Overview of Rental Trends in Qatar’s Retail Shop Market in Q1 2024
Lusail’s average asking rent of available shops contracted by 2% to QAR 195/sqm in the first quarter of the year, while Umm Salal saw a 9% decline from QAR 230/sqm to QAR 209/sqm quarter-on-quarter
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According to an analysis by Qatar’s online real estate marketplace hapondo, the first quarter of 2024 witnessed varying trends in shop rents outside malls across Qatar. Rents in Doha and Lusail seen significant decreases, while Al Rayyan experienced an increase.
Specifically, Doha’s average asking rent for shops declined from QAR 214 per square meter in the previous quarter to QAR 182 per square meter, although this still represents a slight increase from the third quarter’s rates.
In Al Sadd, a prominent commercial district in Doha, rents continued their downward trajectory for the second consecutive quarter, settling at QAR 157 per square meter.
In Lusail, the average asking rent for shop space decreased by 2% to QAR 195 per square meter. Umm Salal, on the other hand, saw a significant 9% reduction in rents, dropping from QAR 230 per square meter to QAR 209 per square meter quarter-on-quarter.
Al Rayyan stood out as the exception, where average asking rents rose for two consecutive quarters, moving from QAR 205 per square meter in the third quarter of 2023 to QAR 228 per square meter in the first quarter of 2024. This increase indicates a renewed confidence in tenant demand within the area.
Ahmad Al-Khanji, Chief Executive Officer of Hapondo explains: “In Q4 last year, we saw the average rents of shops increase in several places in Qatar on the backdrop of two themes. Firstly, landlords were quite optimistic about retail activities due to the upcoming AFC and other events in early 2024. Secondly, we saw our Doha shop listings doubled in number in Q4 and at higher rates – evidence of spaces that were likely rented during the FIFA World Cup and which were either pre-terminated or not renewed a year after.”
Continuing, Ahmad noted: “In Q1, landlords tempered their expectations and therefore we saw adjustments in the average rent of available stock in many places in Qatar.”
Hapondo points out that the decrease in rents is advantageous for tenants. Additionally, the retail sector outside malls boasts a significant amount of fitted space listed, which is beneficial for businesses looking to save on fit-out costs.
Despite the downward pressure on rents, the retail sector in Qatar witnessed notable developments over the last six months, particularly within malls. The opening of Velero Mall in Lusail added new prime retail spaces, while Qatar Tourism launched the Shop Qatar campaign to boost the country’s status as a retail hub.
Furthermore, real estate demand shows promising signs; Doha Festival City recently announced its 500th lease, marking the property as fully rented.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
This collaboration will extend into the fourth phase of Azizi’s Riviera project in MBR City, with Cummins supplying top-tier power generators.
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Azizi Developments, a prominent private developer in the UAE, and Cummins Inc., a global leader in power solutions design, manufacturing, distribution, and supply, are extending their partnership into the fourth phase of the large-scale Riviera project. Cummins, known for its diverse range of products including diesel, natural gas, electric, and hybrid powertrains, as well as powertrain-related components, like filtration, after-treatment, turbochargers, fuel systems, control systems, air handling systems, automated transmissions, electric power generation systems, batteries, hydrogen generation, and fuel cell products. The manufacturer is globally renowned for its excellence in both innovation and sustainability.
Mr. Farhad Azizi, CEO of Azizi Developments, said: “As we continue our collaboration with Cummins Inc. for the fourth phase of our flagship project, Riviera, we reaffirm our commitment to procuring and utilizing only the highest quality materials. This partnership highlights our dedication to providing exceptional lifestyles for our investors and end-users through the careful selection of premium components. We are confident that our now-broadened alliance with Cummins Inc. will help in maintaining the high standards established for Riviera and further elevate the benchmarks of quality and excellence.”
Riviera is part of Azizi Developments’ award-winning portfolio. It is a stylish waterfront lifestyle destination that comprises 75 mid- and high-rise buildings with approximately 16,000 residences.
Designed to introduce the French-Mediterranean lifestyle to Dubai, which is not merely about architectural art, but also about a certain ‘joie de vivre’ — a celebration of life, an exultation of spirit, Riviera represents a new landmark destination that is both residential and commercial, with an abundance of retail space. Riviera features three districts: an extensive retail boulevard, a lagoon walk on the shores of its 2.7 km-long swimmable crystal lagoon with artisan eateries and boutiques, and Les Jardins — a vast, lush-green social space.
With its strategic location near the upcoming Meydan One Mall and the Meydan Racecourse — home of the Dubai World Cup — as well as Dubai’s most noteworthy points of interest, Riviera represents one of Azizi Developments’ most coveted projects.
Azizi Developments’ Sales Gallery can be visited on the 13th floor of the Conrad Hotel on Sheikh Zayed Road.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
