REAL ESTATE SERVICES

ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 2015 Q3 2015 RENTAL INDEX | REAL ESTATE MARKET OVERVIEW RENTAL INDEX | ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 2015

FOREWORD MPM PROPERTIES FACTS AND FIGURES ADIB Real Estate Services comprises a comprehensive real estate banking and advisory platform providing the full range of professional services from a single provider. Our services include:-

„„ Real estate financing „„ Valuation „„ Strategic development advisory „„ Agency „„ Investment advisory „„ Market research „„ Asset management „„ Property management „„ Project management „„ Facilities management

One of the aims of this report is to aid with improving market transparency by basing our analysis wherever possible on primary transactional evidence derived from our own managed portfolio and from the analysis of our sales and home financing activities. We believe that this adds credibility to the analysis and we hope provides confidence in its reliability. REPORT HIGHLIGHTS Residential

Property values in the residential market have remained stable in There are a number of office developments which are Q3, reflecting low transaction volumes in the secondary market. close to entering the market, including the ADIB HQ Tower 2 situated on Airport Road, Maryha Tower on The low transaction volumes are a product of three factors:- Maryha Island, developed by Al Hilal Bank and the Al Qudra HQ at Khalifa Park, which together will add 1) Weaker investor sentiment due to the impact of approximately 60,000 sqm of net leasable space. lower oil revenues which has seen a period of price stagnation in Abu Dhabi and prices falling in . Retail Sector CONTENTS 2) A lack of availability of good stock, as owners The retail sector has witnessed no major supply entering remain unmotivated to sell in the current market, the market in Q3 with the majority of new supply with many enjoying healthy rental yields. comprising ancillary “street retail” on Abu Dhabi Island Demand Drivers 4 and mainland. This in turn is allowing the retail malls to Macro Trends 6 3) The increase in off-plan investment opportunities focus on increasing their foot-falls by attracting tourists Residential Sector 8 offering attractive payment plan terms is diverting and residents in an increasingly competitive environment. some liquidity into this segment of the market. Project in Focus 16 Retail rents across Abu Dhabi malls have remained Office Sector 18 There is evidence that rents may be approaching their ceiling stable during Q3 2015, although some mall Retail Sector 22 level at the top end of the market demonstrated by modest tenants are requesting rental reductions at Hospitality Sector 24 growth of only 1% in the last 3 months despite a low level lease renewal, driven falling revenues witnessed Definitions & Methodology 28 of vacancy and new supply in the high-end/luxury sectors. by small retail stores during Q3 2015. Developments in this segment have experienced year on Contact Information 29 year growth of between 7 to 10% hence many tenants Hospitality Sector Supply - Photo Gallery 30 are still facing sizeable increases at lease renewal. Development Location Map 32 Growth in guest arrivals into Abu Dhabi (up by 22% in Q2 Office 2015 vs. Q2 2014), driven mainly by growth in tourists from China (68%), US (30%), Philipines (29%) and KSA (27%). The commercial office market remains subdued and has seen low leasing activity during the last quarter. The hospitality sector is gearing up for the opening of Although demand has declined, particularly from the Lourve Abu Dhabi, which is expected to increase the government sector, this has been balanced by a lack number of tourist arrivals into Abu Dhabi. of new supply entering the market, which has resulted in marginal rental increases of between 1-3%.

2 3 Q3 2015 | DEMAND DRIVERS REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 2015 | DEMAND DRIVERS

DEMAND DRIVERS – Q3 2015

GOVERNMENT INITIATIVES REAL ESTATE AND CONSTRUCTION - „„ In line with the directives of President His placing it firmly in the ranks of the world’s elite CREATING JOBS Highness Sheikh Khalifa bin Zayed Al Nahyan innovation-based economies and His Highness Sheikh Mohamed bin Zayed „„ Reem Mall, ($1 billion project) is on target to complete by mid- comprising 10-storeys with 302 homes ranging from studios to Al Nahyan, Crown Prince of Abu Dhabi, Deputy „„ The UAE will introduce new labour reforms 2018 after Abu Dhabi’s Urban Planning Council (UPC) granted three-bedroom apartments, town houses and penthouses as well Supreme Commander of the UAE Armed Forces aimed at tightening oversight of employment approval for its concept plan. The mall is being developed by as shops and offices next to New York University’s Saadiyat campus and Chairman of Abu Dhabi Executive Council, agreements for the millions of temporary Kuwait’s National Real Estate Company alongside the United new housing loans worth AED2,404 billion for migrant workers who make up the bulk of the Projects for Aviation Services Company (Upac). Upac, through its „„ Gulf Related is about to begin construction on Al Maryah Central, 1,202 beneficiaries have been approved in the country’s workforce. The reforms are being subsidiary Al Arfaj Real Estate, is investing up to $224 million in the a 2.3 million square foot super-regional shopping center. implemented through three decrees that will project which will compose 2 million sq.ft. of space including 450 Australian contractor Brookfield Multiplex was awarded a $425 take effect on January 1. Three new labour stores, and 85 food and beverage outlets million contract to build the Al Maryah Central mall in Abu Dhabi „„ According to the World Economic Forum’s rules issued by the Ministry of Labour include Global Competitiveness Index, UAE has moved ministry-approved contracts, conditions for „„ Bloom Properties, the Abu Dhabi-based developer, owned by the to 17th position from 37th position in 2007 terminating employees and labour permits to Abu Dhabi conglomerate National Holding, launched Soho Square, as the most competitive nation in the world, work for new employers

TOURISM INITIATIVES

„„ The Ministry of Interior has launched a 90 days visit visas run until May next year and includes performances by well-known OIL & GAS accessed, either via the ministry website www.moi.gov.ae or its names in western and eastern classical music under the theme smartphone app Music and Poetry, exploring how the genres blend „„ The Shah gas project, which is being developed from the US with total investment estimated by Al Hosn company to tap sour gas in the to be around $10 billion (Dh36.7 billion). The „„ 26 events spread across eight-months have been announced by „„ Under the patronage of Sheikh Mansour bin Zayed, Deputy Prime Western region of Abu Dhabi has reached its Shah gas project located about 210 kilometers The Abu Dhabi Tourism and Culture Authority around the capital, Minister and Minister of Presidential Affairs, Abu Dhabi is to host full capacity. Al Hosn is a 60-40 joint venture south-west of Abu Dhabi is expected to in the Liwa desert and in . The Abu Dhabi Classics season will Red Bull X-Fighters World Tour finale on October 30 between Abu Dhabi National Oil Company contribute significantly to the energy needs of (Adnoc) and Occidental Petroleum (Oxy) the UAE for over 30 years

