Qatar’s strong economic performance driven by high energy prices and the government’s investments as well as preparation for Fifa 2022 are driving real estate demand in the country, a report said.
DTZ, one of the top global real estate services firms, predicts a positive outlook as a result of demand for all types of real estate in its latest update on Qatar’s real estate market.
The levels of oversupply in Doha’s office market that were being witnessed in 2011 are eroding due to increased demand, said Mark Proudley, author of the report and associate director at DTZ.
This demand is primarily being driven by large Government and financial bodies but also from the construction and engineering sector – which could be attributed to 2022 World Cup related activity, he added.
According to DTZ’s report, total current office stock in Doha is estimated at 3.7 million sq m, 1.43 million sq m of which is situated in the Diplomatic District.
There is approximately 248,000 sq m of space currently being marketed as available to lease in the Diplomatic District and this level of supply will continue to grow over the next 24 months, albeit at a reduced rate in comparison to the previous two years.
Increased demand for prime office space has stabilised rents across all main commercial districts throughout the first quarter of the year.
Large space users seeking in excess of 5,000 sq m, can secure rates as low as QR145 ($39.8) per sq m per month. For those looking for space less than 500 sq m, rental rates of QR275 per sq m per month have been achieved. DTZ forecasts that rental rates will remain relatively stable over 2012 with the possibility of increases towards the end of the year.
