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Qatar expected to receive 7K hotel rooms in 2021: ValuStrat

Qatar expected to receive 7K hotel rooms in 2021: ValuStrat

Satyendra Pathak
Doha
Qatar is expected to receive 7,000 hotel rooms including 6,250 keys and 750 serviced apartments in 2021, ValuStrat has said in its ‘Qatar 2021 Outlook’ report released on Sunday.
According to the report, hospitality establishments like The Plaza Doha, Katara Towers, Waldorf Astoria, Zulal Wellness Resort, Salwa Beach resort, Jouri Murwab Hotel, Steigenberger Hotel, Banyan Tree Doha, JW Mariott Hotel, Al Baker Novotel and Sofitel, Majlis
Grand Mercure Hotel & Apartment and Dream Doha are expected to start operations by the end of
this year.
Approximately 1,300 keys were added during 2020, as per ValuStrat research.
“Assuming no closures during the year, the total supply is estimated to exceed 28,500 keys. The supply of serviced apartments (branded and non-branded) was estimated to reach 9,300 rooms in 2020,” the
report said.
Lifting of quarantine measures expected in the second half of 2021 might provide a boost to tourism, the report said adding that during the first half of 2021, mandatory hotel quarantine and domestic tourism may provide support to the hospitality industry.
As many as 8,200 residential units are expected to be supplied in 2021, the report said adding that approximately 80 percent of the upcoming supply is concentrated in Lusail, The Pearl and West Bay.
At the end of 2020, the residential stock stood at 303,015 units with the addition of 530 units during the last quarter, the report said adding that despite COVID-19 and slowdown in the growth of the expatriate population, the annual fall in rents and capital values of residential units during 2020 was less compared to YoY decline in 2019.
“Growth in the expatriate population is predicted to rise in the second half of 2021 post lifting of social mobility restrictions, resulting in a pick-up in demand which could head towards stabilisation of rents by the end of 2021,” the report said.
Growing ownership by foreigners coupled with competitive listings for residential sales might slow down the rate of decline in capital values potentially bottoming out by the end of 2021, the report said.
With the expected opening of shopping centres like Doha Mall in Al Maamoura, Boulevard Mall in Jeryan Jenaihat and 04 Mall in The Pear, the report said, the estimated mall supply for 2021 stood at 209,000 sqm GLA.
Highlighting that the government of Qatar is encouraging retailers to shift to e-commerce platforms in order to capitalise on the growing trend of rising online transactions, the report said, “Rentals in malls and shopping centres will continue to soften due to pressures of online trading.”
The report, however, said that demand is predicted to increase during the second half of 2021 which may lead to softer declines in rents by the end of 2021.
An estimated 880,000 sqm GLA of office space is predicted to be added during 2021, the report said adding that there is an expected increase in companies working in e-commerce, logistics, finance and technology.
Despite the influx of supply, the projected pick-up in market sentiment and demand might contribute towards a slower pace in decline of office rents, it said.
Talking about the Qatari economy in general, the report said, “Qatar’s economy is projected to grow by 2.5 percent during 2021 as per International Monetary Fund. The ‘Al-Ula Declaration’ that resulted in the reopening of borders, resumption of air and sea travel and trade of Qatar with Saudi Arabia, the United Arab Emirates, Bahrain and Egypt is expected to boost trade and
tourism sectors.”
“Government of Qatar unveiled a budget of QR194.7 billion for the fiscal year 2021. The budget is expected to support upcoming as well as ongoing development projects in various sectors and those related to World Cup 2022, education and healthcare and infrastructure development in the economic, industrial and logistics zones,” the
report said.
“FIFA World Cup Qatar 2022 tickets inclusive of hospitality and optional travel packages are expected to go on sale during
the year. Ashghal’s infrastructural projects intended to serve World Cup 2022 have been cited to complete as per scheduled time,” the
report said.

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