A historic review and outlook of ’s Real Estate sector from 2008 to 2016 Abu Dhabi Real Estate Report Q4 2016 Content

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Abu Dhabi Abu Dhabi Al Ain About Asteco Historic Review Rental Rates Historic Review Rental Rates and Outlook and Outlook Sales Prices Property Map 2016 Highlights 2016 Highlights Property Map 2017 Outlook 2017 Outlook

2 Abu Dhabi Real Estate Report - Q4 2016 ABU DHABI 3

Bearish market sentiment coupled with downsizing in various sectors had a marked effect on demand for residential and office space. As a result, negative growth was recorded for the first time in three years. Residential rental rates decreased by 7% and 5% for apartments and villas, respectively. Although sales transaction levels and prices experienced a decline, some newly launched projects offering payment and rates sales competitive plans have recorded positive demand levels. announced were Several mergers in 2016, including the National Bank of Abu Dhabi with First Gulf Bank, sovereign wealth funds Mubadala with InvestmentInternational Petroleum Co. and oil and gas companies Zakum Development Company (ZADCO) with the Abu Dhabi Marine Operating Company (ADMA-OPCO). Department the 2016, December In of Municipal AffairsTransport and the of reintroduction the announced rent cap, which limits rent increases to 5% per year for existing Tenants. Although the need for such a law is debatable in the short term, as rents are expected to soften further, the application is likely to be welcomed in the long term as it will provide additional protection to Tenants. A housing fee of 3% of the annual rent for expatriates was also introduced in 2016. Slowdown 2016 © Asteco Property Management, 2017 • • • • • • •

Limited new supply saw rental rates and sales price increase at a moderate pace especially in 2015, in the first half of the year. Rates remained broadly stable in the latter half on the back of a drop in oil prices, which prompted a investment. in slowdown general By the end the of 2015, residential approximately comprised market 234,000 units whilst office supply stood at 3.3 million square metres of Gross Leasable Area (GLA). The flight-to-quality situation continued to put pressure on mature quality inferior and properties. Sales demand focused on completed rather than off-plan products. In the Leasing market, prime and high qualityresidential projects were the after in developments most sought achieving2015 close to full occupancy. Stabilisation 2015 • • • • • The market began to show signs of recovery with a significant increase in sales rates. and rental Several new prime and high-end projects were handed over during this period, including projects on Reem Island, Beach as well as landmarkprojects on and Abu Dhabi Main Island. With quality residential units now rates prices, low relatively at available for inferior quality stock with relatively high prices corrected. Internal Tenant movement and flight- to-quality prevailed as people took advantage of the options available. The number of Owner-occupiers gradually rose in linewith the increase in finance options offered by banks. job as up were levels Transaction security and increased market confidence resulted in tenancy upgrades and home ownership. Off-plan sales also recommenced and weresuccessful during and 2013 2014. Sales prices recorded a quick recovery of approximately 28% compared with lowest point. their The office market was relatively stable withlower quality office space showing declinesmarginal superior while units increases. slight recorded Recovery and Growth and Growth Recovery 2012-2014 • • • • • • • • •

The global financial crisis led to a rapid correction in prices, which dropped in excess of 60% from theirmarket peak in Q4 2008 to a market low by the end of 2011. With only approximately 8,000 new units entering the market over the three-year period, supply levels were still insufficient to cater to demand, which led to a slower but still substantial compared decline rental with neighbouring Dubai. As a result, a large number of Residents were priced out and forced to move to Dubai. in communities cheaper The first Master Planned developments were handed over during this period, most notably and Al Zeina at Al Raha Beach. The drop in rental rates resulted in a strong Leasing market and led to an internal Tenant movement of flight- to-quality. As rental rates decreased and quality new supply entered the market, transaction levels in Abu Dhabi picked up leading to a take-up of new residential supply in well planned projects. Whilst sales transaction levels were generally low during this period, demand increased slowly by the asend projects of 2011 began the stage.handover However, with the amount of stock available, sales prices continued to decline. Recession 2009-2011 • • • • • • •

