Qatar’s big projects are progressing, and the office market boosts GDP growth.
Qatar’s Doha: In 2024, there are anticipated to be significant initiatives in the office sector that will contribute to the expansion of Qatar’s economy. This suggests a significant boost for the industry, according to a number of specialists in the nation.
However, according to sources, the major projects are anticipated to exceed 350,000 square metres of gross leasable area (GLA), which would indicate a projected 50% rise in the forecast.
Since most of the projects are expected to be delayed until 2023, there would likely be more than 2 million square metres of gross leasable area (GLA) in excess of demand, which might further exert “downward pressure” on the commercial sector’s performance.
In an interview with The Peninsula, Anum Hasan, Head of Research at Valustrat Qatar, predicted that the office market’s rent reductions would end in 2023. Government leases have resulted in a notable increase in demand for office space in Mshiereb Downtown and West Bay.
“With the exception of the offices along Grand Hamad Street and Salwa Road, every commercial district showed a YoY reduction of up to 7 percent,” the researcher stated in their report. It is expected that
hat in 2024, the significant excess supply in the market would gradually decrease rather than suddenly, which will cause rents to continue falling. The speaker went on to say that notable office buildings that will be demolished in 2024 include Lusail Plaza Towers. Lusail Plaza Towers are among the significant office structures that will be turned over in 2024, the speaker continued.
Still, the study team predicts that Qatar’s economy will grow by 2 percent this year. The IMF, on the other hand, predicted a lower growth rate rather than the assumption that the economy is still changing after the expansion, as was seen during the FIFA 2022 global competition. Over the next two years, the non-hydrocarbon sector is expected to develop at the fastest rate in the nation’s economy.
But in 2023, there were 15% fewer real estate sales, totaling QR16.7 billion. It was predicted that this declining tendency would come following the significant upturn in 2022.
However, Valustrat pointed out that this pattern suggests that transactions are increasing gradually over time. Volume is expected to increase over the medium to long term as a result of the nation’s recently enacted updated mortgage regulations and new real estate platforms.