Qatar's retail market experiences surge in Q2
(MENAFN) In the second quarter of 2024, Qatar's retail market experienced a significant surge in consumer activity, with increased foot traffic reported nationwide. ValuStrat's latest analysis attributes this spike in demand to the active participation of retailers in various festivities across the country. Despite this uptick in retail engagement, there was a notable decrease in median monthly rents for shopping centers, which fell by 2 percent quarter-on-quarter and 5 percent year-on-year compared to the same period in 2023.
In Doha, the median monthly asking rent for retail spaces on the street saw a decrease of QR125 per square meter, marking a 5 percent drop from the previous quarter and an 18 percent decline year-on-year. Conversely, the median monthly rent for street retail shops in Doha remained stable quarter-on-quarter at QR145 per square meter but exhibited a 2 percent increase year-on-year. This mixed trend highlights a dynamic rental market where street-level retail spaces are experiencing varying degrees of rent adjustment.
The quarter also saw a reduction in commercial lease contracts, with a total of 1,500 agreements—a decrease of 9.3 percent annually. Al Wukair, Al Mashaf, and Al Thumama emerged as the most active areas for leasing, with 189 contracts signed during the period, according to the Ministry of Municipality & Environment. This activity underscores ongoing interest in these key regions, despite the overall decline in lease agreements.
The retail sector's expansion continued with a stable retail stock of 2.5 million square meters of Gross Leasable Area (GLA), with no major new additions in Q2 2024. Notable developments included the anticipated completion of a shopping complex in Zone 56 Baraha Town later in the year. The Saudia Group of Companies also launched a new hypermarket in Al Thumama, covering approximately 5,000 square meters. New retail spaces were inaugurated, such as Five Guys at the Gate Mall in West Bay and Home Centre in Tawar Mall. The Mall of Qatar announced a partnership with Abyat for a new store, while Mowasalat (Karwa) expanded its public transport kiosks, including new locations at Doha Festival City, City Centre Doha, and Lulu Hypermarket on D Ring Road.
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