Qatar Real Estate Q4, 2019 Indicators Q4 2019

Micro Economics – Current Standings Steady increase in population partially supports the demand for housing.

Supply will continue for Total Population* GDP at Current Price* another 2 quarters due to the projects which are currently under construction. 2,773,885 QAR 163.45 Billion Office rental are stabilizing in new CBD areas while old * Nov 2019 * Q2 2019 town is experiencing challenges.

Most malls are performing Industrial well in terms of occupancy. Producer Price Index* Production Index* The hospitality still focused on luxury segment, inventory in budget hotel rooms are 61.4 points 109.6 points limited. * Sep 2019 * Aug 2019 Ref: QSA Overall land rates are stabilizing across . No of Properties Sold Municipalities 1,107 Value of Properties Sold

Al Shamal QAR 7.3 Billion

Al Khor Ref: MDPS For the period September, October and November 2019

Al Daayen Real Estate Price Index (QoQ) Umm Slal

Doha 300 8.0% Al Rayyan 250 6.0% 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

Jan-17 Jan-18 Jan-19

Sep-17 Sep-18 Sep-19

Mar-17 Mar-18 Mar-19

Nov-17 Nov-18

May-18 May-19 May-17

Ref: QCB 2 Residential Q4 2019

YTD Snapshot

Supply in Pipeline Expected Delivery Overall Available Units

360,000 90,000 units 2020

Q4 2019 Villa Occupancy

70%* Median Selling Price Median Rental Rate

Apartment Occupancy QAR 11,000 PSF QAR 7,000 (2BR)

60%*

Ref: AREDC Research

Current Annual Yield Key Demand Drivers 5%* * Average 20% 15% Government Companies Residential Concentration Government and companies are taking residential units for their employees under HRA.

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 Q4 2019

Residential Market Gauge Apartment Snapshot

Rental Rate* Sale Price* Q3 19 Q4 19 Micro markets (QAR/Month)** (QAR/PSM) Unit Sales The Pearl 11,500 11,500 Rental Trend 10,500 8,500 Occupancy 7,500 11,000 Overall Market C&D Ring Road 5,500 12,500

Downtown 5,000 12,500

Al Wakra 4,000 --

Al Khor 4,500 --

Ref: AREDC Research * Average ** For standard 2BR unit Market Outlook Apartment Rental Rates in Prime Areas The residential market across 16,000 Qatar has been stabilizing as 14,000 compared to the previous quarters. 12,000 10,000 Residential market expands 8,000 beyond familiar neighborhood due 6,000 4,000 to supplies in new localities 2,000 courtesy to connectivity and 0 The Pearl West Bay Lusail Bin Omran Al Old Al Al Wakrah Mansoora Airport Muntazah infrastructure.. Home seekers with Studio 1 Bedroom 2 Bedroom 3 Bedroom budget constraints can explore Ref: AREDC Research these locations such as Umm Slal Mohammed, Semaismah, Rawdat Rental Rates of Villas in Residential Compounds in Prime Areas Al Hamam for villa development 35,000 where 3BR and 4BR villas are in the 30,000 range QAR 7,000 to QAR 10,000. 25,000 Supply in these localities have 20,000 15,000 added pressure on the affluent 10,000 neighborhoods to sustain rentals. 5,000 As a result perks and incentives of 0 West Bay Al Waab Ain Khalid Abu Hamour Al Gharrafa freely monthly rentals on annual Lagoon contracts is widely practiced. 3 Bedroom 4 Bedroom 5 Bedroom Ref: AREDC Research 4 Office Q4 2019

YTD Snapshot

Supply in Pipeline Expected Delivery Total Leasable Area

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

Q4 2019 Estimated Leasable Area

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

Occupancy QAR 100 PSM Class B

65%*

Ref: AREDC Research

Current Annual Yield Key Demand Drivers 6.5%* * Average Additional Stabilized Rental Supply Office Concentration Lusail City, an emerging CBD has added pressure with stabilized rentals and incentives to the CBD to retain clients.

