380% Increase in Rent Allowance on Salwa Street Compared to King Abdullah Street in Saudi Arabia Shortage of commercial streets fuels rent prices

Al-Shirawi: Doha City has witnessed an increased demand for commercial shops in the past period.

Mohammed Hamad Al-Shirawi, real estate expert and CEO of Al-Shirawi Real Estate Company, emphasized the need for a comprehensive review of all legislations, laws, and regulations regarding commercial streets, in addition to developing a clear plan for the city in the next 20 years, taking into account population growth and flourishing commercial activities.

Al-Shirawi mentioned that Doha City has experienced a growing demand for commercial shops in the past period. However, the limited supply has led to skyrocketing rent prices, disrupting commercial activities and increasing prices for the end consumer.

He added that the private sector is capable of establishing commercial complexes and constructing buildings for commercial streets, but they face obstacles due to a lack of streets designated for commercial use, as well as insufficient financing. He called for the necessity of supporting and encouraging the private sector.

Economic expert Youssef Abu Haliqa stated that the development projects undertaken by the state in Doha, in line with the Vision 2030, require modern planning for the city to keep up with the latest developments.

He urged the need to introduce new commercial streets in densely populated areas that provide retail services to alleviate the burden on residents in those areas. He stressed the importance of organizing these streets in a way that does not cause confusion or congestion.

He pointed out that some traders are hesitant to move to new commercial streets due to the high prices set by the executing companies for these projects, while the income generated from commercial shops does not correspond to the rent allowance.

He explained that reducing the rent for shops on commercial streets to match the traders’ capabilities would have a positive impact on the local market and increase demand for those shops.

It is worth mentioning that the concerned authorities previously announced the implementation of several commercial streets, including New Doha Street, Nada Street, Equestrian Street, Khalifa City Street, Al-Wafa Street, Khaybar Street, Uthman ibn Affan Street, Rawdat Al Khail Street, and Ibn Khaldoun Street.

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