DOHA: Qatar’s office spaces continue to witness a solid market during the third quarter of the year, said ValuStrat in its recent report.
The data indicates that nearly 38,000 sq m GLA was added from July to September with the completion of the Mercedes Flagship Commercial Complex, bringing the total stock to over 7.2 million sq m GLA. However, one of the remaining Lusail Plaza Towers is expected to be completed in the current quarter with the final tower scheduled for delivery by mid-2025.
Market analyst and Head of Research of VauStrat in Qatar, Anum Hassan stated “The office sector showed consistent performance on a quarterly basis, reflecting no notable fluctuations.”
The report notes that grade-A office inventory was concentrated in Doha municipality, accounting for 61 percent of the total supply, while Lusail contributed an additional 31 percent.
Meanwhile, an additional 170,000 sq m GLA is anticipated to be delivered by the year-end. “Office occupancy at a country level was estimated at 63 percent with premium locations experiencing higher occupancy compared to secondary areas,” the report said.
On the other hand, office rents across Qatar averaged QR66 per sq m, unchanged from the second quarter of the year but declined by 2.2 percent Y-o-Y.
The office occupancy rates in Grand Hamad Avenue and West Bay plunged by 13 percent and 6 percent respectively compared to 2023, while remaining stable Q-o-Q.
However, office space in Al Sadd witnessed a yearly increase of 4.7 percent, whereas other major locations such as Lusail and Salwa Road
observed annual drops between 3 percent and 7 percent, with no shift compared to Q2 2024.
Additionally, the report also highlights that the Qatari real estate market saw 227 mortgage transactions across all asset classes of ready properties in Q3 2024, eventuating a decrease of 8.5 percent Y-o-Y.
The total value attributed to mortgage transactions amounted to QR6.8bn during the third quarter of 2024, indicating a surge of 7.9 percent compared to the same period last year.
Meanwhile, the US Federal Open Market Committee opted to reduce its federal funds interest rate to a target range of 4.5 percent to 4.75 percent Doha municipality contributed to the highest number of mortgage transactions with 90 contracts valued at QR4.6bn, followed by 69 deals in Al Rayyan, which reached a total of QR1.6bn.
Hassan reiterated that “Mortgage transactions declined by 10 percent Q-o-Q and 8.5 percent Y-o-Y. Similarly, sales transactions dropped by 18 percent since the last quarter and 15 percent compared to the same period last year.”
She further added that “The Qatar Central Bank, aligning with the US Federal Reserve, reduced the interest rate by 55 basis points. These concurrent changes could suggest that buyers may be holding off on purchases in anticipation of a more favorable rate decrease.”
For a detailed perspective on the property market, visit: Qatar - Real Estate Review Q3 2024
