With a large number of residential projects scheduled to be completed within a year, the proportion of vacant buildings in the residential sector would cross the 10 percent mark in Qatar in 2010. The rents of commercial buildings, meanwhile, would bottom out next year, according to a real estate market survey.
The report, released by Engel & Volkers Commercial here yesterday, said a large number of projects had been completed in Doha, especially in prime locations like West Bay and along C-Ring Road. This has had an impact on rents, putting potential tenants in a stronger position.
The survey revealed a novel trend of landlords renting out their buildings to individuals, as against the earlier practice of renting out an entire complex to a contractor.
The report, which claimed that there was a substantial decline in the rents of office buildings, said against an average rent of QR300 per square metre per month during the 2006-2008 period, rents for office space had gone down to QR230-QR170 per square metre in the same area. “We expect the average office rents in Qatar below QR165 per square metre by the end of this year, and forecast the average rents at approximately QR145 per square metre by mid-2010”, the report said.
When it comes to residential rents, the report said, the most important factor is location. For instance, the Al Sadd area is dotted with more than a dozen apartment buildings that are waiting for tenants. While a one-bedroom apartment in Al Sadd is available for QR6,000 and a studio for less than QR5,000, the rents in West Bay are above QR10,000 for a single-bedroom apartment and QR7,500 for studios.
However, the market of compound and stand-alone villas remains dull.
Follow us on our social media channels: