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FINANCIAL NEWS
Report: Qatar villa rents to plummet further
02 Aug 2010
(MENAFN) A Qatari newspapers said that the country’s villa rents are likely to plunge further as businesses other than beauty parlours, nurseries and health clinics currently operating from villas in residential areas have been asked by the government to move to commercial premises starting in November.
The Peninsula said that several villas currently being used as offices are expected to be vacant as a result and come on the rental market for residential use, thus adding to already abundant supplies.
Real estate experts say they expect the villa rental market will receive a further jolt by the end of this year and a serious spillover impact might also be felt by apartment rents.
Currently, a high number of law offices and audit, engineering and architectural consultancies are housed in villas in residential communities, after the government allowed them to operate from there when there was a serious shortage of commercial space.
But now that commercial space is available in plenty, among estimates of 1.7 million square metres of commercial space is available in Doha, the offices have been asked to move from the villas.
The average monthly rent of a villa for commercial use is between $5,500 and $6,877, while in the West Bay this would work out to between $16,506 and $22,0008 at the minimum.
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