Doha, Qatar: The retail performance in Qatar is expected to remain strong in the fourth quarter (Q4) of this year driven by higher tourist arrivals and sustained demand for prime retail destinations.

The outlook for the final quarter is projected to show a healthy performance in the retail sector supported by increased tourism levels and the continued prominence of prime retail and lifestyle-driven real estate destinations, Cushman and Wakefield noted in its Qatar real estate market overview for the third quarter (Q3) of this year.

The retailer demand will remain focused on Qatar’s busier malls and, high-footfall destinations, supporting prime rental rates.

The country’s retail activity remained stable through Q3 2025, supported by resilient consumer spending and continued tourism growth. Performance varied across retail formats, with destination malls and lifestyle real estate outperforming older community malls, showcasing the shift in consumer preferences.

While retail activity remains largely driven by domestic demand, the Q3 2025 data indicates continued strength in the sector, supported by a 2.2 percent year-on-year rise in tourist arrivals compared to the same quarter in 2024.

The ongoing FIFA Arab Cup 2025 is also expected to provide a strong boost to Qatar’s retail sector through elevated tourist arrivals and event-driven spending. Increased footfall across malls, dining destinations, and entertainment venues is anticipated as regional visitors extend their stays for shopping and leisure.

Retailers are likely to benefit from higher short-term sales volumes, particularly in F&B, sports merchandise, and experiential outlets.

According to the market overview, the prime retail is performing strongly, with rents for line stores now exceeding 320 per sqm per month and even higher for small units, supported by strong occupancy levels and high footfall. In comparison, secondary retail such as community malls typically achieves lower rents, ranging from 180 to 230 per sqm per month.

The new supply is largely composed of open-air retail destinations, typically achieving rents in the range of QR150 – 200 per sqm per month.

Upcoming developments such as The Avenues in Al Waab and Bahara Town in Abu Hamour are expected to launch in 2026. Over the past year, climate-controlled, open-air, pedestrianised, retail and F&B destinations have been successful in attracting strong tenant demand and higher rents than legacy projects, highlighting the importance of cooling technology in the prevailing climate.

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