The fastest-growing strong economy and Qatar's expanding commercial real estate are the main factors driving demand for commercial properties. The higher GDP growth and the friendly policies of the government that encourage commercial investment ventures are promoting construction activities in the country. We find primarily residential projects, high-end commercial towers, and white-collar office space projects in Qatar.
A wide range of luxury hotels, offices, and shopping malls exist. The FIFA World Cup 2022 has drawn almost 1.5 million tourists, which is a big reason for the rise in demand for hotel rooms in Qatar. People are more interested in commercial properties. On the other hand, business people also need commercial properties to make their businesses operational and functional.
Qatar has a positive demand for commercial activities and properties in this situation. Let's go through some visible aspects this year and predict more positive trends in the coming years. Here you will find directions and forecasts for commercial properties in Qatar.
Commercial Property Market Trend in Qatar
The foreign ownership law has inspired more foreign investors. Foreigners are investing in commercial real estate and properties to get a higher return on investment. More Realtors are working on commercial real estate transactions.
The FIFA World Cup 2022 is also why the latest development focuses on eco-friendly infrastructure and sustainable developments in the country. There is also a great demand for logistics and warehouses in the country. People are becoming more interested in renting and selling office spaces, office floors, commercial villas, and commercial buildings. There are more market players at present. More construction activities are taking place in the country, with significant advancement and innovative technology.
Foreign companies are also entering the construction industry's commercial district real estate market. Further, there are outstanding office expansion plans and shared office spaces. There is a great demand for retail spaces and shops.
Qatar Attracts Investors From All Over the World
Qatar is a well-known commercial hub that draws companies from all over the world. New policies and rules have been implemented in Qatar to foster a positive environment for company directors and investors to establish a business in the city.
You've come to the right place when you're an investor planning to launch a business and have inquiries about purchasing or renting commercial property in the gulf state. The marketplace presents potential advantages for foreign entrepreneurs to recoup their investment in commercial property within the following ten years. Rent expenses are also reduced, and possibilities are created to allocate resources to projects expanding the company.
Commercial Properties' Primary Focus Includes:
- Offices
- Retail
- industrial warehouses
- logistics
- multifamily
- hospitality
Growing Demand for Offices in Qatar
Office space is available, totaling 5.5 million square meters. Furthermore, 62% of the current stock was Grade-A. In 2021, seven office projects totaling 145,000 square meters GLA were added in Lusail, Ain Khaled (Salwa Road), Fereej Abdul Aziz, Old Airport, Al Muntazah, and Msheireb. Currently, there are 1.28 million square meters of GLA under construction for upcoming projects through 2022. 62% of these are in Lusail (Fox Hills, Energy City, Commercial Boulevard, and Marina District), with the remaining space distributed throughout Umm Ghuwailina, Al Hitmi, and Al Dafna.
The Increasing Hospitality Sector
The volume of visitors was constrained during the epidemic because of restrictions on tourist arrival. Twenty-seven thousand seven hundred fifty-nine people traveled to Qatar during the first two months of 2021, a 94% drop from February 2020. Tourism is anticipated to increase with the reopening of borders. It travels with Saudi Arabia, the United Arab Emirates, Bahrain, and Egypt. 47.6% of tourists came from Asia, with Europe and the Gulf Cooperation Council following.
The typical hotel occupancy rate increased by 2% from February 2020 to 64%. Requirements for hotel quarantine and family vacations increased demand. Quarantine was set up in 60 hotels for visitors returning to Qatar. Discover Qatar reported that 85,000 repeat visitors would arrive in March 2021. The Excellent, Luxury, and Prestige ADRs for the five hotels at The Pearl were QAR 750, QAR 950, and QAR 1,450, respectively.
The major players in the commercial real estate market in Qatar are:
- Barwa Real Estate Company
- Ezdan Holdings
- United Development Company
- Mazaya Qatar
- First Qatar
Property Finding Portals Trend Is Increased
Qatar's diverse commercial real estate sector has many significant property developers, including Barwa Real Estate Company, Ezdan Holdings, United Development Company, Mazaya Qatar, and First Qatar. In the Qatari real estate industry, there is escalating competition between online websites and real estate firms. Only some real estate portals, such as property finder and Saakin.qa, have dominated Qatar's online real estate business.
Due to increased online activity, market growth, rising personal spending power, and an increasingly young population, the percentage of commercial real estate properties sold through the online marketplace has steadily expanded.
Developments and Landscaping
According to reported resources, the following developments are a big source for Qatar's large-scale commercial market trend.
January 2022:
“McDermott International won a mega offshore contract from Qatar Energy, a long-standing key customer, to deliver engineering, procurement, construction, and installation (EPCI) for the North Field East (NFE) Topsides and the North Field East (NFE) Offshore Pipelines and Subsea Cables projects, with an option to award the North Field South (NFS) Offshore Topsides, representing one of the largest single contracts McDermott has been awarded in its company history.”
December 2021:
“AECOM announced that it was selected to provide program management services for Cargo Terminal 2 and Amiri Flight Facilities as part of the Hamad International Airport Expansion Program for the Qatar Company for Airports Operation and Management. As part of the expansion program at Hamad International Airport, AECOM would provide project management and construction management of the new cargo terminal and ancillary supporting buildings, including a veterinary inspection center, central utility plant, and infrastructure diversions.”
The Popular Places to Get Commercial Properties and Offices for Rent in Doha, Qatar
Most people opt to rent an office in Doha or West Bay. As is well known, Doha serves as both the country's economic hub and the epicenter of all corporate and commercial activity. As a result, it rents out many office buildings, serviced offices, and shared offices. The elegance and amenities you choose for your office depend on your needs. However, all rental office buildings offer lovely interiors, superb construction, fundamental amenities, and benefits.
The most popular location to rent an office is Doha. In addition, you can own a rental property for your business in one of Qatar's other emerging regions. West Bay is a well-known center for commerce. New offices are also available for rent in Lusail.
Read More: How to Invest in Commercial Real Estate of Qatar