Property Review Abu Dhabi Real Estate Report...10 Abu Dhabi Real Estate Report - 1 2018 Note: Area classification by affordability is provided for indicative purposes only as most

In the Middle East for over 30 Years

Property Review

Abu Dhabi Real Estate ReportQ1 2018

Abu Dhabi Real Estate Report - Q1 20182

CONTENT

03MARKET OVERVIEW

04SUPPLY

10PROPERTY MAP

06APARTMENT SALES PRICES

05APARTMENT RENTAL RATES

08VILLA SALES PRICES

07VILLA RENTAL RATES

09OFFICE RENTAL RATES


ABU DHABI MARKET OVERVIEW

SUPPLYApproximately 1,600 residential units were delivered in Q1 2018 with the bulk (more than 75%) located within the Investment Zones, including, but not limited to Yas Island, Al Reem Island and Al Raha Beach. In addition to a number of stand-alone buildings in different locations, the key projects that were handed over included Ansam- Yas Island, Al Hadeel- Al Raha Beach and Muhaimat Tower- Al Reem Island.

Furthermore, a number of new projects were launched this quarter such as the Al Fahid Island Master Development by Al Nahda Investment and the Reflection Towers on Reem Island by Aldar.

The most noteworthy announcement, however, was the Saadiyat Grove Development by Aldar and Emaar, which falls under a strategic alliance between both Developers to develop local and international projects worth AED 30 billion.

Whilst more than 7,300 units are earmarked for handover before the end of 2018, previous delivery patterns suggest a number of these are likely to be delayed and will spill over into 2019.

The expected supply includes:

• Over 2,500 units on Reem Island;

• 1,800 on Yas and Saadiyat Islands (i.e.: West Yas, Jawaher Al Saadiyat and Mamsha Al Saadiyat);

• More than 1,650 units on the Abu Dhabi Mainland; and

• Remainder located on Abu Dhabi Island.

No major office supply was delivered in the first quarter of 2018. The anticipated Omega Towers on Reem Island and the ADIB HQ on Airport Road are due for handover before year-end.

RENTAL RATESApartment and villa rental rates declined on average by 3% and 2% since Q4 2017, whilst recording annual decreases of 11% and 9%, respectively.

As a result of the continuous delivery of new supply during a period of restrained economic growth and subdued market sentiment, vacancy rates increased across all residential unit types.

Office demand levels continued to be low resulting in a Q-o-Q drop in rental rates of 2% on average. Nevertheless, a number of Landlords offered space with discounts of up to 5% in order to retain Tenants and/or entice new take-up.

SALES PRICESApartment sales prices remained broadly unchanged over the quarter for the majority of locations, with the exception of Marina Square (-5%), Reef Downtown (-6%) and Sun & Sky Towers (-6%), which faced increased competition from new off-plan developments offered at attractive rates and favourable payment plans.

Similarly, Al Reef was the only area recording a drop in villa sales prices at an average rate of 2%.

Although healthy demand for high-quality, off-plan and newly delivered projects continued, inferior residential units remained under pressure.

3,000

750

85,000

1,600

50

0

4,500

2,800

100,000

APARTMENTSNO. OF UNITS

VILLASNO. OF UNITS

OFFICESSQ.M.

COMPLETED IN 2017

COMPLETED IN Q1 2018

EXPECTED BY END OF 2018

ABU DHABI SUPPLY



ABU DHABI ISLAND - - 85 130 130 170 165 255 -2% -15%INVESTMENT AREA 90 105 110 155 135 215 180 300 -3% -4%

(All figures in AED 000’s p.a.)

-3% -11% -20%

Since market low Q2 2012

Since peak Q4 2015

Y-o-Y Since Q1 2017

Q-o-Q Since Q4 2017% Change

TYPE

PRIME PROPERTIES

HIGH END PROPERTIES

MID AND LOWER END PROPERTIES

LOW END PROPERTIES

STUDIO 1 BEDROOM 2 BEDROOMS 3 BEDROOMS % CHANGE

2%

ABU DHABI APARTMENT RENTAL RATES

FROM FROM FROM FROM Q4 2017 - Q1 2018TO TO TO TO Q1 2017 -

Q1 2018

ABU DHABI ISLANDCentral Abu Dhabi - - - - 80 135 140 170 -5% -14%Corniche - - 75 90 100 135 145 190 -4% -13%Khalidya / Bateen 83 - 85 105 85 150 135 200 -3% -12%

INVESTMENT AREA

Al Raha Beach - - 80 105 120 150 150 195 -5% -12%Marina Square 50 - 65 95 85 140 120 175 -5% -14%Shams Abu Dhabi 60 - 70 80 100 120 125 160 -4% -17%Saadiyat Beach - - 105 118 163 165 190 200 -2% -5%

ABU DHABI ISLAND 45 65 55 100 75 145 120 170 -5% -13%

INVESTMENT AREAShams Abu Dhabi - - 65 80 80 120 115 150 -4% -16%Najmat & Tamouh 42 55 65 80 80 120 110 155 -4% -12%

