File picture used for representation.
Several new labour accommodations, meeting the government specifications have sprung up in the Industrial Area, causing a significant fall in rents, say industry sources.
Rents of housing units catering to single workers touched an all-time high over the past few years, due to a severe shortage of affordable housing units in the market.
According to real estate experts, rents of labour accommodations in Industrial Area have fallen by up to 15 percent since the beginning of this year due to oversupply.
The government ban on labour accommodations in residential areas forced a number of workers to move into Doha’s suburbs looking for alternatives. This shift has prompted several companies to construct tailor-made accommodations for workers in Industrial Area and other outskirts of the city.
Not only the labour accommodations but also shops in Industrial Area have also become cheaper due to a recent increase in supply, say the sources. The Peninsula noticed several shops and garages on Street No. 30, 31, 32 and on Al Attiya market with a notice at the entrance saying “for rent” indicating that the facilities remain vacant.
“In the recent past several new housing units have come up in nearby areas. This has come as a big relief for low income workers. Another advantage is that now workers look to live in spacious shelters rather than living in groups in improper environments,” a real estate agent told this daily.
Many construction firms shift staff from Industrial Area
Several rooms (measuring 6X6 and 4X4) that earlier fetched their owners QR2,600 and QR2,400 per month are now available for QR2,200 and QR2,000, respectively and are still waiting for tenants.
“We have 20 rooms vacant out of 200 rooms in our buildings located at street No. 30, Industrial Area for few months,” a caretaker told The Peninsula.
The tenants demanded to reduce the rent during contract renewal arguing that the rent has declined in the market, he said.
He said eventually the landlord was forced to reduce the rent significantly. Rents of a big room measuring 6X6 fell from QR2,600 to QR2,200 and small room measuring 4X4 dropped QR2,400 to QR2,000.
“So far, we have 20 rooms vacant and next moth another 42 rooms will be available because the construction company that hired these rooms for its workers has built its own labor accommodation,” he said.
He said there were indications of a rent fall since last year but it has become a reality since the beginning of this year.
“Demand for workers accommodations is down in the Industrial Area because most major companies have either shifted to the Labor City or built their own accommodations”, said another real estate agent operating in the Industrial Area.
Many construction companies with hundreds of workers have shifted their workers from Industrial Area to cheaper accommodations in Al Shihaniya, Al Sailiya and other places, The Peninsula has learnt
