Qatar's office rental market sees uptick [Peninsula, The (Qatar)]
(Peninsula, The (Qatar) Via Acquire Media NewsEdge) DOHA: Qatar's office rentals witnessed higher rates across locations during the first quarter of 2014. Within the residential market, the rental rates increased 2-4 percent quarter-on-quarter (QoQ); sales market performed well and mortgage inquires rose considerably during the period, a GCC real estate quarterly report yesterday noted.
The Global Investment House (GIH) report said the office rental market expanded in Q4, 2013, with rental rates rising 6 percent QoQ across major areas. New leasing deals for more than 1,000 square metre were few. However, demand for 200-500 sqm office space counties to remain strong, but supply has been restricted.
Demand for high quality properties continued to increase during the quarter. Secondary and low quality space continued to face pressure with high vacancy rates. The private sector, particularly new and overseas companies, is expected to drive demand.
The residential rental market posted relatively slower growth during the quarter, with rents rising 2-4 percent on QoQ basis due to increased supply of good quality properties. However, demand for one-bedroom apartments, and four and five-bedroom villas at preferred locations remained higher. Quality properties continued to remain in demand, while pressure on apartment rents in The Pearl-Qatar reduced due to the addition of a number of apartment buildings. Going forward, rental rates are expected to improve due to limited new additions.
In contrast to the residential rental market, the sales market performed well, with the overall value of sales rising 19 percent QoQ and mortgage inquiries increasing considerably from the previous year. However, the number of transactions fell in Q1, 2014, as buyers became more price conscious. The sale price of apartments in The Pearl-Qatar eased during the quarter with new supply coming into the market.
On the outlook for Office rentals, the report noted the private sector, especially new and overseas companies would drive demand. Demand for smaller spaces and quality properties continue to remain high, while that for low quality properties has been dull.
On the residential rental outlook, the report forecast a limited supply of good quality four-and-five-bedroom villas at desirable locations would remain the key driver for demand, thereby leading to higher rental rates.
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