Doha, Qatar: Qatar's leading global real estate company, DTZ, released its Q4 2015 Qatar market report. Among many findings, DTZ's research team identified a slowdown in Grade A office letting throughout 2015. With 300,000 sq m of new Grade A office accommodation becoming available within the next 12-18 months, there is a risk of downward pressure on rental prices in Doha. The increase in the country's overall population to 2.42 million, up 8% over the 12 months to December 2015, continues to generate demand in the residential market, albeit largely at the lower end of the market. In December 2015, the Shura Advisory Council called on the relevant authorities to curb the increasing levels of rent, possibly by introducing rent controls. DTZ are of the opinion that changes in residential market trends, which have been evident in recent months suggest that market forces may dictate a fall in residential rents, alleviating the need for rental caps. There has also been a fall in demand for corporate lettings for residential blocks and compounds with more companies now preferring to provide rental allowances rather than paying for employee accommodation. In the hospitality sector, 1,900 hotel keys were added to Qatar's stock in 2015 although DTZ noted downward pressure on average daily rates (ADR's) with a drop of 12% compared to the same period in 2014. Pressure on performance metrics in the hospitality sector is likely to continue, as up to 80 new establishments are expected to increase supply by approximately 18,000 keys over the next 3 to 5 years. Commenting on the findings of DTZ's latest report, Mark Proudley, Associate Director, Consultancy and Research, DTZ, stated: "In the final quarter of 2015, Qatar's real estate market started to show signs that the drop in hydro-carbon prices is really beginning to bite. We think this is likely to continue into 2016 and the sector needs to be ready for a few tough months. But the long-term trajectory for Qatar remains good with the government's significant infrastructure investment, valued at QAR261bn (US$71.68 bn), providing welcome and fundamental support to the wider RE economy. Furthermore, for the hospitality sector, the Qatar National Tourism Sector Strategy Plan 2030 has earmarked US$45bn for tourism projects over the coming 15 years and as FIFA 2022 gets closer I am confident that Qatar's RE market will start to feel some of the positive effects of this spending. " -Ends- About DTZ Qatar: DTZ Qatar is a member of the global real estate services business, Cushman & Wakefield. DTZ Qatar brings international best practice and local expertise to the market. With a long standing track record in the Qatari market, our aim is to play an integral role in the country's vision of sustainable growth. DTZ Qatar operates to international best practice standards, providing consistent and responsible service to our clients. Our offering includes: residential agency; commercial agency; property and facility management; consultancy and research; valuation; and local and global investment opportunities. For more information please visit: www.dtzqatar.com or visit our Facebook page at https://www.facebook.com/DTZQatar. About Cushman & Wakefield: In December 2015, DTZ completed its merger with Cushman & Wakefield and except in Qatar and a few other territories the combined business will now trade as Cushman & Wakefield. The firm is a global leader in commercial real estate services providing occupiers, tenants and investors around the world with a full spectrum of property solutions. Our core capabilities include agency leasing, tenant representation, corporate and global occupier services, property management, facilities management, facilities services, capital markets, investment and asset management, valuation, building consultancy, research, consulting, and project and development management. Cushman & Wakefield manages 3.3 billion square feet and $63 billion in transaction volume globally on behalf of institutional, corporate, government and private clients. Our more than 28,000 employees operate across more than 260 offices in more than 50 countries and proudly represent Cushman & Wakefield culture of excellence, client advocacy, integrity and collaboration. © Press Release 2016
According to a new report by global real estate company DTZ Qatar , falling hydro-carbon prices have led to a fall in demand for Qatar ’s office space, with a slowdown in Grade A office letting identified throughout 2015 . While, an 8% increase in population growth to up to 80 over the last 12 months continues to generate demand for residential property, demand for luxury homes has decrease. In addition, 1,900 hotel keys were added to Qatar 's stock during 2015 , and up to 80 new establishments are expected to increase supply by up to 80 keys a few challenging months ahead . Experts predict that despite potential for 2015 , the long-term trajectory for Qatar remains positive, as spending plans for infrastructure and tourism projects, and the upcoming FIFA 2022 event, are expected to provide a significant boost to the local economy.