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 Q4 2019

Office Market Gauge Office Snapshot

Monthly Rental Q3 19 Q4 19 Occupancy Micro markets Rate (%)* Rental Trend (QAR/sq.m)*

Occupancy West Bay 130 65%

Sentiments C Ring Road 90 70%

Overall D Ring Road 80 65% Market Al Sadd 100 70%

Salwa Road 80 60%

Airport Road 100 65%

Old Slata 95 60%

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

Office market segment battling 700 ways to sustain occupancies and 600 monthly rentals. Additional Office 500 400 supply in Lusail City shifts the 300 momentum towards price 200 correction. The average 100 0 occupancies in West Bay offices is West Bay C Ring D Ring Al Sadd Salwa Road Airport Old Slata Road Road Road around 55% to 65% and the asking monthly average rental ranges Ref: AREDC Research from QAR 100 to QAR 140 per sq. m. The Suburban Business District Average Occupancies (%) – By Grade (SBD) as in downtown, C & D 90% Ring road, Al Sadd, Salwa road and 80% 70% Airport road are commanding 60% 50% monthly rentals ranges between 40% QAR 70 to QAR 100 per sq. m 30% 20% while the average occupancies in 10% 0% SBD is around60% to 75%. West Bay C Ring D Ring Al Sadd Salwa Airport Old Salata Road Road Road Road

Grade A Grade B Ref: AREDC Research 6 Retail Q4 2019

YTD Snapshot

Supply in Pipeline Expected Delivery Total Leasable Area

2,100,000 sq.m 700,000 sq. m 2021

Q4 2019 Operating Malls

25 Upcoming Mall Median Rental Rate

Overall Occupancy 06 QAR 250 PSM

80%*

Ref: AREDC Research Estimated Leasable Area Key Demand Drivers 2,800,000 sq.m * Average

Stabilized Rental Brand Retention

Retail Concentration Stabilized rental rates across the malls have lead to considerable occupancy and Brand retention in most malls.

Net Leasable Area Distribution

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

Villaggio

The Mall The

Gulf Mall Gulf

The Gate The

Doha Mall Doha

Northgate

Landmark

Musheireb…

Ezdan Mall Ezdan

The Centre The

Tawar Mall Tawar

Hyatt Plaza Hyatt

Royal Plaza Royal

Centrepoint

Marina Mall Marina

Mirqab Mall Mirqab

Al Sadd Mall Sadd Al

Dragon Mall Dragon

Mall of Qatar of Mall

Lagoona Mall Lagoona Festival… Doha

B Square Mall Square B

Vendome Mall Vendome

Barwa Al Doha Al Barwa

Al Wakrah Mall Wakrah Al

Medina Centrale Medina

Doha Outlet Mall Outlet Doha

City Center Doha Center City Dar Al Salam Mall Salam Al Dar

Ref: AREDC Research 7 Retail Q4 2019

Retail Market Gauge Retail Snapshot

Showrooms Q3 19 Q4 19 Year Shopping Mall* (Street Shopping)* Rental Trend 2013 230 180 Occupancy 2014 240 160 Sentiments 2015 250 140 Overall Market 2016 270 145

2017 260 140

2018 250 145

Q4 2019 240 140

Ref: AREDC Research *Average Monthly Rental Rates (QAR/sq.m) Market Outlook Average Monthly Rentals in Prime Malls (QAR/sq. m) The organized retail supply in Qatar is now around 1.5 million sq. m .The 350 300 increase in retail supply has has 250 impacted on performance of newly 200 150 developed malls who are 100 competing for tenants in a much 50 0

challenging market. The prime retail

Qatar

Mall

Mall of Mall

Villagio

Doha Lagoona

malls still command monthly Doha

The Gate The

Gulf Mall Gulf

Landmark

City Center City

Tawar Mall Tawar Festival City Festival rentals of between QAR 270 to QAR Mall Mirqab Ref: AREDC Research 300 per sq. m. The occupancies in the prime malls are expected to be Leasable Area in Operating and Upcoming Malls around 80% with anchor brands sq.m holding the maximum share. The 300,000 250,000 secondary malls command 200,000 monthly rentals of around QAR 200 150,000 100,000 to QAR 260 per sq. m while the 50,000 -

