DROP IN OF­FICE RENTS TO BEN­E­FIT TEN­ANTS: DTZ

15 > QATAR TO­DAY > SEPTEM­BER 2016

Qatar Today - - BUSINESS > REALITY CHECK -

Real es­tate com­pany DTZ re­leased its 2016 Qatar mar­ket re­port for the se­cond quar­ter last month, which showed a 1015% re­duc­tion in Grade A of­fice rents since the start of the year.

Va­cancy rates of Grade A of­fice ac­com­mo­da­tions in West Bay have in­creased by ap­prox­i­mately 5% over the last six months re­sult­ing in op­por­tu­ni­ties for ten­ants to ne­go­ti­ate ad­van­ta­geous terms. While the pop­u­la­tion of Qatar in­creased by ap­prox­i­mately 9% over the past 12 months, the vast ma­jor­ity of new ar­rivals has been made up of con­struc­tion work­ers. While this has kept the ter­tiary sec­tor buoy­ant, de­mand for prime and mid-range res­i­den­tial ac­com­mo­da­tion has fallen due to a sig­nif­i­cant ex­o­dus of white-col­lar work­ers fol­low­ing re­cent re­dun­dancy pro­grammes in the gov­ern­ment and hy­dro­car­bon sec­tors.

"The cur­rent rental soft­en­ing re­flects mar­ket-driven sup­ply and de­mand and pro­vides some re­lief to oc­cu­piers from rents which have been ris­ing year on year since 2010," said Mark Proud­ley, Di­rec­tor, Head of Com­mer­cial Agency, Con­sult­ing and Re­search, DTZ. He added: "The long-term tra­jec­tory for Qatar re­mains good with the gov­ern­ment's sig­nif­i­cant in­fra­struc­ture in­vest­ment, val­ued at QR261 bil­lion, pro­vid­ing wel­come and fun­da­men­tal sup­port to the wider real es­tate econ­omy."

Global Real Es­tate Com­pany, owned by Sheikh Ahmed bin Mo­hammed bin Saud Al Ab­dur­rah­man Al Thani, and Qatar's Qual­ity Group In­ter­na­tional last month signed a deal to launch a new 14,864 sq. m shop­ping cen­tre in Wakrah City. Apart from a su­per­mar­ket and depart­ment store, the mall, which is ex­pected to be com­pleted by mid-2017, will also have other fa­cil­i­ties such as a phar­macy, laun­dry and money ex­change. "The mall project in Wakrah has un­der­taken ex­ten­sive mar­ket re­search to bet­ter un­der­stand the needs and pref­er­ences of cus­tomers, so we have taken a strate­gic ap­proach to hand over the project to a lead­ing re­tailer in Qatar," said Sheikh Ahmed. “We hope that Qual­ity Group can pro­vide the best shop­ping and leisure ex­pe­ri­ence to the mul­ti­com­mu­nity in Qatar, es­pe­cially in Wakrah and Wukair ar­eas, and we are de­lighted to be sign­ing this new col­lab­o­ra­tion," he added.

Newspapers in English

Newspapers from Qatar

© PressReader. All rights reserved.