February 22, 2023

Retail industry witnesses sharp growth in Q4 2022

Doha: Qatar’s retail market has witnessed a steady rise during the last quarter of 2022.

This comes with several factors including the expansion and launching of many new state-of-the-art facilities, outlets, and malls including the Mall of Qatar, Doha Festival City, and Place Vendome in recent years.

Ahead of FIFA World Cup Qatar 2022, the doors for retail business were widely opened in the country eventuating a vital improvement and growth, stated Cushman and Wakefield real estate firm in its quarterly report.

Among the outlets that were launched, “Printemps, a Parisian department store, opened its 40,000 sq m department store in the Doha Oasis development, which is also home to the Banyan Tree Hotel, and Quest indoor theme park. MINA District at Doha Port and Giardino Mall on The Pearl-Qatar, anchored by Lulu supermarket, also opened their doors in recent months,” the report said.

Due to the sector’s solid increase in the market, occupancy rates and rental levels for prospective development have been under pressure, the report noted.

“Generous rent-free incentives, fit-out contributions, and turnover rent arrangements have become common features in attracting new retail tenants in Qatar as the supply of accommodation increases,” it said adding that the demand for newly opened F&B units stays robust, which is always topped by start-up cafés and restaurants.

The report highlighted that the rents in Qatar’s busiest malls vary between QR200 and QR250 per sq m per month. With many vacancies available in the busiest malls in Qatar’s capital city, Doha, “significant discounts and turnover rents” have been implemented.

The report also mentions that the common outlets and showrooms outside the luxurious malls are given for rent between QR80 and QR150 per sq m.

The report further added that “Small convenience retail outlets in secondary locations are increasingly leased on the basis of a sustainable rent of between QR5,000 and QR10,000 per month depending on the size of the unit.

Restaurants and cafés in some of Qatar’s most popular outdoor destinations typically generate rental incomes of between QR130 and QR180 per sq m per month.”  This has enabled Qatar to revitalise its economy while the retail industry progressed last year amidst a number of events, developments and opening of various outlets.

 

Source: The Peninsula