As a consequence of rapidly growing demand coupled with undersupplied market, rental an achieved prices sales and rates unprecedented growth until the end of 2008. Most of Abu Dhabi’s buildings were of mid and low quality with residential properties commercial grosslyand undersupplied. Increased demand prompted the development numerous of launch projects as well as a speculator driven boom. With strong economic performance, the number of newcomers to the city increased quickly putting pressure on residential rates and pricing out a Residents. of number large Office demand was equally strong and many companies were unable to expand due to the lack of available space. Strong interest and slow delivery of new commercial units led to and rental of levels unprecedented sales price inflation. Overall, rental rates and sales prices reached a historical peak for all unit types and grades in 2008. Several projects were launched and sold off-plan at increasing prices. By the end of 2008, following the financial crisis, the resale market for off-plan properties came to virtual a standstill.

2002-2008 Growth • • • • • • • •

Historic Review and Outlook and Review Historic Abu Dhabi Abu ABU DHABI 4 2016 Highlights Abu Dhabi

Office Residential Abu Dhabi RealEstateReport -Q42016 highlights highlights • • • • • • • • Villas • • • • Apartments Leasing The office sales market is restricted by the limited availability of towers for sale and has hence remained broadly stable. Units available on a freehold freehold ona Tower. available ADDAX and Units Tower , stable. Infinity to broadly limited not are remained but hence has and include sale basis for towers of availability limited the by restricted is market sales office The premium. 25% ata available were ratios parking sufficient with (AED units metre whereas square per terms, 1,000 lease to 700 and AED size on of rates rental depending average foot), in square per 93 to resulted 65 This most. the affected was parking limited with buildings office for Demand plans. payment flexible more and rates rental lower units, smaller offered Landlords aresult, As requirements. space larger for especially upgrades, and take-up office in slowdown anotable witnessed Asteco 7%. by average on decreased rates rental Office year. per 450,000 AED to 320,000 AED from units bedroom five to three offering 2016, in over handed was Island, Reem on development anew Villas, Nalaya occupier. the by owned being properties of percentage alarge to due mainly was which year, the over stable relatively remained Island Saadiyat on units villa for rates Rental communities. some in levels vacancy in increase an in resulted which most, the affected been have rates, rental high recorded previously which villas, (10%). Mature area Beach Raha Al the in witnessed decrease notable most the 2016 with in average, on 5%, by declined rates rental villa apartments, to Similar year. the of half second the during primarily average, on 5%, by decreased rates rental market the of end lower the At levels. occupancy and rates rental high recorded and well fared projects Island Saadiyat existing the demand, in a lack Despite levels. vacancy in arise saw 12% and than more of drops experienced units bedroom four and three larger average, on 9%, and 6% by declined units high-end and prime Whist buildings. existing with competition increased to led which 2016, during over handed were units residential 1,400 approximately as year the over average, on 7%, by decreased rates rental Apartment and rates. However, off-plan Residential projects with attractive sales prices and payment plans have witnessed witnessed have plans payment demand. and prices positive sales attractive with projects Residential off-plan demand on However, effect rates. and negative a 2016in had allowances staff in areduction stable and cuts job relatively years, few remained last the over developments high-end for rates Whilst Capital. the sales and throughout rates rental decreased as prices sectors all across slowdown ageneral witnessed market Estate Real Dhabi Abu The Sales • • • • Villas • • • Apartments outweighed that ofoutweighed Investors. units new for demand end-user years, previous to Contrary unit. bedroom a three for foot) square 1,180 AED of per rate sales (average million 2.3 AED at started Prices nationalities. all to basis freehold on a offered townhouses, 820 of consists which One, Phase released Developer The demand. positive recorded TDIC, by launched District, Lagoons Saadiyat new The payment plans. and levels price attractive at market the in available projects new to due positive was products off-plan for demand However, units. completed for transactions of number limited a 2015, with with compared 4% by down were prices sales Villa recorded. were transactions few only although year, the throughout stable relatively remained Beach Raha Al at located projects for prices Sales rates. market below at achieved were deals of Anumber sale. for available units completed of supply of amount alimited to due mainly was This years. previous with compared lower 2016 in was activity Transaction 8%. of decline overall an reporting Island Reem with 2016, in average, on 4%, by decreased prices Sales COMMERCIAL RESIDENTIAL completed in2016 Selection of projects in 2016 Supply completed • • • • • • • and serviced apartments Abu Dhabi–480units Corniche: ADNOCHeadquarters Airport Road: BloomCentral offices Corniche: Saraya Views -122units Airport Road: Two Towers inDanet Reem Island:C21andC22–364units Reem Island:Wave Tower –229units Reem Island:NalayaVillas–42villas office space (BUA) 84,000 sqm town houses 50 villasand 1,350 apartments

