The demand for offices in Qatar is still rising due to expansion projects all over the nation. However, a report published yesterday by ValuStrat indicates that office room rentals in the second quarter of 2024 stayed unchanged.
Anum Hassan, Head of Research, Qatar commented “Office sector rents remained stable throughout the period. Whilst, street retail and shopping centers in Doha saw a quarterly decline of 5 percent and 2 percent respectively.”
Nonetheless, the data showed that the office market’s rents had generally decreased by 3.6 percent year over year.
Quarterly office rent decreases of 1 percent were seen in some of the major business districts, such as the West Bay, and 3 percent in Grand Hamad Avenue.
In the second quarter of 2024, office rents in prime office locations such as Lusail, Al Sadd, Salwa Road, and C-and-D Ring Roads changed very little from the first quarter of the year.
Furthermore, according to ValuStrat, the average rent quoted by Grade-A office projects was more than thirty percent higher than the average rent offered by Grades B/C offerings. However, the monthly rental quotes for hot desks and dedicated workstations at the West Bay and Lusail serviced offices ranged from QR450 to QR900 and QR1,000 to QR3,500, respectively.
In the meantime, the estimated total office stock for the second quarter of the year was more than 7.2 million sq m GLA.
About 16,000 sq m of additional GLA was added in Q2 2024, and 11,000 sq m of additional GLA resulted from multiple projects in high-end locations like Fox Hills in Lusail and Commercial Boulevard.
Furthermore, the report stated that by the end of 2024, an estimated 313,000 sq m of GLA is anticipated to be delivered, with 80 percent of projects situated in the well-known Lusail city.
Additionally, it stated that 90% of the pipeline supply falls into the Grade-A classification.