The supply of organized retail accommodation increased by more than 200 percent since 2010, with the total supply of organized retail surpassing 1.39 million square meters (sqm) following the recent opening of Tawar Mall in Umm Lekhba, noted the latest report released by Cityscape Qatar.
With the completion of the upcoming commercial projects and new malls, such as Doha Mall, Katara Mall, Northgate Mall, and La Gallaria, will be adding more retail space to the existing supply to meet the growing demand.
The Cityscape Qatar exhibition, which is to be held from April 1–3, 2019. Cityscape is the world’s leading real estate event portfolio for emerging markets, debuted in Qatar in 2012. The annual event features an exhibition and numerous learning and networking features designed to stimulate the development of Qatar’s real estate.
The previous edition of the exhibition was represented by 55 countries which witnessed over 8,000 visitors.
Cityscape Qatar’s June newsletter has looked at real estate consultant DTZ’s analysis of the Qatar retail segment. “There is currently a total of 21 purpose-built retail malls in Doha, excluding local neighborhood shopping arcades and standalone hypermarkets. Between them, Doha Festival City, Mall of Qatar and Villaggio Mall account for more than 40 percent of retail accommodation in purpose-built malls, providing a total of 565,000 sqm gross leasable area,” said the report.
The DTZ report also noted that the supply of organized retail accommodation has increased by more than 200 percent since 2010. “While retail supply struggled to meet the demand of the growing population between 2010 and 2015, the completion of more than 600,000 sqm since 2015, coupled with the downturn in consumer confidence has resulted in a changing market dynamic,” said DTZ.
“The quantity of new supply has increased competition between new retail destinations to secure premium brands in the past year, with incentives such as rent-free periods, fit-out contributions, and lower headline rents increasingly prevalent.”
Outside of the ‘Organised Retail’ sector, the market in Qatar comprises largely of community mini-malls, ‘Al Furjan’ markets, high street showrooms, and traditional souqs. The increasingly challenging market has seen the emergence of turnover rent agreements in some locations, most notably in destinations that concentrate on the F&B sector.