FREEZONES SIGNING UP NEW TENANTS; FORMING KEY ALLIANCES KEY EVENTS „„ has signed a standard Musataha agreement „„ Abu Dhabi Ports signed a standard Musataha agreement (SMA) (SMA) with Al Gharbia Pipe Company to open a new pipe with Al Mazroui International Cargo Company (MICCO) to „„ Ramadan and Eid Festival „„ Abu Dhabi Summer Season manufacturing facility at Khalifa Industrial Zone Abu Dhabi establish a new Logistics Business Centre at Khalifa Industrial 7th July – 28th July 11th June – 5th September (Kizad). The agreement will see Al Gharbia Pipe Company invest a Zone Abu Dhabi (Kizad). MICCO’s new Centre will be built in three projected total of AED 1.1 billion, with their new facility requiring phases and will cater to MICCO’s temperature controlled storage „„ Eid al-Adha Exhibition „„ Stories a plot size of 200,000 square metres. Al Gharbia Pipe Company, a facilities, bulk storage through open yards, distribution services, 10th September – 21st September 21st June – 30th August at Manarat Al Saadiyat joint venture between Senaat, one of the largest industrial holding and a service centre for their trucking fleet. The first phase will see companies in the UAE, and two of Japan’s leading steel firms, JFE MICCO, a leading freight contracting company in the UAE and „„ Abu Dhabi International Hunting and Equestrian Steel Corporation and Marubeni-Itochu Steel Inc. (MISI), expects one of the oldest logistics service providers in Abu Dhabi, invest Exhibition (ADIHEX) - 9th – 12th September the facility to be completed by March 2018. The plant will employ an initial AED 35 million. Their new facility, requiring a plot size of over 370 staff and is expected to produce 240,000 tons of steel 30,000 square metres, is expected to be ready by Q4 2016 and pipe a year fully operational by January 2017

4 5 Q3 2015 | MACRO TRENDS REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 2015 | MACRO TRENDS

MACRO TRENDS STOCK MARKET vs OIL vs GOLD

350 300 250 REAL GDP GDP GROWTH GROWTH RATE RATE 2014-2018 2014-2018 ABUABU DHABIDHABI REAL REAL GDP GDP FORECAST FORECAST 2014-2018 200 2014-2018 150 Wholesale and retail trade; repair 100 6.8% 6% of motor vehicles and motorcycles 50 Accommodation and food 5% 10.0% 0 service activities 4% Manufacturing 10.0% Jan-11 Jan-12 Jan-15 Jan-13 3% Jan-14

5.2% 5.5% Sept-15 Transportation and storage 11.1% 2% Abu Dhabi Murban Gold Abu Dhabi Stock Dubai Stock Index and communications Crude Oil Market Index 1% Financial and insurance activities 15.0% 0% 0% 3% 6% 9% 12% 15% 2013 Avg. 2014-2018 Source: DED Source: DED Source: DEDSource: DED CPI vs RENTAL CONTRIBUTION TO CPI ABU DHABI CITY - BUSINESS LICENCE NUMBERS

120 20,000

CONSUMER CONFIDENCE INDEX BUSINESS CLIMATE INDEX 15,000

80 10,000 200 100

5,000 70 80 150 Q1 2011 Q1 2012 Q1 2015 Q1 2013 60 Q1 2014 Q2 2015 Jul 2012 Jul 2015 Jul 2013 Jul 2014 Jan 2012 Jan 2015 Jan 2013 Jan 2014 Aug 2015 Aug Q2 2011 Q3 2011 Q4 2011 Q1 2010 Q2 2012 Q3 2012 Q2 2013 Q3 2013 Q2 2014 Q4 2012 Q3 2014 Q4 2013 Q2 2010 Q3 2010 Q4 2014 CPI Rental Contribution to CPI New Business Licences Q4 2010 Business Licence Renewals

100 50 Source: SCAD and MPM Properties Research Source: DED Q1 2011 Q1 2011 Q2 2011 Q1 2012 Q1 2015 Q1 2013 Q3 2011 Q2 2011 Q1 2012 Q1 2015 Q3 2011 Q1 2013 Q1 2014 Q4 2011 Q4 2011 Q1 2014 Q1 2010 Q1 2010 Q2 2012 Q2 2015 Q2 2013 Q3 2012 Q2 2012 Q2 2015 Q3 2012 Q2 2013 Q3 2013 Q3 2013 Q2 2014 Q4 2012 Q4 2012 Q2 2014 Q4 2013 Q3 2014 Q4 2013 Q3 2014 Q2 2010 Q2 2010 Q3 2010 Q3 2010 Q4 2014 Q4 2014 Q4 2010 Q4 2010 Source: DED Source: DED REALTY STOCK INDEX ABU DHABI vs DUBAI

20,000 BUSINESS CYCLE INDEX 15,000

Decreases in both oil prices and the general index of Abu Dhabi’s stockmarket, affected the value of the 10,000 Business Cycle index during the 4th quarter of 2014, signalling some uncertainty amongst those participants who were surveyed on the performance of the economy in 2015. 5,000 120 0 Jul-11 Jul-12 Jul-13 Jul-14 Jan-11 Jul-10 Jan-12 Jan-15 Jan-13 Jul-07 Jan-14 Jul-08 Jan-10 Jul-09 Jan-07 Jan-08 Jan-09 100 Sept-15 Dubai realty index Abu Dhabi realty index

Source: Bloomberg and MPM Properties Research 80 Q2 Q2 Q2 Q2 Q2 Q3 Q3 Q3 Q3 Q3

Q4 Q4 Q4 Q4 Shorooq Abdulla Al Zaabi Q4 Head, Development Indicators Q1 2011 Q1 2012 Q1 2015 Q1 2013 Q1 2014 Q1 2010 & Future Studies Division Q2

