Business | General
Minimal land cost to impact increase of Qatar's office spaces by 150% in 2009
Office space area in Qatar is projected to increase by 150 per cent by 2009 according to recent studies C the growth will be more than double the total available office space area, which was recorded at 911,842 square metres in 2006.
- Staff Report
- Published: 16:41 September 25, 2008
Qatar: Office space area in Qatar is projected to increase by 150 per cent by 2009 according to recent studies C 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.
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, real estate sales and marketing consultancy in Qatar.
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