Qatar Real Estate Q3, 2020

www.aredcadvisory.com Indicators Q3 2020

Micro Economics – Latest Standings

Government scheme to offer residency via investment in freehold and leasehold areas paves way for demand in Total Population* GDP at Current Price* residential sector.

Office market outlook remains under pressure as 2,723,624 QAR 167.76 Billion Lusail adds on to the fresh supply. * Sep 2020 * Q4 2019

Retail sector get back on track with phase wise lifting of restrictions that allows normal working hours. Real Estate Price Industrial Index* Production Index* Hospitality sector attracts locals by offering staycation packages for survival. 217.11 points 104.2 points

The land rates across Ref: QSA * Sep 2020 * May 2020 have not much fluctuated in the recent times.

No. of Properties Sold Municipalities 1,597 Value of Properties Sold

Al Shamal QAR 10.75 Billion

Al Khor Ref: MDPS For the period Jun, July and Aug 2020

Al Daayen Real Estate Price Index (QoQ) Umm Slal

Al Sheehaniya 300 8.0% 6.0% 250 4.0% 200 2.0% 150 0.0% -2.0% Al Wakra 100 -4.0% 50 -6.0% 0 -8.0% Jul-17 Jul-18 Jul-19 Jul-20 Jan-17 Jan-18 Jan-19 Jan-20 Sep-17 Sep-18 Sep-19 Sep-20 Mar-17 Nov-17 Mar-18 Nov-18 Mar-19 Nov-19 Mar-20 May-17 May-18 May-19 May-20

Ref: QCB 2 Residential Q3 2020

YTD Snapshot

Supply in Pipeline Expected Delivery Overall Available Units

360,000 90,000 units 2020/21

Q3 2020 Villa Occupancy

66%* Median Selling Price Median Rental Rate

Apartment Occupancy QAR 9,500 PSF QAR 6,500 (2BR)

60%*

Ref: AREDC Research

Current Annual Yield Key Demand Drivers 5.0%*

* Average Residency via 25% Investment Government Residential Concentration Government scheme to offer residency via investment in freehold and leasehold areas paves way for demand in residential sector.

Residential Supply (Units) – YoY Comparison

500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 - 2015 2016 2017 2018 2019 2020

Ref: AREDC Research 3 Residential Q3 2020

Residential Market Gauge Apartment Snapshot

Rental Rate* Sale Price* Q2 20 Q3 20 Micro markets (QAR/Month)** (QAR/PSM) Unit Sales The Pearl 9,500 10,000 Rental Trend West Bay 9,500 8,500 Occupancy Lusail 7,000 10,000 Overall Market C&D Ring Road 5,000 11,000

Downtown 4,500 11,000

Al Wakra 3,800 --

Al Khor 4,000 --

Ref: AREDC Research * Average ** For standard 2BR unit Market Outlook Apartment Rental Rates in Prime Areas The residential market scenario stays sluggish where in efforts 16,000 14,000 were made by landlords to recover 12,000 from the consequences of the 10,000 8,000 pandemic. A stimulus government 6,000 scheme to offer residency via 4,000 2,000 investment in freehold and usufruct 0 The Pea rl West Bay Lusail Bin Omran Al Old Al areas may draw fresh sentiments Mansoora Airport Muntazah from the investors to create Studio 1 Bedroom 2 Bedroom 3 Bedroom optimism in the market. As Ref: AREDC Research compared to previous quarter the Rental Rates of Villas in Residential Compounds in Prime Areas average rentals dips around 3% - 5% across all asset classes in the 30,000 residential segment. As far as the 25,000 20,000 outright purchase market is 15,000 concerned, easy and flexible 10,000 payment plans with other attractive 5,000 offers were thrown open in the 0 West Bay Ain Khalid Al Hilal market to attract investors. Lagoon

3 Bedroom 4 Bedroom 5 Bedroom Ref: AREDC Research 4 Office Q3 2020

YTD Snapshot

Supply in Pipeline Expected Delivery Total Leasable Area

4,800,000 sq.m 400,000 sq. m 2021-22

Q3 2020 Estimated Leasable Area

5,200,000 sq.m Median Rental Rate Common Grading

Occupancy QAR 75 PSM Class B

65%*

Ref: AREDC Research

Current Annual Yield Key Demand Drivers 5.0%*

* Average Affordable Better Rental Leasing Terms

Office Concentration Phase wise lifting of COVID restrictions in the months of July and August saw the masses returning back to offices spaces thereby driving demand.