Abu Dhabi Department of Economic Development 6 7 Q3 2015 | RESIDENTIAL SECTOR REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 2015 | RESIDENTIAL SECTOR MARKET OVERVIEW Q3 2015

RESIDENTIAL SECTOR THE ADIB RENTAL INDEX

„„ In the last 3 months MPM Properties have „„ There are exceptions where rents have renewed close to 2,700 tenancy contracts in increased by over 20% and in some cases SUPPLY Abu Dhabi on behalf of landlords, and granted much higher, however such cases are very over 252 new leases limited (representing in overall terms less than 5%-7% of the portfolio) and relate New supply „„ ADIB Rental Index continues to show, that predominantly to the bottom end of the rental across its portfolio, the common rental change market typically with rents below AED40,000 The most significant new supply that entered the rental small infill developments have completed in the last trend is 0 to +5% increase during the last per annum. These exceptional increases have market this quarter was the release of 900 apartments three months, including Plot C9 in Sector E-25 and 3 months. We expect the rents to continue impacted the overall Q-on-Q average change in Gate Towers, which had remained vacant since the Plot C149 in Sector E-19/2 on the main Abu Dhabi growing as the market is witnessing limited for each zone project was handed over. Also on Reem Island, Sea Island in addition to Plot C49 in Sector ME-9 in residential supply entering in the prime areas View Tower which is situated on was Mohammed Bin Zayed City, which together have of Abu Dhabi handed over in September, comprising 280 apartments added just over 100 apartments. which have all been leased to Etihad. A number of

ADIB INDEX (see map at end of report)

ABU DHABI NEW HOUSING SUPPLY ZONE < 0% 0% to 4.99% 5% 5% to +9.99% 10% to +19.99% 10% to +19.99% 15,000 A 0% 71% 12% 9% 6% 2%

12,000 B 0% 71% 12% 9% 8% 1%

2,013 5,945 C 0% 44% 15% 25% 12% 4% 9,000 4,691 5,371 D 0% 54% 12% 18% 9% 7% 2,925 4,604 6,000 3,077 3,732 3,212 3,970 379 E 0% 75% 6% 3% 9% 6% 2,215 391 3,769 1,613 140 3,000 5,135 675 1,845 1,953 396 3,755 F 0% 54% 10% 15% 18% 3% 2,221 2,863 2,411 2,371 1,015 632

Number of residential units of residential Number 0 G 0% 57% 23% 11% 3% 6% 2010 2011 2012 2013 2014 2015 2015 Q4 2016 2017 Q1-Q3 H 0% 63% 9% 13% 13% 3% On-Island Off-Island Investment Area I 0% 54% 20% 26% 0% 0% Source: MPM Properties Research J 0% 60% 13% 20% 7% 0% K 1% 58% 13% 22% 1% 5%

CUMULATIVE RESIDENTIAL SUPPLY 3.11% 2.61% 3.95% 2.30% 0.40% 5.37% 239,102 245,348 250,000 6.19% 225,781 230,964 231,879 5.68% 3.54% 217,193 4.05% 206,121 194,101 ADIB RENTAL INDEX NOTES 187,473 200,000 177,400

150,000 „„ The ADIB Rental Index relates to the „„ The ADIB Rental Index has been compiled 100,000 performance of the ADIB portfolio only and the with a view to enhancing transparency in the data is derived exclusively from transactions Abu Dhabi real estate market and to provide 50,000 completed by MPM Properties. a credible market indicator for rental trend

Number of Units Residential 0 movements. Pre 2010 2011 2012 2013 2014 2015 2015 2016 2017 „„ The ADIB Portfolio in Abu Dhabi comprises 2010* Q1-Q3 Q4 over 12,000 units (70% apartments, 30% „„ Rental Index Zones are identified on the Map Total Supply *per UPC villas) with a spread of quality and locations located at the end of this report. both on the Abu Dhabi Island and the growing Source: MPM Properties Research Off-Island areas.

8 9 Q3 2015 | RESIDENTIAL SECTOR REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW

RESIDENTIAL SECTOR

APARTMENT SALE PRICES RESIDENTIAL DEMAND

Property values in the residential market have in attractive rental yields. The low transaction volumes MPM has witnessed a decline in sales enquiries during payment plan terms is also diverting some liquidity overall terms remained stable in Q3, reflecting are, in part, due to a lack of availability of good the last quarter and a corresponding fall in sales into this segment of the market. low transaction volumes in the secondary market. quality stock, as owners remain unmotivated to sell transactions closing in the secondary market. This The only exception has been Al Reef Downtown in the current market, with many enjoying healthy could be attributed in part to the summer holiday Analysis of MPM sales leads shows demand is where values have risen by up to 5% for some unit rental yields. period, which traditionally sees a decline in market heavily focused towards properties priced at less types, highlighting that investor demand is weighed activity, although sustained price stagnation and than AED 2 million, comprising almost 60% of all our towards the affordable end of the market driven by falling prices in Dubai is also having an impact on enquiries (39% of which are looking for properties investor sentiment (both buyers and sellers) reducing priced less than AED 1.5 million). The most popular transaction volumes. Moreover the increase in off- developments comprise Al Reef, Raha Beach and plan investment opportunities offering attractive Reem Island.

11% 12% 6% <1m 3m - <4m

1m - <1.5m 4m - <5m AVERAGE APARTMENT SALES PRICE AED/sq.ft. Q3 2015 15% 27% 1.5m - <2m 5m+ Q-on-Q 0.0% 0.0% 0.0% -1.7% -1.7% 0.0% 0.0% 0.0% -3.4% -0.5% 5.3% 11% Y-on-Y -8.7% 11.2% -7.3% -6.6% -5.0% -2.9% -1.8% -8.6% -8.0% -5.0% 2.6% 18% 2m - <3m

2500 2000

1500 An indicator that demand has weakened is the up demand for new prime located product from compression in interest rates which has been government backed developers and consequently

1000 2,250 AED/sq.ft.

