Qatar retail sector likely to face oversupply


December 31, 2014 | By RetailME Bureau

Qatar’s retail sector is likely to face supply glut with the smaller malls downing their shutters, but views are divided on whether the excess supply may lead to softening of rentals. At present, Qatar, which is already witnessing exponential expansion in expatriate population in view of the robust infrastructure upgrade drive, has more than a dozen operational malls with another dozen in the pipeline. By the end of 2015, the anticipated net leasable area (NLA) will be nearly 10.2 million sqft. Upon completion of all the under-construction malls, the total number of malls would be 27 with an expected NLA of 19.3 million sqft.

Retail development is the second largest construction activity after residential development in Qatar. According to the valuation and research department of Al Asmakh Real Estate Development Company, major activities in Qatar’s retail real estate, which is on the bottom of the recovery cycle, would be managed from the malls by 2018. Mall density as proportion to population is also set to increase.

Unlike the commercial office sector, the overall occupancy level is genuinely high in retail segments, corroborating the optimism in the retail sector. At present, organised retail space in Qatar offers nearly 3,068 sqft for every 1,000 people, which would reach 9,688 sqft upon completion of all under-construction malls. Dubai currently offers 14,854 sqft of retail space per 1,000 people, whereas, in the US, the ratio is 11,087 sqft per 1,000 people.

Within Qatar, the retail market can be segmented into four basic zones – malls, souqs, hypermarkets and unorganised shops, Al Asmakh said, adding unorganised retail secures 70% of total retail space; although, no further supply can be expected as per Doha town planning scheme.

Qatar’s economy is estimated to grow 7.7% next year and 7.5% in 2016 mainly powered by the non-hydrocarbon sector, services and construction in particular, according to official figures. The Ministry of Development Planning and Statistics, in its Qatar Economic Outlook 2014-16 Update, had said vigorous investment spending, expansionary fiscal stance and rising population will continue to spur the robust broad-based growth in the non-hydrocarbon sector.

Comments

comments

Previous Article Next Article

SHARE

YOU MAY ALSO LIKE /



Walmart announced this week that it will offer Paramount Global’s streaming service 

Continue Reading

August 19, 2022 | By RetailME Bureau

Employee retention has been on every company’s minds, especially since the fears 

Continue Reading

August 16, 2022 | By Shruthi Nair

The Frozen Chicken’ as Spinneys was fondly referred to back in the 

Continue Reading

August 8, 2022 | By Shruthi Nair

Veppy.com, a Q-Commerce marketplace startup just announced their go live date in the 

Continue Reading

July 20, 2022 | By Justina Eitzinger

GMG, a global well-being company retailing, distributing, and manufacturing a portfolio of leading 

Continue Reading

July 19, 2022 | By Justina Eitzinger

Lulu Group International recently introduced the world’s first AI-powered Food Delivery Robot 

Continue Reading

May 9, 2022 | By Shruthi Nair

Eid Al-Fitr is an occasion to gather with your friends and family 

Continue Reading

April 29, 2022 | By Zubina Ahmed

Leading retailer LuLu Group further strengthened its presence in the Emirate of 

Continue Reading

April 28, 2022 | By RetailME Bureau

Jones the Grocer, the Australian gourmet grocer and café chain, announces further 

Continue Reading

April 28, 2022 | By RetailME Bureau

What is a perfect healthy snack for Ramadan? An assortment of  dried 

Continue Reading

April 14, 2022 | By Zubina Ahmed

With Ramadan almost at it’s first week, we are wondering where can 

Continue Reading

April 6, 2022 | By Zubina Ahmed

In spirit of the holy month, Amazon announced that it will contribute 

Continue Reading

April 5, 2022 | By RetailME Bureau




f
Download Images RetailME Magazine