Hotel occupancy increased due to reduced average room rates. The hotels added a total of 1,050 rooms to Qatar’s hospitality sector during the last quarter, according to the fourth quarter 2019 review issued by leading regional consulting firm ValuStrat.
“Countrywide sales transaction volumes accumulated to QR22.7bn in value in 2019. In The Pearl & Al Qassar, transaction volumes increased by a staggering 72 percent during 2019, while total transaction value increased by 55 percent to QR2bn,” Pawel Banach (pictured), ValuStrat’s General Manager, Qatar told The Peninsula.
“Decelerating capital value declines indicate that the real estate market may reach a plateau in the coming quarters. This was most likely aided by the increased availability of affordable payment plans and investor-friendly government policies,” he added.
Park Hyatt (187 keys) in Musheireb Downtown, Saraya Town Hotel (310 keys) in Al Ghanim, Double Tree by Hilton Doha (139 keys) in Al Sadd and Hilton Doha The Pearl Residences (414 rooms) in The Pearl were unveiled adding a total of 1,050 rooms to the hospitality sector during the last quarter.
Till November 2019, 1.86 million visitors arrived in Qatar, an increase of 14 percent compared to the same period in 2018. Countrywide occupancy of hotels for the same period stood at 64 percent, up 5 percent compared to 2018. The Average Daily Rate (ADR) witnessed a decline of 3 percent YoY.
With the addition of 1,750 units during Q4 2019, the total housing stock in Qatar was estimated at 297,650 units by the end of 2019. 90 percent of the added supply comprised of apartments handed over in Lusail (Fox Hills, Al Kharaej and Marina District), The Pearl, Al Sadd and Al Mirqab. Projected completion for 2020 has been adjusted upwards to 10,000 units due to delayed deliveries from 2019.
The average capital value of a residential unit stood at QR7,914 per sqm. More specifically, apartments were QR11,477 per sqm and villas were QR6,140 per sqm.
Citywide residential asking rents declined 6 percent over the past 12 months and a negligible 1 percent since the third quarter of 2019.
“During 2019, 60 percent of the added residential supply was concentrated in Lusail, The Pearl and Al Dafna. It negatively impacted rents in these locations as average asking rents fell by an estimated five percent to eight percent annually,” said Anum Hasan, Senior Market Research Analyst for ValuStrat.
Construction of an estimated 700,000 sq m GLA of office space was completed in 2019, bringing the total office supply to an estimated 4.8 million sq m GLA. Five office projects were added during Q4 2019 in Lusail, Al Mirqab, C-Ring Road (Al Mansoura) and Al Sadd comprising 160,000sqm GLA.
Organized retail supply increased five percent during 2019, reaching up to 1.89 million sq m GLA. An estimated 462,000 sq m spread over 5 shopping centers is in the pipeline for 2020. The retail market continues to remain tenant-friendly where landlords offer lucrative incentives (eg waiving services charges or turnover rents, rent-free periods) to retain existing retailers and attract new leases.
The Peninsula
30/01/2020
