Qatar’s overall office stock has increased to approximately 5.7 million square metres (sqm) Gross Leasable Area (GLA) as of first quarter (Q1) of this year, according to a latest report by ValuStrat. As the FIFA World Cup Qatar 2022 approaches, several local and international companies are expected to open branches in the country which will boost the demand for office space.
The first quarter report released by real estate consulting firm, the total office stock was estimated at 5.7 million square metres (sqm) GLA as of first quarter of 2022. It further noted that 84,000 sqm GLA was added during the quarter, with the completion of office projects in Lusail Marina and Al Jasra.
“Approximately 900,000 sqm GLA is in the pipeline during the remaining quarters of 2022. Grade-A supply was estimated to represent 64 percent of the total existing office stock. With FIFA World Cup 2022 approaching, regional and international companies can be expected to open branches in Qatar and occupy new office space,” the report added.
In terms of office performance, despite the projected pick-up in demand during 2022, oversupply is estimated to exceed 2.5 million sqm GLA. According to ValuStrat findings, the citywide median asking rent for offices was QR72 per sqm per month, lower 7.7 percent compared to last year and fell 1.4 percent quarterly. The median asking rent in Al Sadd depreciated 6 percent quarter-on-quarter (QoQ) to QR62 per sqm per month, relatively lowest in the commercial districts.
A surge in demand for offices in Lusail has resulted in rents to stabilise in the zone. A slowdown in decline of rents is projected for offices located in prime commercial districts during the year.
