Doha’s retail sector experienced a surge in foot traffic and consumer spending in the final quarter of 2024, driven largely by an influx of tourists, according to Cushman & Wakefield’s latest report.
The report reveals that the city’s 19 largest malls currently offer nearly 1.5 million square meters of gross leasable area, with an additional 300,000 square meters available in organized indoor malls across the country. Meanwhile, open-air retail destinations—including The Pearl Island, Souq Waqif, Souq Al Wakra, Msheireb Downtown, Katara, Doha Port, and Lusail Boulevard—offer over 400,000 square meters of leasable space, much of which is occupied by food and beverage outlets.
One of Qatar’s most anticipated retail projects, Doha Mall in Abu Hamour, was initially scheduled to open in Q4 but is now expected to launch in 2025. The development will add approximately 100,000 square meters of retail space, including a Lulu Hypermarket that opened in early 2024. Since 2017, the rapid expansion of both mall-based and open-air retail spaces has led to a two-tier market, where some developments struggle to compete with high-traffic destinations.
As a result, demand remains strong but is concentrated in prime locations with consistent year-round footfall, while underperforming retail spaces face challenges in attracting tenants. Rental rates in Doha’s top-tier retail destinations have remained steady, whereas secondary locations have seen a decline, prompting landlords to offer greater incentives to secure occupancy.
In Doha’s major malls, typical rents for standard retail units range from $60 to $72 per sqm, with smaller units commanding $82 to $123 per sqm. However, malls that have experienced reduced foot traffic due to competition from super-regional shopping centers have lowered their rents to below $55 per sqm. Restaurants and cafés in Qatar’s popular outdoor destinations generate rental incomes of $33 to $49 per sqm per month.
Despite a 4% increase in retail spending in 2023—and a 22% rise over the past three years, according to Oxford Economics—Qatar’s retail real estate sector continues to grapple with oversupply challenges.
(Source: The Peninsula)
