Doha, Qatar: The retail sector in Doha has witnessed an increase in traffic and spending during the final quarter of 2024, primarily due to a surge in tourist arrivals to Qatar, said Cushman and Wakefield in its latest report.
The report highlights that Doha’s 19 largest malls currently offer nearly 1.5 million sq m of gross leasable area, with an additional 300,000sqm of space in organised indoor malls across the country. Additionally, more than 400,000sqm of leasable space is available in ‘open-air’ destinations such as The Pearl Island, Souq Waqif, Souq Al Wakra, Msheireb Downtown, Katara, Doha Port, and Lusail Boulevard, much of which is occupied by food and beverage outlets.
One of the significant upcoming retail developments in Qatar is the Doha Mall in Abu Hamour. Originally slated for a Q4 opening, the mall is now expected to launch in 2025, adding around 100,000sqm of leasable space, including an anchor supermarket (Lulu), which opened in the first quarter of last year. The rapid growth of retail floor space in Qatar since 2017, both in organised malls and open-air destinations, has resulted in a two-tier market.
As a result, some developments are underperforming compared to the more popular locations, which has become evident in tenant demand. While there is still strong demand for new retail operators entering the market, this demand is mostly concentrated in a few locations where strong, year-round foot traffic is assured.
Rents in prime retail locations have remained stable, but rents in secondary locations have softened, and landlords are offering increased rental incentives to attract tenants and build occupancy.
Typical rents for line units in Doha’s main malls range from QR220 to QR260 per sqm, with smaller units commanding rents of QR300 to QR450 per sqm. Malls that have seen reduced foot traffic after the opening of Doha’s super-regional malls have lowered rents to below QR200 per sqm for line units.
Restaurants and cafés in some of Qatar’s popular outdoor destinations typically generate rental incomes between QR120 and QR180 per sqm per month. According to Oxford Economics, total retail spending in Qatar grew by 4% in 2023, and over the past three years, it has increased by 22 percent. Despite this growth in retail sales, the retail real estate market in Qatar is facing challenges due to oversupply.
