_The Gulf's urban hot spot series: Qatar

Qatar’s once strong prospects have weakened due to the diplomatic rift with its Middle Eastern neighbours. Whilst economic performance has suffered, with the GDP growth rate slowing to 1.3% in 2017, down from 2.2% in 2016, due to its large financial buffers the impact of sanctions have not been too severe.

May 22, 2018

GDP growth in 2018 is expected to increase to 3.4% on the back of continued infrastructure spending on the 2022 FIFA World Cup and also increased gas output.

The take up of office space throughout 2017 has been limited to the private sector, as demand from government entities and the hydrocarbon sector remained muted. This trend is likely to continue into 2018 as government cutbacks are expected to weigh on demand for office space.

In addition to unfavourable economic conditions, the market is seeing an oversupply of office space. A number of new buildings in Lusail and the Qatar Petroleum District are scheduled for completion over the next 12 months, adding almost 300,000 square metres of office GLA. However, delays are expected given subdued demand and construction cutbacks.

Prime rental rates have remained stable throughout 2017. Locations including West Bay currently command an average of c. QAR 2,000 per square metre per annum. Larger office spaces typically command lower rents of c. QAR 1,700 per square metre per annum.

For further information on how we can help you in the Qatar commercial sector, please contact Matthew Dadd