Qatar’s hospitality sector sees strong growth in 2022
Doha: The retail market in the country has seen substantial growth with its increased supply. According to a report by Cushman & Wakefield, with the new developments coming in place, the vacant areas have gradually increased and are available to be leased with over 1.7 million sqm. The report indicates that Qatar’s main hubs including Katara, Souq Waqif and Msheireb Downtown offer over 30,000 sqm to be leased.
In spite of the worldwide deceleration due to the pandemic, the retail industry performed fairly well this year. With the launch of new malls like Place Vendome, the retail sectors are anticipating a rapid increase in the coming years. The report also states that the mall offers leasing space with over 200,000 sqm.
The report stated that various other malls such as Doha Mall and Northgate Mall are expected to open in the country which aims to provide more than 180,000 sqm. “Increasing supply combined with less demand and challenging market conditions has led to an increase in vacancy,” it said.
The construction and commercial office, Lusail Boulevard, is the newest inclusion in the sector and as a result, several occupants will be “opening the doors in Q3”. The report said, “Lusail Boulevard runs from the Lusail Towers to Lusail Stadium and is expected to be fully operational in time for the FIFA World Cup in November.”
Qatar is home to nearly 30 malls and is regarded as one of the finest destination for tourists. Situated all across the country, malls in Qatar are positioned for tourism, business and to strengthen the economy of the country.
With the potential developments in retail markets, rates of tenants are anticipating vital progress. “While established destinations with strong footfall can enjoy high or full occupancy, new developments can often struggle to secure a strong tenant mix, given the quantity of new supply,” the report said.
During the last 3 years, food and beverages (F&B) markets have favoured “less onerous” rents and more occupants have increased in the sector due to the high demand of food delivery apps, the report mentioned. However, Qatar’s capital city has experienced an overall inclination of F&B provisions in the past 5 years.
The report further stated that showrooms outside the malls are available to rent between QR80 and QR150 per sqm and mini retail shops are available between QR5,000 and QR10,000 on a monthly basis.
“Restaurants and cafés in some of Qatar’s most popular outdoor destinations typically generate rental incomes of between QR130 and QR180 per sqm per month,” it added.
Source: The Peninsula