Abu Dhabi Review Outlook www.valustrat.com ValuStrat Price Index – VPI Abu Dhabi Residential Base: Q1 2016=100 All prices are quoted in UAE Dirhams unless otherwise stated 2020 Review FIRST QUARTER REVIEW 2020 VPI Residential VPI Residential Capital Values Rental Values 67.9 71.7 -9.7% -7.7% Y-o-Y Y-o-Y Office Asking Office Asking Sales Price Rents AED 10,114 AED 779 per sq m pa per sq m pa -7.1% -5.7% Q-o-Q Q-o-Q Jan COVID - 19 PANDEMIC • The weighted average residential capital value this quarter was AED 843 per sq ft, down 10.6% YoY and fell 1.9% QoQ • First confirmed case in the UAE recorded on 29th January • Apartment prices fell 10.7% YoY and 1.7% QoQ to AED 934 per sq ft while villa • Suspension of all flights except cargo, halting operation of major public mass 1W prices witnessed drops of 10.2% annually and 2.2% quarterly to AED 627 per transport sq ft • Temporary closure and suspension of public and private educational institutions • Abu Dhabi VPI for residential rental values for Q1 2020 stood at 76.3 points, with implementation of distance learning declining 1.2% quarterly and 1.7% annually. On an annual basis, apartment asking rents fell 2.6%, however, villa asking rents remained relatively stable • Countrywide curfew and disinfection drive started 2W • Conditional measures affecting non-essential retail and businesses including financial institutions • Office staff attendance capped at 30% with the remaining workforce on remote work PROJECT LAUNCHES 3W • Provisional closure of all leisure, entertainment, cultural, and fitness establishments including places of worship • Reportage Properties unveiled The Gate Masdar City with 463 units • Prohibition, postponement or cancellation of all public events, gatherings, and sporting activities • UAE Central Bank announced AED 100 billion stimulus package 4W • Private sector launched various initiatives to help its partners and clients get through lockdown periods which included rental reliefs, waiver of some charges TRANSACTIONS and fees and related packages • Reported job cuts and salary reductions due to slow down in business activities • Total property deals during the quarter reached 3,613 transactions amounting to Feb most impacted tourism, retail, and interrelated sectors AED 19.2 billion, up 22% YoY • Dwindling expat population in both blue and white-collar workers increased downward pressures on the overall economy • Abu Dhabi-based banks in co-operation with Abu Dhabi Department of Finance and Department of Economic Development Abu Dhabi announced 10-point 5W comprehensive packages for sectors and individuals affected by challenges ECONOMY stemming from the pandemic • S&P Global Rating has upheld the UAE capital’s long-term sovereign credit rating at AA and short-term foreign and domestic currency rating at A-1+ with stable outlook 6W • At the same time S&P forecasted the city’s GDP to advance 2.5% this year TOURISM • Total non-oil foreign trade jumped 7.2% YoY to AED 17.79 billion in February, as per Statistics Centre Abu Dhabi • AED 100 million new cruise jetty project was announced to be built at Sir Bani Yas island which could handle up to 5,000 cruise visitors • UAE Central Bank reduced repo rate for short-term liquidity by 50 basis points 7W • Marsa Mina was inaugurated in Zayed Port • ADNOC announces sales of its Murban crude to sell it Murban crude at a discount of USD 2.75 per barrel • Louvre Abu Dhabi unveiled latest international exhibition, Furusiyya: The Art of Chivalry between East and West • Abu Dhabi’s massive new entertainment venue officially named as Etihad Arena 8W • Jubail Mangrove Park opened to the public RESIDENTIAL • A total of 959,000 visited the capital, down 14% YoY • The average citywide residential asking price per square foot declined 2.2% Mar quarterly and fell 7.8% when compared to last year • Ready apartments stood at AED 1,178 AED sq ft displaying a decline of 2.5% quarterly, and 5.9% lower than in the same period last year RETAIL • For ready villas, the average asking price was AED 876 per sq ft indicating prices declined 1.6% quarterly and 12.1% annually 9W • Construction work was completed for AFCOOP Mall in Abu Dhabi Gate City • Aldar malls and shopping centres portfolio occupancy rate stood at 89% 10W OFFICE HOTEL • Abu Dhabi National Oil Company (ADNOC) signed a new long-term lease of 8,194 sq m (88,199 sq ft) GLA workspace in Abu Dhabi Global Market Square • 242-room Millennium Central Mafraq was opened • Construction work for Parsons regional headquarters in Capital District was 11W • Fairmont Marina Abu Dhabi with 563 keys started to welcome guests completed with an estimated 29,400 sq m (316,469 sq ft) GLA 12W AVIATION INFRASTRUCTURE • Low-cost airlines Wizz Air Abu Dhabi was announced to launch in fall