DOHA: According to a recent report by Cushman and Wakefield, high occupancy rates in key retail outlets and underlying demand from retailers for robust trading areas is likely to bolster rental levels at the topend of the market in Q3 2024. However, a general oversupply and rising vacancy in secondary locations is anticipated to witness a further downward pressure on some rents in the market.
The report states that supply of retail space in Doha’s 31 organised malls is around 1.6 million sq m, with an additional 0.15 million sq m in areas including Al Wakra and Al Khor.
The rents of the prime organised mall varies between QR300 and QR400 per sq m per month is common for small retail units, with typical line units leasing from QR220 to QR250 per sq m per month.
“Malls that have seen footfall reduce following the opening of Doha’s super-regional malls, have largely reduced their rent to below QR200 per sq m per month for line units,” it said.
On the other hand, restaurants and cafés in some of the country’s premier outdoor destinations, typically generate rental incomes between QR130 and QR180 per sq m per month.
The report further mentions that over 400,000 sq m of leasable space is available in ‘open-air’ places such as The Pearl Island, Souq Waqif, Souq Al Wakra, Msheireb Downtown, Katara, Doha Port, and Lusail Boulevard – with majority of this space occupied by food and beverage outlets.
However, the report records no vital developments in the retail industry during the third quarter of the year. were launched in Q3.
The next expected key addition to Qatar’s retail real estate supply will be the soon-to-launch Doha Mall in Abu Hamour, which was originally intented to inaugurate in September, following the opening of its anchor tenant Lulu in March 2024.
The F&B market in Qatar, on the other hand, has become firmly competitive over the past several years. In addition to retail destinations mentioned above, the significant increase in hotels and the emergence of box-parks like the family-friendly Marina Food Arena, District One, and Lusail Night Market, has increased competition in this sector.
“The growth in supply of organised retail accommodation and in the F&B subsector, has impacted rents across the market. The concentration of footfall in some developments has seen trading reduce in other locations, leading to an increasing gap in rental values,” the report said.
Meanwhile, the lessened expansions in open-air locations common from July to September months has seen an increase in out-door cooling across the country. The report states “21 High Street and West Walk both benefit from the presence of outdoor cooling, which has attracted both customers and tenants alike.”
Qatar recently announced that outdoor cooling is expected to be installed in Souq Waqif, whereas Crystal Walkway – the retail thoroughfare at the UDC-developed-Gewan Island said that it will feature the world’s longest climate-controlled retail walkway in the coming year.
