(MENAFN- The Peninsula) The Peninsula
Some 1,750 new housing units were delivered in the third quarter of the year, bringing the total residential supply in Qatar to 283,250 properties, according to latest real estate review by ValuStrat. The third quarter 2017 review issued by leading regional consulting firm ValuStrat reports an industry-wide increase in supply activity versus the previous quarter.
The areas which saw most handovers included Duhail, Fereej Abdul Aziz, Lusail, Muntazah, Al Waab and Fereej Al Soudan which are situated in Doha's north-west region. Citywide residential asking rents declined 11 percent over the past 12 months and 4 percent since the second quarter. Houses in Al Sadd, Freej Bin Mahmoud, Lusail, The Pearl, Abu Hamour and Muraikh saw asking rents plunge 12 percent in a year due to burgeoning supply. Districts with no substantial new supply, such as Al Waab and West Bay, also witnessed a 10 percent fall in leasing rates over the third quarter.
'The overall market has seen increases in supply activity post the quieter summer months. Positive signs of improved transactional volumes for residential properties and offices have helped dampen pressure on falling lease and sales rates, with supply expected to continue to grow at the same level. Amid geo-political challenges, short-term delivery delays were anticipated. However, buffer stocks of construction materials and support from the public sector helped resolve delays in most construction projects. In the medium-term, demand fundamentals in all sectors will depend on population growth, oil and gas prices, government initiatives and general investor sentiment, said Pawel Banach MRICS ValuStrat Qatar General Manager.
According to the review, during 2017, 3,900 hospitality keys are expected to be added, of which 60 percent were completed by the end of Q3 2017. Notable hotel openings included Mondrian Doha, Al Mansour Plaza and Premier Inn Education City. 3-star hotels experienced an 8 percent rise in occupancy over the same period, despite a 13 percent rise in supply. This is probably due to a growing interest for reasonably priced serviced accommodation. With the completion of North Gate Mall and Doha Souq, total retail GLA exceeded 1.65 million sq m. Due to Shop Qatar and Eid festivals, super-regional and regional malls were able to attract substantial footfall during the third quarter. Regional malls achieved footfall of up to 2 million during the period, the report said.
'There has been a supply boom in the retail sector since the beginning of 2017 compared to previous years. Nevertheless, new malls delivered to the market achieved high occupancy levels together with firm rental rates. In the medium term, as more supply comes on the market in areas already dense with retail offerings, the performance of older shopping malls may come under pressure, Banach added.
New Hamad Port was opened with the capacity to handle a potential of 7.5 million shipping containers. The government launched numerous initiatives to support the growth of industrial and logistical properties. Owing to the geopolitical challenges, the influx in demand encouraged local producers and dairy manufacturers to increase production capacity.
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