Office Supply (sq.m) – YoY Comparison

6,000,000

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

- 2015 2016 2017 2018 2019 2020 2021 2022

Ref: AREDC Research 5 Office Q3 2020

Office Market Gauge Office Snapshot

Monthly Rental Q2 20 Q3 20 Occupancy Micro markets Rate (%)* Rental Trend (QAR/sq.m)*

Occupancy West Bay 110 65%

Sentiments C Ring Road 75 70%

Overall D Ring Road 70 65% Market Al Sadd 80 72%

Salwa Road 65 60%

Airport Road 80 65%

Old Slata 75 60%

Ref: AREDC Research * Average Market Outlook Office Sizes (sq.m) in Prime Areas

The office market outlook post 700 COVID-19 restrictions after phase 600 wise lifting in restrictions imposed 500 400 witnessed offices spaces back in 300 action ending the work form home 200 facility. However, no significant rent 100 0 transaction was noticed in the West Bay C Ring D Ring Al Sadd Salwa Road Airport Old Slata office market as currently there is a Road Road Road wide gap in supply vs demand in Ref: AREDC Research the market. The occupancies in West Bay offices towers remains Average Occupancies (%) – By Grade 55% to 65% while asking monthly 80 average rental ranges from QAR 70 60 80 to QAR 130 per sq. m. The 50 Alternate Business District (ABD) 40 30 as in Lusail Marina district 20 commands monthly rentals 10 0 ranges between QAR 70 to QAR 90 West Bay C Ring D Ring Al Sadd Salwa Road Airport Old Salata Road Road Road per sq.m. Grade A Grade B Ref: AREDC Research 6 Retail Q3 2020

YTD Snapshot

Supply in Pipeline Expected Delivery Total Net Leasable Area

2,100,000 sq.m* 700,000 sq. m 2021/22

Q3 2020 Operating Malls

25 Upcoming Mall Median Rental Rate

Overall Occupancy 06 QAR 200 PSM

75%**

Ref: AREDC Research Median Mall Size Key Demand Drivers 55,000 sq.m* (NLA)

* * *Average Including upcoming malls Relaxation of COVID restrictions Retail Concentration Returning to maximum capacity and normal working hours after the lifting of COVID restrictions bought back shoppers in large numbers.

Net Leasable Area Distribution

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0% Villaggio Th e Mall Gulf Mall Th e Gat e Doha Mall Doha Landmark No rth gate Mu sh ei r eb … Th e Cent re Ezdan Mall Tawar Mall Hyatt Plaza Royal Plaza Royal Centrepoint Mi r qab Mal l Ma ri na Mal l Al Sadd Mall Sadd Al Dragon Dragon Mall Ma ll of Qat ar Lagoona Mall Lagoona Festival… Doha B Square Mall Square B Vendome Mall Vendome Barwa Al Doha Al Barwa Al Wakrah Mall Wakrah Al Med ina Centr al e Doha MallOutletDoha City Center Doha City Dar Al Salam Mall Salam Al Dar

Ref: AREDC Research 7 Retail Q3 2020

Retail Market Gauge Retail Snapshot

Showrooms Q2 20 Q3 20 Year Shopping Mall* (Street Shopping)* Rental Trend 2015 250 140 Occupancy 2016 270 145 Sentiments 2017 260 140 Overall Market 2018 250 145

2019 240 140

Q1 2020 240 120

Q2 2020 230 100

Q3 2020 200 100

Market Outlook Ref: AREDC Research *Average Monthly Rental Rates (QAR/sq.m)

At the onset of Q3 the retail activities Average Monthly Rentals in Prime Malls (QAR/sq. m) resumed operations phase wise 300 250 with normalizing working hours and 200 complete capacity. Much emphasis 150 was laid by the landlords to retain 100 the tenants by offering lucrative 50 0 discounts and better leasing terms. Qatar Mall Mall of Mall Moreover due to the complete Villagio Doha Lagoon a Doha The Gate The Gulf MallGulf Land mark City Cen ter Mall Tawar Festival City Festival lockdown imposed on the retail Mall Mirqab Ref: AREDC Research malls in the previous quarter witnessed permanent shutdown of Leasable Area in Operating and Upcoming Malls sq.m many retail outlets which in turn 300,000 hampered the occupancy levels in 250,000 most of the malls. Also a short term 200,000 150,000 impact has been witnessed in the 100,000 rentals which is compromised by at 50,000 least 5% - 10% in order to retain the -

existing tenants and lure new Q-mall Villaggio The Mall The The Gate The Gulf Mall Gulf Landmark Mall Twar DohaMall Northgate Ezdan Mall Ezdan The Centre The HyattPlaza Plaza Royal DohaOasis Centrepoint MirqabMall Al Sadd Sadd Mall Al Al Hazm Mall Al Mallof Qatar Lagoona Mall B Square Mall Square B

entrants in the market. Mall Wukair Al Boulevard Mall Boulevard Al Wakrah Mall Wakrah Al CityCenter Doha DohaOutlet Mall Dar AlSalam Mall DohaFestival City DragonMall at BCA PlaceVendome Mall Ref: AREDC Research Msheireb Downtown 8 Hospitality Q3 2020

YTD Snapshot

ADR RevPAR Present Keys

29,649 QAR 304* QAR 158*

Q3 2020 Under-construction

3,280* Keys Occupancy Arriving Visitors

Planned 56%* 553,667**

4,552* Keys * Quarterly average of 5, 4 & 3 star categories Ref: MDPS ** Year till Aug 29th Current Annual Yield Key Demand Drivers 7.0%**

* Independent data. Regularly updated based on our research. ** Average Travel Quarantine Hotel Concentration Government initiatives to temporarily set up COVID 19 quarantine facilities in 5 & 4 star hotels boosts sustainability while travel restrictions worldwide is hampering hotel performance.

