(MENAFN- The Peninsula) joel johnson |
Doha, Qatar: The newly-developed Lusail city continues to see numerous leasing and commercial activities, said Knight Frank in a recent report.
The leading property consultancy firm underlined that the authorities have affirmed to relocate the public sector entities, which will result in a huge boost of commercial and trade activities in the market.
“Despite strong demand from the public sector and oil and gas industries, the Qatari office market's biggest challenge is an oversupply of office space, which is undermining rents, leaving occupiers firmly in the driving seat,” it said.
However, the public sector continues to be the backbone of new requirements, particularly in Lusail. Recently, Qatari Diar substantially leased 6,200 sq m at The Qatar Financial Centre Authority's (QFCA) Lusail Boulevard.
Earlier, Qatar Investment Authority (QIA) and the Qatar Central Bank (QCB) also announced plans to relocate to Lusail this year.
The World Cup hosted by Qatar last year augmented in enhanced projects transforming the country into a global touristry hub.
“The lead up to the 2022 FIFA World Cup drove a surge of state-of-the-art projects, such as new malls, stadiums, as well as transport infrastructure, which have enriched the country's architectural landscape and created favorable conditions for retailers to establish their businesses, Knight Frank stated.
It further added that“This, coupled with the record growth of tourist arrivals during the first six months of this year, is expected to catalyse the overall growth of the retail sector.”
The retail industry also saw a great increase with varieties of options open for customers to explore. Formal retail malls have eventuated in a rising competitive landscape for retailers, as well as landlords, the report highlighted.
With the rents and occupancy rates“holding relatively stable”, the data mentions that landlords who are providing rent-free incentives and fit-out contributions are coming out as the winners in the race to retain retailers in the market.
However, the report noted that retail developments where landlords do not give away such incentives are experiencing a considerable drop in occupancy and rental rates.