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Doha, Qatar: The emerging and vibrant city of Lusail continues to be a source of attraction - not just for tourism, but also as the country’s main business hub. Researchers at Hapondo, a real estate platform noted that Lusail is the most popular location for the office market followed by Al Sadd during the third quarter of 2023.
The city that hosted the FIFA World Cup 2022 matches including the final is on growing demand for thriving businesses and offices in the region.
The report states that Lusail also has the highest average sales per sq m at QR105, followed by West Bay at QR97. However, office rents at locations including Al Sadd, Al Muntazah, Najma, and Al Hilal range between QR67 and QR80 respectively.
However, researchers highlight that “Office occupancies continue to be a challenging post-pandemic with more supply than demand in Doha. Movements are anticipated in Lusail as companies and institutions such as the Qatar Financial Center Authority (6,200 per sq m) relocate here.”
The real estate platform also explains that the future office market will have various flexible working arrangements across the globe and will also be carried out in Qatar.
“The pandemic has encouraged the implementation of flexible working arrangements for employees globally including Qatar,” it said.
While this trend is likely to remain in place, a study by Qatar University survey published on the SESRI Policy Brief in January 2023 revealed that 35 percent of surveyed employees preferred an average of three days at their workplaces. The study also shows that 73 percent of white-collar expats felt socially isolated from colleagues and co-workers, indicating the need for work-from-home and in-office experiences.
“Flexible office timings cover a wide range of corporate real estate products, from co-working spaces to serviced offices, all offering a plug-and-play solution. Thier popularity has risen significantly since the pandemic as tenants cut costs on real estate and fit-out work,” the report mentioned.
It further added that “Tenants have therefore located in companies such as Hub Business Center, Flare Business Center, and Arafat Business Center that rent out desks, furnished offices, and shared spaces with internet, meeting room, and pantry and equipment provisions.”
Albeit the premium is two to three times the expense of leasing a bare shell, these office solutions have permitted tenants to avoid long-term rental commitments and capital expenditures.
According to Fitch Solutions, the property industry is expected to grow by 1.9 percent, creating a higher demand for retail spaces and warehouses positively.
Similar to the office market, Lusail, and Al Sadd continue to be the most sought-after cities in the retail sector, excluding the malls. The report outlines that Lusail tops the cities with the highest monthly rent at QR199 per sq m.
On the other hand, Lusail Fox Hill retail space monthly rents average QR160 per sq m, While Energy City averages at QR228. Meanwhile, available stocks for warehouses are mostly concentrated in the Industrial Zone and Birkat Awamer, where the rents are averaged at QR35 and QR26 per sq m per month.
