Qatar retail space expands 60% in fourth quarter of 2017
January 17 2018 10:16 PM
Pearl-Qatar
Citywide residential asking rents declined 15% over the past 12 months.

Qatar witnessed heightened supply in all the segments of the real estate during the fourth quarter of 2017 with retail space expanding 60% since 2016, according to ValuStrat.
"Amid regional challenges, 2017 ended on a high note with the value of real estate transactions reaching QR32.7bn, 20% higher than 2016," according to Pawel Banach, ValuStrat Qatar general manager.
Finding that the influx of supply continued to put downward pressure on rents in residential and commercial sectors, it said in the short term due to the projected expansion in supply, both sectors may continue to incur market corrections.
A total of 6,625 housing units were delivered in 2017 bringing the total residential supply to 286,125 properties, ValuStrat said in a report.
"Because of the surge in supply and stagnating population growth rate, occupancy remained within 75-80% in 2017," it said, adding some 56% of 2018 pipeline is slated to be delivered in prime locations such as The Pearl, West Bay and Lusail.
In the medium term, depending on anticipated oil price recovery and government support the downward trajectory may stabilise.
Citywide residential asking rents declined 15% over the past 12 months and 5% since the third quarter, it said, adding the influx of apartments in secondary locations has triggered fall in rents by 8% compared to third quarter of 2017.
Median asking rents for villas in prime locations such as West Bay Lagoon and Al Waab experienced a decline in quoted rents by 8% quarter-on-quarter.
Finding that the trends of falling median transacted prices and rising transactional volumes in the fourth quarter of 2017 were reversed, ValuStrat said median transacted prices remained stable over the last year and increased by 7% since the previous quarter.
"This increase in transacted prices can be attributed to larger ticket sizes of housing transactions experienced in northern and southern outskirts of central Doha," according to Anum Hasan, market research analyst at ValuStrat Qatar.
On the other hand, increased borrowing costs eroded transactional volume by 19% year-on-year.
An estimated 750,000sqm gross leasable area (GLA) of office space was projected for 2017, of which 52% was completed during the course of the year. The projections for 2018 have been upward adjusted to 940,000sqm GLA due to delayed deliveries from 2016/17.
The office asking rents fell 9% compared to last year and was 4% lower than the third quarter of 2017. Burgeoning supply in Al Sadd, along Salwa Road and C/D Ring Roads, triggered highest quarterly fall in rents against other areas.



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