1,850 witnessed, with some banks reducing rates by 75 basis projects sold out quickly. Whilst more recent off-plan 1,750 1,450 1,375 1,325 1,425 1,425 500 1,150 points as they chase market share in a bid to meet developments released by various developers have 1,005 1,000 year end targets. It is too early to analyse the impact on the whole witnessed good demand the volume 0 on the market at this stage. of sales closed indicates a decline in demand in comparison to last year. SBR Gate Lights Shams City of Marina

Square In terms of the off-plan market, demand is driven District Al Reef Al Zeina St. Regis St.

Al Bandar predominantly by the reputation of the developer and The principal reason for this is the change in market Downtown Al Ghadeer Al Muneera the payment plan in the first instance and then by sentiment over the last 12 months which has seen Source: MPM Properties Research price, product quality and location. a decline in investor confidence impacted by prices stagnating in Abu Dhabi and declining in Dubai Following a sustained period of inactivity in terms of combined with the fall in the oil price. new project launches during 2009-2013, over the last 18 months Abu Dhabi has seen 16 new developments There is virtually no demand for developments launched to the market, comprising over 6000 units. being sold off-plan by less well known independent developers who may have to realign strategy and The first new projects launched in 2014 by Aldar and sell on post completion in order to achieve optimum TDIC demonstrated there was very strong pent- value.

10 11 REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 2015 | RESIDENTIAL MARKET PERFORMANCE REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 2015 | RESIDENTIAL MARKET PERFORMANCE

RESIDENTIAL SECTOR

APARTMENT RENTS NEW LAW REGULATING THE ABU DHABI REAL ESTATE MARKET Following a sustained period of growth over and new supply in the high-end/luxury sectors. It the last 18 months it appears that rents may be should be noted that developments in this segment approaching their ceiling level at the top end of the have experienced year on year growth of between 7 In June 2015 a new law was announced by the more actively engaged in this segment of the market demonstrated by modest growth of only to 10% hence many tenants are still facing sizeable General Secretariat of the Executive Council which market 1% in the last 3 months despite a lack of vacancy increases at lease renewal. comes into force in January 2016. Protecting Investors In our view, the new law is a positive step towards attracting increased real estate investment in Abu The law prohibits real estate companies from AVERAGE APARTMENT ANNUAL RENT Q3 2015 Dhabi as it tackles many of the concerns raised by selling off-plan units unless the developer and the investors in the past. Some of the key provisions in project have been registered with the DMA and the Q-on-Q 0.0% -0.7% 0.0% 0.4% 0.0% 1.1% -0.3% -1.2% -4.4% 2.7% -4.6% -1.4% the new law are outlined below:- company has opened an escrow account for the Y-on-Y 7% 6% 3% 0% 8% 6% 10% 3% 6% 15% 7% 4% project and obtained written permission from DMA Regulating Real Estate Developers to advertise and market it. & Professionals The law also protects investors by requiring

300 270 260 Real estate developers and brokers, owners developers to register units sold off-plan in the 235 250 225 association (OA) managers, appraisers and interim real estate register. In addition, it sets out 205 200 195 190 180 180 175 170 175 160 200 160 surveyors may not engage in any activity before how a breach of this requirement by developers is 155 150 132.5 132.5 115 135 130 130 125

150 115 115 obtaining a licence from the Department of to be dealt with. 105 105 105 97.5 105 100 95 97.5 85 85 75 77.5 70 100 70 Municipal Affairs (DMA) and are not entitled 65 57.5 55 50 45 to claim remuneration and fees if they are not The law sets out clear guidelines for the DMA to 0 licensed. Failure to comply with this requirement follow in dealing with developers when there are may lead to imprisonment and a fine between delays in meeting project milestones, to ensure

SBR Dh50,000 and Dh200,000, or up to Dh2 million in that investors’ rights are protected and there is no Gate Shams Marina the case of real estate developers. delay in legal proceedings. Square District Al Reef Al Zeina St. Regis St. Al Bandar Downtown Al Ghadeer Al Muneera Prime Zone Mortgage Enforcement Registration Fees Zone Grade B Grade Zone

Studio 1 BR 2 BR 3 BR Non Investment Non-Investment The law provides for more effective enforcement in The law prohibits developers from collecting Source: MPM Properties Research the event a debtor defaults on mortgage payments. registration fees (usually 2% of the property A bank can now enforce the mortgage immediately price) from investors and only allows developers through the court after giving notice to the debtor, to charge administrative fees, which must first be without having to obtain a court judgment that the approved by the DMA. debtor owes the debt. RENTAL DEMAND Formation of Owners Associations Off-Plan Mortgage Financing The law includes provisions for setting up OAs MPM has witnessed significant demand from both MPM receives on average over 6,000 leasing The law allows units sold off-plan to be mortgaged that will be independent legal entities that hold individuals and corporate tenants for apartments in enquiries every quarter from prospective tenants provided that the loan amount is paid into the title to the common areas and are responsible for where demand currently outstrips supply in Abu Dhabi. An analysis of these enquiries shows relevant escrow account and the loan is allocated its management in accordance with international thus providing land owners in this location with that demand is heavily focused at the affordable for payment of the purchase price. These new standards. development opportunities providing potentially end of the market with 56% of all enquiries from provisions should encourage banks to become healthy returns. tenants with a budget of less than AED 100,000 per annum.