Abu Dhabi Rental rates are expected to follow last year’s trend and see moderate declines in 2017. Units that were previously able to maintain rental levels due to the reluctance of existing Tenants to move are more likely to be Supply expected 2017 Outlook affected as Residents in search of value-for-money will become more frequent. High profile planned mergers are expected to lead to more job cuts and housing allowance reductions over the next few years, raising the potential for reduced demand and further declines in market rates. in 2017

Leasing Sales 2,700 apartments

• As Residents become more budget conscious, demand for larger • The anticipated delivery of new residential projects is expected to higher priced units is expected to remain low. increase investment opportunities, which in turn will have a positive effect on transaction volumes. • Around 4,000 residential units, including 2,700 apartments (with 1,360 villas and

highlights 1,650 units located in Reem Island) and 1,360 villas and townhouses • Off-plan projects offering attractive sales rates and payment plans Residential (mainly located on Yas and Saadiyat Islands), are expected to be will continue to achieve good demand levels. town houses handed over in 2017; and although delays cannot be ruled out, this will almost certainly put pressure on rental rates for existing stock.

• Whilst developments that witnessed a reduction in rents last year ABU DHABI are likely to remain stable during the first half of 2017, projects that 85,000 sq m managed to maintain rates throughout 2016 are expected to see office space (BUA) some adjustments.

• Whilst the Abu Dhabi office market will continue to see moderate declines, especially in buildings with limited parking space, rental rates in existing quality buildings with sufficient parking are expected to remain stable. Office • Demand for large offices will remain low and Landlords are expected to continue to subdivide space in order to entice new take-up. Selection of projects highlights • New prime office projects are expected to be handed over in 2017, including Al Hilal Bank Headquarters and Abu Dhabi Islamic Bank Headquarters, which are likely to affect vacancy levels on the back of low demand. expected in 2017

RESIDENTIAL • Reem Island: 8 Towers – 1,650 units • Rawdhat Abu Dhabi: 3 buildings – 340 units • Bateen: Abu Dhabi Marina – 255 units • Saadiyat Island: Hidd Al Saadiyat Phase 1 - 488 villas • : Yas West – 500 villa

COMMERCIAL • Maryah Island: Al Hilal Bank Headquarters • Airport Road: ADIB Headquarters

