Quarterly Report Qatar Q1 2024: Retail Market Overview – Cushman & Wakefield Qatar

Press Releases

May 12, 2024

Quarterly Report Qatar Q1 2024: Retail Market Overview

Prime rents show signs of recovery, in some of Doha’s busier shopping malls

Supply in the organized retail real estate sector remained largely static in Q1; however, Doha Mall’s anchor tenant, Lulu opened the doors of its supermarket there in February this year.

While Doha Mall itself has yet to open, a significant number of units are currently being fitted out. We expect the mall to open later in the year, adding approx. 100,000 sq m of retail floorspace to the market – representing the largest mall in South-West Doha.

The opening of Doha Mall will see Qatar’s supply of organised retail malls increase to more than 1.7 million sq m of leasable floor space. This supply analysis excludes supermarket buildings with ancillary units. This supply is supplemented by more than 400,000 sq m of leasable space in ‘open-air’ retail/F&B destinations, which includes The Pearl, Souq Waqif, Souq Al Wakra, Msheireb Downtown, Katara, Doha Port, and Lusail Boulevard.

Some of Qatar’s largest malls have reported improved footfall and sales performance in recent months, due largely to the increase in visitors from Saudi Arabia, and other visitors to Qatar during the AFC Asian Cup tournament.

Despite the success of some of Qatar’s prime malls, who often enjoy high occupancy, the overall increase in supply in the past five years has led to a number of malls struggling to attract footfall, with vacancy rates growing. Cushman and Wakefield estimate that approx. 20% of retail units within organised malls are currently vacant; although many of these vacant units are located in secondary malls, or at the upper floor levels of busier malls.

Demand for prime retail units and F&B opportunities remains relatively healthy; although tenants typically look for grace periods of six months in order to undertake internal fit-outs.

Standard line units of approx. 120 – 250 sq m in Doha’s main malls typically rent for between QAR 220 and QAR 280 per sq m per month, with small outlets in prime locations usually commanding between QAR 300 and QAR 400 per sq m per month. As a two-tiered market emerges, some malls that have seen footfall reduce, often achieve less than QAR 200 per sq m per month for line units.

Outside of the organised retail malls, retail showrooms are typically available to lease for between QAR 80 and QAR 150 per sq m per month. Restaurants and cafés in some of Qatar’s most popular outdoor destinations typically generate rental incomes between QAR 130 and QAR 180 per sq m per month.

Small convenience retail outlets in secondary locations such as strip-malls are increasingly leased based on a sustainable rent of between QAR 5,000 and QAR 10,000 per month, depending on the unit size.

 

Cushman & Wakefield Quarterly Report Qatar Q1 2024

To buy, list, or lease properties in Doha, please click here


CONTACT US

As Qatar’s oldest established global real estate advisor, our team can help you to find the ideal home or office to rent in Doha’s competitive property market.

Get in touch today to see how we can help.

Cushman and Wakefield Qatar
15th Floor Tornado Tower
West Bay
P.O. Box 37584
Doha
State of Qatar

Email: infoqatar@cushwake.qa
Tel: +974 44837398, +974 44837388
Mobile: +974 33541237




    Cushman & Wakefield Qatar will use the information you provide on this form to respond to your enquiry, to provide updates and marketing. Please let us know the ways you would like to hear from us: