Qatar’s retail market witnessed a steady rise during the last quarter of last year, according to a quarterly report by Cushman& Wakefield real estate firm.
This growth is attributed to several key factors such as 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.
On the cusp of the Fifa World Cup Qatar 2022, the doors for retail business were widely opened in the country eventuating a vital improvement and growth, underscored Cushman and Wakefield real estate firm in its quarterly report.
Among the recently unveiled outlets were “Printemps, a Parisian department store, which opened its 40,000 square metres 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,” said the report.
Due to the sector’s steady 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.”
The report highlighted that the rents in Qatar’s busiest malls vary between QR200 and QR250 per square metres per month. With many vacancies available in the busiest malls in Qatar’s capital city, Doha, “significant discounts and turnover rents” have been put in place.
The new report notes that the common outlets and showrooms outside the luxurious malls are given for rent between QR80 and QR150 per square metre.
In addition, it is mentioned 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”.
