Qatar’s office market expands in Q1 2023

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Doha, Qatar: The country’s major business hubs including Lusail, The Pearl, and Msheireb Downtown Doha witnessed an increase in office spaces during the first quarter of the year.

Speaking to The Peninsula in an interview, Alexander Hartmann, Managing Partner, The Loft Bureau Real Estate emphasised the newly developed financial districts as a stable market for office space.

He said: “Office spaces especially in Lusail Marina are in demand and are operating on high occupancy rates. It’s different because it is one market and if you go deeper inside, you will find higher occupancy rates with mesmerising infrastructures in Lusail.

“Also, you have a great mix of residential and office towers. This is one of the hottest (high-demand) markets at the moment, especially for expatriates so I think Lusail Marina is at the top.”

However, several reports elucidate that Lusail is set to become Qatar’s ‘de-facto’ financial district in the forthcoming years with surging projects and business activities. A report by Cushman and Wakefield notes that most of the office activities however took place in Lusal over the past year. It explained “In February, the QFC and Qatari Diar announced that the former has acquired more than 6,000 sq m of office space in Lusail Boulevard, joining Qatar Chamber, which is due to relocate to the same street shortly. These upcoming office relocations could potentially see the Lusail downtown area become Qatar’s de-facto financial district in the coming years.”

The report further states that “The buoyant oil and gas sector has spurred expansion and relocation activity in the past year. As a result, three office deals over 3,000 sq m have been confirmed in West Bay and The Pearl Qatar. Msheireb Downtown Doha is also gaining recognition as a commercial destination.”

During Q1 2023, Msheireb City saw numerous commercial office lettings mainly in the oil and gas industries in addition to financial corporations. The report notes that there are other transactions in the pipeline, which are expected to complete during the second quarter of the year.

The report said that “The supply of purpose-built office accommodation in Qatar has now reached approximately 5.3 million sq m. The Al Dafna and West Bay districts have the largest concentration of supply with approx. 1.8 million sq m of gross leasable area, while the expanding supply of office accommodation in Lusail has surpassed 800,000 sq m. Despite an increasing office supply, there currently needs to be more options available for companies looking for premium-quality fitted space."

It also said “Most available office space in Doha is either of basic quality or is available on a shell and core basis.

"Grade A stock is now typically available to lease for between QR100 and QR120 per sq m per month, exclusive of service charges. Office spaces leased as ‘shell and core’ can be secured for QR55 to 60 per sq m per month in some of Doha’s main office districts," it added.