Qatar retail sector likely to face oversupply


December 31, 2014 | By RetailME Bureau

Qatar retail sector likely to face oversupply

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.

Previous Article Next Article

SHARE

YOU MAY ALSO LIKE /


#Topshelftalks session at Food Business Forum 2024

Industry pioneers are embracing a comprehensive strategy that integrates consumer insights, digital 

Continue Reading

July 3, 2024 | By Anurima Das
#EdgeOfTomorrow session at Food Business Forum 2024

The regional grocery retail market is evolving fast keeping pace with constantly 

Continue Reading

July 3, 2024 | By Rupkatha B
#CartToCouch session at Food Business Forum 2024

If anything, the Middle East market is excited about quick commerce – 

Continue Reading

July 2, 2024 | By Rupkatha B
#EcoEchoes session at Food Business Forum 2024

From ethical and local sourcing to adopting cutting-edge technologies to curb food 

Continue Reading

July 2, 2024 | By Rupkatha B
#ByteSizedBreakthroughs session at Food Business Forum 2024

The regional grocery retail market is becoming more and more diverse, offering 

Continue Reading

July 2, 2024 | By Rupkatha B

Spinneys, the leading premium fresh food retailer, has announced the opening of 

Continue Reading

June 24, 2024 | By RetailME Bureau

Spinneys has announced the launch of The Kitchen by Spinneys, its first-ever 

Continue Reading

May 20, 2024 | By RetailME Bureau

In a move set to redefine the landscape of the Fast Moving 

Continue Reading

May 16, 2024 | By RetailME Bureau
Sunil Kumar and Ali Saeed Juma Albwardy, Spinneys

One of UAE’s leading fresh food retailers, Spinneys has announced its intention 

Continue Reading

April 19, 2024 | By RetailME Bureau
Laura Manning, Managing Director & Founder, BRW Society

Launched in 2019 by Laura Manning, UAE-based homegrown brand BRW Society completes 

Continue Reading

April 5, 2024 | By Rupkatha B
Rajiv Warrier, Chief Executive Officer, Choithrams

Since the launch of its first store in the UAE five decades 

Continue Reading

March 20, 2024 | By RetailME Bureau
Dr. Dhananjay Datar Chairman & Managing Director ADIL Trading Co. LLC

Dr. Dhananjay Datar Chairman & Managing Director ADIL Trading Co. LLC holds 

Continue Reading

February 29, 2024 | By Rupkatha B




Download Images RetailME Magazine