Doha office prices drop 20-25% on easing demand

Rents for office space across the Qatari capital have come down by around 20 to 25 percent in the past few months on lower supplies and slackening demand.

The Peninsula daily reports that supply of shops is still scarce, particularly in downtown Doha, where large-scale demolition of old buildings has led to a severe shortage.

Real estate market experts reveal that office space on the prime C and D Ring Roads in the city, which were once commanding rents between QR240 ($66) and QR260 ($71) per square metre in the pre-recession days; the rates are now down to between QR180 ($50) and QR200 ($55).

Howeverm rents for office space in West Bay, the most prestigious business address in Doha, remain relatively higher, despite some recent correction, the newspaper added.

Last month, Colliers International, the global real estate consultancy, had released the GCC Overview Report, which indicated that the impact of the global economic and financial crisis on Gulf real estate markets has been swift and dramatic leading to a decline in real estate capital values and rents.

According to the report, in Doha, the rentals for newly constructed office space have softened by 10%-15% over the last four months. The sales of residential properties have collapsed due to the lack of finance and a wait and see attitude on the part of buyers, the report added.

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