Qatar’s retail sector has witnessed a steady rise during the second quarter of this year, according to a report by global commercial real estate services firm Cushman & Wakefield.
The country’s retail spending has been forecast to surpass QR57 billion in 2023, bolstered by tourist inflow and an influx of international retail outlets.
The total nominal retail sales in Qatar in 2022 stood at approximately QR53.6 billion – the highest recorded rate since 2018, albeit with sales impacted by the lockdown in the intervening period.
Retail spending has been projected to rise to more than QR57 billion this year 2023, driven by robust economic growth and a large number of high-profile international retail outlets in the country.
Moreover, Qatar’s disposable income level has been ranked among the world’s highest, reflecting $97,096 in December 2022, when adjusted by purchasing power parity.
The report said: “Our research shows that Qatar’s organised retail malls provide more than 1.7 million square metres of leasable floor space (excluding supermarket buildings with ancillary units).
“This is supplemented by more than 400,000 square metres of leasable space in ‘outdoor’ retail/F&B destinations, including The Pearl, Souq Waqif, Souq Al Wakra, Msheireb Downtown, Katara, Doha Port and Lusail Boulevard. West Walk, a mixed-use development of restaurants and retail outlets in Al Waab opened its doors in Q2, attracting strong footfall in its early weeks.”
Several retail developments continue to attract healthy footfall and benefit from high occupancy rates, the report added.
Headline rents for line units in Doha’s prime malls remain between QR200 and QR250 per square metre per month, exclusive of service charges. Line unit rental in many secondary malls is usually below QR200 per square metre per month.
Anchor units and entertainment provisions in malls tend to benefit from lower rents of between QR60 and QR150 per square metres per month, depending on the size and use category.
Outside of the organised retail malls, retail showrooms are typically available to lease for between QR80 and QR150 per square metre per month.
Small convenience retail outlets in secondary locations such as strip malls are increasingly leased based on a sustainable rent of between QR5,000 and QR10,000 per month, depending on the unit size.
