to ValuStrat, the third quarter (Q3) indicated continued stability across Qatar’s real estate market.
While certain high-end areas experienced increased rental rates for larger bedroom units (in the residential segment), the primary observation is that the market remained notably steady throughout the period.
The ValuStrat Price Index held consistent with the prior quarter at 96.6 points and showed no significant annual shift. Benchmarked to a base of 100 points set in first quarter (Q1) of 2021, the apartment index registered at 97.5 points and villas at 96.3 points, with valuation prices in both categories showing no quarterly or yearly fluctuations.
Mortgage transactions declined by 10% q-o-q and 8.5% y-o-y. Similarly, sales transactions dropped by 18% since the last quarter and 15% compared to the same period last year.
“While Q3 presented a stable real estate landscape, market signals suggest a measured outlook for the coming months, hinting at a mix of steady performance with selective areas of optimism,” noted Anum Hassan, Head of Research (Qatar) at ValuStrat.
For a detailed perspective on the property market, visit: Qatar - Real Estate Review Q3 2024