average occupancies in secondary

Villaggio

TheMall TheGate

mallsarearound80%. GulfMall

Landmark

Northgate

DohaMall

EzdanMall

TheCentre

Tawar Mall

HyattPlaza

RoyalPlaza

Centrepoint

MarinaMall

MirqabMall

Al Sadd Al Mall

Mall of Qatar

LagoonaMall

BSquare Mall

VendomeMall

BarwaDoha Al

DragonMall at…

Al Wakrah Al Mall

MedinaCentrale

City City Center Doha

DohaOutlet Mall

DarAl Salam Mall

DohaFestival City MusheirebProject Ref: AREDC Research 8 Hospitality Q4 2019

YTD Snapshot

ADR RevPAR Present Keys

26,727 QAR 314* QAR 205*

Q4 2019 Under-construction

2,935 Keys Occupancy Arriving Visitors

Planned 68%* 1,861,420**

2,849 Keys * Annual average of all star categories Ref: MDPS ** Year till November 30th Current Annual Yield Key Demand Drivers 7.5%*

* Average International Sports Events Hotel Concentration Government initiatives such as visa-on-arrival from 80 countries encouraged visitor inflow in the country.

Distribution of Arriving Visitors by Region

11% 9%

7% American 2% European Asian & Oceania

31% Other African

Other Arabs

GCC

39%

Ref: MDPS 9 Hospitality Q4 2019

Hospitality Market Gauge Hotel Snapshot

Q3 19 Q4 19 Category No. of Hotels No. of Keys ADR Luxury Class 19 5,078 RevPAR Upper Upscale Class 20 5,529 Occupancy Upscale Class 8 1,716 Overall Market Upper Midscale Class 22 4,486

Midscale Class 26 3,526

Economy Class 37 6,392

Total 132 26,727

Ref: AREDC Research Market Outlook ADR Tracker According to QTA reports, total QAR number of hotel and hotel 600 500 apartment developments currently 400 operating in Qatar officially is 300 recorded at 123 which is close to 200 around 26,700 keys across all star 100 categories. More than 75% of room 0 keys are still with 4-star or 5-star and 70% of keys are confined in 5 Star 4 Star 3 Star Ref: AREDC Research West Bay alone. According to

MDPS statistics, the average hotel Occupancy Tracker occupancy in 5 star hotel for 4th quarter 2019 was around 62% while 100% 80% Average Daily Rates (ADRs) and 60% Revenue per Available Room 40% (RevPAR’s) were QAR 540 and QAR 20% 332 respectively. 0%

5 Star 4 Star 3 Star Ref: AREDC Research 10 Land Q4 2019

Land Market Gauge Key Transactions in Q4 2019

Q3 19 Q4 19 Location Municipality Amount (QAR) Land Price Doha 143,865,000 Land Sale New Salata Doha 118,300,00 Sentiments Legtaifiya Doha 61,053,000 Overall Market 56,000,000

Fereej Bin Mahmoud Doha 48,750,000

Lusail Doha 30,000,000

Jeryan Jenaihat Al Daayen 23,000,000

Market Outlook Ref: MoJ Average Residential Land Prices for Buildings (QAR/sq.ft) In Q4 2019, the land transactions in villa segment recorded in Al 3,000 Thumama, Doha municipality were 2,500 in the range QAR 300 to QAR 350 2,000 per sq.ft. In Al Gharafa, Muaither of 1,500 Al Rayyan municipality were in the 1,000 range QAR 350 to QAR 450 per sq.ft. 500 In Al Wukair, Wakra municipality the 0 West Bay C Ring Road A & B Ring Al Sadd Airport Road Old Salata land transaction witnessed were in Road Ref: AREDC Research the range QAR 200 to QAR 250 per sq.ft. Various locations in other Average Commercial Land Prices for Buildings (QAR/sq.ft) neighboring municipalities of Doha, the land banks were transacted in 3,500 3,000 the range QAR 140 to QAR 300 per 2,500 sq.ft. The land for tower has not 2,000 recordedin 2019. 1,500 1,000 500 0 West Bay C Ring Road D Ring Road Al Sadd Salwa Road Airport Old Salata Road Ref: AREDC Research 11 Qatar Real Estate Q4 2019

Fadi Barakeh General Manager E : [email protected] VALUATIONS AND APPRAISALS Property Valuation – Gaurav Borikar, MRICS Residential, Commercial, Retails Director - Valuations and Research Hospitality Valuation – E : [email protected] Hotels, Resorts, Hotel Apartments Industrial Valuation – Hisham Qureshi Warehouse, Factory, Plant & Machineries Research Manager Masterplan Valuation – E : [email protected] Integrated Masterplan, Development Appraisal

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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

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