By Andy Sambidge
Report says new inventory will put downward pressure on rental values.
One in ten residential units in Qatar are likely to be empty in 2010 as supply outweighs demand in the Gulf state, a new report has said.
The study by Engel & Volkers Commercial added that with a large number of residential projects scheduled to be completed within the next year, rents were also likely to take a tumble.
The rents of commercial buildings, meanwhile, would bottom out next year, according to the survey, The Peninsula reported on Sunday.
The report said a large number of projects had been completed in Doha, especially in prime locations like West Bay and along C-Ring Road, putting potential tenants in a stronger position.
The study, which claimed that there was a substantial decline in the rents of office buildings, said against an average rent of QR300 per square metre per month during the 2006-2008 period, rents for office space had gone down to QR230-QR170 per square metre in the same area.
“We expect the average office rents in Qatar below QR165 per square metre by the end of this year, and forecast the average rents at approximately QR145 per square metre by mid-2010”, the report added.
The report said the most important factor regarding residential rents was location while the market for compound and stand-alone villas remained dull.