3%4% <50k 4%

15% 50k - <100k

100 - <150k

52% 150k - <200 22% 200k - <250k

250k+ 12 13 Q3 2015 | RESIDENTIAL SECTOR REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 2015 | RESIDENTIAL MARKET PERFORMANCE

RESIDENTIAL SECTOR

VILLA PERFORMANCE: VILLA VALUES – NON-INVESTMENT AREAS SALES AND RENTS „„ The analysis below is based on data gathered market demand. The market is currently from the transactions financed by ADIB, villas witnessing mismatch in yield expectations „„ Al Zeina townhouses, Golf Gardens and Al zones that cater to investors and end users. managed by MPM and data from agency (sales between seller and buyer, which in turn is leading Reef villas continue to see healthy demand Investors continue to prefer villas within gated and leasing) team, for villas in non-investment to a slow-down in transaction volumes from investors and end users alike, leading communities as they are yielding healthy zones and highlights the current prevailing prices to a positive increase in prices Q-on-Q. rental return and high occupancy and yields „„ Demand for good quality villa compounds in Properties under AED5 million witnessed Khalifa City “A” and Mushrif areas continues higher transaction volume vs. properties over „„ Saadiyat Beach townhouses, Golf Gardens, „„ The demand for villas and villa compounds was to be healthy at 8% gross yield, despite some AED5 million Bloom Gardens and villas within gated slow during Q3 2015, as multiple projects like sellers currently attempting to sell villas at 7% communities on Abu Dhabi Island continue Al Merief, Nareel plots and West Yas attracted gross yields „„ Aldar’s launch of West Yas was well received to be popular tenant choices for families and by the market and highlighted demand senior management staff of Government for mid-priced properties in Investment entities and banks

VILLA COMPOUND PRICES (Q3 2015) VILLA COMPOUND GROSS YIELDS (Q3 2015) AVERAGE VILA SALES PRICE AED/sq.ft. Q3 2015 25 8.0% Q-on-Q 0.0% -1.7% 4.5% 0.0% 0.0% 5.4% 1.9% 0.0% 20 Y-on-Y 0.0% -3.06% 0.0% -4.55% -2.43% 8.33% -3.55% 3.33% 15 2,000 7.0%

AED (Million) 10 20.47 21.0

1500 22.0 14.1 5 14.72 13.38 12.5 9.0 7.3 10.75 6.3 1000 7.45

AED/sq.ft. 0 6.0% 1,750 Main island KCA MBZ Shakbout City Main island KCA MBZ Shakbout City 500 1,425 1,150 975 1,050 1,005 815

620 High Low Average 0 Note: Data relates to compounds of 4 to 6 villas Golf SBV Hydra Bloom Village Al Reef Al Raha Gardens Gardens Al Zeina Gardens Source: MPM Properties Research Al Ghadeer 5/6 BEDROOM VILLA PRICES (Q3 2015) 7/8 BEDROOM VILLA PRICES (Q3 2015)

25 25 VILA AVERAGE ANNUAL RENTS Q3 2015 20 20 370 400 330 15 15 350 350 320 305 280 300 300 255 275 260

300 23.0 10 23.0 10 220 240 220 230 220 190 AED (Million) AED (Million) 190 16.17 160 14.0

200 13.8 14.78 150 140 5 5 125 10.8 120 120 9.13 10.37 6.5 105 6.8 80 6.56 6.75 6.65 6.66 5.46 4.7 100 0 4.2 0 Main island KCA MBZ Main island KCA MBZ 0 High Low Average High Low Average Golf SBV Source: MPM Properties Research Hydra Bloom Village Al Reef Al Raha Al Zeina Gardens Gardens Gardens Gardens Gardens Al Bateen Al Mushrif Al Ghadeer (Townhomes)

2 BR 3 BR 4 BR 5 BR

Source: MPM Properties Research

14 15 Q3 2015 | KEY INDUSTRY PLAYER - MARKET VIEW REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 2015 | KEY INDUSTRY PLAYER - MARKET VIEW

PROJECT IN FOCUS – MAYAN RESIDENCE

Yas Island benefits from a number of major development anchors both existing and planned that will drive demand and value creating both an attractive lifestyle destination and investment proposition.

YAS ISLAND

Mayan enjoys a prominent position on the Two theme parks are already in operation on Yas world-renowned Yas Island, known for its Island – Yas Water World and Ferrari World, with two destination-led lifestyle experience and the more theme parks marked out for development on Formula One circuit which hosts the Abu Dhabi the island’s master plan. Grand Prix on an annual basis. Yas Island is home to numerous food and beverage Yas Island, whose population is expected to grow and entertainment venues ranging from the Yas significantly as projects both under development Island Yacht Club, to the Beach Club as well as and planned come on stream, is already home to concert venues. major retail attractions in the form of Yas Mall, IKEA, Geant and ACE Hardware.

ENTERTAINMENT Golf SHOPPING Schools (u/c) Marina Dining Ferrari World Beach Yas Mall Parks Yas Water World Outdoor Sports Ikea Marina Circuit Ace Warner Bros LIFESTYLE FAMILY

MAYAN - OVERVIEW

Located in the Yas Beach area of Yas Island and Mayan benefits from stunning golf course and adjacent to the destination’s Hotel District, sea views, in addition to a variety of high-end Mayan is a low-rise master planned community. amenities, from luxury infinity pools overlooking With no restrictions on purchaser nationality due the sea, gyms, steam rooms, saunas, and access to to its Investment Zone status, Mayan has been Yas Island’s members-only beach club. Residents designed to appeal to a broad base of investors of Mayan will benefit from private parking, an and end users. exclusive concierge service, CCTV monitored security and 24-hour maintenance. Mayan offers a range of 700 apartment choices from studios to 1,2,3 and 4 bed options as well as beach houses.

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SUPPLY ABU DHABI OFFICE SUPPLY COMPOSITION

Q3 2015 FUTURE SUPPLY 600 500 67 „„ The only major addition to the market in the „„ There are a number of office developments which 400 last quarter is the office space currently being are close to entering the market, including the 105 handed over at Addax Tower, where we estimate ADIB HQ Tower 2 situated on Airport Road, Maryah 300 474 220 45 approximately 20,000 sqm (representing Tower on Maryah Island, developed by Al Hilal 200 9 12 42 18 approximately 25% of the tower) is now available in Bank and the Al Qudra HQ at Khalifa Park, which 272 60 NLA (in 000’s Sq.m.) NLA (in 000’s 203 25 41 100 146 153 the market for either rent or for sale together will add approximately 60,000 sqm of net 81 leasable space 0 2010 2011 2012 2013 2014 2015 2015 2016 2017 „„ A number of small developments, predominantly Q1-Q3 Q4 situated off-island, have been completed this „„ Post 2015, with the exception of handover delays Speculative Owner Occupation / Pre-Let quarter which together have added a further 5,000 of existing projects , there are limited new office sqm of ancillary Grade C office space developments in the pipeline. The developments Source: MPM Properties Research that are underway are predominantly owner- occupier developments like ADNOC HQ, ADIB HQ Tower 1, etc. The demand for “business park” with ample parking continues to be strong from the SME sector and this is an opportunity that needs to be ABU DHABI NEW OFFICE SUPPLY - LOCATION tapped by developers and investors 600 500