OFF ISLAND Khalifa & MBZ City 40 45 55 82 70 125 140 150 -4% -14%

ABU DHABI ISLANDCentral Abu Dhabi 35 40 50 65 60 80 85 115 -3% -12%Corniche 40 50 55 65 75 80 90 118 -1% -7%Khalidiya / Bateen 40 45 55 60 70 80 90 115 -3% -10%

INVESTMENT AREA Al Reef 50 55 63 70 75 85 95 120 -3% -12%OFF ISLAND Khalifa & MBZ City 30 45 40 50 55 70 70 90 -2% -8%


AL BANDAR

AL MUNEERA

AL ZEINA

CITY OF LIGHTS - HYDRA

MARINA SQUARE

REEF DOWNTOWN

SAADIYAT BEACH RESIDENCES

SUN & SKY TOWERS

THE GATE

YAS ISLAND

0%

0%

0%

0%

-5%

-6%

0%

-6%

0%

n/a

-6%

-12%

-6%

-22%

-14%

-15%

-5%

-14%

-9%

n/a

0AED per sq.ft. 500 1,000 1,500Q-o-Q % Change

(Q4 2017-Q1 2018)Y-o-Y % Change

(Q1 2017-Q1 2018)2,000

1,400 1,800

950 1,150

1,200 1,350

1,300 1,500

750 850

1,350 1,500

1,100 1,350

1,100 1,300

750 900

1,100 1,350

-12%-2% -15%


Since peak Q4 2015

Y-o-Y Since Q1 2017


28%

ABU DHABI APARTMENT SALES PRICES


-2% -3%-9% -10%


Since peak Q4 2015

Y-o-Y Since Q1 2017


ABU DHABI VILLA RENTAL RATES

(All figures in AED 000’s p.a.)

TYPE 1 BEDROOM 2 BEDROOMS 3 BEDROOMS 4 BEDROOMS % CHANGE

FROM FROM FROM FROM Q4 2017 - Q1 2018TO TO TO TO Q1 2017 -

Q1 2018

ABU DHABI ISLANDKhalidiya / Bateen - - 160 180 170 180 180 220 -1% -8%Mushrif / Karama / Manaseer - - 155 175 160 185 180 210 -1% -8%Nahyan Camp / Muroor - - 125 170 160 185 170 200 0% -6%

INVESTMENT AREA

Al Raha Beach - - 180 190 200 270 250 285 -2% -10% Al Reef 90 105 115 125 145 155 155 170 0% -9% Hydra Village 75 82 85 95 - - - - -4% -11% Saadiyat Island - Beach Residences - - 290 310 280 370 400 720 -2% -10% Hidd Al Saadiyat - - - - 300 340 360 790 na na

OFF ISLAND

Al Raha Gardens - - 155 180 170 205 190 240 -1% -11% Golf Gardens - - 200 220 220 240 240 290 -2% -8% Khalifa City - - 115 135 130 145 140 155 -2% -8% Mohamed Bin Zayed - - 100 115 120 135 140 155 -3% -6%


AL REEF VILLAS

GOLF GARDENS

HIDD AL SAADIYAT

HYDRA VILLAGE

RAHA GARDENS

SAADIYAT BEACH VILLAS (STANDARD)

AED Million

2 BR 3 BR 4 BR 5 BR

3 BR 4 BR 5 BR

4 BR 5 BR

2 BR 3 BR

3 BR 4 BR 5 BR

3 BR 4 BR5 BR

-2%

0%

n/a

0%

0%

0%

-5%

-1%

n/a

-8%

-4%

0%

Q-o-Q % Change(Q4 2017-Q1 2018)

Y-o-Y % Change(Q1 2017-Q1 2018)120 2 4 6 8 10

1.43

3.15

1.78

3.95

6.65

0.92

2.15

4.88

8.25

1.28

2.552.95

4.10

5.756.55

10.70

2.65

-4% -8%


Since peak Q4 2015

Y-o-Y Since Q1 2017


40%

ABU DHABI VILLA SALES PRICES

0%


-2% -4% -12%-14%


Since peak Q4 2015

Y-o-Y Since Q1 2017


ABU DHABI OFFICE RENTAL RATES

(All figures in AED 000’s sq.m. p.a.)

TYPE

PRIME STOCK

QUALITY STOCK

OLDER STOCK

AVERAGE RENTAL RATES % CHANGE

FROM Q4 2017 - Q1 2018TO Q1 2017 - Q1 2018

FITTED* 1,500 2,500 0% -3%

FITTED 770 1,300 -3% -5%SHELL AND CORE 700 1,050 0% -3%

GOOD 650 800 -5% -7%TYPICAL BUILDING 600 700 0% -2%LOW QUALITY BUILDING 530 600 -2% -2%

* Includes developments such as Al Maryah Island, Aldar HQ, International Tower, Nation Towers, Ittihad Towers, Capital Plaza, Etihad Tower, etc.


Note: Area classification by affordability is provided for indicative purposes only as most areas in Abu Dhabi offer various types of residential units, from affordable to high end. As such, the map colour coding takes into account the most prevalent type of product and exceptions of a lower and / or higher price could be available.

