DOHA: Barwa Commercial Avenue (BCA) on the road to the Industrial Area has reduced the rents for commercial space from QR125 per square metres (sq m) to QR39 per sq m.
The iconic mixed-use commercial street, which stretches over an impressive 8.5km, is well on track to become Qatar’s ultimate retail and residential destination.
People were taken with surprise when they received a text message (SMS) about the new rents announced by the company with a sharp decline in rents. Experts suggest that the new rates will encourage and attract investments as the old rates were high and economically unviable.
Faisal Meshal Al Dosari, General Manager of United Properties was quoted by the Al Arab as saying: “The old rents were very high and beyond the reach of many investors. Since the company has received the land from the government free of cost, the rents for space should not have been so high.”
He added: “There are high demands for commercial properties at Salwa Road, Ahmed bin Ali Road and Al Sadd Road. While the demand for properties at other places in Doha is balanced, but the recently announced new rents by BCA will encourage businesses to investment at the commercial complex.”
He further added that the rents should not have been that high as the company has a social obligation toward private businesses to support them transforming Qatar into a diversified economy. The high rents were at the expense of consumers’ welfare as at the end of the day businesses shift the burden on customers.
“The sharp decline in the rents of BCA spaces is the result of supply side effects. As the street often remains crowded due to high traffic jams, investors are reluctant to invest in the area. Surplus supply of commercial spaces coupled with lukewarm response from the investors have pushed the rents down,” Mansoor Al Naeemi, another real estate expert was quoted by the daily as saying.
He said that the owners of companies who have booked shops and galleries in the BCA have predicted a bright commercial future for the project. Naeemi further said that shops should have a private road and several entrances and exits to ensure smooth traffic flow.
Naeemi added: “Investors are discouraged because the streets suffer with heavy traffic congestion and investors anticipate that with the completion of the ongoing project of 7,000 residential units behind the BCA, it will cause further traffic jams in the vicinity. The situation will not improve unless more high streets are built in the area.”
He said due to these problems many investors have already cancelled their contracts with the company.
Ahmad Al Jallu, Chairman of Qatari Engineers’ Association, said: “Investors are still deterred by frequent traffic jams, high rental space and low customers coming to the complex.”
He added that investors will monitor the situation closely before investing in the BCA, hinting for the possibility of further developments in the rents and commercial activities.
Comprising five distinct yet interconnected zones — Jeera, Safwa, Joud Mall, Arkan and Sayer, BCA offers 908,000 sq m of state-of-the-art facilities, a mix of residential, commercial, and retail offerings, and an advanced infrastructure network. Facilities include 640 retail stores, a medical centre, entertainment venues, food and beverage outlets, 730 offices, 540 residential units, and 12,000 parking spaces.
The Peninsula
