Qatar commercial real estate is one of the countries whose economy is expanding very quickly. The implementation of numerous government programs, an increase in the commercial real estate market, and GDP growth are some of the main factors influencing the expansion of commercial real estate in Qatar.
Increase Demand For Logistics In The Commercial Real Estate Market
Events like the 2022 FIFA World Cup are increasing demand for logistics and warehouses in Qatar, which is also experiencing an increase in infrastructure and logistics needs and also for the commercial real estate market.
Knowing About The Rental Spaces In Qatar
Most of the building work and retail space being done in the nation is for upscale apartment buildings, professional offices, five-star hotels, and shopping centres. The market in Qatar is also incredibly increasing. The expected 1.5 million spectators for events like the 2022 FIFA World Cup could raise demand for hotel rooms in the nation. Qatar now has about 26,500 hotel rooms and is scheduled to add 15,000 rooms by 2022, which is predicted to strengthen the country’s hospitality industry.
With several new malls set to open in the following years, the retail space growth has also doubled over the last three years and is anticipated to increase by about 50% by 2021.
Various Benefits To Real Estate Sectors In Qatar
Qatar’s government initiatives’ introduction of foreign ownership laws for various asset classes has benefited the country’s real estate sector, commercial property, and the commercial real estate market.
According to this new rule, freehold ownership is permitted for all asset types within a complex, including
● Businesses
● Retail establishments.
● Residential villas
Saakin.qa Real Estate is one of the leading in Qatar.
Increase In Public-Private Partnerships
The country’s ongoing infrastructure development and building projects have significantly increased the number of market players in Qatar. The government is expanding public-private partnerships.
For Example
The encouragement of more businesses to enter the country’s real estate company. These innovations and improvements are also being seen in the Qatari real estate properties in the market.
Qatar is one of the active commercial countries. The stalled office growth plans, scant sales, and numerous lease deferments are signs of the impact and effect of COVID-19 on the commercial real estate market of Qatar, and its property management is also well established. Customers are postponing purchases across the industry, which might substantially impact revenues and reduce demand and realizations.
A Look Upon The Critical Market Trends
Demand For Offices And Commercial Real Estate Market Is Rising In Qatar
Office space was available in Q1 2021, totalling 5.5 million square meters (GLA).
Furthermore, 62% of the current stock was Grade A. In Q1 2021 seven office projects totalling 145,000 square meters GLA were added n in Lusail, Ain Khaled (Salwa Road), Al Muntazah, Fereej Abdul Aziz, Old Airport, and Msheireb.
Currently, under construction, there are 1.28 million square meters of GLA for upcoming projects through 2022, 62% of which 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.
An Increase In Tourism Is Boosting The Hospitality Industry
The number of arrivals was constrained during the epidemic because of restrictions on inbound tourism. And it has to boost the hospitality sector.
Twenty-seven thousand seven hundred fifty-nine people travelled to Qatar in total during the first two months of 2021, a 94% drop from February 2020. Tourism is anticipated to increase with the reopening of borders and travel 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.
Recent Improvements To Know About
In February 2021, the typical hotel occupancy rate increased by 2% from February 2020 to 64%. Requirements for hotel quarantine and staycations increased occupancy. Residential units for visitors returning to Qatar and quarantine were set up in 60 hotels. Discover Qatar reported that 85,000 repeat visitors were expected to come in March.
Competitive Environment And Competitive Landscape
With some of the most outstanding real estate businesses, including
● Barwa Real Estate Company
● Ezdan Holdings
● United Development Company
● Mazaya Qatar
● First Qatar
Qatar’s commercial real estate market and industry are fragmented in Lusail city. In the Qatari real estate sector, there is escalating competition between online portals and real estate firms—a few Qatari real estate portals, such as Saakin.qa has dominated the online real estate business in Qatar.
Increase In Sales Of Real Estate Properties
Due to increased internet usage, the percentage of commercial real estate market real estate properties sold through the Internet market has steadily increased. Due to increased internet usage
● Rising demand
● Rising personal disposable incomes,
● An increasing middle-class young population
● The percentage of real estate properties sold through the Internet has been steadily increasing.
Recently Occurring Events
Chelsea Barracks in Qatari Diar received LEED Platinum certification in April 2021. Moreover, it confirms that the development is one of just 16 developments to earn this certification, making it the most sustainable project in Europe.
The Impacts Of Covid _19 In The Industry
The COVID-19 pandemic significantly impacted the commercial real estate market because of travel restrictions for workers working from home and social exclusion that hindered public mobilization, business operations, and gathering places.
The most severely impacted market categories during the pandemic are the
● Office
● Retail
● Hotel sectors.
Additionally, the COVID-19 protocols have been modified, and sales are returning to pre-pandemic levels in the market, signalling that the worldwide market is recovering. But Qatar has too much recovered very soon.
Summing Up!
Moreover, urbanization, the digitalization of the commercial sector, and rising foreign investment have all contributed to the market for commercial real estate experiencing tremendous growth.
In 2021, foreign investments accounted for half of the region’s capital investments, or over EUR 130 million, in the commercial real estate sector.
Additionally, the rate of office space absorption increased in China and Canada while it decreased in Europe and the US. Moreover, Asia-Pacific dominates the worldwide industry regarding retail sales and logistics warehouse absorption. And Qatar has increased at a tremendous rate.
FAQs
What is the commercial real estate market’s growth rate in Qatar?
Over the next five years, Qatar’s commercial real estate market will expand at a CAGR of 12.69%.
How has the Covid-19 pandemic impacted Qatar?
The most severely impacted market categories during the pandemic are the Office, Retail, and Hotel sectors. But Qatar has recovered too fast and shortly affected.
