New office developments in Qatar seen to emerge within two years

Qatar is expected to see new office developments in prime areas within next two years, as the country’s first liquefied natural gas (LNG) output from North Field East slated to come online, according to Cushman and Wakefield Qatar (CWQ)."New office development in prime areas may emerge within two years, but only if rental growth supports project viability," CWQ said in its latest report.Despite elevated vacancies in some secondary locations, the tightening availability of high quality office accommodation suggests that upward pressure on prime rents is "likely in the near term."As of second quarter of 2025, the prime Category A offices typically command QR100-140 per sq m per month, while shell-and-core space is usually available below QR100 per sq m per month, the report said.CWQ said office demand continues to be driven primarily by the government and the oil and gas sectors.In support of the strong macroeconomic fundamentals, the report highlighted that in the energy sector, Qatar's LNG expansion is moving ahead, with production capacity set to reach 142mn tonnes per annum by 2030 and the first output from North Field East project expected in mid-2026.Over the past two years, large government requirements - often for entire buildings - have dominated activity, accounting for more than 170,000sqm of leasing in West Bay and Msheireb, it said.Although leasing activity in Qatar's office market remained quiet in Q2-2025, CWQ said this followed an 18-month of strong government demand that had absorbed significant Grade A supply, pushing "vacancy rates to their lowest level since 2016."In West Bay, total office stock (gross leasable area or GLA) is around 1.9mn sq m with less than 150,000sq m currently available for lease.In Lusail Marina district, there is about 700,000sq m of Grade A space, of which just more than 100,000sq m is vacant, the report said, adding Msheireb Downtown, which comprises approximately 230,000sq m, is now fully occupied.Across the main business districts - Lusail, The Pearl, West Bay and Msheireb Downtown - Grade A vacancy is estimated at 12%, equivalent to about 375,000sqm, it said."The pipeline of new office supply remains limited," it said, adding outside of Lusail Towers, where three of the four landmark buildings have already been sold or pre-leased.In the Marina district, Marina 31 is fast approaching completion and will deliver more than 20,000sq m of GLA, the report said.