Potential For Significant Growth In Qatar's Real Estate Sector

DOHA: Qatar is advancing efforts in economic diversification and accelerating the pace of economic growth by continuously creating new opportunities for businesses and investors through a diverse range of initiatives and incentives.

The country's real estate sector has significant potential for growth. This positions Qatar at the forefront of global investment, fostering a sustainable and attractive business environment that benefits the national economy and fulfils future generations' aspirations.

Qatar's success in diversifying its economy will be vital in reducing reliance on the government sector. Offices in secondary areas have the potential to meet demand from smaller private sector companies; however, many office properties will require upgrading and retrofitting to meet modern office standards, Cushman & Wakefield said in its latest Qatar real estate market overview for the first quarter (Q1) of 2025.

“We expect developers to consider building new office buildings in prime locations in the next two years; however, increased office rental rates will need to become evident to support the business case for new construction.”

In February, HSBC joined a growing list of companies that announced they will be relocating their headquarters to Msheireb Downtown. The bank will occupy approximately 3,000 sqm.

Recent activity remains dominated by government bodies acquiring office space in Lusail and West Bay, with more than 150,000 sqm being leased in the past eighteen months.

To reduce reliance on the public sector for office demand, Qatar has been promoting the growth of private sector through various initiatives. Web Summit successfully inaugurated its Qatar edition in 2024 and held its second conference this February of this year. The first two Web Summit events have reportedly seen several companies, particularly those in e-commerce, payment solutions, and digital marketing, laying the groundwork for setting up in Qatar.

Supply of modern office buildings in Lusail, Wet Bay, The Pearl Island and Msheireb Downtown has reached three million sqm. This represents approximately 55 percent of all purpose-built office supply in Doha. The recent increase in the take-up of offices in prime areas has seen Grade A office availability fall to 10 percent. Overall availability in the office sector is estimated to be closer to 20 percent, the report noted.

Meanwhile the residential rental market remained relatively in Q1, 2025. Demand remains strong for high-specification apartment buildings in prime locations with high occupancy rates evident in areas such as Viva Bahriya, Abraj Bay and Lusail Marina.

Aqarat hosted the first Real Estate Brokers' forum in Q1 which aimed to enhance cooperation between the government and the real estate sector and illustrated the government's commitment to developing a well-regulated and transparent real estate market in Qatar.

In March, the Cabinet approved a draft decision by the Ministry of Justice to organize the initial real estate registry. This draft, prepared in coordination with the Aqarat aims to provide a legislative framework for recording data on real estate units and for documenting the rights and legal dispositions that apply to them.

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