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Satyendra Pathak
Doha
The residential segment in Qatar witnessed a surge in inventory from newly developed micro-markets towards northern peripheries of Doha as a steady increase in population is driving demand for housing in the country, Al Asmakh Real Estate has said in its latest report.
According to Al Asmakh’s ‘Qatar Real Estate Q1’ report, the number of overall available residential units in Qatar reached 360,000 at the end of the first quarter.
An additional 90,000 residential units are expected to be delivered by the end of 2020, the report said adding government and companies taking residential units for their employees are driving growth in Qatar’s housing sector.
While the occupancy of villa in the first quarter of 2020 stood at 72 percent, the report said, apartment occupancy was at 60 percent.
Well-connected roadway corridors in the country have worked wonders for the growth of housing sector in Qatar, the report said adding that due to affordable inventory available in the newly developed locations, the pressure to sustain rentals and occupancy mounts on the existing neighborhoods.
Average rental dips of around 3 percent across all asset classes in the residential segment were witnessed in the first quarter of 2020 as compared to the fourth quarter of 2019, the report said.
“However residential communities that are professionally maintained are able to hold up the rents,” it said.
The report said the office segment is yet to witness stabilisation in occupancies and monthly rentals.
“Surplus office supply in Lusail City and Musheireb Downtown shifts the momentum towards price correction in the office segment. The occupancies in West Bay offices towers is in the range of 55 percent to 65 percent, while asking monthly average rental ranges from QR100 to QR140 per sqm,” the report said.
“The suburban business district (SBD) as in Doha Downtown, C & D Ring Road, Al Sadd, Salwa Road, and Airport Road are commanding monthly rentals ranges between QR70 to QR90 per sqm, while the average occupancies in SBD is around 65 percent,” the report said.
The highest concentration of the malls is on Al Shamal Road where eight malls are located with a net leasable area (NLA) of 721,250 sqm that is close to 33 percent of the total net leasable area, it said.
The monthly rental rates in the well-established malls are in the range of QR200 toQR250 per sqm. In the next two years, the expected supply of about 634,000 sqm that is 42 percent of the current NLA is expected from five malls under construction.
Most operational malls have higher and stabilized occupancy that support the mall’s rental income and its stability, the report said.
The previous two quarters witnessed the launch of around 10 hotels and hotel apartments. Now Qatar has 143 hotels and hotel apartments operational with around 28,900 keys across all star categories.
More than 75 percent of room keys are still with 4-star or 5-star and 70 percent of keys are confined in West Bay alone, the report said.
The average hotel occupancy in the 5-star hotel category was around 65 percent in the first quarter of 2020, while Average Daily Rates (ADRs) and Revenue per Available Room (RevPAR’s) were QR 511 and QR 330 respectively.
Government initiatives to support the country’s healthcare system by temporarily setting up COVID 19 quarantine facilities in several 5 and 4-star hotels are a vital support for the hospitality sector in Qatar, the report said.
In the first quarter of 2020, the land rates have reduced marginally as compared to the previous two quarters. Transactions in the villa segment recorded in Old Airport and Al Thumama in Doha municipality were in the range QAR 300 to QAR 350 per sqft, the report said.
In Al Bu Hamour, Muraikh of Al Rayyan municipality it was in the range QR300 to QAR 325 per sqft. In Al Wukair, the land transactions witnessed were in the rangeQR200 toQAR250 per sqft.
Various locations in other neighbouring municipalities of Doha, the land parcels were transacted in the range QAR 140 to QAR 300 per sqft, it said.
Doha
The residential segment in Qatar witnessed a surge in inventory from newly developed micro-markets towards northern peripheries of Doha as a steady increase in population is driving demand for housing in the country, Al Asmakh Real Estate has said in its latest report.
According to Al Asmakh’s ‘Qatar Real Estate Q1’ report, the number of overall available residential units in Qatar reached 360,000 at the end of the first quarter.
An additional 90,000 residential units are expected to be delivered by the end of 2020, the report said adding government and companies taking residential units for their employees are driving growth in Qatar’s housing sector.
While the occupancy of villa in the first quarter of 2020 stood at 72 percent, the report said, apartment occupancy was at 60 percent.
Well-connected roadway corridors in the country have worked wonders for the growth of housing sector in Qatar, the report said adding that due to affordable inventory available in the newly developed locations, the pressure to sustain rentals and occupancy mounts on the existing neighborhoods.
Average rental dips of around 3 percent across all asset classes in the residential segment were witnessed in the first quarter of 2020 as compared to the fourth quarter of 2019, the report said.
“However residential communities that are professionally maintained are able to hold up the rents,” it said.
The report said the office segment is yet to witness stabilisation in occupancies and monthly rentals.
“Surplus office supply in Lusail City and Musheireb Downtown shifts the momentum towards price correction in the office segment. The occupancies in West Bay offices towers is in the range of 55 percent to 65 percent, while asking monthly average rental ranges from QR100 to QR140 per sqm,” the report said.
“The suburban business district (SBD) as in Doha Downtown, C & D Ring Road, Al Sadd, Salwa Road, and Airport Road are commanding monthly rentals ranges between QR70 to QR90 per sqm, while the average occupancies in SBD is around 65 percent,” the report said.
The highest concentration of the malls is on Al Shamal Road where eight malls are located with a net leasable area (NLA) of 721,250 sqm that is close to 33 percent of the total net leasable area, it said.
The monthly rental rates in the well-established malls are in the range of QR200 toQR250 per sqm. In the next two years, the expected supply of about 634,000 sqm that is 42 percent of the current NLA is expected from five malls under construction.
Most operational malls have higher and stabilized occupancy that support the mall’s rental income and its stability, the report said.
The previous two quarters witnessed the launch of around 10 hotels and hotel apartments. Now Qatar has 143 hotels and hotel apartments operational with around 28,900 keys across all star categories.
More than 75 percent of room keys are still with 4-star or 5-star and 70 percent of keys are confined in West Bay alone, the report said.
The average hotel occupancy in the 5-star hotel category was around 65 percent in the first quarter of 2020, while Average Daily Rates (ADRs) and Revenue per Available Room (RevPAR’s) were QR 511 and QR 330 respectively.
Government initiatives to support the country’s healthcare system by temporarily setting up COVID 19 quarantine facilities in several 5 and 4-star hotels are a vital support for the hospitality sector in Qatar, the report said.
In the first quarter of 2020, the land rates have reduced marginally as compared to the previous two quarters. Transactions in the villa segment recorded in Old Airport and Al Thumama in Doha municipality were in the range QAR 300 to QAR 350 per sqft, the report said.
In Al Bu Hamour, Muraikh of Al Rayyan municipality it was in the range QR300 to QAR 325 per sqft. In Al Wukair, the land transactions witnessed were in the rangeQR200 toQAR250 per sqft.
Various locations in other neighbouring municipalities of Doha, the land parcels were transacted in the range QAR 140 to QAR 300 per sqft, it said.
