Qatar’s office boom continues despite cooling rental index

Doha, Qatar: Doha s office market surged past 7.3 million square meters of leasable space in Q1 2025, driven by a wave of new completions, including M...

Doha, Qatar: Doha’s office market surged past 7.3 million square meters of leasable space in Q1 2025, driven by a wave of new completions, including Marina 31, Corniche Park Towers, and Baraha Motor City, stated ValuStrat in its recent report. However, rents continue to slide, signaling a growing imbalance between supply and demand in Qatar’s commercial real estate sector.

Anum Hassan, Head of Research at ValuStrat stated: “This quarter marks the launch of our new Office Rental VPI, designed to  provide a more granular view of the commercial sector.

Covering over 90 percent of the national office supply, the index captures performance across seven major clusters, segmented by Grade A and Grade B/C classifications. As of  Q1 2025, the office rental index registered 97.4 points, indicating a quarterly decline of 1.5 percent and a 2.6 percent YoY. Weighted average rents across the country stood at QR95 per sq m per month. Grade A offices saw a quarterly reduction of 1.8 percent, averaging QR116 per sq m, while Grade B/C spaces remained steady at QR67per sq m per month.”

In the first quarter of 2025, Doha’s ever-evolving skyline experienced a substantial expansion, with approximately 60,000 square meters of gross leasable area (GLA) added to the office market. With the inclusion of high-profile developments such as Marina 31, Corniche Park Towers, and a sleek new office complex in Baraha Motor City, the city’s total office supply has now surged past 7.3 million sq m of GLA.

Despite the impressive growth, rental returns have started to feel the pressure of oversupply. “Demand hasn’t kept pace with the aggressive pipeline we’ve seen over the past 18 months,” said Samir Hussein, Senior Market Analyst. “Vacancy rates are climbing, especially in Grade A segments. What we’re witnessing is a natural correction.”