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Doha: Qatar retail sector performed well in the fourth quarter (Q4) of last year with malls registering strong increase in retail spending in major malls.
“There was strong growth in retail performance in many of Qatar’s major malls in Q4. It has been reported to Cushman and Wakefield that retail spending in these developments in December (prior to the outbreak of Omicron) was up by between 10 percent and 20 percent on the same month in 2019,” said the Q4 Real Estate Market Review report released yesterday by Cushman & Wakefield.
“Retail malls have also indicated there has been a recovery in supply chains for retail stock; however, problems remain in securing building materials, which has delayed the opening of a number of new stores in recent months,” it added.
Qatar’s supply of organised indoor retail accommodation exceeded 1.5 million sq m of gross leasable area in 2021. The most recent retail destinations include Abu Sidra Mall and The Galleria, both of which opened partially but are yet to reach full capacity. The current supply of organised retail space in Qatar represents an increase of more than 100% in six years.
The second half of 2021 saw an increase in leasing activity in City Centre Mall, Doha Festival City, and Mall of Qatar. Elsewhere, there has been strong take-up in Place Vendome and Commercial Boulevard in Lusail, both of which will open in 2022.
About hospitality sector the report said that the number of hotel keys in Qatar approached 30,000 in the fourth quarter of 2021. The Steigenberger Hotel and Zulal Wellness Resort have been two notable arrivals to the market in recent months.
The latest official figures from National Tourism Council indicate that there were 7,523 hotel apartments In December 2021 – an 11 percent year on year increase in this type of accommodation.
The existing supply of hotel keys, coupled with serviced apartments, now provide 38,674 rooms. This is expected to increase to 45,000 rooms by Q3 2022 – in time for the FIFA World Cup. The overall development pipeline is expected to see the hotel supply in Qatar increase to more than 50,000 hotel keys within the next five years.
About residential market, the report said that by the end of 2021, the number of apartments in Qatar had increased to 230,000, while the number of villas reached approximately 130,000. It expects the supply of housing in Qatar to accelerate this year with the completion of major projects ahead of the FIFA World Cup in November.