of this year • Construction works for infrastructural projects in sectors 7 and 12 of Al at Abu Dhabi International Airport Shawamekh area was completed SECOND QUARTER REVIEW 2020 VPI Residential VPI Residential Capital Values Rental Values 64.7 70.3 -10.9% -7.9% Y-o-Y Y-o-Y Office Asking Office Asking Sales Price Rents AED 10,450 AED 824 per sq m pa per sq m pa 3.3% 5.8% Q-o-Q Q-o-Q Apr COVID - 19 PANDEMIC 1W • Abu Dhabi’s residential investment zones declined 4.6% quarterly to 64.7 points. Annually, capital values were 10.9% lower than the second quarter 2019 • Abu Dhabi launched a new website to focus everything related to the health crisis, www.stayupdated.abudhabi • The weighted average residential value was at AED 8,591 per sq m (AED 798 per sq ft), apartments stood at AED 9,499 per sq m (AED 882 per sq ft), and villas at 2W • Abu Dhabi Health Services Company (SEHA) built a 29,000 sq m (312,153 sq ft) AED 6,427 per sq m (AED 597 per sq ft) field hospital in Emirates Humanitarian City and another 31,000 sq m (333,681 sq ft) in Abu Dhabi Exhibition Centre dedicated to aid in the fight against the • Abu Dhabi residential rental values stood at 70.3 points, down 7.9% YoY. The novel coronavirus weighted average annual residential asking rent in Abu Dhabi was AED 120,729, 3W apartments at AED 99,027 per annum and villas at AED 171,369 per annum • World’s first touchless elevators were introduced in Abu Dhabi Airports aimed to reduce cross-infection and achieve a coronavirus-free airport • A total of 1,030 hotel rooms from hospitality establishments including Royal 4W Rose, City Seasons , Park Rotana and Millennium Capital Gate were dedicated to front-line workers • Relaxation of restrictions and procedures related to the health crisis TRANSACTIONS May commenced • Abu Dhabi recorded 2,617 deals in April, up 42.2% YoY as per Department of • With an expected economic slump due to lock-downs, interrelated sectors Municipalities and Transport including tourism, aviation, hospitality could face headwinds 5W • Sales transactions grew 16.5% YoY with 1,447 transactions, however, mortgage • Sectors which could possible perform better during this un-precedented times transactions jumped 95.6% YoY with 1,170 transactions include healthcare, pharmaceuticals, e-commerce, and telecommunications • Total value of all transactions reached AED 6.3 billion, up 34% YoY 6W 7W RESIDENTIAL ECONOMY • The average citywide residential asking price per square foot declined 1% quarterly and fell 6.1% when compared to the previous year 8W • S&P estimated the real gross domestic product (GDP) to shrink 7.5% • Ready apartments stood at AED 1,159 per sq ft displaying a decline of 1.7% • Moody’s forecasted economic contraction of 5.3%, and oil income to plunge quarterly, and 6.4% lower annually 30% for 2020 Jun • For ready villas, the average asking price was AED 881 per sq ft indicating prices were stable quarterly but saw annual declines of 5.3% 9W LAWS & REGULATIONS HOTEL 10W • The UAE government released the full list of 122 categories for 100 per cent ownership in the mainland under the Foreign Direct Investment (FDI) Law • Occupancy stood at 55.2%, up 5.7% in May as per STR data 11W • Average Daily Rate (ADR) achieved was AED 251.4 and Revenue per Available Room (RevPAR) stood at AED 138.88, both fell 26.3% YoY and 22.1% YoY, respectively 12W THIRD QUARTER REVIEW 2020 VPI Residential VPI Residential Capital Values Rental Values 62.6 71.3 -11.7% -7.2% Y-o-Y Y-o-Y Office Asking Office Asking Sales Price Rents AED 9,792 AED 851 per sq m pa per sq m pa -6.3% 3.2% Q-o-Q Q-o-Q Jul COVID - 19 PANDEMIC • Abu Dhabi’s residential investment zones declined 3.3% quarterly to 62.6 points. 1W Annually, capital values were 11.7% lower than the second quarter 2019 • Abu Dhabi Emergency, Crisis and Disasters Committee approved two test requirements to enter the capital • The weighted average residential value was at AED 8,256 per sq m (AED 767 per sq ft), apartments stood at AED 9,085 per sq m (AED 844 per sq ft), and villas at • Phase 3 of inactivated vaccine trials in the city amassed 10,000 volunteers AED 6,265 per sq m (AED 582 per sq ft) 2W • A survey from The Department of Community Development Abu Dhabi revealed • Abu Dhabi residential rental values stood at 71.3 points, down 7.2% YoY. The 17% of people believed the situation would return to normalcy in mid – 2021 weighted average annual residential asking rent in Abu Dhabi was AED 122,408, apartments at AED 100,373 per annum and villas at AED 173,825 per annum • More than 92% have full conviction in the competence of the government to 3W manage the health crisis • Abu Dhabi allowed 80% capacity for most F&B establishments 4W INFRASTRUCTURE • Infrastructure development contracts for third and fourth