Doha / QATAR: Demand-supply equilibrium has laid a solid foundation for stabilised rentals in Qatar’s commercial office sector, indicating relief for the corporate segment, according to DTZ, a global property service firm.
Doha, QATAR real Estate
It forecasts that rents will remain “relatively stable” for the remainder of this year and into 2014. Growth in economic activity and investment in infrastructure will continue to create employment opportunities, fuelling demand for office accommodation but simultaneous expansion in supply ought to “dampen” the prospects of rental inflation, causing rent levels to remain “stable”, DTZ said in a report.
Finding that rental rates for commercial have remained “comparatively stable” since 2011, it said in the Diplomatic Area, rents can vary “significantly” depending on the quantum and quality of accommodation being rented. It is possible for larger space users seeking in excess of 5,000sq m to secure secondary accommodation from rents as low as QR145 per sq m, it said.
Small suites of less than 500sq m are at premium and rents of QR230 per sq m have been reached recently, the report observed. The total current office stock in the prime Diplomatic Area is estimated at 1.54mn sq m, DTZ said, estimating that it could reach 1.63mn sq m by the end of this year, subject to timely completion over the next six months.
The supply figures reflect an additional 90,000 sq m space being completed over the first half with new developments reaching completion including Al Baker twin towers and Al Jasmiya tower, it said.
However, there is about 280,000sq m of vacant accommodation being marketed to lease in the Diplomatic Area, equating to vacancy rate of 18%, it found. Net take-up of office accommodation in the Diplomatic district over the first six months of 2013 is about 43,000sq m, which is below the five-year average of 60,000sq m, it said.
In addition to the Diplomatic Area, new stocks are under construction at Lusail with three towers nearing completion, the report said. Rents for good quality commercial stock in secondary locations range from QR120 to QR150 per sq m, whereas those in tertiary locations range from QR80 to QR100 per sq m.
Sources: The Peninsula, Gulf Times, Caye Global News, BBC News
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