Qatar Q4 residential rents down by 5 to 10pc
DOHA, February 2, 2017
The residential rents across Qatar fell by an average of between five and 10 per cent in 2016, thanks to a spurt in good quality ‘affordable’ accommodation in peripheral suburbs, according to a leading regional real estate firm.
With this steep fall in residential rents throughout the first nine months of 2016, the housing scenario eased a bit bring stabilty to some degree in the fourth quarter, stated DTZ, a leading real estate services firm.
On the 2017 outlook, the industry expert said completion of additional residential property this year will help in relieving the upward pressure on rents, which has been experienced in recent years.
On the office sector, DTZ said the prime office rents fell by an average of between 10 and 15 per cent in 2016, due to lower demand and an increase in new supply. An increase in demand witnessed in the fourth quarter will need to be maintained to avoid market oversupply levels in 2017 and beyond, it added.
In November, Qatar had signed up to a cut of 4.5 per cent in crude output as part of Opec’s attempts to boost oil prices by restricting production. It is hoped that the Opec deal will restore confidence in the economy and in the real estate market in Qatar, after a period of uncertainty, said the property expert.
On the hospitality sector, DTZ said the hotel performance declined in the fourth quarter, continuing the trend witnessed over the past two years.
The fall in occupancy rates and revenue per room is a result of a fall in tourist numbers to Qatar, coupled with significant new supply that has come to the market since 2014, said the company.
According to DTZ, the retail real estate market continues to perform strongly in Qatar despite a reported fall in retail sales of between 10 and 15 per cent since 2015.
The last quarter was a witness to the launch of the country’s largest retail mall, Mall of Qatar, which enjoyed a soft opening in December.
With this opening, the total supply of organised retail supply has now increased to 838,000 sq m, it added.-TradeArabia News Service
