Qatar Real Estate Q4, 2019.Pdf
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Qatar Real Estate Q4, 2019 Indicators Q4 2019 Micro Economics – Current Standings Steady increase in population partially supports the demand for housing. Supply will continue for Total Population* GDP at Current Price* another 2 quarters due to the projects which are currently under construction. 2,773,885 QAR 163.45 Billion Office rental are stabilizing in new CBD areas while old * Nov 2019 * Q2 2019 town is experiencing challenges. Most malls are performing Industrial well in terms of occupancy. Producer Price Index* Production Index* The hospitality still focused on luxury segment, inventory in budget hotel rooms are 61.4 points 109.6 points limited. * Sep 2019 * Aug 2019 Ref: QSA Overall land rates are stabilizing across Qatar. No of Properties Sold Municipalities 1,107 Value of Properties Sold Al Shamal QAR 7.3 Billion Al Khor Ref: MDPS For the period September, October and November 2019 Al Daayen Real Estate Price Index (QoQ) Umm Slal Doha 300 8.0% Al Rayyan 250 6.0% 4.0% 200 2.0% 150 0.0% -2.0% Al Wakra 100 -4.0% 50 -6.0% 0 -8.0% Jul-17 Jul-18 Jul-19 Jan-17 Jan-18 Jan-19 Sep-17 Sep-18 Sep-19 Mar-17 Mar-18 Mar-19 Nov-17 Nov-18 May-18 May-19 May-17 Ref: QCB 2 Residential Q4 2019 YTD Snapshot Supply in Pipeline Expected Delivery Overall Available Units 360,000 90,000 units 2020 Q4 2019 Villa Occupancy 70%* Median Selling Price Median Rental Rate Apartment Occupancy QAR 11,000 PSF QAR 7,000 (2BR) 60%* Ref: AREDC Research Current Annual Yield Key Demand Drivers 5%* * Average 20% 15% Government Companies Residential Concentration Government and companies are taking residential units for their employees under HRA. Residential Supply (Units) – YoY Comparison 500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 - 2015 2016 2017 2018 2019 2020 Ref: AREDC Research 3 Residential Q4 2019 Residential Market Gauge Apartment Snapshot Rental Rate* Sale Price* Q3 19 Q4 19 Micro markets (QAR/Month)** (QAR/PSM) Unit Sales The Pearl 11,500 11,500 Rental Trend West Bay 10,500 8,500 Occupancy Lusail 7,500 11,000 Overall Market C&D Ring Road 5,500 12,500 Downtown 5,000 12,500 Al Wakra 4,000 -- Al Khor 4,500 -- Ref: AREDC Research * Average ** For standard 2BR unit Market Outlook Apartment Rental Rates in Prime Areas The residential market across 16,000 Qatar has been stabilizing as 14,000 compared to the previous quarters. 12,000 10,000 Residential market expands 8,000 beyond familiar neighborhood due 6,000 4,000 to supplies in new localities 2,000 courtesy to connectivity and 0 The Pearl West Bay Lusail Al Sadd Bin Omran Al Old Al Al Wakrah Mansoora Airport Muntazah infrastructure.. Home seekers with Studio 1 Bedroom 2 Bedroom 3 Bedroom budget constraints can explore Ref: AREDC Research these locations such as Umm Slal Mohammed, Semaismah, Rawdat Rental Rates of Villas in Residential Compounds in Prime Areas Al Hamam for villa development 35,000 where 3BR and 4BR villas are in the 30,000 range QAR 7,000 to QAR 10,000. 25,000 Supply in these localities have 20,000 15,000 added pressure on the affluent 10,000 neighborhoods to sustain rentals. 5,000 As a result perks and incentives of 0 West Bay Al Waab Ain Khalid Abu Hamour Al Hilal Al Gharrafa freely monthly rentals on annual Lagoon contracts is widely practiced. 3 Bedroom 4 Bedroom 5 Bedroom Ref: AREDC Research 4 Office Q4 2019 YTD Snapshot Supply in Pipeline Expected Delivery Total Leasable Area 4,800,000 sq.m 400,000 sq. m 2021-22 Q4 2019 Estimated Leasable Area 5,200,000 sq.m Median Rental Rate Common Grading Occupancy QAR 100 PSM Class B 65%* Ref: AREDC Research Current Annual Yield Key Demand Drivers 6.5%* * Average Additional Stabilized Rental Supply Office Concentration Lusail City, an emerging CBD has added pressure with stabilized rentals and incentives to the CBD to retain clients. Office Supply (sq.m) – YoY Comparison 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - 2015 2016 2017 2018 2019 2020 2021 2022 Ref: AREDC Research 5 Office Q4 2019 Office Market Gauge Office Snapshot Monthly Rental Q3 19 Q4 19 Occupancy Micro markets Rate (%)* Rental Trend (QAR/sq.m)* Occupancy West Bay 130 65% Sentiments C Ring Road 90 70% Overall D Ring Road 80 65% Market Al Sadd 100 70% Salwa Road 80 60% Airport Road 100 65% Old Slata 95 60% Ref: AREDC Research * Average Market Outlook Office Sizes (sq.m) in Prime Areas Office market segment battling 700 ways to sustain occupancies and 600 monthly rentals. Additional Office 500 400 supply in Lusail City shifts the 300 momentum towards price 200 correction. The average 100 0 