Key takeaways
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Supply expansion: Qatar added 23,300 square meters of gross leasable area (GLA) in Q1, bringing the country's total commercial inventory to 7.5 million square meters GLA.
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Index stability: The office market index held completely steady at 96.9 points on both a quarterly and annual basis.
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Rental benchmarks: Average Grade-A office rents across the country remained unchanged at QR 115 per square meter both quarter-on-quarter and year-on-year.
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Diverging districts: Lusail Grade-A office rents rose 4.5% year-on-year, while the West Bay office cluster experienced a 3.2% annual rental decline.
What is driving the stability and growth of Qatar's office inventory?
Qatar’s commercial sectors maintained broad stability during the first quarter of 2026 despite minor headwinds towards the end of the quarter. ValuStrat data featured in The Peninsula reveals that 23,300 square meters of GLA entered the market, anchored by an 8,000 square meter mixed-use development in Fereej Al Soudan and 15,000 square meters distributed across Birkat Al Awamer, Mesaieed Logistics Park, and Al Wakrah.
Grade-A office inventory distribution remains concentrated, with Doha municipality commanding 57.9% of total supply and Lusail accounting for the remaining 42.1%. An additional 85,278 square meters of GLA is projected for delivery during the remainder of the year. This pipeline will offer expanding businesses more flexible leasing options while maintaining competitive market conditions. Corporate occupiers continue to heavily prioritize premium spaces featuring advanced connectivity, modern workplace amenities, and integrated sustainability metrics.
How are localized leasing dynamics impacting the office and retail sectors?
While the national Grade-A office rent benchmark held steady at QR 115 per square meter, localized performance varied by business district. Lusail continues to demonstrate stronger commercial momentum, posting a 4.5% annual increase in Grade-A office rents. In contrast, West Bay experienced a minor correction with a 3.2% annual decline. Anum Hassan, Head of Research at ValuStrat, noted that the office sector overall displayed limited rental volatility despite broader economic and regional challenges.
The retail sector experienced a dual narrative during the quarter. Retail assets performed strongly during January and February but softened towards the end of March. This correction was primarily visible across open-air retail destinations, reflecting typical seasonal slowdowns during Ramadan and Eid alongside more cautious consumer sentiment. On a quarterly basis, retail rents remained largely unchanged, though a marginal annual decline was recorded across monitored assets.
