Doha: Qatar’s tourism industry is poised to embark on “sustained momentum” as the figure is expected to grow by 5 percent in the coming year, according to researchers.
Analysts at ValuStrat indicate that the country has seen 3.9 million visitors so far and will receive nearly 4.2 million by the end of this year.
Speaking to The Peninsula, Anum Hassan, Head of Research in Qatar at ValuStrat said that the hospitality sector continues to thrive, largely due to the legacy impact of FIFA 2022 and an uptick in local and international events. She said “Tourism from GCC countries played a pivotal role, contributing 44 percent of total visitors—a 43 percent YoY increase. Cooler weather during Q3 also bolstered tourism activity, driving higher demand for accommodations.”
She also noted that the first three quarters of 2024 saw several noteworthy retail developments that attracted several tourists and investors. Newly opened malls include Velero Mall in Lusail Marina, Crystal Walkway in Gewan Island at The Pearl, and Baraha Town in Bu Hamour. Significant brands were among the additions during the same period including Tesla, Alo Yoga, Pret A Manger, Pickl, Raising Cane’s, WHSmith Curiosity, New Balance, and Golden Apple.
Hasan also highlighted that Baraha’s operational retail spaces and residential units are ready for occupancy. The development comprises 16 G+M+1 buildings, offering a mix of retail, office, and residential spaces. It comprises 500 to 580 units, including studios and one-bedroom apartments, alongside retail spaces and office units. The development also features a health club and a supermarket.
Underlining the primary reasons behind the decline of several markets in the third quarter of 2024, Anthony Fernando, Director of Valuations, Qatar at ValuStrat said: “This is mainly due to reduced investor confidence, which results in an oversupply of some sectors post-FIFA, as well as the increased interest rates slowing down the rate of borrowing and transacting.”
However, the rate of this decline is beginning to show a slow yet steady resolve as the central bank plans to introduce new policies in 2025 to ease interest rates.
He mentioned that Qatar will most likely continue to see a slow-paced decline across the sectors, with some upticks in the residential rental sector as most contracts are due for renewal in the fourth quarter.
On the other hand, continued falls in residential rents have resulted in occupancy shifts from secondary to primary residential locations. These shifts may yet lead to a slow rise in rents in primary residential zones in the coming quarters of 2024 and 2025. “
Given the increased footfall in retail zones during the last quarter, we may also see increasing rents in the retail sector across the fourth quarter and the first quarter of 2025, especially in organised retail, Fernando said.
While there is much demand in the organised retail zones, the slow decline in rents is reflected mainly in incentives offered via rent-free periods and fit-out periods for new tenants in order to maintain steady occupancy levels, he said.
The industry leader stressed, “While it is easier to rent out street retail spaces, small to medium-sized businesses are struggling to keep up with rent, once more due to barriers to entry such as high interest rates and shipping costs.”
Fernando added, “Due to this, there are consistent tenant shifts in street retail; thus, to maintain steady levels, landlords resort to offering incentives to tenants with such incentives offered, occupancy levels may continue to increase steadily while effective rents may see somewhat slow falling patterns.”
For a detailed perspective on the property market, visit: Qatar - Real Estate Review Q3 2024
