Lusail continued to show stronger momentum, registering a 4.5 percent increase in Grade-A office rents YoY.
Doha, Qatar: Qatar’s office and retail real estate sectors remained broadly stable during the first quarter of 2026 despite softer activity toward the end of Q1 amid regional uncertainty and seasonal factors, noted ValuStrat in its latest report.
The data showed that approximately 23,300 square metres of gross leasable area (GLA) was added to Qatar’s commercial real estate inventory during the quarter, bringing the country’s total supply to 7.5 million square metres GLA.
New additions included an 8,000 square metre mixed-use development in Fereej Al Soudan, while another 15,000 square metres was delivered across Birkat Al Awamer, Mesaieed Logistics Park, and Al Wakrah.
ValuStrat noted that Grade-A office inventory remained unchanged during the quarter, with Doha municipality accounting for 57.9 percent of total supply and Lusail contributing the remaining 42.1 percent. The consultancy estimated that an additional 85,278 square metres GLA is expected to be delivered during the remainder of 2026.
Qatar’s office market index remained stable at 96.9 points in Q1 2026 on both a quarterly and annual basis, compared with the baseline of 100 points established in Q1 2024.
Grade-A office rents across the country also remained largely unchanged, averaging QR115 per square metre both quarter-on-quarter and year-on-year.
However, rental performance varied across key business districts. The West Bay office cluster recorded a 3.2 percent annual decline in rents, while Lusail continued to show stronger momentum, registering a 4.5 percent increase in Grade-A office rents year-on-year.
Commenting on market conditions, Anum Hasan, Head of Research, Qatar at ValuStrat, said the office sector remained stable with limited rental volatility despite broader economic and geopolitical challenges.
“The office sector remained stable, with limited rental volatility. Retail performed strongly during the first two months of the quarter but softened towards quarter-end, particularly across open-air destinations, influenced by regional uncertainty and seasonal patterns,” Hasan said.
She added that rents across the retail sector remained largely unchanged on a quarterly basis, although a marginal annual decline was recorded.
The report also highlighted the resilience of Qatar’s Grade-A office segment, particularly as companies continue to prioritize high-quality office spaces with strong connectivity, sustainability features, and modern workplace amenities.
Open-air retail destinations, however, experienced softer performance toward the end of the quarter, partly reflecting seasonal slowdowns during Ramadan and Eid, as well as cautious consumer sentiment linked to broader regional developments.
Despite near-term challenges, analysts expect Qatar’s office and retail sectors to remain supported by ongoing government investment, business activity expansion, and rising demand for integrated commercial developments in key urban areas such as Lusail and West Bay.
The anticipated addition of more than 85,000 square metres of new office supply during 2026 is also expected to provide businesses with greater leasing options while maintaining competitive rental conditions across the market.
