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Qatar calling
A quick click on the ‘Qatar Living' website (www.qatarliving.com), and it's clear that soaring rents are the main concern - between the middle of 2006 and 2007, rents increased over 50% in some parts of the city.
It's not much better in the commercial sector, where Doha office rents are likely to rise about 20% during the next year as demand outpaces supply and international businesses expand in the Gulf, according to property services company CB Richard Ellis.
Demand in Doha is growing as oil and gas companies expand and the government seeks new space and while prices are lower than in Dubai, the trends are virtually identical. The highest quality offices in Dubai cost as much as US$136.2 per square foot, which could rise to US$164 per square foot during the 18 months.
Although new supply of office space is expected to increase in 2008, the additional space will not satisfy buoyant demand, according to a Markaz report, which expects rental growth rates to stay firm in the near term. However, the demand-supply gap is expected to narrow down between 2008 and 2010, causing rental prices to stabilise.
Two years ago, Doha's office rents increased by 20-50%, with demand dramatically outstripping supply. Office stock at the end of 2006 was approximately 350,000 sq m, with delivery of 100,000 sq m of extra office space anticipated in Doha by the end of 2008.
Demand for new offices last summer was estimated at over 75,000 sq m. Vacancy rates for prime space are less than 2%, with occupiers forced to settle for lower-grade space or build their own facilities, according to the report.
• Durat Al Doha, who is currently building five Imperial Towers at The Pearl-Qatar, has sold one of them to German Realty Fund Trend Capital on a turnkey project basis. Scheduled to be ready by 2010, each of the towers has been designed in an architectural style belonging to one of the five continents.
• The Land Real Estate Investment and Development reported "substantial interest" from major oil and gas companies in The Atrium, the first large-scale commercial property due for completion at The Pearl-Qatar in 2009. The Atrium is located within Energy City, a short distance from The Pearl-Qatar's main residential areas.
• Industries Qatar is setting up a US$274.8m property firm with partners. A conglomerate that operates mainly in the chemicals and steel sectors, Industries Qatar would own one-third of the new company, while Qatar Real Estate Company and Kuwait's Al Koot Insurance and Reinsurance Company each own 33%.
The recently-launched real estate firm will build, manage, buy and sell residential, commercial and industrial towers.
• ACI Real Estate, whose sports star-stamped towers (Michael Schumacher, Nikki Lauda and Boris Becker) are coming up in Dubai, is aiming to make a move into Qatar in the second half of this year, although it declined to give details.
• Sabban Property Investments (SPI) recently completed the design of the podium level of its US$329m Sabban Towers project at The Pearl-Qatar, due for completion by July. Spanning more than 6,500 sq m, the podium level houses all three towers that comprise the entire development. Outdoor facilities will include a 48-metre pool.
• Al Madar Property Investments reports that its Paradise Lusail residential development has sold out and investor interest is now building in its 12-storey hotel project in Qatar and "114" - the commercial office tower in Doha. The 15-storey Paradise 2 residential tower will contain a ‘smart home' system.
• Barwa Real Estate has outlined a US$11bn capital expenditure plan, about three times its present asset base, with an emphasis on loan syndications and conventional bonds.'
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