© Asteco Property Management, 2017 5 ABU DHABI (All figuresinAED000’sp.a.) Apartment Rental Rates Abu Dhabi % Change since market low (2012) low market since % Change % Change since peak (2008) peak since % Change Investment areas Investment Annual % change Abu DhabiAbu Island MID AND LOWER END PROPERTIES Average Investment areas Investment Off Island Off YEAR TYPE Abu DhabiAbu Island HIGH END PROPERTIES Investment areas Investment Abu DhabiAbu Island PROPERTIES PRIME Reef Downtown Reef Central Dhabi Abu Khalidya /Khalidya Bateen Corniche Marina Square Beach Raha Al Shams Dhabi Abu Saadiyat Beach MBZ & A City &Khalifa MBZ Khalidya /Khalidya Bateen Corniche Central Dhabi Abu 2008 145 155 155 165 185 185 165 ------2009 -32% 120 120 111 135 135 110 85 75 ------2010 -15% 100 110 120 120 70 95 95 55 90 ------11% 2011 110 120 60 75 80 85 95 40 90 95 80 - - - - 1 BEDROOM -40% 2012 19% 100 130 125 -2% 60 55 65 70 83 80 95 40 85 85 85 - 2013 14% 100 110 110 105 105 130 125 70 70 80 80 94 85 60 85 2014 101 100 110 115 120 120 120 140 125 8% 80 75 80 80 65 90 2015 105 105 115 115 130 123 120 145 128 4% 83 76 81 86 70 95 2016 110 120 113 145 123 -7% 79 75 79 85 98 98 98 70 90 90 2008 215 225 225 246 280 280 250 ------2009 -45% 120 130 145 135 160 160 140 90 ------2010 100 130 145 131 155 160 160 140 -3% 60 ------2011 120 121 145 130 140 155 130 165 -8% 80 95 45 - - - - 2 BEDROOMS -44% 2012 21% 100 100 113 140 110 130 125 125 110 165 156 -6% 2016 yearly 2016 yearly 75 90 45 % change - -7% 2013 15% 100 105 110 130 150 130 150 150 155 135 135 165 165 85 85 2014 100 105 120 120 141 155 140 175 155 160 150 145 180 175 8% 90 apartments -6% 2015 Prime Prime 104 103 125 121 146 161 148 179 154 168 153 150 193 191 4% 95 2016 103 103 115 111 137 155 133 174 143 146 138 139 185 178 -6% 94 2008 265 325 325 323 365 365 290 apartments ------High end end High -9% 2009 -45% 145 175 170 179 115 230 240 175 ------2010 145 175 170 178 205 230 240 175 -1% 80 ------end apartments Mid and lower lower and Mid -5% 2011 110 155 125 162 200 165 190 225 160 220 -9% 70 - - - - 3 BEDROOMS -45% 2012 20% 130 110 148 185 140 165 155 180 130 250 230 -9% 90 90 65 - 2013 18% 100 140 155 135 175 190 170 190 170 110 210 225 165 255 235 2014 145 170 145 189 200 175 210 195 120 215 245 175 130 255 265 8% 2015 148 165 146 194 205 185 233 193 126 213 243 177 130 275 275 3% 2016 133 148 138 177 190 175 213 173 124 190 203 170 120 248 253 -9% ABU DHABI 7 - -8% 247 310 450 180 305 250 165 233 220 2016 - -3% 267 320 450 190 325 290 180 255 240 2015 - 5% 276 320 400 190 325 290 180 265 245 2014 - 4% 263 320 400 170 325 285 185 250 270 2013

- - 3% 1% 253 400 150 340 270 170 240 255 -51% 2012 offices 0% Standard 5 BEDROOMS - - - -5% % change 244 175 335 270 180 260 280 -12% 2011 2016 yearly2016 © Asteco Property Management, 2017 - - - -2% 278 165 345 260 220 345 330 2010 offices - - - - - 285 240 255 315 325 -12% -43% 2009 Prime Grade A * Includes developments such as , Aldar Ittihad Towers, Towers, Nation Tower, International HQ, Capital Plaza, Capital Gate, etc. - - - - - 504 475 445 535 530 2008 - -4% 211 250 375 163 253 218 150 185 195 2016 - 2% 219 263 375 168 260 245 150 185 225 2015 84 83 67 79 -7% 104 2016 - 0% 214 255 330 160 260 243 150 190 230 2014 - 3% 214 255 295 150 255 210 170 190 240 3% 2013 90 67 79 95 118 2015 - 2% 4% 208 300 305 125 260 200 135 210 230 -51% 2012 4 BEDROOMS - - - 0% 87 67 79 91 -9% 203 155 285 210 150 230 225 111 2011 2014 - - - 224 140 200 210 180 260 310 -13% 2010 - - - - - 0% 87 65 79 91 114 257 230 205 270 290 2013 -41% 2009 - - - - - 433 420 400 455 460 2008 87 65 81 91 -4% 111 2012 -14% -63% -3% 174 105 205 310 140 220 183 133 170 185 2016 2% 180 103 255 310 145 225 193 133 170 185 2015 65 98 101 107 135 2011 -16% 90 0% 178 250 295 135 225 190 135 180 185 2014 90 6% 177 250 295 120 210 175 130 195 185 2013 93 121 111 125 156 -21% 2010 - 1% -3% 168 220 275 105 190 165 100 170 190 -54% 2012 3 BEDROOMS - - - 173 130 240 175 125 180 210 -14% 2011 - 154 129 154 179 -32% 2009 - - - 202 115 265 185 155 220 235 -13% 2010 - - - - - 233 205 190 235 275 -38% 2009 - - 228 135 228 320 2008 ------378 380 360 390 395 2008 p.a.) 2

