By Sachin Kumar
DOHA: Qatar’s retail sector is likely to see opening of 12 new malls in the next four years. It will result in additional supply of over 1.3m square meters of additional retail space by 2019, says real estate firm DTZ Qatar.
“There is currently strong demand for retail accommodation from both local and international retailers looking to either enter or expand in the local market. Strong growth in retail trade in Qatar has been driven by the increasing levels of disposable income,” Johnny Archer (pictured), Associate Director, Consultancy and Research, DTZ Qatar told The Peninsula on the sidelines of media round-table held last week. “We estimate that more than 1.3m additional square meters (sqm) of retail space in 12 new shopping malls is currently at various stages of design or construction and may be opened by 2019,” he added.
This additional retail space represents a 220 percent increase on current supply, and if completed as planned, this will have a major impact on the dynamic of the retail market in Qatar
Overall supply or organised retail accommodation currently stands at approximately 690,000 sqm across 14 shopping centres. Villagio Mall, City Centre Mall and the recently opened Gulf Mall account for more than 50% of the current organised retail supply.
The opening of Gulf Mall earlier in the year increased organised retail space by 17%. However high occupancy levels prevail throughout all of the organised retail malls with very limited availability of prime retail units.
DTZ has recently observed an increase in rental levels on lease renewals in the busier malls due to high occupancy levels and strong demand from retailers. “At the prime malls rents range from QR250 to QR300 per sqm per month for the standard line units. Larger anchor stores have typically secured accommodation for between QR40 and QR80 per sqm per month,” said Archer. Outside of the organised malls, the retail market in Qatar comprises a mix of Souq retail, and high street retail showrooms.
The showroom retail market has seen the addition of Barwa Commercial Avenue, providing approximately 250,000 sqm of quality accommodation and more than 50% of the retail units have been reserved by various retailers.
AlHazm Mall on Al Markhiya Street is expected to open later this year. This is expected to concentrate on providing high-end retail and restaurant accommodation, targeting exclusive international fashion brands.
The Peninsula
