The organiser of IQ Exhibition, the first Qatar interior design exhibition taking place in Doha in February 2015, announced findings from the latest Ventures Middle East Report on Qatar Building Construction and Interiors Update. The exhibition is launching at the right time, when the local growing market is demanding for products of high quality and from international brands to supply the construction and interiors fit out projects.
According to the report the share of the Qatar construction sector in the country’s nominal GDP is likely to increase from 5.5 per cent in 2014 to 6.2 per cent in 2015, and with a value estimated to reach $9.06bn across all sectors ($7.31bn in 2013), Qatar follows KSA and the UAE in the GCC overall building construction market.
“As the country gears up for the World Cup 2022 event, the current focus is on building up the necessary infrastructure including roads, rail and metro works, ports and airports, but there is a spillover effect on the building construction sector too,” said Ashley Roberts, Event Director, IQ exhibition. “This is also likely to translate into large opportunities for the Qatar interiors and fit outs market encompassing internal wood works, soft and hard furnishings, lighting, partitions, flooring, kitchens and bathroom fittings which constitutes approximately 10 to 20 per cent of the average construction project value. The IQ exhibition will bring all these sectors together for three days and industry professionals looking for products and solutions for their projects will – for the first time in Qatar – be able to find everything they need within the same exhibition space,” he added.
Commenting on the findings of the study, John Mibu, Research Director, Ventures Middle East, said: “Qatar building contractor awards for 2014 is expected to hit $14bn, an increase of over 20 per cent compared to 2013 building contractor awards. The per centage is expected to increase even higher in 2015 as per the current projects schedule. All these will translate to higher interior spending in the next couple of years.”
Looking at the estimated value of the individual construction sectors, residential ranks first with an expected value of $1.88bn, followed by commercial with $1.23bn and educational with $763m; hospitality, retail and healthcare sectors come next with values expected to reach $740m, $400m and $353m respectively by end of 2014. The IQ exhibition is the only event that caters to all of these sectors.
Qatar Residential Sector Overview: With demand well ahead of supply, there are vast opportunities for the residential construction sector, growing at over 13 per cent annually. An additional 2,300 units are estimated to come online in 2014, translating into a growing market for interiors and fit outs. There has also been an increase in demand for high quality villas as a result of the growing per capita incomes of the population.
Qatar Commercial Buildings Sector Overview: Supply of office space is estimated at 2.8m square metres as of 2014 growing at 6 per cent annually, while demand is estimated at 2.2m square metres by the end of 2014 growing at an annual rate of 10 per cent and likely to reach 3.4m square metres by 2018 as the country nears the timelines to the hosting of the World Cup in 2022.
Qatar Retail Sector Overview: The Qatar retail market continues to be undersupplied dominated by the four big malls available namely the Villagio Mall, Lagoona, Landmark and City Centre – comprising 60 per cent of its supply and commanding high lease rates. 2014 is likely to witness additional retail space of around 216,000 square metres coming online.
Qatar Hospitality Sector Overview: Qatar has a mandate to add 45,000 hotel rooms to its existing supply of 20,000 keys as a part of the FIFA minimum lodging supply requirements for the country to host the World Cup in 2022. The hotel sector in Doha alone has witnessed a massive spurt in growth to the tune of 19 per cent annually between 2010 and 2013, accounting for nearly three quarters of Qatar’s room supply.
Qatar Interiors and Fit Outs Market Overview: The size of the interiors and fit outs market is estimated to grow to $637m in 2014, led by extraordinary growth across retail – from $11m in 2013 to and expected $90m in 2014 – and hospitality – from $68m in 2013 to and expected $167m in 2014 – spurred by the massive influx of population, increased economic activity and affluence of the world’s richest population in Qatar in the run up to the World Cup 2022 event.
“The IQ exhibition offers something new to the Qatar design and architectural community,” said Roberts. “From the opportunity to hear from some of the region’s biggest names in design and architecture speak at the free-to-attend IQ Education Series, sponsored by Interface, as well as the must-attend paid-for Qatar Green Building Council’s LEED accredited workshop. The exhibition itself features hundreds of the world’s leading brands such as Katharine Pooley, SONY, Snaidero, Egger and Marazzi, offering prospective visitors the opportunity to meet the region’s key suppliers to this community. Those that qualify can gain exclusive access to the IQ VIP Buyers’ Club, sponsored by Etqaan, with free access to the onsite VIP lounge, sponsored by Depa, among other exclusive benefits,” he added.
IQ will attract interior designers, architects and industry professionals from both Qatar and the surrounding Gulf states. Running from 2 to 4 February, 2015, the three days exhibition will be open every day from 4 to 10pm with free access for trade professionals.