Doha, Qatar: With the launch of three major projects, notably in Energy City and Burj Al Mana in the West Bay area, office spaces continue to witness high demand in the second quarter of the year.
ValuStrat yesterday reported that 25,000 sq m GLA were added to the newly opened projects, while the office stock totalled 6.8 million sq m GLA with at least 65 percent falling within the grade A category.
However, during the months from April to June, an estimated 465,000 sq m GLA was in the pipeline including Lusail Plaza Towers, Corniche Park Towers, and Nishan Tower.
The analysts at ValuStrat state that about 10 percent of office projects, which are in the pipeline till 2024 were put on hold.
In the meantime, rental rates for the office spaces came down by 2 percent QoQ and 3 percent compared to the same period in 2022.
The report said that “Offices in Al Sadd had the highest quarterly fall by 6.2 percent to QR60 per sqm, listed monthly rents ranged between QR40 to 80 per sq m.
The monthly asking rents of commercial units along C and D ring roads declined by 8 percent Y-o-Y and 2.9 percent quarterly to QR68 per sq m.
Leasing rates for office spaces in Lusail and along Salwa Road and Grand Hamad Street remained unchanged QoQ, the data pointed.
It further added that “Delays in delivery of new office stock are predicted to improve the occupancy of existing commercial projects in the medium term.”
During the first quarter of the year, the report highlighted that most of the office projects were concentrated in Lusail city, including the completion of Mashraf Al Rayyan head office. By the end of the first three months, the Office stock totalled 6.78 million GLA sq m, with the completion of 177,000 sq m GLA.
The researchers at ValuStrat also predicted that market corrections in the industry are expected to continue, particularly in secondary commercial districts amidst the existing gap in demand and supply.
For a detailed perspective on the property market, visit: Qatar - Real Estate Review Q2 2023