The first quarter of the year saw an increase in office space in the country’s key business centers, including Lusail, The Pearl, and Msheireb Downtown Doha.
In an interview with The Peninsula, Alexander Hartmann, Managing Partner of The Loft Bureau Real Estate, highlighting the newly created financial districts as a reliable market for office space.
He said: “Office spaces especially in Lusail Marina are in demand and are operating on high occupancy rates. It’s different because it is one market and if you go deeper inside, you will find higher occupancy rates with mesmerizing infrastructures in Lusail.
“Also, you have a great mix of residential and office towers. This is one of the hottest (high-demand) markets at the moment, especially for expatriates so I think Lusail Marina is at the top.”
However, several reports elucidate that Lusail is set to become Qatar’s ‘de-facto’ financial district in the forthcoming years with surging projects and business activities. A report by Cushman and Wakefield notes that most of the office activities however took place in Lusal over the past year. It explained “In February, the QFC and Qatari Diar announced that the former has acquired more than 6,000 sq m of office space in Lusail Boulevard, joining Qatar Chamber, which is due to relocate to the same street shortly. These upcoming office relocations could potentially see the Lusail downtown area become Qatar’s de-facto financial district in the coming years.”
The report further states that “The buoyant oil and gas sector has spurred expansion and relocation activity in the past year. As a result, three office deals over 3,000 sq m have been confirmed in West Bay and The Pearl Qatar. Msheireb Downtown Doha is also gaining recognition as a commercial destination.”
Msheireb City witnessed significant commercial office lettings in Q1 2023, primarily in the oil and gas sectors as well as financial corporations. The report mentions that there are further transactions in the works that should close in the second quarter of the current year.
The report said that “The supply of purpose-built office accommodation in Qatar has now reached approximately 5.3 million sq m. The Al Dafna and West Bay districts have the largest concentration of supply with approx. 1.8 million sq m of gross leasable area, while the expanding supply of office accommodation in Lusail has surpassed 800,000 sq m. Despite an increasing office supply, there currently needs to be more options available for companies looking for premium-quality fitted space.”
It also said “Most available office space in Doha is either of basic quality or is available on a shell and core basis.
“Grade A stock is now typically available to lease for between QR100 and QR120 per sq m per month, exclusive of service charges. Office spaces leased as ‘shell and core’ can be secured for QR55 to 60 per sq m per month in some of Doha’s main office districts,” it added.