Distribution of Arriving Visitors by Region

10% 9%

7% 2% American European Asian & Oceania Other African 41% Other Arabs 31% GCC

Ref: MDPS 9 Hospitality Q3 2020

Hospitality Market Gauge Hotel Snapshot

Q2 20 Q3 20 Category No. of Hotels No. of Keys ADR Luxury Class 24 6,503 RevPAR Upper Upscale Class 24 6,345 Occupancy Upscale Class 11 2,168 Overall Market Upper Midscale Class 23 4,610

Midscale Class 26 3,526

Economy Class 38 6,497

Total 146 29,649

Ref: AREDC Research Market Outlook ADR Tracker QAR The tourist arrivals in Qatar have 600 been negligible in this quarter due to 500 400 ongoing travel ban on the 300 international passengers from most 200 of the countries. The hotel operators 100 are curious to offer their hotels for 0 Jul-19 Jul-20 Jan-20

family holidays and recreation. Jun-20 Oct-19 Apr-20 Sep-19 Feb-20 Sep-20 Dec-19 Aug-19 Aug-20 Nov-1 9 Mar-20 May-20

During Q3, a luxury project, Salwa 5 Star 4 Star 3 Star Ref: AREDC Research Beach Resort by Hilton has been launched, partially open to the Occupancy Tracker public. According to MDPS statistics, the average hotel 100% occupancy in 5 star hotel for 3rd 80% quarter 2020 was around 47% while 60% 40% in Q3 Average Daily Rates (ADRs) 20% and Revenue per Available Room 0% (RevPAR’s) were QAR 533 and QAR Jul-19 Jul-20 Jan-20 Jun-20 Oct-19 Apr-20 Sep-19 Feb-20 Sep-20 Dec-19 Aug-19 Aug-20 Nov-19 Mar-20 251 respectively. May-20 5 Star 4 Star 3 Star Ref: AREDC Research 10 Land Q3 2020

Land Market Gauge Key Transactions in Q3 2020

Q2 20 Q3 20 Location Municipality Amount (QAR) Land Price Al Mansoura Doha 180,000,000 Land Sale Al Kharayej 80,000,000 Sentiments Al Rayyan 79,299,260 Overall Market Al Wukair Al Wakra 70,000,000

Lusail Al Daayen 59,831,950

Umm Al Amad Umm Slal 46,000,000

Baaya Al Rayyan 44,000,000

Ref: MoJ Market Outlook Average Residential Land Prices for Buildings (QAR/sq.ft)

In Q3 2020, the land rates have 2,500 reduced marginally as compared to 2,000 previous quarters. The highest ticket value of the land transaction 1,500 recorded is QAR 180 million. 1,000

Transacted land price in Al 500 Thumama in Doha municipality - were in the range QAR 300 to QAR West Bay C Ring Ro ad A & B Ring Al Sadd Airport Road Old Salata Ro ad 350 per sq.ft. In , and Bu Ref: AREDC Research Hamour of Al Rayyan municipality were in the range QAR 300 to QAR Average Commercial Land Prices for Buildings (QAR/sq.ft) 325 per sq.ft. In Al Wukair of Wakra 3,000 municipality the land transaction 2,500 witnessed were in the range QAR 2,000

200 to QAR 250 per sq.ft. Various 1,500 other neighboring municipalities of 1,000

Doha, the land parcels were 500 transacted in the range QAR 140 to 0 West Bay C Ring Ro ad D Ring Road Al Sadd Salwa Road Airport Old Salata QAR 300 per sq.ft. Ro ad Ref: AREDC Research 11 Qatar Real Estate Q3 2020

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§ IMF: International Monetary Fund. § Market Gauge § QSA: Qatar Statistics Authority - Bettering as compare to previous quarter § QCB: Qatar Central Bank - Remained stable as of previous quarter § MOJ: Ministry of Justice - Reducing as compare to previous quarter § IIF: The Institute of International Finance

Exclusive Disclaimer: This report has been prepared by Al-Asmakh Real Estate Development for general information only. No research source is guaranteed to be accurate so the report. Al-Asmakh Real Estate Development shall not, in any event whatsoever, be liable or responsible for the any indirect, incidental, special or consequential losses or for any economic loss including loss of profit, revenue, goodwill or anticipated savings of the Bank or other Persons, however caused and whether arising in contract, tort (including active, passive or imputed negligence) or otherwise.