Annual and change and Annual % Change since peak (2008) % Change since market low (2012) Average Typical MATURE STOCK MATURE Good quality Prime shell and core RECENT BUILDINGRECENT Prime fitted* TYPE YEAR % Change since market low (2011) % Change since peak (2008) Annual % change % Annual Average Hydra VillageHydra Al Raha Beach Saadiyat BeachSaadiyat Al Reef Al Golf Gardens Golf Al Raha Gardens Khalifa A & B Mushrif / Karama / Manaseer / Karama Mushrif / Khalidiya / BateenKhalidiya / TYPE YEAR

(All figures in AED per ft Abu Dhabi Rates Rental Office

Villa Rental Rates Rental Villa Abu DhabiAbu (All figures in AED 000’s p.a.) (All figures in AED ABU DHABI 8 Villa SalesPrices Abu Dhabi Apartment SalesPrices Abu Dhabi AED per ft2 AED per ft2 2008 2008 Abu Dhabi RealEstateReport -Q42016 1,190 2,000

900 1,025 Marina Square 2009 2009 Raha Gardens 825 1,025

770 1,000

730 965 2010 2010 890 1,175

1,115 1,375 2011 2011 1,115 1,375

1,050 1,250 2012 2012

1,200 1,750 2013 2013 860 Raha Beach/AlBandar 1,350

Golf Gardens 850 1,300

2014 810 2014 1,225

770 1,100

870 1,425 2015 2015 1,020 1,550

1,020 1,650

2016 960 2016 1,700

950 1,750 Raha Beach/AlMuneera 600 1,100

560 900 Al ReefVillas 520 975

540 925

745 1,175

845 1,425

836 1,500

800 1,500

1,750 Raha Beach/AlZeina

Saadiyat BeachVillas 1,100

900 (Standard) 1,015

930 2016 yearly 2016 yearly

1,375 % change 1,175 -4% 1,550 1,200

1,550 1,300

1,550 1,300 Reef Downtown Hydra Village 500

550

600 825

660 1,000

660 1,025

630 975

2.450

1,250 Sun &SkyTowers 1,250

1,130

1,050 2016 yearly 2016 yearly

1,325 % change -4% 1,475

1,500

1,400 The Gate

1,175

1,475

1,500

1,375 ABU DHABI 9 33 21 11 9 © Asteco Property Management, 2017 11 11 24 14 10 5 YAS 1 ISLAND 23 7 22 26 20 8 4

29 38 30 36 12 19 37 15 18 35 33 3 32 34 31 28 25 6 27 16 13 22 17 2

Most expensive Expensive Mid priced Affordable

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

Al Bandar – Raha Beach Al Bateen Wharf Al Gurm Al Maqtaa Al Muneera – Al Raha Beach Al Nahyan Camp Al Raha Gardens Al Rayanna Al Reef Al Zeina – Al Raha Beach Baniyas Bateen Airport Area Bateen Area Bawabat Al Sharq Capital District (ADNEC) CBD / Tourist Club Area Corniche Danet Abu Dhabi Eastern Mangroves Golf Gardens Hydra Village Khalidia / Al Hosn / Al Manhal Khalifa City A Khalifa City B Maryah Island MBZ City Mina Mushrif / Karama / Manaseer / Muroor Officer’s City Rawdhat Abu Dhabi Reem Island - Marina Square Reem Island – Najmat Abu Dhabi Reem Island – rest of Reem Island – City of Lights Reem Island – The Gate District Rihan Heights Saadiyat Beach District The Hills 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38

Property MapProperty Abu DhabiAbu Al Ain Historic Review and Outlook

Growth Recession Recovery and Growth Stabilisation Slowdown 2002-2008 2009-2012 2013-2014 2015 2016

