Strong Retail Demand Spurs Qatar’s Economy

Doha: Resilient demand in Qatar’s retail sector is helping to drive broader economic growth, as prime shopping malls report near-full occupancy and rising footfall in 2025. According to analysts at Cushman & Wakefield, retailers are seeing increased consumer spending per visit, while rental rates for high-demand units continue to climb.

The resurgence in activity reflects both robust domestic consumption and a modest uptick in tourist arrivals, underscoring the sector’s growing contribution to Qatar’s economy.

The rebound follows a decade of rapid development that saw an influx of new retail projects across the country.

The slowdown in new openings over the past two years has given the market room to stabilise, particularly in secondary malls that previously struggled to fill units.

“Supply growth outpaced demand for much of the last ten years, and that created persistent vacancies,” Cushman & Wakefield said in its latest review of the market. “However, with limited new completions recently, occupancy levels have steadily improved.”

Several of Qatar’s leading shopping destinations have reported stronger business activity this year.

Footfall in prime malls rose by between 5 percent and 8 percent compared with 2024, while average spending per visit also increased.

Speaking to The Peninsula, Rosa Silva, founder of a Doha-based retail chain, said, “Consumers are not just coming back in greater numbers, but they are spending more per trip. That’s a clear signal that confidence is returning, and retailers are adjusting their strategies to capture that demand.”

The recovery is being driven largely by domestic shoppers, though tourism is also playing an increasingly supportive role. Qatar welcomed 2.6 million visitors in the first half of 2025, a 3 percent year-on-year (YoY) increase, adding fresh momentum to retail trade.

The improved fundamentals have begun to filter into rental rates. In prime shopping malls, line-unit rents are now ranging from QR320 to QR370 per square metre per month, while smaller high-demand units are leasing for more than QR400 per sqm per month. Renewals are also seeing upward adjustments, marking a departure from the flat or declining rents of recent years.

However, the report by Cushman & Wakefield highlights a sharp divergence in performance between top-tier destinations and secondary malls. Rents in the latter typically remain below QR250 per sqm per month, underscoring the ongoing challenge for less prominent centers to attract tenants.

“Retailers are being very selective,” said Silva. “If they are going to pay a premium rent, they want to be in a mall with strong branding, high traffic, and a proven record of sales conversions. Secondary malls need to differentiate themselves or risk falling further behind.”

The growth of open-air retail and food and beverage destinations has produced mixed results.

Many operators have struggled to maintain foot traffic during the summer months due to extreme heat, resulting in rents being reduced to between QR100 and QR180 per square meter per month, which is well below indoor mall levels.

Some new projects have responded by installing outdoor cooling systems that have helped boost occupancy and rental rates during peak summer.

Away from malls, showroom properties on key arteries such as Salwa Road and C-Ring Road continue to see steady demand, leasing at between QR80 and QR120 per sqm per month depending on location and size.

In addition to improved occupancy, major retail operators in Qatar are expanding their brand portfolios.

Several have acquired new international franchises in recent months, adding fresh concepts to the market and deepening competition.

The analyst said, “Ten years ago, Qatar was seen as overbuilt in terms of retail.”

“Now, with tourism supporting demand and operators bringing in more international brands, we are seeing a healthier balance. The market is maturing and tenants as well as landlords are becoming more sophisticated,” Silva added.

The sector’s evolution reflects a maturing market where strategic location, brand mix, and customer experience increasingly determine success.

Overall, the retail industry is poised to remain a significant contributor to Qatar’s broader economic development in the coming years.