By Sachin Kumar
DOHA: Rentals of residential units in Doha are unlikely to fall in the next six months as growing population will keep the demand firm. On the contrary, the rentals of apartments in the mid range category, which includes affordable housing, are likely to move upward, according to real estate firm DTZ Qatar.
“In the mid range we do see rents continuing their upward trend because at the moment there is higher demand than supply. So we do see rents creeping up in near future,” Johnny Archer, Associate Director, Consultancy and Research, DTZ Qatar told The Peninsula on the sidelines of a media roundtable yesterday.
According to DTZ report released yesterday, vacant space has increased in the prime residential market. Despite these increases, rents in this sector have remained strong in Q2 and Q3, primarily due to an increase in population. “The key concern in the residential sector is rental inflation where new supply of accommodation for the middle income families has struggled to meet the demand of an increasing population. There has been an increase in vacancies in the prime residential market in recent months. However, with non-hydrocarbon sectors experiencing double-digit growth, occupancy levels are likely to recover over the next six months,” he added.
The commercial sector in Doha is likely to face challenging times. “The commercial sector is likely to be challenging in the near term as landlords look to the private sector to fill the temporary void,” said Kenneth Corbin, Head of Commercial Agency, DTZ Qatar. “In our opinion, those landlords offering the most flexibility in lease terms will reap the greatest benefits. Additionally, with an excess of 300,000 sqm of office space expected to be released to the market in the next 12 months in West Bay and Lusail, occupiers will be presented with an opportunity to improve the standard of their existing space and improve their current lease terms.”
Despite a reduced level of new office lettings in 2015, DTZ estimates that there is 130,000 sqm of vacant offices available to rent in West Bay, which represents approximately 8 percent of total supply.
This has resulted in stable rental levels being maintained in the West Bay area. In the hospitality market, DTZ expects occupancy levels to come under pressure due to the 4,000 new hotel rooms that will be available in the market from 2016.
The Peninsula
