DTZ Quarterly Report Qatar Q1 2018: Retail Market Overview – Cushman & Wakefield Qatar

Press Releases

November 25, 2019

DTZ Quarterly Report Qatar Q1 2018: Retail Market Overview

image description

The total supply of organised retail accommodation in Qatar surpassed 1.39 million sq m following the recent opening of Tawar Mall in Umm Lekhba.

There are currently a total of 21 purpose built retail malls in Doha, excluding local neighbourhood shopping arcades and stand alone hypermarkets.

Between them, Doha Festival City, Mall of Qatar and Villagio Mall account for more than 40% of retail accommodation in purpose built malls, providing a total of 565,000 sq m gross leasable area.

The supply of organised retail accommodation has increased by more than 200% since 2010. While retail supply struggled to meet the demand of the growing population between 2010 and 2015, the completion of more than 600,000 sq m since 2015, coupled with the downturn in consumer confidence has resulted in a changing market dynamic.

image description

A number of prime retail destinations have maintained relatively strong performance in recent months, however reduced spending combined with additional supply, and the impact of the blockade, has been increasing pressure on retailers and creating a downward pressure on rents.

The quantity of new supply has increased competition between new retail destinations to secure premium brands in the past year, with incentives such as rent-free periods, fit-out contributions, and lower headline rents increasingly prevelant.

Outside of the ‘Organised Retail’ sector, the market in Qatar comprises largely of community mini-malls, ‘Al Furjan’ markets, high street showrooms, and traditional souqs. The increasingly challenging market has seen the emergence of turnover rent agreements in some locations, most notably in destinations that concentrate on the F&B sector.

image description

Prime retail units in shopping malls still typically command rents of between QAR250 and QAR350 per sq m per month, however we are increasingly seeing rental reductions being considered for tenants in some of the ‘less-prime’ locations in order to maintain high occupancy rates.

Elsewhere, showroom rents can vary from QAR100 to QAR180 per sq m depending on their location and profile. Rents in Al Furjan markets are typically restricted to QAR6,000 per month for small retail units.

DTZ Quarterly Report Qatar Q1 2018

To find a property for lease in Doha, please click here to start your property search.


CONTACT US

As Qatar’s oldest established global real estate advisor, our team can help you to find the ideal home or office to rent in Doha’s competitive property market.

Get in touch today to see how we can help.

Cushman and Wakefield Qatar
32nd Floor Tornado Tower
West Bay
P.O. Box 37584
Doha
State of Qatar

Email: residential.qatar@cushwake.qa
Tel: +974 33541237
Mobile: +974 33541237




    Cushman & Wakefield Qatar will use the information you provide on this form to respond to your enquiry, to provide updates and marketing. Please let us know the ways you would like to hear from us: