Lusail continues to emerge as Qatar’s premier business hub, attracting companies to its modern offices and infrastructure. According to leading real estate platform Hapondo, Lusail ranked as the most in-demand office location in Qatar during Q3 2023, followed by the thriving district of Al Sadd.
With its abundance of new developments, Lusail commands the highest average office rents at QAR 105 per sq m for shell and core spaces, edging out even upscale West Bay at QAR 97 per sq m. Other central areas like Al Sadd, Al Muntazah, Najma and Al Hilal fetch rents ranging from QAR 67-80 per sq m.
However, Hapondo notes occupancies remain low across Doha, with supply outpacing demand. In Lusail, this surplus is likely to continue as major institutions like the Qatar Financial Centre Authority relocate into an additional 6,200 sq m of space.
While demand is muted for now, the future points to more flexible office arrangements. The pandemic accelerated remote work, which looks set to continue in Qatar. A 2023 Qatar University survey found that 35% of employees favour 3 days in, 2 days out office schedule.
Yet offices still play an important role. The survey showed that 73% of expats felt isolated working from home, underlining the benefits of in-person collaboration. Offices also lend credibility and structure.
As a result, flex spaces are gaining popularity in Qatar. Providers like Hub Business Centre, Flare Business Centre and Arafat Business Centre offer plug-and-play furnished offices on flexible terms. Although flex space carries a premium of 2-3 times typical rents, it allows tenants to avoid long leases and fit-out costs.
Looking ahead, CBRE predicts steady 1.9% growth for Qatar’s real estate sector in 2023. While demand remains muted for offices, retail and warehouse spaces are seeing increased interest.
Once again Lusail and Al Sadd lead for retail, with the top average monthly rents of QAR 199 per sq m and QAR 160 per sq m respectively. For warehouses, most activity concentrates in the Industrial Area and Birkat Awamer.
As Qatar’s work dynamics evolve post-pandemic, offices will likely take on a more flexible form. But premium districts like Lusail and Al Sadd will continue to anchor the office market by attracting top companies.
