(MENAFN - Arab News) Rental levels in Qatar's office leasing market remained static during the first quarter of the year, further demonstrating stability in the market, according to a report issued by Asteco.
The report, highlighting property market in Q1 2012, said the majority of enquiries continued to be for offices ranging between 100 and 500 square meters on a fully fitted basis at secondary-prime rental levels. This segment of the market is relatively under supplied.
Meanwhile, modern, good quality, functional office space available on a fully or partially fitted basis in this size range is comparatively scarce compared to prime, shell and core offices of 650 to 800 square meters, the report said.
Material rental growth in this sector is not anticipated until the beginning of 2013 at the earliest, according to the report.
Average rental levels of residential sector across all areas of Doha were unchanged against the previous quarter.
Rental transactions improved significantly during Q1 2012 compared to Q4 2011. This increase can be partly attributed to a number of established Qatari companies changing their housing policies by allowing employees to take direct leases with landlords, rather than employer-owned accommodation, the report said.
In Q1 2012, the location most in demand was the Pearl-Qatar, which continues to be Doha's prime development. As new amenities are delivered and rental levels remain competitive in comparison to other locations, the Pearl-Qatar is preferred by many expatriates.
Demand for one- and two-bedroom apartments was especially strong in this location. If demand continues at this level and, assuming no new towers or phases are delivered, rental levels for the best-configured apartments may witness a small increase during Q2 2012, the report said.