Qatar office vacancies rise, as gov't cuts take hold
Reuters Images/Jacky Naegelen
Private sector companies are also looking to downside, forcing landlords to become more flexible.
Shane McGinley, ZAWYA
April 27, 2016
PHOTO
27 April 2016 Qatar office vacancy rose in the first quarter of 2016, as government spending cuts began to impact the market, according to a new study released on Tuesday.
Real estate firm DTZ Qatar reported a further slowdown in commercial lettings in Doha during the first three months of 2016, as government spending was tightened and private sector firms looked to downsize.
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The report, unveiled at the Cityscape Qatar real estate conference in Doha, estimated that between 2009 and 2014 around two thirds of commercial space was occupied by governmental and semi-governmental bodies. However, this demand has declined over the last 12 months, with the oil and gas industry the hardest hit sector, the report found.
"Recent government budget cuts, due to the prolonged period of low oil prices has resulted in a significant drop in the overall demand for office space since early 2015," the report said.
