DOHA: The Food & Beverages (F&B) market in Qatar is poised for an upward growth trajectory as researchers indicate strong demand and increasing competition over the years.

As per the recent report published by Cushman & Wakefield, the third quarter of the year saw a significant rise in hotels and the emergence of box parks including Marina Food Arena, District One, and Lusail Night Market, making it a tough competitor in the country.

Industry experts state that the growth in the supply of organised retail accommodation in the F&B subsector has impacted rents across the market.

“The concentration of footfall in some developments has seen trading reduce in other locations, leading to an increasing gap in rental values,” the report said.

However, reduced footfall expansions in open-air locations common from July to September have been an expansion in outdoor cooling throughout Doha. Analysts note that 21 High Street and West Walk both benefit from the presence of outdoor cooling, which has attracted both customers and tenants alike.

Recently, the authorities announced that outdoor cooling will be installed in Souq Waqif, while Crystal Walkway – the retail thoroughfare at Gewan Island announced that it will feature the world’s longest climate-controlled retail walkway when it launches next year.

Meanwhile, high occupancy rates in prime retail locations and underlying demand from retailers for strong trading locations are likely to support rental levels at the top of the market, experts say adding that “A general oversupply and increasing vacancy in secondary locations is expected to see further downward pressure on some rents.”

The report said “Prime organised mall rents of between QR300 and QR400 per sq m per month is common for small retail units, with typical line units leasing for QR220 to QR250 per sq m per month.”

However, malls that have seen footfall reduce following the opening of Doha’s super-regional malls, have largely lowered their rent to below QR200 per sq m per month for line units.

On the other hand, restaurants and cafés in some of Qatar’s most popular outdoor destinations, typically generate rents between QR130 and QR180 per sq m per month.

“The supply of retail space in Doha’s 31 organised retail malls is approximately 1.6 million sqm, with an additional 0.15 million sqm in malls located in towns such as Al Wakra and Al Khor,” it said.

Additionally, over 400,000 sqm of leasable space is available in ‘open-air’ destinations including The Pearl Island, Souq Waqif, Souq Al Wakra, Msheireb Downtown, Katara, Doha Port, and Lusail Boulevard – with much of this space occupied by food and beverage outlets.

However, no significant new retail enhancements were launched in Q3 2024. The report further added that “The next major addition to Qatar’s retail real estate supply will be the soon-to-open Doha Mall in Abu Hamour, which was originally expected to launch in September, following the opening of its anchor tenant Lulu in March 2024.”

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