Qatar apartment, office rents stable
Doha, April 17, 2012
The rental rates for prime residential apartments and offices in Qatar remained relatively static during the first quarter, however secondary locations experienced downward pressure, said a report.
The stability has been more apparent within the residential villa market, particularly for high-end locations in the country such as West Bay and West Bay Lagoon, real estate specialist CBRE said in its Qatar review for 2012.
The relatively low levels of new and available supply in recent years has helped to insulate this segment from the worst effects of the global downturn.
Residential apartment rental rates have remained broadly stayed over the quarter, although marginal declines were experienced in some secondary areas, the review said.
West Bay Lagoon and The Pearl Qatar continued to set the benchmark for apartment rates with a two-bedroom unit typically ranging between QR9,750 ($2677) and 13,000/month as compared to just QR5,000 – 6,250/month for similar properties in secondary locations, the CBRE report stated.
The rates for villa compounds were relatively stable, although an increase in rents was observed in selected prime areas, the property expert said.
CBRE pointed out that average rates remained strong, particularly for high-end villas with quality facilities and menities, ranging from QR18,500 - 27,500 per month.
The highest rental rates were seen at West Bay Lagoon area where luxury villas have been given beach access. Some of the most prominent residential compounds include West Bay Lagoon Villas, Y Village, Ezdan Residential Compounds and Le Mirage with the highest demand in the four and five bedroom categories, the report stated.
'As has been noted during the recovery phases in other regional cities, the Doha market has become very fractional in its nature, with specific areas and properties able to outperform the wider market as end users seek a flight to quality taking advantage of comparatively low rates,' remarked Matthew Green, the CBRE head of research & consultancy UAE.
'We see this trend having longevity, at least whilst it remains a tenant’s market, particularly with an increasing array of quality supply being delivered that meets with international standards of quality and luxury,' Green noted.
With significant new supply expected in new masterplanned developments, inferior units (older accommodation and those with no facilities) will face mounting challenges in retaining tenants and occupancy rates, he added.
According to CBRE, the rental premiums for quality properties are already becoming more commonplace and with historic supply issues alleviated, tenants now have a wide range of options, allowing many more points of differentiation including quality, unit sizes, sea views or available amenities.
'Stability has been more apparent within the residential villa market, particularly for high-end locations such as West Bay and West Bay Lagoon,' remarked Arlene Jimenea, the senior research analyst, CBRE.
'The relatively low levels of new and available supply in recent years has helped to insulate this segment from the worst effects of the global downturn,' she noted.
Despite continued challenges globally, Qatar is well positioned to maintain its steady economic footing. The country's solid financial position and highly developed financial sector are anticipated to help cushion the country against external shocks, the report added.-TradeArabia News Service