Doha, Qatar: The office segment, for 2024, is expected to witness major projects that are in the pipeline, leading to augmenting the growth of Qatar’s economy. Several analysts in the country said that this indicates a vital boost for the sector.
However, as per reports, the key projects are expected to reach 350,000 sqm gross leasable area (GLA), representing an estimated increase of 50% in the forecast.
With the majority of the projects being delayed during 2023, oversupply is projected to exceed 2 million sq m GLA, which may continue to put “downward pressure” on the performance of the commercial sector.
Speaking to The Peninsula, Anum Hasan, Head of Research at Valustrat Qatar said: “In 2023, the office market saw a slowdown in the rent reduction. Government leases contributed to a notable increase in take-up in office space in Mshiereb Downtown and West Bay.”
The researcher further stressed that “A YoY reduction of up to 7 percent was observed in all commercial districts, with the exception of the offices along Grand Hamad Street and Salwa Road.”
“The significant excess in the market is anticipated to decrease gradually rather than sharply in 2024, and therefore, rents are projected to continue to decline. Major office buildings to be handed over during 2024 include the Lusail Plaza Towers,” she added.
However, as per the research team, Qatar’s economy is bound to increase by 2 percent throughout this year. The IMF, on the other hand, forecast its growth downwards in lieu of the expectation that the economy is still altering post the augmentation, which was witnessed during the global sporting tournament - FIFA 2022. The country’s economy is projected to be driven by growth in the non-hydrocarbon sector in the next two years.
However, in 2023, the volume of property transactions fell by 15 percent, with a value of QR16.7bn. This downward trend was anticipated to follow after the key upswing in 2022.
Valustrat noted that this trend, however, indicates that transactions are boosting steadily over the period of time. In the medium to long term, volume is foreseen to rise as a result of new real estate platforms and revised mortgage regulations implemented in the country.
For a detailed perspective on the property market, visit: Qatar - Real Estate Review Q4 2023
