Qatar Commercial Real Estate Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 16.80 Billion |
| Market Size (2029) | USD 24.19 Billion |
| CAGR (2024 - 2029) | 7.56 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Qatar Commercial Real Estate Market Analysis
The Qatar Commercial Real Estate Market size is estimated at USD 16.80 billion in 2024, and is expected to reach USD 24.19 billion by 2029, growing at a CAGR of 7.56% during the forecast period (2024-2029).
- Qatar's economy is one of the fastest-growing economies in the world. Some of the major factors driving the growth of commercial real estate in Qatar are increasing construction activities, GDP growth, and the introduction of various policies by the government. The majority of the construction activities happening in the country are for high-end residential towers, white-collar office spaces, luxury hotels, and shopping malls. International events, such as the 2022 FIFA World Cup, drew nearly 1.5 million fans, which supported the demand for hotel rooms in 2022. This is expected to boost the hospitality sector in the country, as Qatar currently has around 26,500 hotel rooms, and it is anticipated that the country may add 15,000 rooms in the coming years.
- The retail space growth also doubled in the last three years, and it is expected to grow by nearly 50% more, with many new malls scheduled to open in the upcoming years. Qatar is also witnessing a rising demand for infrastructure and logistics, and events such as the 2022 FIFA World Cup are driving more demand for logistics and warehouses in the country. Qatar's government has also introduced foreign-ownership laws for various asset classes in the country, which has benefited the real estate market. As per this new law, all asset classes, including offices, shops, and residential villas, in a compound are legalized for freehold ownership.
- There is a significant increase in the number of market players in Qatar, primarily driven by infrastructure development and construction activities happening in the country. The Qatari real estate market is also witnessing innovations and improvements, such as increased public-private partnerships by the government, which is driving more companies to enter the country's real estate market.
- The impact of COVID-19 on the Qatar commercial real estate market is evident through the standstill of office expansion plans, minimal sales, and numerous deferments in leases. Customers are deferring purchases across the sector, which may result in significant revenue disruption and reduced demand and realizations.
Qatar Commercial Real Estate Market Trends
Growing Demand for Offices in Qatar
After slowing down in 2020 and 2021, office leasing transactions have picked up in 2022, with a number of leases being signed in the third quarter.There has also been a noticeable rise in the size of office spaces that tenants want in 2022, with a few recent leases being for more than 500 square meters.Recent expansion in the hydrocarbon sector has been behind a recent office acquisition of more than 7,000 square meters and two further lettings in excess of 3,000 square meters. Earlier in the year, a number of government and semi-government agencies announced their intention to relocate to buildings that are under construction in downtown Lusail. While this will ultimately lead to buildings in other locations being vacated, it highlights an increasing trend of office occupiers moving to Lusail. Organizations such as the Qatar Financial Centre and, increasingly, the Qatar Free Zone Authority have been driving demand for office space in the private sector.
QFC currently has more than 60 designated buildings across Doha that house the 1,400 QFC-registered companies. This number is also expected to grow over the coming years. QFZA-designated office accommodation will soon be available to lease to QFZA companies outside of Ras Bufontas, as office buildings within that Free Zone are reaching capacity. An agreement is also in place for QFZA real estate solutions in Msheireb Downtown. To date, more than 300 companies are registered with QFZA, and further growth is expected to create further demand for office accommodation in Doha.
The supply of purpose-built office accommodation in Qatar has now reached approximately 5.3 million square meters. The Al Dafna/West Bay district has the largest concentration of supply, with approx. 1.8 million sq m of gross leasable area in more than 70 buildings. Prime rents for Grade A stock range from QAR 100 to QAR 110 per sq m per month, exclusive of service charges. Office spaces leased as 'shell and core' can be secured for QAR 60 per sq m per month in some of Doha's main office districts.