1 Al Bandar – Raha Beach2 Al Bateen Wharf3 Al Gurm4 Al Maqtaa5 Al Muneera – Al Raha Beach6 Al Nahyan Camp7 Al Raha Gardens8 Al Rayanna9 Al Reef10 Al Zeina – Al Raha Beach11 Baniyas12 Bateen Airport Area13 Bateen Area14 Bawabat Al Sharq15 Capital District (ADNEC)16 CBD / Tourist Club Area17 Corniche 18 Danet Abu Dhabi19 Eastern Mangroves20 Golf Gardens21 Hydra Village22 Khalidia / Al Hosn / Al Manhal23 Khalifa City A24 Khalifa City B25 Maryah Island26 MBZ City27 Mina28 Mushrif / Karama / Manaseer / Muroor29 Officer’s City30 Rawdhat Abu Dhabi31 Reem Island - Marina Square32 Reem Island – Najmat Abu Dhabi33 Reem Island – rest of Shams Abu Dhabi34 Reem Island – City of Lights35 Reem Island – The Gate District36 Rihan Heights37 Saadiyat Beach District38 The Hills

YASISLAND

ABU DHABI PROPERTY MAP

DISCLAIMER: The information contained in this report has been obtained from and is based upon sources that Asteco Property Management believes to be reliable; however, no warranty or representation, expressed or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. Asteco Property Management will not be held responsible for any third-party contributions. All opinions and estimates included in this report constitute Asteco Property Management’s judgment, as of the date of this report and are subject to change without notice. Figures contained in this report are derived from a basket of locations highlighted in this report and therefore represent a snapshot of the UAE market. Averages, however, represent a wider range of areas. Particularly exclusive or unique projects have been excluded from the data to avoid distorting averages. Due care and attention has been used in the preparation of forecast information. However, actual results may vary from forecasts and any variation may be materially positive or negative. Forecasts, by their very nature, involve risk and uncertainty because they relate to future events and circumstances which are beyond Asteco Property Management’s control. For a full in-depth study of the market, please contact Asteco Property Management’s Research team. Asteco Property Management LLC. Commercial License No. 218551. Paid-up Capital AED 4,000,000. | ORN 180

20180103/astrep841

About Asteco

John Stevens MSc, BSc (Hons), MRICSManaging Director/ Director - Asset Services+971 600 54 [email protected]

John Allen BSc, MRICSDirector - Valuation & Advisory+971 600 54 [email protected]

Derrick MaguireARLA, NAEAAssociate Director - Transactional Services+971 600 54 [email protected]

James Joughin BSc (Hons), MRICSAssociate Director - Valuation +971 600 54 [email protected]

Jenny Weidling BA (Hons)Manager - Research and Advisory, Dubai+971 600 54 [email protected]

Ghada Amhaz MScManager - Research and Advisory, Abu Dhabi+971 2 626 [email protected]

Tamer Ibrahim Chaaban BEBranch Manager - Al Ain office+971 3 [email protected]

The Middle East’s largest full service Real Estate Services Company, Asteco was formed in Dubai in 1985. Over the years, Asteco has gained enormous respect for consistently delivering high quality, professional, value-added services in a transparent manner. It is also widely recognised for its involvement with many of the projects that have defined the landscape and physical infrastructure of the Emirates.

Asteco has an essential combination of local knowledge and international expertise. A deeply established brand, renowned for its application of the latest technological advances, its commitment to transparency, winning strategies and human expertise. Undisputed Real Estate experts, Asteco represents a significant number of the region’s top property Owners, Developers and Investors.

VALUATION & ADVISORY Our professional advisory services are conducted by suitably qualified personnel all of whom have had extensive Real Estate experience within the Middle East and internationally.

Our valuations are carried out in accordance with the Royal Institution of Chartered Surveyors (RICS) and International Valuation Standards (IVS) and are undertaken by appropriately qualified valuers with extensive local experience.

The Professional Services Asteco conducts throughout the region include:

• Consultancy & Advisory services• Market research• Valuation services

SALES Asteco has established a large regional property Sales division with representatives based in the UAE, Qatar and Jordan. Our Sales teams have extensive experience in the negotiation and sale of a variety of assets.

LEASING Asteco has been instrumental in the Leasing of many high-profile developments across the GCC.

ASSET MANAGEMENT Asteco provides comprehensive Asset Management services to all property Owners, whether a single unit (IPM) or a regional mixed-use portfolio. Our focus is on maximising value for our Clients.

OWNERS ASSOCIATION Asteco has the experience, systems, procedures and manuals in place to provide streamlined comprehensive Association Management and Consultancy services to residential, commercial and mixed-use communities throughout the GCC Region.

SALES MANAGEMENT Our Sales Management services are comprehensive and encompass everything required for the successful completion and handover of units to individual unit Owners.

LICENSING Our brand, network, system and procedures are now available in territories across the MENA region. Our Licensing services currently include Real Estate Brokerage Franchising and associated support services with many of the key elements designed specifically around the Franchisee, making it a truly unique and bespoke franchise opportunity.

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Property Review Abu Dhabi Real Estate Report...10 Abu Dhabi Real Estate Report - 1 2018 Note: Area classification by affordability is provided for indicative purposes only as most