The Flourishing Office Market in Qatar’s Major Business Hubs

In the first quarter of 2023, Qatar’s primary business centers, including Lusail, The Pearl, and Msheireb Downtown Doha, experienced a surge in office spaces, reflecting the booming business activities in the region.

The Loft Bureau Real Estate on Lusail’s Office Market

Alexander Hartmann, Managing Partner at The Loft Bureau Real Estate, highlighted the burgeoning financial districts as a stable market for office spaces. Specifically, he emphasized the high demand and occupancy rates in Lusail Marina, indicating that its appealing mix of residential and office towers makes it one of the most attractive markets, particularly among expatriates.

Lusail – The Future’s de-facto Financial District of Qatar

According to several reports, Lusail is poised to become Qatar’s ‘de facto’ financial district due to its rapidly increasing projects and business activities. A report from Cushman and Wakefield revealed that most office activities took place in Lusail over the past year. The QFC and Qatari Diar’s acquisition of over 6,000 sq m of office space on Lusail Boulevard and the Qatar Chamber’s impending relocation to the same street further underline this trend.

Expansion in Msheireb City, West Bay, and The Pearl Qatar

Alongside Lusail, other areas have also seen growth. Msheireb Downtown Doha, West Bay, and The Pearl Qatar have all seen notable expansion and relocation activity, driven mainly by the robust oil and gas sector. Msheireb City, in particular, witnessed several commercial office lettings in Q1 2023, with more transactions expected to complete in the upcoming quarter.

The Office Accommodation Supply in Qatar

The supply of purpose-built office accommodation in Qatar has now reached approximately 5.3 million sq m, with Al Dafna and West Bay districts holding the largest concentration of supply. Simultaneously, Lusail’s office accommodation supply has surpassed 800,000 sq m. However, despite the increasing office supply, there is a demand for more options, particularly for companies looking for premium-quality fitted spaces.

Office Space Rates

According to the report, most of the available office space in Doha is of basic quality or 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. In contrast, 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.

Conclusion: A Positive Outlook for Qatar’s Office Market

Qatar‘s office market showed considerable expansion in Q1 2023, setting a positive tone for the rest of the year. Growth in major business hubs like Lusail, The Pearl, and Msheireb Downtown Doha signals Qatar’s vibrant and thriving commercial landscape. With continued demand for high-quality office spaces, the trend seems set to maintain its upward trajectory, fostering an encouraging environment for investors and businesses alike.