Increasing Travellers Boosting the Hospitality Sector
In August 2022, the supply of hotel keys in Qatar reached 30,847, of which 75% are hotel rooms and 25% are hotel apartments. Of the available hotel rooms, 65% are classified as 5-star, with less than 10% classified as 3-star or below. In the wake of the FIFA World Cup, held in November 2022, a new supply accelerated. Despite expectations of a sizable number of new hotels opening earlier in the year 2022, the supply of hotel keys only increased by 5% year-on-year by August, which highlights the delays experienced in the construction sector since the outbreak of COVID-19 in 2020.
Hotels and serviced apartments are expected to deliver approximately 37,000 keys, or 45,000 rooms, in time for the World Cup. Demand for World Cup accommodation will dominate the market in the coming months. The Supreme Committee for Delivery and Legacy has reserved 80% of overall hotel supply for the tournament; however, any unrequired supply is expected to be returned to hotels in early October, freeing up rooms for the wider market. According to the latest figures released by the National Tourism Council in September, year-to-date occupancy for the hotel sector has been 57%, with average daily rates recorded at QAR 422
After COVID-19 hurt the tourism industry, the number of visitors to Qatar kept going up in 2022. Year-to-date arrivals have increased by 67.4% in 2021, although arrivals remain significantly below pre-pandemic levels. Estimates of more than 1 million people arriving in Qatar during the FIFA World Cup will ensure that tourist numbers reach unprecedented levels and ensure a boost to annual occupancy and hotel revenues for the year. A recent report by the World Travel and Tourism Council stated that travel and tourism generated QAR 67 billion (USD 19 billion) in 2021, which represented 10.3% of the nation's GDP. The FIFA World Cup tournament provided Qatar with an unprecedented opportunity to drive tourism revenues and promote Qatar's tourism sector. Robust growth in tourism numbers will be required in the coming years to support occupancy rates and revenues as supply continues to grow.
Qatar Commercial Real Estate Industry Overview
The Qatari commercial real estate market is fragmented, with some of the major real estate players, such as Barwa Real Estate Company, Ezdan Holdings, United Development Company, Mazaya Qatar, and First Qatar. There is increasing market competition among online portals and real estate companies in the Qatari real estate market. The online property market in Qatar has been dominated by a few real estate portals, such as property finder.qa and mubaweb.com. The sales proportion of real estate properties through the online market has consistently grown, owing to rising internet penetration, growing demand, incline in personal disposable incomes, and surging middle-class youth population.
Qatar Commercial Real Estate Market Leaders
Barwa Real Estate Company
Ezdan Holdings
United Development Company
Mazaya Qatar
First Qatar
*Disclaimer: Major Players sorted in no particular order
Qatar Commercial Real Estate Market News
- June 2022: United Development Company (UDC), the master developer of The Pearl and Gewan Islands, and Corinthia Group, a first-class hospitality management company that will operate Corinthia Yacht Club at The Pearl Island and Corinthia Hotel at Gewan Island, signed a strategic collaboration agreement with Monaco Marina Management (M3) and the Yacht Club de Monaco to develop yachting at The Pearl Island and potentially Qatar.
- February 2022: Ezdan Real Estate Company, the primary real estate developer, unveiled an integrated multi-tiered plan for the comprehensive development of approximately 17 villages and compounds in 2022, including residential villages in Al Wakra and Al Wukair and residential buildings in Doha, entailing construction works, as part of its strategy to continuously improve and develop its services.
- January 2022: Barwa Real Estate Company announced its intention to sell its shares in Al Imtiaz Investment Group Company K.S.C., a Kuwaiti public joint stock company. The total number of these shares is (276,631,657), accounting for 24.40% of the company's issued shares. The sale will take place by the regulatory procedures issued by the Kuwaiti Capital Markets Authority and the regulations set by the Kuwait Stock Exchange.
