DTZ forecast: commercial rents are likely to remain at 2014 levels as new office space enter the market in 2015
DTZ Qatar today announced that it has been appointed to lease all of the available floors of office space in the newly developed GATH (Ghanem Al Thani Holdings) building in Doha’s Fereej Bin Mahmoud South district.
Commenting on the appointment, Edd Brookes, General Manager of DTZ Qatar, said:
”Our aim at DTZ Qatar is to grow sustainably with the Qatari real estate market. We are delighted to have been appointed as lettings agent for the GATH office building. This is a beautifully designed development, offering units of a very high quality, in an excellent location where commercial tenants will benefit from a range of amenities. Our appointment to lease office space in the GATH building is testament to our continued work on Qatar’s landmark developments, and the wide range of instructions we are winning across the country.”
The total office space available to lease is 7,000 square metres, with offices of 500 square metres available for lease at QAR 180 per square metre per month. According to DTZ research, prime office rents in the C/D Ring Road and Al Sadd districts of Doha have experienced steady growth since 2013. As new office buildings come to Doha’s market in 2015, DTZ forecasts that rents are likely to remain at 2014 levels, with more attractive deals potentially available for occupiers who seek professional representation.
“Our access to credible research coupled with our longevity in the market enables us to provide objective and valuable consultancy services to our clients. We have undertaken major leasing activities for both local corporate and international occupiers,” Brookes continued.
The GATH building is located opposite the Radisson Blu, and is situated next door to the site of the new Westin Hotel, which will open this year. The development is owned by Ghanem Al Thani Holdings, who occupy the top two floors. The 7,000 square metres of office space available to tenants has been developed to shell and core specifications, giving companies the flexibility to fit-out units according to their own requirements.
“As Qatar’s economy continues to diversify away from the hydrocarbon exports sector, which currently accounts for approximately 40% of total GDP, inflation in the residential housing market has seen rents increase due to an undersupply of good quality accommodation. By contrast, commercial rental levels have remained stable since 2011, with the availability of new office space matching or exceeding demand. DTZ forecasts that this trend is likely to continue into 2016,” concluded Mark Proudley, Associate Director, Consultancy and Research, DTZ.
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