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Satyendra Pathak
An increase in demand associated with hosting a global event such as FIFA World Cup in 2022 has brought stability to Qatar’s rental market, leading international consulting group ValuStrat has said in a report released on Sunday.
According to ValuStrat’s third-quarter analysis of Qatar’s real estate market, the median monthly asking rent in Qatar experienced no change in the third quarter of 2021 compared to the second quarter of 2021, indicating market stabilisation.
Eskan leases administered by Supreme Committee for Delivery and Legacy have also reduced the oversupply in the short term, the report said.
While the median monthly asking rent for apartments was QR6,200 registering a marginal QoQ fall, the report said, the median monthly asking rent for villas witnessed a slight increase to QR10,400 compared to the last quarter.
The Pearl Qatar, Al Sadd and Lusail saw rents increase in single digits, the report said.
With the marginal addition of 700 units during the third quarter of 2021, the total housing stock in the country reached 307,215 units, the report said.
As many as 600 apartments were delivered from completion of Abraj Bay Tower 2 in The Pearl Qatar and three residential Towers in Lusail’s Entertainment district, Al Kharaej and Erkyah.
Notable projects launched during the 9th edition of Cityscape Qatar included Crystal Residence comprising 15 mixed-use buildings in Gewan Island (The Pearl), apartment and mixed-use buildings in Qetaifan North, 1,700 villas in Furjan Wadi Lusail, Al Yussum townhouses 2 in Yasmeen City Lusail and apartment complex ‘Milos’ in Legtaifiya.
The projection for the fourth quarter of 2021, however, was adjusted downwards as the majority of the projects have shifted delivery to 2022.
The residential transaction volumes reduced by 25 percent compared to 2020 but expanded by 60 percent compared to 2019, the report said adding that the median transacted ticket size for houses was QR2.7 million, rising by 8 percent year-on-year and no change was witnessed compared to the second quarter of 2021.
“Muaither, Al Wakrah and Al Khor had the highest volume of transactions for residential houses. As many as 52 residential building transactions were recorded as Umm Ghuwailina and Rawdhat Al Khail had the highest volume,” the report said.
During the third quarter of 2021, the report said, the volume and value of transactions in The Pearl and West Bay Lagoon reduced by 26 percent and 27 percent respectively compared to 2020.
About hotel supply in the country, the report said that approximately 13,600 keys are in pipeline to be delivered in the next 15 months.
There was no addition of hotels during the third quarter of 2021 and the total hospitality supply remained at 29,688 keys.
The expected supply for 2021 has been adjusted downward due to a delay in the opening of new hotels because of COVID-19, it said.
The report also revealed that Katara Hospitality, owning 42 hotels and 25,000 rooms, announced plans to expand to 60 hotels by 2030.
The report said that office stock amounted to 5.6 million sq m GLA with no addition to supply during the quarter.
As of the third quarter of 2021, the report said, 60 percent of office stock is located in primary locations and is of premium quality.
According to the report, 1.26 million sq m office space is projected to be delivered in the next 15 months with 65 percent concentrated in Lusail and remaining distributed in Msheireb Downtown, Al Dafna, Onaiza, Umm Ghuwailina and Salata/Al Mirqab.
The citywide median asking rent for offices was QR74 per sq m, declining by 2.6 percent compared to the second quarter of 2021.
New demand for office space has been dominated by companies working in financial and insurance activities, administrative and support services and arts, entertainment and recreation.
The median monthly asking rent in Lusail was QR82 per sq m, registering no change compared to the second quarter of 2021.
About the retail supply, the report said that the organised retail stock comprised 1.96 million sq m GLA with the addition of Abu Sidra Mall (30,878 sq m GLA).
Lulu hypermarket unveiled its 15th store in Abu Sidra Mall spanning over 24,000 sq m, it said adding that Lulu hypermarket is working to open in Giardino Mall covering 13,000 sq m and Lulu supermarket in Gewan Island across 700 sq m by 2022.
Marza hypermarket opened its 4th store in J Mall in Hazm Al Markhiya and as many as 40 new retail and F&B brands have opened in The Pearl in 2021 as reported by United Development Company.
According to the report, 518,000 sq m GLA including six malls distributed across Lusail, The Pearl, Musheireb, Umm Salal and Al Maamoura is in pipeline till 2022.
“Eid holidays, shopping festivals, re-opening of schools and further removal of social mobility restrictions have led to a boost to footfall across all malls compared to the second quarter of 2021,” it said.
Doha Festival City announced 35 new stores across fashion, leisure, entertainment, jewellery, café and pharmacy areas.
As per the report, the median monthly asking rent of street retail dipped marginally by 0.7 percent QoQ and 8.2 percent YoY. Within Doha, median rents stood at QR160 per sq m and outside Doha QR152 per sq m.
There has been an increase in take-up of retail outlets across Lusail, Fereej Bin Mahmoud, Ain Khaled, Al Aziziya and Najma compared to last quarter, it said.
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