Doha, Qatar: Qatar’s retail market has witnessed a steady rise during the second quarter (Q2) of this year. Qatar’s retail spending has been forecasted to rise over QR57bn in 2023 supported by tourist inflow and increase in number of international retail outlets.
Cushman & Wakefield, in its second quarter (Q2) 2023 Real Estate Market Review citing Oxford Economics, noted, the total nominal retail sales in Qatar in 2022 was approximately QR53.6bn, the highest recorded rate since 2018, albeit with sales impacted by COVID-19 in the intervening period.
Retail spending has been projected to increase to more than QR57bn in 2023, supported by increased tourist numbers, economic growth, and a growing number of high-profile international retail outlets in the country. Qatar’s disposable income levels are also among the world’s highest, reflecting $97,096 in December 2022, when adjusted by purchasing power parity.
The report said, “Our research shows that Qatar’s organised retail malls provide more than 1.7 million square metres (sqm) of leasable floor space (excluding supermarket buildings with ancillary units). This is supplemented by more than 400,000 sqm of leasable space in ‘outdoor’ retail/F&B destinations, including The Pearl, Souq Waqif, Souq Al Wakra, Msheireb Downtown, Katara, Doha Port, and Lusail Boulevard. West Walk, a mixed-use development of restaurants and retail outlets in Al Waab opened its doors in the second quarter (Q2), attracting strong footfall in its early weeks.”
Several retail developments continue to attract healthy footfall and benefit from high occupancy rates, it added.
Headline rents for line units in Doha’s prime malls remain between QR200 and QR250 per sqm per month, exclusive of service charges. Line unit rental in many secondary malls is usually below QR200 per sq m per month. Anchor units and entertainment provisions in malls typically benefit from lower rents of between QR60 and QR150 per sqm per month, depending on the size and use category.
Outside of the organised retail malls, retail showrooms are typically available to lease for between QR80 and QR150 per sqm per month. Restaurants and cafés in some of Qatar’s most popular outdoor destinations typically generate rental incomes between QR130 and QR180 per sqm per
month.
Small convenience retail outlets in secondary locations such as strip malls are increasingly leased based on a sustainable rent of between QR5,000 and QR10,000 per month, depending on the unit size.