• The Al Ain Real Estate market • The residential sector saw a rapid • Overall, the Al Ain market saw a • Although apartment and villa rental • The Al Ain market witnessed a experienced a period of growth as drop in rental rates in early 2009, a remarkable growth during this period rates increased by 3% and 10%, decrease in demand in the residential demand increased for residential and trend that continued up until the end especially in the residential sector. respectively throughout 2015; towards and office sectors during 2016. commercial units. of 2012. the end of the year, low oil prices • The delivery of new quality villa led to a reduction in government • The reduction in staff housing • The rise in residential rental rates in • Apartment and villa rental rates projects led to high demand that spending in the UAE as a whole, and allowances coupled with jobs cuts neighbouring Dubai and Abu Dhabi, decreased by 46% and 29% positively affected rental rates, which thus a slowdown in the Al Ain Real across several government related had a knock-on effect on rates in Al respectively, from their peak in 2008 increased by 25%, on average, from Estate market activity. departments were the main factors Ain due to a large number of residents until the end of 2012. 2012 to 2013. affecting market performance. moving to lower priced units in the Emirate. • The office sector followed a different • Apartment rental growth was, • Residential rental rates dropped trend as rental rates continued to however, slower and recorded between 5% and 6% during the year, increase until 2010, but declined increases of 9% over the same period. with larger, older units faring the thereafter. This was mainly due to a worse. • Office rates continued to decrease AL AIN general lack of supply at the time. due to the delivery of new office • Several residential buildings were supply, which affected occupancy delivered in 2016, including 365 units rates on existing low quality stock; in the Hazza Bin Zayed (HBZ) Stadium which was predominantly located in Development, which recorded good commercial villas. demand levels.

10 Abu Dhabi Real Estate Report - Q4 2016 Al Ain Generally, Real Estate activity in the Al Ain market was relatively slow in 2016, pronounced by an increase in vacancy rates in several residential buildings. However, the recently delivered high quality units in the HBZ Stadium Development saw positive demand levels, especially Selection of projects Highlights and Outlook due to the lack of similar quality Real Estate in the city. completed in 2016

RESIDENTIAL 2016 Highlights 2017 Outlook • Hazza Bin Zayed Stadium Development: 365 apartments • On average, apartment and villa rental rates decreased by 5% and 6%, • The residential market in Al Ain is expected to correct further, especially • Asharej: 4 buildings – 45 apartments respectively. It should be noted, however, that this drop was mainly overpriced mature units. • Town Center: 4 buildings – 50 apartments applicable to vacant units. • The villa market will continue to remain under pressure, particularly smaller • Whilst rental rates for three-bedroom units remained relatively stable due two and three-bedroom units, which are usually occupied by expatriates

highlights COMMERCIAL

Residential to several villa occupiers moving to more affordable apartment units, one who are more willing to move to affordable apartments. • Hazza Bin Zayed Stadium Development: Offices and two-bedroom apartments experienced larger rental declines.

• The new stadium’s residential buildings offered high quality apartments, which resulted in high demand and rental rate levels that recorded premiums of 20% to 30% compared with existing stock.

• Demand for new office space was particularly low, especially in mid and low • Rental rates for office space will continue to soften as a result of a quality buildings with limited parking spaces. As a result, office rates have reduction in market activity.

decreased by 5%, on average, in 2016. AL AIN

Office • Demand for larger units, in particular, is expected to suffer as no major new • Rental rates for superior units were stable over the year, however, limited companies are thought to be expanding or entering the market in 2017. highlights new take-ups were witnessed. • The retail market has been relatively stable over the last three years. • Retail market activity will remain steady, especially for existing malls. Selection of projects • However, rental rates for strip retail, which predominantly comprises low • The retail component of the HBZ Stadium Development is expected to be Retail quality space, have decreased by 7%, on average, in 2016. Senaya area completed in 2017, which is likely to increase demand for the residential expected in 2017 recorded the highest drop by approximately 25%. and commercial units. highlights RESIDENTIAL • Hazza Bin Zayed Stadium Development: 192 units • Town Centre: 3 buildings – 50 units

COMMERCIAL • Hazza Bin Zayed Stadium Development: Retail component • Town Centre: 7 buildings with 2,000 sqm Office BUA, and 500 sqm Retail BUA

