Rents at newly-opened malls see a big 30% decline

It's a good time for aspiring tenants in Qatar as rentals in commercial spaces are seeing a declining trend owing to over supply, Qatar Tribune quoted industry experts as saying.

Real estate agents are reporting a nearly 30% fall in rentals at new malls and commercial complexes with these establishments offering competitive rates to attract tenants.

In some cases, tenants looking to set up shops or offices are also being offered three rent-free months and an additional three months grace period for payment of rents.

Industry experts say prices of consumer goods and rentals per square metre are closely linked.

In the past it has been observed that an increase in rentals has impacted the consumer price index and inflation.

And, with more commercial complexes and shopping malls being launched, the real estate market is witnessing a drop in commercial lease rates, resulting in inflation being maintained at an acceptable level of between 2% and 2.5%.

Mohammed Kazem Al Ansari, a businessman, says high rents had become an obstacle to small and big investors alike.

The current decline in commercial rentals would support new projects and open up more opportunities for small and medium enterprises, he says.

However, Qatar Society of Engineers Chairman Ahmed Jassim Al Jolo says that despite the decline in rental rates per square metre in new malls and commercial complexes, rentals are still high in prime locations across Qatar.

The government has been making efforts during the past five years through the Ministry of Municipality and Urban Planning, to develop commercial streets and shops with a focus on licensing of more commercial complexes in various regions, he points out.

Jolo agrees on the need for lower commercial rentals as this impacts all sectors of trade and tourism, commodity prices and the economy as a whole.

He also favours a quick intervention from the government to check the increases in real estate prices, reported Al Watan.

Courtesy: Qatar-tribune.com