Doha: Demand for office supplies in Qatar increased during the last quarter of 2022 largely with private sectors as new developments were implemented across the country.
A number of new entrants were witnessed in the market last year and have been triggered by rental expiries or tenant break options in Qatar, Cushman and Wakefield’s report mentions. The realty fact-checker and housing services firm states that “The fall in office rents over the past five years has spurred companies in Qatar to seek alternative accommodation, which is now available at lower rents – or renegotiate the terms of expiring leases at substantially lower rents than were committed to between 2015 and 2020.”
A notable increase in the tenants seeking larger office units in the region has capacitated larger office rooms that were available.
“The recent expansion in the hydrocarbon sector has been behind a recent office acquisition of more than 7,000 sq m and two further lettings in excess of 3,000 sq m in H2,” the report noted.
Last year, many government and semi-government entities announced their decision to relocate their offices to buildings that were
under construction in Lusail City. On one hand, when this eventually led to many vacant supplies, on the other, demand for office spaces in Lusail grew substantially.
In Qatar, numerous organisations including Qatar Free Zone Authority (QFZ) and Qatar Financial Center (QFC) constantly improve the demand for office supplies in the private sector, the report said. “QFZA-designated office accommodation will soon be available to lease to QFZA companies outside of Ras Bufontas, as office buildings within that Free Zone are reaching capacity. An agreement is also in place for QFZA-registered companies to occupy offices in Msheireb Downtown to accommodate growing demand from an organisation with more than 300 registered companies,” it said.
The report further added that “QFC currently has more than 60 designated buildings across Doha housing the 1,400 QFC registered companies. This number is also expected to grow over the coming years.”
The report also outlined that “Grade A stock is now typically available to lease from between QAR 100 to QAR 120 per sqm per month exclusive of service charges. Office spaces leased as ‘shell and core’ can be secured for QAR 60 per sq m per month in some of Doha’s main office districts.”
Purpose-built offices in the country have now reached about 5.3 million sq m. Business districts including Al Dafna and West Bay in Qatar’s capital city Doha are regarded to have the highest supplies of nearly 1.8 million sq m of gross leasable area and other cities including Lusail’s office supplies have expanded to be over 800,000 sq m.