400 275 80 300 8 62 64 56 53 29 200 9 3 18

NLA (in 000’s Sq.m.) NLA (in 000’s 8 12 100 125 202 235 241 81 ABU DHABI OFFICE SUPPLY (2009-2017) 0 2010 2011 2012 2013 2014 2015 2015 Q4 Q1-Q3 373 41 4,000 67 72 On-Island Off-Island Investment Area 249 99 3,000 377 Source: MPM Properties Research 541

155 2,000 3,359 3,733 3,220 3,292 2,872 3,121 2,495 1,955 1,000 1,800 1,800 NEW SUPPLY BREAKDOWN - LOCATION NLA (in 000’s Sq.m.) NLA (in 000’s 0 2009 2010 2011 2012 2013 2014 2015 2015 2016 2017 Q1-Q3 Q4 892 164 436 Running Total New Supply Completed Scheduled New Supply

Source: MPM Properties Research 0 300 600 900 1200 1500 NLA (in 000’s Sq.m.) On-Island Off-Island Investment Area

Source: MPM Properties Research 18 19 REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 2015 | OFFICE SECTOR REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 2015 | OFFICE SECTOR

OFFICE RENTS OFFICE PROJECT IN FOCUS: ADIB HQ TOWER 2

„„ The commercial office market remains subdued „„ The lack of availability and leasing activity in the „„ 21,869 sqm of net leasable area arranged over „„ Capacity for 200mm raised access floors and has seen low leasing activity during the Grade A segment is having a positive impact on ground and 12 upper floors last quarter. Although demand has declined, some Grade B office buildings where we have „„ 8 high speed lifts dedicated to exclusively serve particularly from the government sector this has seen leasing transactions closing at headline „„ Shell & Core finish ready for tenant fit out works Tower 2 from B4 through to Level 12 been balanced by a lack of new supply entering rents of AED 1,325 per sqm representing growth the market, which has resulted in marginal rental of 8% in comparison with the previous quarter. „„ 4 levels of basement parking providing 400 car „„ Average wait time estimated at 10-15 seconds increases of between 1-3%. The lack of Grade We don’t expect to see this growth sustained parking spaces (1:50 sqm) A space available for immediate occupation is given the new supply due to be delivered to the „„ LEED Gold for Building Design and Construction seeing rents appreciate in prime buildings which market over the next six months „„ Additional parking available (subject to enjoy low vacancy rates negotiation) „„ All common areas are covered by CCTV, access control system, fire alarm and intrusion OFFICE HEADLINE RENTS, Q-ON-Q% AND Y-ON-Y% CHANGE „„ Efficient floor plates extending to 1638 sqm detection system Grade “A” Specification Location 2,000 1.3% 11.8%

3.2% 10.3% „„ Common atrium with Tower 1 (ADIB HQ) with The development is situated on Airport Road opposite 1,500 6.1% 13.0% coffee shop and retail units the Hilton Hotel providing excellent connectivity to Downtown and the airport 1,000 „„ 2700mm finished floor to ceiling height

Rent / Sq.m. (AED) / Rent 500

0 Grade A Fitted Grade A S&C Grade B Q2 2015 Q3 2015 % Q-on-Q change % Y-on-Y change

Source: MPM Properties Research

OFFICE SALES

„„ Floors and units within Addax Tower on Reem payments plans. The marketability of this space Island continue to be handed over to investors is being negatively impacted by the parking ratio and hence progressively more space is becoming although we understand that Tamouh is looking available in the secondary market with prices to address this with the construction of a multi- generally ranging from AED 1,050 to AED 1,200 storey parking structure next to the tower per sqft, with some owners offering extended

AVERAGE OFFICE SALES PRICE

Q-on-Q 0.0% 0.0% -2.1% -4.2% 0.0%

Y-on-Y 1.0% – -15.0% -2.2% 5.3% 1,500

1,200

900 1,475 1,250 600 1,150 1,150 1,100 300 Sales Price / Sq.ft. (AED) Sales Price / 0 Sky Tower The Wave Addax Tamouh Tower Prestige Tower MBZ Sales Price / Sq.ft.

20 Source: MPM Properties Research *as per UPC Q3 2015 | RETAIL SECTOR REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 2015 | RETAIL SECTOR MARKET OVERVIEW Q3 2015

RETAIL SPACE CLASSIFICATION

RETAIL SUPPLY PRE-2010 NEW SUPPLY DELIVERED RETAIL SUPPLY AS AT Q3 2015 RETAIL DEVELOPMENT 2010-2015 Q3 PIPELINE 7,300 1%

232,256 96,400 303,277 232,256 10% 9% 22% 24% 450,277 763,723 517,894 147,000 53% 19% SUPPLY 54% 15% Retail Sector Set to Grow Rapidly Over the Next Three to Four Years 333,000 1,281,617 24% 54% Q3 2015 FUTURE SUPPLY 75,453 408,453 8% 17% 920,000 „„ The retail sector has witnessed no major supply „„ The retail sector within Abu Dhabi is expected to see 90% entering the market in Q3 with majority of the multiple community retails and convenience stores District Neighborhood Regional Super Regional supply being driven by “street retail” on Abu Dhabi being built all across the city. This in turn is expected The above charts show supply of malls only and exclude all street retail. Figures are NLA (sq.m.) Island and mainland. This in turn is allowing the to increase the competition amongst supermarkets, retail malls to focus on increasing their foot-falls by while enhancing the lifestyle of residents with more attracting tourists and residents retail options available at their door-step RETAIL SPACE LOCATION „„ Apple Store has recently opened at Yas Mall and „„ Al Mariyah Central is on course for a Q1 PRE-2010 NEW SUPPLY ADDED POST 2010 RETAIL SUPPLY LOCATION RETAIL DEVELOPMENT PIPELINE this is a major addition to the retail brands within 2018 opening has Gulf Capital has secured a AS AT Q3 2015 Abu Dhabi and is expected to yield higher foot falls AED2.3billion funding and 1/3 rd of the mall has to the mall been pre-let with key anchors currently announced 236,241 being Macy’s and Bloomingdales. The funding 24% 35,000 covers phase one of the project, which will involve 300,109 300,109 102,500 3% 13% 10% 2.3 million of a total of 3.1 million square feet 31% being developed. This will include a mall with more 471,753 299,000 20% 29% than 400 stores, 145 restaurants and cafes and a 436,753 20-screen cinema 45%