© Asteco Property Management, 2017 11 AL AIN 12 (All figuresinAED000’sp.a.) Villa Rental Rates (All figuresinAED000’sp.a.) Apartment Rental Rates Al Ain % change since market low (2012) low market since % change % change since peak (2008) peak since % change Annual % change Average 3BR 2BR 1BR NEW UNITS 3BR 2BR 1BR MATURE UNITS YEAR TYPE YEAR TYPE Town Centre MATURE UNITS Others * Others Zaker Al TowayaAl Al Jimi Town Centre NEW UNITS Others * Others Zaker Al TowayaAl Al Jimi Average Annual % change % change since market low (2012) low market since % change (2008) peak since % change Abu Dhabi RealEstateReport -Q42016 2008 115 115 105 110 120 2008 70 70 65 75 70 92 73 95 75 60 90 70 50 2009 -15% 105 60 60 55 65 60 95 95 85 95 78 2009 -17% 61 85 65 50 75 55 35 2010 -11% 60 60 55 65 60 80 80 65 85 80 69 -18% 2010 50 73 58 38 60 45 25 AVERAGE APARTMENT RENTAL RATES 2011 -14% 55 55 50 60 55 65 65 55 70 65 60 3 BEDROOMS -17% 2011 41 55 45 28 53 43 23 2016 yearly %change 2016 yearly 2012 -18% 35% -7% 50 50 45 50 50 65 65 50 65 65 56 -6% -37% 2012 16% -4% 2013 40 58 45 28 48 35 23 28% 65 65 65 70 65 75 75 75 80 75 71 2016 yearly 2016 yearly % change -5% 2014 18% 2013 83 83 75 80 83 88 88 80 93 88 84 9% 43 63 45 32 51 39 29 2015 -4% 78 78 75 80 78 83 83 80 93 83 81 2014 8% 47 65 48 38 53 43 33 2016 -8% 68 68 68 73 68 78 78 78 93 78 75 2015 4% 49 68 52 38 56 45 33 2008 125 120 115 130 120 104 95 85 75 85 85 2016 -5% 49 67 45 36 54 43 31 2009 115 115 125 115 -9% 80 75 70 80 75 95 95 2010 100 100 105 100 -8% 75 75 70 80 75 90 87 AED per m2 p.a. Office RentalRates 2008 2011 100 -7% 850 70 70 65 80 70 90 90 85 90 81

4 BEDROOMS 1,050

Khalifa Street 1,050 2009 2012 -13% 22% -9% 65 65 60 65 65 85 85 75 85 85 74 1,100 975 2010

2013 850 21% 100 100 100 105 100 75 75 75 85 75 89 850 800 2011 2014 12% 110 110 110 110 100 95 95 75 95 95

98 750 2012

2015 950 105 105 105 105 -4% 90 90 75 93 90 98 96 Aud AlToubaStreet 1,000 1,125 2016 2013

-6% 1,075 83 83 78 93 83 98 98 85 98 98 90 925 850 2008 2014 100 140 140 135 140 140 117 95 95 85 95 850 800

2009 750 2015 135 135 100 135 135 108 -7% 90 90 75 95 90

950 2010 2016 125 125 115 130 125 107 -1% 90 90 85 95 90 950

Main Street 1,150

2011 1,100 110 110 105 120 110 -8% 85 85 80 95 85 99 975 5 BEDROOMS 850 2016 yearly 2016 yearly 2012 33% 105 105 105 105 -6% % change 6% 850 85 85 80 85 85 90 93 -5% 800 750 2013 27% 105 105 105 110 105 130 130 130 135 130 119

800 2014 15% 125 125 105 125 125 155 155 128 160 155 136 800

Senaya Street 900 900 2015 122 122 105 115 122 145 145 128 150 145 130 -4% 550 500

2016 500 113 113 105 110 113 135 135 128 150 135 124 -5% 500 500 AL AIN 13 Um Ghafah Al Dhahir Al Shuwaimah Al Khrair SULTANATE OF OMAN Aflaj

© Asteco Property Management, 2017 Emirates St Emirates Al Sarooj Zayed Bin Sultan St.

