Retail shops in malls witnessed stable rentals and high occupancy rates in the first half (H1) of the year, regardless of the increase in supply that came after weaker customer confidence, reported Trade Arabia.

The global real estate consultancy firm CBRE issued a report revealing that two of the country’s main shopping destinations, Villagio and City Center Doha, recorded around 46,000 and 45,000  average of daily visits respectively.

The firm’s report also stated that competition levels are rising rapidly, with close to 1.27 million square meters of new retail gross leasable area to be completed within the next three years, warning of potential over-saturation.

The CBRE report also stated that landlords in the office market in Qatar are now witnessing stiffer competition to secure new tenancies after weakening demand and a surplus of available office supply.

The number of new office requirements and total take up levels has decreased within the last six months which created deflationary rental pressures across the market as vacancy rates increased.

The report also stated that residential rental rates have declined after a long period of growth, whereas demand has decreased over recent months due to the spread of company downsizing and lower level of recruitment in the public and private sectors.

CBRE expects that within the next three years, Qatar will build around 28,000 new residential units to be delivered in different areas, such as Pearl Qatar, Lusail City, and West Bay, according to the Saudi Gazette.