Qatar's retail sector sees total supply of 5.5 million square meters of GLA in Q3

(MENAFN) Qatar's retail sector saw a total supply of 5.5 million square meters of Gross Leasable Area (GLA) in the third quarter of 2024, according to a recent report from ValuStrat. This total included 2.5 million square meters of organised retail spaces and 3 million square meters of unorganised retail spaces. During the quarter, approximately 20,000 square meters of unorganised retail space were added to the market.

Several new retail spaces opened during this period, contributing to the growth of the sector. Baraha Town, for example, began offering retail space across the country, with a total area of 35,000 square meters of GLA. Additionally, The Crystal Walkway, a commercial center spanning 11,000 square meters of GLA within Gewan Island, opened to the public. Another notable addition was the North Plaza Mall in zone 71, Umm Al Umad, which features 11,300 square meters of GLA. The Outlet Mall, expected to open next year at Qetaifan Island North, was also announced.

Despite the growth in supply, retail rents have seen a downward trend. The median monthly rate for shopping centers in Q3 2024 decreased by 2 percent quarter-over-quarter (QoQ) and 4 percent year-over-year (YoY), settling at QR 185 per square meter. Street retail rents inside Doha experienced a sharp decline, with median rents dropping 14.6 percent YoY and 1 percent QoQ. However, outside Doha, rents for street retail areas such as Al Aziziya saw a 5 percent increase YoY, although they remained unchanged QoQ.

Residential-dominated areas like Al Sadd, Fereej Bin Mahmood, and Muntazah witnessed a slight drop in street retail rents, which declined by 2 percent compared to Q2 2024. In contrast, areas outside Doha, including Al Aziziya, experienced a 5 percent reduction in median monthly rents, reflecting the varied dynamics of the retail market in Qatar.

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