Al Foaa Ardh Jow St Jow Ardh Town Centre Defence Hili

Al Buraimi Baniyas St Baniyas

Al Mohd Bin Khalifa St Khalifa Bin Mohd Mutawa’a Al Oattara Al Jahili Jebel Hafeet Al Masoudi Al Mutaredh Al Jimi Zoo District Falaj Hazza’a Neima Al Muwaiji Al Towaya

Al Khabisi Khalifa Bin Zayed St. Zayed Bin Khalifa East Airport District Al Aqabiyya Zaker Asharej Al Markhaniya Al Shuaibah Al Dahmaa

Al Maqam Khalifa Bin Zayed St. Zayed Bin Khalifa Al Bateen Al Qisais Al Ain Airport International Gharebah

Al Salamat District

Al Yahar North Al Yahar South

Property Map Property Al Ain 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 Middle East’s largest full service Real The professional services Asteco conducts throughout the region include: Estate services company, Asteco was • Consultancy & Advisory services formed in Dubai in 1985. Over the years, • Market research • Valuation services Asteco has gained enormous respect for consistently delivering high quality, SALES professional, value-added services in Asteco has established a large regional property sales division with representatives based in the UAE, Qatar a transparent manner. It is also widely and Jordan. Our Sales teams have extensive experience in the negotiation and sale of a variety of assets. recognised for its involvement with many of the projects that have defined the LEASING Asteco has been instrumental in the Leasing of many high-profile developments across the GCC. landscape and physical infrastructure of the Emirates. ASSET MANAGEMENT Asteco has an essential combination Asteco provides comprehensive Asset Management services to all property Owners, whether a single unit (IPM) of local knowledge and international or a regional mixed-use portfolio. Our focus is on maximising value for our Clients. expertise. A deeply established brand, renowned for its application of the latest OWNERS ASSOCIATION technological advances, its commitment to transparency, winning strategies and 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 human expertise. Undisputed Real Estate throughout the GCC Region. experts, Asteco represents a significant number of the region’s top property SALES MANAGEMENT Owners, Developers and Investors. 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.

14 Abu Dhabi Real Estate Report - Q4 2016 John Allen John Stevens BSc, MRICS MSc, BSc (Hons), MRICS Director - Valuation & Advisory Managing Director/Director - Asset Services +971 600 54 7773 +971 600 54 7773 [email protected] [email protected]

Ghada Amhaz James Joughin MSc BSc (Hons), MRICS Manager - Research and Advisory, Abu Dhabi Associate Director - Valuation +971 2 626 2660 +971 600 54 7773 [email protected] [email protected]

Tamer Ibrahim Chaaban Jenny Weidling BE BA (Hons) Branch Manager - Al Ain office Manager - Research and Advisory, Dubai +971 3 7666097 +971 600 54 7773 [email protected] [email protected]

© Asteco Property Management, 2017 15 ABU DHABI DISCLAIMER: The information contained in this report has beenthe accuracy obtained from or completeness and is based upon of the sources information that Asteco contained Property herein,principals.Management and same is submitted believes Asteco to Property be subject reliable, to however, errors, Management no warranty omissions, will not be or held representation, change responsiblesubject of price, rental to for change any expressed third-party or without other conditions, or implied, notice. contributions. Figures is withdrawal made to contained without All in this opinions report notice,care and and are and estimates derived attention to any special from included has listing a basket been used of in locations this conditions in the report preparation highlighted constitute imposed of forecast by our in this Asteco report information.because Property and therefore they However, Management’s relate represent actual to future a snapshot results events judgment, of and the may circumstances UAE vary as market. of the from date of forecasts Averages, this report which however, areManagement beyond and and any are represent variation Asteco LLC. Commercial a wider Property may range be materially License of areas. Management’s Paid-up Due No. 218551. positive Capital control. or negative. AED 4,000,000. For a full Forecasts, in-depth study by their of very the market, nature, please involve contact risk and Asteco uncertainty Property Management’s Research team. Asteco Property © Asteco Property Management, 2017 Q4 2016 Abu Dhabi Real Estate Report Real Dhabi Abu