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Retail rental rates to decline in 2023

Doha, Qatar: Qatar’s retail industry anticipates a decrease in rental rates in the forthcoming quarters of the year, stated ValuStrat in its recent report.

“It is expected that market corrections, with soft declines in median rental rates, will continue through the end of the year, particularly in the organised retail sector,” the report noted.

During the first quarter of the year, the stock of organised retail spaced came up to 2.4 million sq m GLA, in addition to the Aventura Mall, which totalled 11,000 sq m Gross Leasable Area (GLA) in its previous quarters. However, the report highlights that there is only one mall in the pipeline for this year, which is located in The Pearl Qatar, La Plage Mall with 40,000 sq m GLA.

The market also witnessed major regional and international food and beverage and fashion brands extending their branches in Abu Sidra Mall, such as Babyshop, Splash, and Lifestyle.

The opening of West Walk in the Al Waab area also witnessed significant food and  beverage outlets, including Starbucks, Khashoka, Karazi, and SASSO among others, the report said adding that nearly 25 more shops will be launched in the coming months

Recently, Rawabi Hypermarket opened the largest single-floor hypermarket in Izghawa. Meanwhile, Al Meera launched a new fully autonomous branch in Aspire 

ValuStrat accentuated that “The median monthly rent for shopping centres across the country decreased during the first quarter of this year to QR200 per sq m, signaling a 4.8 percent decline in QoQ and a 7 percent reduction compared to the same period in 2022.

Qatar’s Malls on the other hand continued to experience increased footfall as they took part in main leisure activities like Shop Qatar 2023 and several other festivities in the lead-up to Ramadan and Eid 2023.

“The median monthly asking rent for street retail within Doha remained stable quarterly at QR154 per sq m, down 3.8 percent YoY,” the report added.

Correspondingly, the median monthly asking rent for street retail outside Doha municipality has stabilised at QR146 per sq m, receding 1.4 percent during Q4 2022 and Q1 2023.

 For a detailed perspective on the property market, visit: Qatar - Real Estate Review Q2 2023