Rising shop rents affect small businesses
Shop and warehouse rents are going through the roof with small businesses urging the government to intervene and restrict rent increases.
In some areas of Doha, shop rents have multiplied nearly three times in the past couple of years, while warehouse rents in the Industrial Area have soared up to an incredible 16 times in the past several years.
Acute shortages of shops, warehouses and office space for petty trades in Doha is prompting commercial property owners to raise rents unjustifiably.
According to Mohamed Al Ashrafi, a businessman, the rent of a 16 square metre shop used to be QR7,000 a month. “Imagine that now that rent is QR25,000.”
He said that in the Industrial Area warehouses that were available on monthly rent of QR5,000 until a few years ago, now command up to an incredible QR80,000.
These are the days of skyrocketing shop and warehouse rents and the trend has forced many small businesses out of the market. “Many businesses have closed down because they were not able to bear the rising burden of rents,” said Al Ashrafi.
Al Ashrafi said that skyrocketing rents were hitting small businesses hard and that, in turn, would affect the inflow of foreign investment and eventually it is Qatar’s economy that would be impacted.
Thoughts?
Source: The Peninsula | Photo: baldrick2dogs in the QL Flickr Group
This is monopoly, they can dictate the price. I am waiting for the day after fifa 2022, if who will stay here in qatar to live.
The simple answer is to not take up such options
Havoc, there is no law about how much your residential rent can be increased each year.
There used to be a law, but the government cancelled it, so your landlord is free to double your rent for your apartment or villa if he wishes.
Theoretically non-residential leases are supposed to be limited to the following increases:
20% per year if the rent value is less than QAR 3,000;
15% per year if the rent value is between QAR 3,000 and 6,000;
10% per year if the rent value is between QAR 6,000 and QAR 10,000;
5% per year if the rent value is more than QAR 10,000.
Government is asking Qataris to increase as much rent as they wish to stay happy and enjoy new cars daily with new wives.I heard that there are some rules that owners can increase rent by 10% every year but no one follows so laws are meant to broken.
speaking value for money ! we are paying thousands of Ryals for a hole in the wall !!! we are really fed up with this housing situation here !!
for the shops here I think :
There are 3 things here...1.Customer,2.The one thats rents the shop,3. the one that gives the shop for rent....here the only one that gets damaged is the Customer and the only one that gets profit is the one who give the shop for rent...so actually 100-1000 people have to give profit to one very rich person (which shouldnt be happening )...the Reason to all of these things can be the 2nd person here maybe because when there are not many competitors he can be greedy and raise the prices and after that if the 3rd person raises his shop rent for any personal reason (maybe he wants to rent it to his friend so he raised it too much so that the 2nd person leaves) the 2nd person doesnt care and accepts....and the only way to stop this is that the government starts taking control of the prices and the 2nd person because they cant do anything with 3rd and 1st person..or atleast comparing them with other countries....THIS IS FOR SURE the reason to all this because I went to a shop in villagio to buy a perfume but the price was more than double, I asked the lady about this and she said "its because we are the only ones selling this perfume from UK here" this is something that should be controlled specially in small countries like Qatar.
Shops and ware houses are witnessing huge and abnormal rental increase due to acute shortage. The only solution is to arrange cheaper porta cabin shops and warehouses located outside Doha, so that the small traders could carry on their business.
Wow...simply wow....5K to 80K in a few years.
Found for QR 30.000 per month, 76 sqm.....QR395/sqm...Oxford Street in Soho...
As per Mr Al Ashrafi Qr 25.000/month for 16 sqm...QR1500/sqm....Souk Wakif?
NOT ONLY SHOP RENTS MY DEAR, INCLUDING VILLAS & FLATS!