Some 13,500 residential units are projected to be added in the country during 2022, according to researcher ValuStrat.
Subject to a temporary increase in demand arising from growth in expatriate population fuelled by hosting FIFA World Cup in 2022 and Eskan leases, rents of residential units are projected to stabilise and even grow in some areas, ValuStrat said.
Growing ownership by foreigners coupled with positive expectations associated with hosting a major global event could potentially bottom out capital values in the beginning of 2022 and may lead to appreciation in some areas by the year-end.
In terms of office price and rents, ValuStrat said that with reforms to investment regulations made in 2021, and the easing of regional restrictions, it expects a boost in demand which may lead to slowing of office rents declines by end of 2022.
Significant oversupply exceeding 2mn sq m GLA is projected to worsen in 2022 despite the boost to demand, due to projected supply pipeline exceeding 1mn sq m GLA during the year.
There is a risk of work-from-home being re-imposed for more than 50% of the workforce due to the spread of Omicron or other likely variants of Covid-19 virus, ValuStrat said.
Despite boost to retail demand in 2022, rentals in malls and shopping centres could continue to face downward pressure due to relatively large supply pipeline for the year.
The upcoming shopping centres include Place Vendome Mall, Boulevard Mall, La Plage Mall, Doha Oasis and Giardino Mall.
In hotels category, ValuStrat said occupancy and average daily rates (ADRs) are projected to grow by 15-20% and 20-40% y-o-y respectively during the months in which FIFA World Cup will be hosted.
The upcoming notable hospitality establishments according to the researcher include Rixos Doha Qetaifan, Fairmont & Raffles Lusail Hotel & Residences, Waldorf Astoria, Rosewood Residence Doha, Dream Doha, Century Marina Hotel, Al Baker Novotel and Sofitel, Hampton by Hilton Doha, The St Regis Marsa Arabia Island and Plaza Doha.
In tourism, ValuStrat said a water park, beach club and 5-Star hotel in Qetaifan North project is expected to operate from Q3, 2022, Winter Wonderland operated by IMG (International Marketing Group) will be hosted on Al Maha Island near Lusail, over 200,000sq m (starting from November 2022 for five years), 1.5mn fans are expected to attend 2022 FIFA World Cup, lifting of quarantine measures and social mobility restrictions related to the pandemic might provide a further boost to tourism on all fronts: leisure, regional and cruise
Downside risks involve the government ‘reintroducing' movement restrictions due to the spread of the Omicron variant of the Covid-19 virus.