West Bay, Lusail Lead As Qatar’s Office Market Nears Full Occupancy

DOHA: Leasing activity in Qatar’s office sector showed signals of slow growth during the second quarter (Q2) of 2025, following an 18-month surge of government-led demand that significantly reduced available Grade A supply, according to Cushman & Wakefield’s latest market update.

The consultancy reported that vacancy rates across Qatar’s main business hubs have dropped to their lowest levels since 2016, largely due to large-scale government requirements that have absorbed entire buildings in West Bay and Msheireb.

In West Bay, Doha’s largest commercial district, the total office stock stands at around 1.9 million square metres, with less than 150,000 sqm currently vacant. Lusail Marina hosts roughly 700,000 sqm of Grade A space, with just over 100,000 sqm still available. Meanwhile, Msheireb Downtown, which comprises about 230,000 sqm, is now nearly fully occupied.

Across the primary business districts of West Bay, Lusail, The Pearl, and Msheireb, Grade A vacancy is estimated at 12 percent, equivalent to 375,000 sqm. New supply remains limited, Cushman & Wakefield noted, with the exception of Lusail Towers, three of which have already been sold or pre-leased, and the soon-to-complete Marina 31, which will add more than 20,000 sqm of office space.

“The pace of government take-up has been extraordinary over the past two years,” said Rahman, a Doha-based real estate analyst. “Entire towers being secured by single tenants is unusual by regional standards, and it has shifted the balance of supply in Qatar’s favour.”

Demand continues to be dominated by the government and the oil and gas sector, which together have accounted for more than 170,000 sqm of leasing in West Bay and Msheireb over the past two years.

With quality space tightening, prime rents are expected to face upward pressure in the coming months. As of Q2 2025, fully fitted CAT A offices typically command between QR100 and QR140 per sqm per month, while shell-and-core options are generally priced below QR100 per sqm.

“If the trend continues, we may see the first sustained rise in prime rents in almost a decade. Multinational occupiers that once had ample choice are now competing for a much smaller pool of high-specification buildings,” the expert noted.

By contrast, secondary office locations remain subdued, with landlords offering reduced rents and generous incentives, including fit-out contributions and inclusive service charges, to attract tenants.

In some cases, space in these areas can be secured for as little as QR50–QR60 per sqm per month.

The data highlights that while weaker demand persists in secondary areas, the scarcity of prime Grade A supply in Qatar’s key business districts is positioning the market for potential rental growth in the near term.

Rahman further added, “There’s a clear two-tier market emerging. Prime space is tightening rapidly, while landlords in fringe locations are still struggling to fill buildings despite steep discounts.”