Qatar Commercial Real Estate Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS AND DYNAMICS
4.1 Current Economic Scenario and Consumer Sentiment
4.2 Commercial Real Estate Buying Trends - Socioeconomic and Demographic Insights
4.3 Government Initiatives and Regulatory Aspects for the Commercial Real Estate Sector
4.4 Insights into Existing and Upcoming Projects
4.5 Insights into Interest Rate Regime for General Economy and Real Estate Lending
4.6 Insights into Rental Yields in the Commercial Real Estate Segment
4.7 Insights into Capital Market Penetration and REIT Presence in Commercial Real Estate
4.8 Insights into Public-private Partnerships in Commercial Real Estate
4.9 Insights into Real Estate Tech and Startups Active in the Real Estate Segment (Broking, Social Media, Facility Management, and Property Management)
4.10 Impact of COVID-19 on the Market
4.11 Market Dynamics
4.11.1 Drivers
4.11.2 Restraints
4.11.3 Opportunities
4.12 Industry Attractiveness - Porter's Five Forces Analysis
4.12.1 Bargaining Power of Suppliers
4.12.2 Bargaining Power Of consumers/ Buyers
4.12.3 Threat of New Entrants
4.12.4 Threat of Substitute Products
4.12.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Offices
5.1.2 Retail
5.1.3 Industrial & Logistics
5.1.4 Multi-family
5.1.5 Other Types (such as Hospitality)
5.2 By Key Cities
5.2.1 Doha
5.2.2 Al Wakrah
5.2.3 Al Rayyan
5.2.4 Rest of Qatar
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration
6.2 Company Profiles
6.2.1 Developers
6.2.1.1 Barwa Real Estate Company
6.2.1.2 Ezdan Holdings
6.2.1.3 United Development Company
6.2.1.4 Mazaya Qatar
6.2.1.5 First Qatar
6.2.1.6 Qatar Living
6.2.1.7 Propertyfinder Qatar
6.2.1.8 Mubaweb Qatar
6.2.1.9 Al Adekhar Real Estate
6.2.1.10 Al Asmakh Real Estate Development
6.2.1.11 MD Properties
6.2.1.12 Garvey Properties*
6.2.2 Other Market Players (Overview, Business Segments etc.)
- *List Not Exhaustive
7. FUTURE OF THE MARKET
8. APPENDIX
Qatar Commercial Real Estate Industry Segmentation
Qatar commercial real estate market report aims to provide a detailed analysis of the Qatari commercial real estate market. It focuses on the market dynamics, technological trends, insights, government initiatives taken in the commercial real estate sector, and the impact of COVID-19 on the market. The report also analyzes the key players present in the market and the competitive landscape in the Qatari commercial real estate market.
The commercial real estate market in Qatar is segmented by type (offices, retail, industrial & logistics, multi-family, and others (such as hospitality)) and key cities (Doha, Al Wakrah, Al Rayyan, and Rest of Qatar). The report offers the market sizes and forecasts for the Qatar Commercial Real Estate Market in value (USD) for all the above segments.
| By Type | |
| Offices | |
| Retail | |
| Industrial & Logistics | |
| Multi-family | |
| Other Types (such as Hospitality) |
| By Key Cities | |
| Doha | |
| Al Wakrah | |
| Al Rayyan | |
| Rest of Qatar |
Qatar Commercial Real Estate Market Research FAQs
How big is the Qatar Commercial Real Estate Market?
The Qatar Commercial Real Estate Market size is expected to reach USD 16.80 billion in 2024 and grow at a CAGR of 7.56% to reach USD 24.19 billion by 2029.
What is the current Qatar Commercial Real Estate Market size?
In 2024, the Qatar Commercial Real Estate Market size is expected to reach USD 16.80 billion.
Who are the key players in Qatar Commercial Real Estate Market?
Barwa Real Estate Company, Ezdan Holdings, United Development Company, Mazaya Qatar and First Qatar are the major companies operating in the Qatar Commercial Real Estate Market.
What years does this Qatar Commercial Real Estate Market cover, and what was the market size in 2023?
In 2023, the Qatar Commercial Real Estate Market size was estimated at USD 15.62 billion. The report covers the Qatar Commercial Real Estate Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Qatar Commercial Real Estate Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Qatar Commercial Real Estate Industry Report
Statistics for the 2024 Qatar Commercial Real Estate market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Qatar Commercial Real Estate analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
