Office space in Qatar to grow 150 percent by 2009
Office space area in Qatar is projected to increase by 150 percent by 2009 according to recent studies - the growth will be more than double the total available office space area, which was recorded at 911,842 square metres in 2006. Furthermore, the minimal land cost for master developers and the current rent to construction yields, which is playing at an average of 50 per cent, are some of the key factors that are expected to further drive the growth of the office space rental market. In line with this, LifeStyle Homes & Properties, the renowned and reputed real estate sales and marketing consultancy in Qatar, has announced its plans to fully leverage the outstanding growth of the office space rental market within the rapidly growing GCC economy.
According to a recent report from DTZ, Merrill Lynch, the office vacancy rate in Qatar is estimated at 1 per cent, making it one of the least in the world and significantly lower compared to London (9 per cent) and New York (7 per cent). In line with this, government officials have revealed that Qatar will see the rise of about 800 towers by 2016, with a majority of the key projects to be located within West Bay Central Business District, Grand Hamad Avenue and Energy City. The booming demand is resulting in higher rental rates, which has seen a 70 per cent rise in 2007.
“With the materialisation of many construction projects in Qatar, which address the massive demand for office spaces, we are looking forward to addressing the market’s need for a highly capable real estate services company that provides valuable and highly effective solutions,” said Arron Browne, General Manager, LifeStyle Homes & Properties. “As the pioneer in real estate services in Qatar, we are ready to aid end-users identify the ideal office space through our highly experienced team of real estate consultants, while offering high-value portfolio management services to investors.”
Amidst the country’s booming economy that is driving the influx of investors, LifeStyle Homes has identified companies from the energy and industrial sectors, as well as other multinational businesses as high potential lessees. In addition, the leading Qatar-based real estate services company, is also examining how it can leverage the massive need for Grade ‘A’ office spaces posed by government departments, who at present account for around 24 per cent of current market demand.
“Investors are looking at Qatar for long term investments, with international businesses and oil and gas companies investing heavily into new office spaces to serve as their local base. Furthermore, Qatar Government’s steady moves to enhance its liquefied natural gas industry within the next two years, in addition to the rising number of businesses who are seeking to tap into the USD 90 billion worth of infrastructure investments that are set to be channelled into the country in five years’ time, will definitely have a positive impact on the demand for the office space. It is our goal to provide top-notch services that will help clients locate office space, which will prove to be profitable investments in the short and long term,” concluded Browne.