Key takeaways
- Divide in asset performance: High-end office developments in Lusail recorded a 4.5% year-on-year rental gain, whereas secondary office clusters experienced price reductions as corporate tenants prioritised cost control and spatial efficiency.
- Rental index dynamics: The ValuStrat Office Rental Index adjusted to 96.2 points relative to its Q1 2024 baseline of 100, reflecting general softness across commercial leasing.
- Grade A stability: Prime Grade A office rents remained unchanged quarter-on-quarter and posted a 1.6% annual increase, whilst Grade B rents declined by 2.1% over the quarter.
- Supply additions: Approximately 4,650 square metres of gross leasable area (GLA) was delivered in Q2 2026, bringing total national office inventory to 7.6 million square metres GLA.
How are corporate relocations shaping Qatar's commercial office sector?
Featured in The Peninsula, ValuStrat’s Q2 2026 commercial market data reveals a clear divergence in performance driven by asset quality. With inbound corporate expansion remaining limited, commercial lease absorption relied heavily on domestic companies and semi-government bodies upgrading their premises.
Anum Hasan, Head of Research at ValuStrat Qatar, noted that demand continued to be supported by relocations to higher-quality offices by semi-government entities, representing existing occupiers upgrading rather than new demand. This flight to quality has seen semi-government occupiers transition away from legacy commercial districts into modern developments such as The Pearl Qatar, freeing up secondary inventory in traditional commercial hubs.
What are the rental trends across key business districts?
Location and building specification continue to determine submarket performance across Qatar:
- Lusail: Led market growth with a 4.5% annual increase in rental rates.
- Prime Grade A stock: Recorded a 1.6% year-on-year rental gain, with stock concentrated in Doha municipality (57.9%) and Lusail (42.1%).
- Al Sadd and Bin Mahmoud: Experienced a 1.7% annual drop and a 5.6% quarterly adjustment.
- C-Ring Road: Registered a quarterly rental adjustment of 4.3%.
- Salwa Road and Industrial Area Road: Decreased by 4.6% on an annual basis.
Looking ahead, an estimated 80,628 square metres GLA is scheduled for completion through the remainder of 2026. However, shipping bottlenecks, elevated project development costs, and cautious occupier expansion plans may lead developers to adjust delivery schedules over the near term.
