Doha, Qatar: The total retail supply in Qatar was recorded at 5.5 million sq m GLA in the third quarter of the year, noted ValuStrat in its latest report, adding that organised spaces comprised 2.5 million sq m GLA while unorganised amounted to 3 million sq m GLA.
The data states that an estimated 20,000 sqm GLA of unorganised retail was added in Q3 2024.
Places such as Baraha Town began renting out retail space across the country, offering a total area of 35,000 sqm GLA. Other places including The Crystal Walkway, a commercial centre spanning 11,000 sq m of GLA within Gewan Island, was also opened to the public during the quarter.
The report mentions the opening of North Plaza Mall, which was inaugurated in zone 71, Umm Al Umad with an estimated 11,300 sq m GLA, while the Outlet Mall was announced to open at Qetaifan Island North in the coming year..
“The median monthly rate for shopping centres in Q3 2024 declined by 2 percent QoQ and 4 percent YoY to QR 185 per sq m,” the report said.
The median monthly rents for street retail inside Doha plunged by 14.6 percent YoY and a 1 percent drop quarterly. However, the median monthly rents outside Doha witnessed a shift upwards by 5.4 percent since last year while remaining unchanged QoQ.
Common residential-dominated areas including Al Sadd, Fereej Bin Mahmood, and Muntazah, saw street retail rents decline by 2 percent compared to Q2 2024. Rents for street retail outside of Doha like the Al Aziziya experienced a 5 percent drop in the median monthly.
Commenting on the market, Anum Hassan, Head of Research, Qatar said: In the retail segment, the organised sector recorded a 2 percent decline, while street retail observed a 1 percent decrease.
In the hospitality market, the report notes that nearly 3,5000 keys are in the pipeline till 2025, with hotels comprising 83 percent and hotel apartments making up 17 percent.
In the third quarter of 2024, the Qatar real estate market experienced 227 mortgage transactions across all asset classes of ready properties, which noticed a drop of 8.5 percent per annum. The total value attributed to mortgage transactions amounted to QR6.8bn during the third quarter of 2024, reflecting an increase of 7.9 percent compared to the same period last year.
Hassan said, “Mortgage transactions declined by 10 percent Q-o-Q and 8.5 percent YoY. Similarly, sales transactions dropped by 18% since the last quarter and 15 percent compared to the same period last year.”
She further stressed that “Additionally, the Qatar Central Bank, aligning with the US Federal Reserve, reduced the interest rate by 55 basis points. These concurrent changes could suggest that buyers may be holding off on purchases in anticipation of a more favourable decrease in rates.”
For a detailed perspective on the property market, visit: Qatar - Real Estate Review Q3 2024
