Quarterly Report Qatar Q1 2021: Office Market Overview – Cushman & Wakefield Qatar

Press Releases

May 10, 2021

Quarterly Report Qatar Q1 2021: Office Market Overview

Lusail’s establishes itself as the destination of
choice for office occupiers

The lack of international travel has hampered new demand for
office space in Doha since March 2020. Furthermore,
uncertainty about future global demand for office space has
increased due to the adoption of technologies allowing people
to work from home during the COVID-19 pandemic.

As the roll-out of vaccines continues, many of Cushman &
Wakefield’s global corporate clients have reviewed their
strategies regarding real estate requirements. While the IT
sector is considering reducing its footprint, many sectors intend
to maintain their need for physical office space while offering
staff more flexible ‘work from home’ solutions when required.

New demand from international occupiers remains low, with relocation
within Qatar dominating leasing activity over the past
year. The establishment of the Qatar Free Zone Authority will
play an essential role in attracting inward investment and
creating demand for office space as we move beyond the
pandemic.

Lusail Marina District has overtaken West Bay as the location of
choice for most companies seeking new office space. Occupiers
are being attracted to Lusail by the improved access,
infrastructure provisions, car parking availability, rental prices,
and the number of government entities locating in the area.

Grade A office supply in Lusail has now surpassed 600,000 sq
m with Hermas Business Park the latest significant development
on offer to the market. Occupancy rates are currently relatively
low due the sharp rise in new supply; however, we expect a
trend in occupiers moving to Lusail in the coming years as the
area matures.

The increase in office supply and relative slowdown in demand
has resulted in rents falling by between 40% and 50% since
2015, when available space was at a premium. Offices in West
Bay are now available to lease for between QAR 100 and QAR
140 per sqm per month exclusive of service charges. Office
suites in Lusail are typically available at lower rents than their
equivalent in West Bay, although as absorption in Lusail
increases, we expect this gap to close.

Office space in locations such as Old Salata, Al Sadd and CRing
Road is now typically available to lease for between QAR
60 and QAR 80 per sq m per month. There is currently very little
demand for ‘shell-and-core’ space as tenants look to avoid the
capital expenditure required for an office fit-out.

Cushman & Wakefield Quarterly Report Qatar Q1 2021

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