By Mohammad Shoeb
DOHA: Most of the individual investors and owners of land plots in the upcoming Lusail city are moving cautiously, and the development process is expected to pick up momentum from 2018, say experts from the local real estate industry.
The basic infrastructure facilities has already been put in place in the ambitious brand new smart city, which will be hosting the opening and final matches of the 2022 FIFA World Cup. There is a lot of work going on there as part of the preparations of the games. However, market experts say that private developers are moving slow given the tepid demand.
“The few projects which are already completed, I think they have completed at a wrong time as they are facing difficulties in attracting tenants and commercial occupiers… The road network to the city is very difficult as a result people prefer to stay in West Bay, Msheireb and other places,” said Richard Rayner, Chartered Surveyor and Valuation Advisor at DTZ Qatar, a leading real estate service provider. “The development is expected to ramp-up from 2018 to 2020 so that the projects are completed in time and Lusail becomes a fully functional city before the World Cup,” Richard added.
He noted that given the slowdown and ongoing correction in the real estate market, individual investors are “holding-up” for another year or two to being their projects. “They do not want to finish too soon because there is not much demand”.
Lusail is an integrated brand new smart city being developed with very high quality buildings, commercial facilities and connected with very advanced communication and transportation systems such as Lusail Light Rail.
Commenting on the demand for retail space, he said that this sector over all is doing well over the last few years as the spending is very high. “If you see the prices of some of the upcoming commercial establishments, such the Mall of Qatar and Doha Festival City, and given their high pre-occupancy levels, the asking rates are still very high. So at the moment they are doing well and commanding high rents,” added Richard. “However, the challenges will increase when more and more malls open. And to support the revenues of these malls, the demand will have to keep pace.”
Commenting on the reasons for delays in the opening of some malls, he said that delays are not related to leasing, “I think it’s due to infrastructure and civil defense”.
On The Pearl Qatar (TPQ), Richard said that there is not much impact on the rentals in the Qatar’s man-made island. It is also doing well and a lot of transactions are taking place. “The demand is good at TPQ. Predominantly expatriates are investing in apartment buildings, while locals are investing in plots of land to develop villas.”
However, he noted that some recently completed new towers, with very high quality finishing, are attracting more tenants and commanding good rents. And in the coming days, towers which are poorly finished may face some challenges as their tenants would like to move to better towers with the same level of rents.
The Peninsula
By Mohammad Shoeb
DOHA: Most of the individual investors and owners of land plots in the upcoming Lusail city are moving cautiously, and the development process is expected to pick up momentum from 2018, say experts from the local real estate industry.
The basic infrastructure facilities has already been put in place in the ambitious brand new smart city, which will be hosting the opening and final matches of the 2022 FIFA World Cup. There is a lot of work going on there as part of the preparations of the games. However, market experts say that private developers are moving slow given the tepid demand.
“The few projects which are already completed, I think they have completed at a wrong time as they are facing difficulties in attracting tenants and commercial occupiers… The road network to the city is very difficult as a result people prefer to stay in West Bay, Msheireb and other places,” said Richard Rayner, Chartered Surveyor and Valuation Advisor at DTZ Qatar, a leading real estate service provider. “The development is expected to ramp-up from 2018 to 2020 so that the projects are completed in time and Lusail becomes a fully functional city before the World Cup,” Richard added.
He noted that given the slowdown and ongoing correction in the real estate market, individual investors are “holding-up” for another year or two to being their projects. “They do not want to finish too soon because there is not much demand”.
Lusail is an integrated brand new smart city being developed with very high quality buildings, commercial facilities and connected with very advanced communication and transportation systems such as Lusail Light Rail.
Commenting on the demand for retail space, he said that this sector over all is doing well over the last few years as the spending is very high. “If you see the prices of some of the upcoming commercial establishments, such the Mall of Qatar and Doha Festival City, and given their high pre-occupancy levels, the asking rates are still very high. So at the moment they are doing well and commanding high rents,” added Richard. “However, the challenges will increase when more and more malls open. And to support the revenues of these malls, the demand will have to keep pace.”
Commenting on the reasons for delays in the opening of some malls, he said that delays are not related to leasing, “I think it’s due to infrastructure and civil defense”.
On The Pearl Qatar (TPQ), Richard said that there is not much impact on the rentals in the Qatar’s man-made island. It is also doing well and a lot of transactions are taking place. “The demand is good at TPQ. Predominantly expatriates are investing in apartment buildings, while locals are investing in plots of land to develop villas.”
However, he noted that some recently completed new towers, with very high quality finishing, are attracting more tenants and commanding good rents. And in the coming days, towers which are poorly finished may face some challenges as their tenants would like to move to better towers with the same level of rents.
The Peninsula
