Warehouse rents drop significantly in Industrial Area after new facilities come up

The Industrial Area has seen a multitude of new warehouses being constructed over the past year, and that has directly led to a massive drop in rents.

Just the last year, rents have dropped by 20 to 30%, leading to traders heaving a massive sigh of relief, reported Qatar Tribune.   

The new warehouses, which are state-of-the-art facilities with well-connected road networks, have also provided a significant boost to the logistics and shipping businesses.

The warehouses, which comes in all sizes, have significantly boosted investment and employment opportunities, according to the report in Qatar Tribune.

According to insiders, the number of small and medium-sized warehouses in the area has gone up threefold in just the last two years.

Better road connectivity between Hamad Port in Mesaieed, Hamad International Airport and Al Majd Road (Orbital Highway), Ras Laffan Industrial City and Al Khor, with spacious parking areas, have made the new Industrial area warehouses ideal for logistics firms and wholesalers.

“The completion of Al Majd Road and its connection to major construction sites and agricultural farms has reduced travel times to any of these areas by up to 50%. Now we can deliver goods to customers faster,” a senior official of a warehouse told Qatar Tribune.

The initiatives of local investors in warehouse rental business after the blockade and opening of new roads have benefited both the food and the construction industry. 

The demand for small and medium warehouses with an area of 10,000SqM to 25,000SqM has steadily increased after the blockade.

Even though the demand for residential and commercial properties has seen a decline in the last few months, the need for huge warehouses has grown considerably during this period.

Subsequently, a large number of middle-class business groups have switched to renting or constructing new warehouses in the Industrial Area. 

Low construction and maintenance cost coupled with easy documentation is the other temptation for a section of business groups to turn to warehouse business.

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Cover Image Credit: Qatar Tribune