621,200 1,365,000 1,601,241 61% 97% 67% ABU DHABI RETAIL SUPPLY (2009 - 2017/18) On-Island Off-Island Investment Area

872 3,500 3,000 152 45 1 2,500 342 185 TAKE-UP & RENTS 113 „„ 2,000 259 Retail rents across Abu Dhabi malls have remained stable during Q3 28 2015, although some mall tenants have started requesting for rental 1,500 SPACE TYPE AVERAGE RENT (AED) PA 2,524 reductions / renewals at previous rents, driven by drop in revenues 2,327 2,372 2,373 1,000 1,800 1,985 Specialty Store 1,800-3,900 per sq.m. witnessed by small number of retail stores during Q3 2015. On the NLA (in 000’s) per Sq.m. per NLA (in 000’s) 1,400 1,400 1,428 1,687 other hand high street retailers across Abu Dhabi’s major locations 500 Anchor Store (more than 1,000 sq.m.) 400-1,250 per sq.m. have accepted 5% rental increase on renewals as rents on high 0 F & B 3,500-5,750 per sq.m. street catch-up with rents inside established malls 2009* 2010 2011 2012 2013 2014 2015 2015 2016 2017/19 Q1-Q3 Q4 ATM’s 90,000-180,000 „„ Occupancy across malls remains high within Abu Dhabi Island, with Running Total New Supply Completed Scheduled New Supply Kiosks 85,000-155,000 malls on Abu Dhabi mainland witnessing healthy take-up for vacant Source: MPM Properties Research *as per UPC space albeit at attractive rents or with attractive tenant incentives High street retail (Prime areas) 2,500 – 3,850 per sq.m.

High street retail (Non-prime areas) 1,550-2,850 per sq.m. „„ The majority of existing contracts are being renewed at turnover rent. In turn this will ensure greater involvement from mall owners The rents quoted above are base rents excluding any turnover provisions to drive foot-falls and revenue to stores within their malls and service charges.

22 23 Q3 2015 | HOSPITALITY SECTOR – TRADING PERFORMANCE REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 2015 | HOSPITALITY SECTOR – TRADING PERFORMANCE MARKET OVERVIEW Q3 2015

HOTEL PERFORMANCE SNAPSHOT HOTEL APARTMENTS PERFORMANCE SNAPSHOT

90% 800 500 100% 80% 90% 700 70% 400 80% 600 60% 70% 500 50% 300 60% 400 40% 50% 40% 300 30% 200 30% 200 20% 100 20% 100 10% 10% 0 0% 0 0% Jul Jul Jul Jul Jul Jul Jun Jun Jun Oct Oct Mar Mar Mar Apr Apr Apr Jun Jun Jun Sep Sep Sep Feb Feb Feb Oct Oct Dec Dec Mar Mar Mar Apr Apr Apr Nov Nov Sep Sep Sep Feb Feb Feb May May May Dec Dec Aug Aug Aug Nov Nov May May May Aug Aug Aug Jan-15 Jan-13 Jan-14 Jan-15 Jan-13 Jan-14 ARR RevPar Occupancy ARR RevPar Occupancy Source: TCA Abu Dhabi and MPM Properties Research Source: TCA Abu Dhabi and MPM Properties Research

Q3 PERFORMANCE BY RATING Q3 HOTEL APARTMENT PERFORMANCE BY RATING

HOTELS 5 STAR 4 STAR 3 STAR 2 STAR 1 STAR HOTEL APARTMENTS DELUX SUPERIOR STANDARD Guests 1,172,450 894,135 656,865 45,067 87,648 Guests 92,435 94,161 65,822 Guest Nights 3,573,210 2,497,105 1,912,751 124,381 211,341 Guest Nights 760,762 607,209 295,815 Avg. Length of Stay 3.05 2.79 2.91 2.76 2.41 Avg. Length of Stay 8.23 6.45 4.49 ARR 745 407 359 325 274 ARR 448 295 302 Occupancy 75% 82% 80% 78% 77% Occupancy 85% 86% 89% RevPar 558.75 333.74 287.2 253.5 210.98 RevPar 380.8 253.7 268.78 Revenues 3,049,900,000 940,380,000 639,100,000 48,020,000 70,700,000 Revenues 244,821,691 126,815,770 64,005,852

HOTEL MAIN INDICATORS (YTD) HOTEL APARTMENTS MAIN INDICATORS (YTD)

Guests 20% increase „„ Growth in guest arrivals into Abu Dhabi (up by Guests 5% increase „„ Hotel apartments continue to outperform hotels 22% in Q2 2015 vs. Q2 2014), driven mainly with higher occupancy and average length of stay Guest Nights 15% increase Guest Nights 13% increase by growth in tourists from China (68%), US Occupancy 6% increase (30%), Philipines (29%) and KSA (27%) Occupancy Levels 8% increase „„ Average guest spend at Deluxe apartments was Revenues (Mil.) 14% increase Revenues (Mil.) 9% increase the highest across hotel establishments, greater „„ Five star hotels continue to witness the highest than five star hotels as well Avg Length of Stay 4% decrease spend / guest at AED2,601 and was second Average Length of stay 7% increase only to Deluxe hotel apartments „„ Q3 witnessed an increase in all key parameters for hotel apartments, highlighting the strength of this „„ 4 and 3 star hotels have experienced segment within the hospitality sector occupancy levels above 80% so far this year with 5 star properties witnessing 75% occupancy YTD this year