occupancies in West Bay offices is West Bay C Ring D Ring Al Sadd Salwa Road Airport Old Slata Road Road Road around 55% to 65% and the asking monthly average rental ranges Ref: AREDC Research from QAR 100 to QAR 140 per sq. m. The Suburban Business District Average Occupancies (%) – By Grade (SBD) as in Doha downtown, C & D 90% Ring road, Al Sadd, Salwa road and 80% 70% Airport road are commanding 60% 50% monthly rentals ranges between 40% QAR 70 to QAR 100 per sq. m 30% 20% while the average occupancies in 10% 0% SBD is around60% to 75%. West Bay C Ring D Ring Al Sadd Salwa Airport Old Salata Road Road Road Road Grade A Grade B Ref: AREDC Research 6 Retail Q4 2019 YTD Snapshot Supply in Pipeline Expected Delivery Total Leasable Area 2,100,000 sq.m 700,000 sq. m 2021 Q4 2019 Operating Malls 25 Upcoming Mall Median Rental Rate Overall Occupancy 06 QAR 250 PSM 80%* Ref: AREDC Research Estimated Leasable Area Key Demand Drivers 2,800,000 sq.m * Average Stabilized Rental Brand Retention Retail Concentration Stabilized rental rates across the malls have lead to considerable occupancy and Brand retention in most malls. Net Leasable Area Distribution 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Villaggio The Mall The Gulf Mall Gulf The Gate The Doha Mall Doha Northgate Landmark Musheireb… Ezdan Mall Ezdan The Centre The Tawar Mall Tawar Hyatt Plaza Hyatt Royal Plaza Royal Centrepoint Marina Mall Marina Mirqab Mall Mirqab Al Sadd Mall Sadd Al Dragon Mall Dragon Mall of Qatar of Mall Lagoona Mall Lagoona Festival… Doha B Square Mall B Square Vendome Mall Vendome Barwa Al Doha Al Barwa Al Wakrah Mall Wakrah Al Medina Centrale Medina Doha Outlet Mall Outlet Doha City Center Doha Center City Dar Al Salam Mall Salam Al Dar Ref: AREDC Research 7 Retail Q4 2019 Retail Market Gauge Retail Snapshot Showrooms Q3 19 Q4 19 Year Shopping Mall* (Street Shopping)* Rental Trend 2013 230 180 Occupancy 2014 240 160 Sentiments 2015 250 140 Overall Market 2016 270 145 2017 260 140 2018 250 145 Q4 2019 240 140 Ref: AREDC Research *Average Monthly Rental Rates (QAR/sq.m) Market Outlook Average Monthly Rentals in Prime Malls (QAR/sq. m) The organized retail supply in Qatar is now around 1.5 million sq. m .The 350 300 increase in retail supply has has 250 impacted on performance of newly 200 150 developed malls who are 100 competing for tenants in a much 50 0 challenging market. The prime retail Qatar Mall Mall of Mall Villagio Doha Lagoona malls still command monthly Doha The Gate The Gulf Mall Gulf Landmark City Center City Tawar Mall Tawar Festival City Festival rentals of between QAR 270 to QAR Mall Mirqab Ref: AREDC Research 300 per sq. m. The occupancies in the prime malls are expected to be Leasable Area in Operating and Upcoming Malls around 80% with anchor brands sq.m holding the maximum share. The 300,000 250,000 secondary malls command 200,000 monthly rentals of around QAR 200 150,000 100,000 to QAR 260 per sq. m while the 50,000 - average occupancies in secondary Villaggio The Mall The Gate mallsarearound80%. Gulf Mall Landmark Northgate Doha Mall Ezdan Mall The Centre Tawar Mall Hyatt Plaza Royal Plaza Centrepoint Marina Mall Mirqab Mall Al Sadd Mall Mall of Qatar Lagoona Mall B Square Mall Vendome Mall Barwa Doha Al Dragon Mall at… Al Wakrah Mall Medina Centrale City Center Doha Doha Outlet Mall Dar Al Salam Mall Doha Festival City Musheireb Project Ref: AREDC Research 8 Hospitality Q4 2019 YTD Snapshot ADR RevPAR Present Keys 26,727 QAR 314* QAR 205* Q4 2019 Under-construction 2,935 Keys Occupancy Arriving Visitors Planned 68%* 1,861,420** 2,849 Keys * Annual average of all star categories Ref: MDPS ** Year till November 30th Current Annual Yield Key Demand Drivers 7.5%* * Average International Sports Events Hotel Concentration Government initiatives such as visa-on-arrival from 80 countries encouraged visitor inflow in the country. Distribution of Arriving Visitors by Region 11% 9% 7% American 2% European Asian & Oceania 31% Other African Other Arabs GCC 39% Ref: MDPS 9 Hospitality Q4 2019 Hospitality Market Gauge Hotel Snapshot Q3 19 Q4 19 Category No. of Hotels No. of Keys ADR Luxury Class 19 5,078 RevPAR Upper Upscale Class 20 5,529 Occupancy Upscale Class 8 1,716 Overall Market Upper Midscale Class 22 4,486 Midscale Class 26 3,526 Economy Class 37 6,392 Total 132 26,727 Ref: AREDC Research Market Outlook ADR Tracker According to QTA reports, total QAR number of hotel and hotel 600 500 apartment developments currently 400 operating in Qatar officially is 300 recorded at 123 which is close to 200 around 26,700 keys across all star 100 categories.