24 25 Q3 2015 | HOSPITALITY SECTOR – TRADING PERFORMANCE REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 2015 | HOSPITALITY SECTOR – TRADING PERFORMANCE

HOSPITALITY SECTOR – TRADING PERFORMANCE

HOTEL ESTABLISHMENT PERFORMANCE Q3 2015 – HOTEL APARTMENT SCHEDULED COMPLETIONS HISTORICAL TRADING PERFORMANCE 2010-2015 S.NO. ESTABLISHMENT NAME EXPECTED CLASS OPENING ROOMS 800 100% 1 Jannah Place Deluxe Q3 - 2015 62 700 90% TOTAL 62 600 80% 70% 500 Q3 2015 saw Jannah Place on Airport Road entering The hospitality sector is gearing up for the opening of 400 60% the market with 62 keys. The property is deluxe hotel Lourve Abu Dhabi, which is expected to increase the apartments offering short and long term stay options. number of tourist arrivals into Abu Dhabi. 300 50% Average room rate room Average Occupancy 200 40%

100 30% GUEST ARRIVALS Q3 2015 YTD 0 20% Jul Jul Jul Jun Jun Jun Oct Oct Mar Mar Mar Apr Apr Apr Sep Sep Sep Feb Feb Feb Dec Dec Nov Nov May May May Aug Aug Aug Jan-15 Jan-13 Jan-14

ARR RevPAR Occupancy 39%

Source: TCA Abu Dhabi and MPM Properties Research Other GCC Countries 8%

Other Arab Countries 10%

Asia (Except Arab) 19%

Australia & Pacific 2% SUPPLY Africa (Except Arab) 1% Europe 16% ABU DHABI HOTEL ROOM SUPPLY (2009 - 2016+) North & South America 5% 2,703 35,000 2,386 1,483 574 30,000 2,805 2,312 25,000 2,653 2,646 20,000 2,397 5,374 30,908 GUEST ARRIVALS – TOP 5 15,000 27,948 28,522 26,465 23,660 10,000 21,348 RANK NATIONALITY 2015 YTD 2014 YTD GROWTH RATE % 16,049 18,695 Number of rooms 13,652 5,000 8,278 8,278 1 United Arab Emirates 902,533 755,150 20% 0 Pre 2009 2010 2011 2012 2013 2014 Q1-Q3 Q4 2016 2017+ 2 India 173,649 142,613 22% 2009 2015 2015 3 United Kingdom 142,134 122,893 16% Running Total New Supply Completed Scheduled New Supply 4 China 125,678 74,636 68% Source: MPM Properties Research 5 USA 98,975 76,096 30%

Source: TCA Abu Dhabi and MPM Properties Research

26 27 Q3 2015 | DEFINITIONS & METHODOLOGY REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 2015

DEFINITIONS & METHODOLOGY A collaborative team providing RESEARCH STUDY AREA our integrated services

The geographical extent of the study area includes Given the general lack of transparency in the local the Abu Dhabi Island, Investment Areas and the most market rents quoted are headline rents, thus exclude populated Off-Island districts specifically Khalifa City A, any rent free period or other financial incentives that PAUL MAISFIELD BSC (HONS) MRICS ABDULLAH SAID AL KUWEITI Mohammed Bin Zayed City and Shakbout City. may have been negotiated between the parties. The CEO Business Development Director rents quoted are also exclusive of service charges. T: +971 (0)2 610 0545 T: +971 (0)2 610 1554 RESIDENTIAL M: +971 (0)50 660 9437 M: +971 (0)50 623 5854 RETAIL [email protected] [email protected] New residential developments are classified as delivered and thus entered into the new supply category when New retail developments are classified as delivered and they are made available for occupation. This is verified thus entered into the new supply category when the via a combination of site inspections and discussion with first units are open and trading. YOUSEF AL ZAROONI ALI ABDULLAH ABDUL RAHMAN the developer and hence our supply numbers do take Regional Head – Al Ain Acting Regional Head – Northern Emirates into consideration the phased release of large projects. Our classification of malls is based on our own T: +971 (0)3 708 8636 T: 971 (0)6 597 2514 M: +971 (0)50 600 1002 M: +971 (0)50 656 2486 assessment having regard to size and the catchment [email protected] [email protected] The ADIB Rental Index relates to the performance of the area which the mall typically penetrates. ADIB portfolio only and the data is derived exclusively from transactions completed by MPM Properties. HOSPITALITY VAIBHAV SHARMA MCOM; MDBA SAMUEL MORRIS BSC (HONS) FRICS Other rental and sales trend analysis is based on New hotels are classified as delivered and thus entered Director of Strategic Advisory and Research Director of Valuation & transactional data derived from the MPM Properties into the new supply category when they are opened T: +971 (0)2 412 8914 Regional Head - Dubai Agency team and data sourced from developers and trading. All trading performance data is provided by M: +971 (0)50 660 9295 T: +971 (0)4 371 9466 and owners. ADTCA. [email protected] M: +971 (0)50 107 1704 [email protected] OFFICES FUTURE SUPPLY PROJECTIONS

New office developments are classified as delivered and Our future supply projections across all sectors are FRANK O’DWYER MBA (Hons); BEng. DOMINIC BARLOW thus entered into the new supply category when they based on a combination of regular site inspections and COO Head of Retail, Hospitality & Leisure are available for tenant fit-outs. discussions with developers. T: +971 (0)2 610 0402 T: +971 (0)2 510 0655 M: +971 (0)50 812 1070 M: +971 (0)56 288 1458 [email protected] [email protected]

KHALED CHAHAL MOHAMED AL ZOUBI BESPOKE CLIENT RESEARCH Director of Agency – Abu Dhabi Head of Development Advisory T: +971 (0)2 412 8402 BSc Civil Engineering ADDING VALUE TO YOUR PROPERTY INTERESTS M: +971 (0)50 110 2929 T: +971 (0)2 610 0564 [email protected] M: +971 (0)50 310 3570 The ADIB Real Estate Services team covers all sectors We provide reports, information and presentations [email protected] of the real estate market. We provide bespoke market derived from primary market data that directly assist research to our valued clients to meet their specific our clients to save or make money from real estate and requirements. shape strategies to enhance value. WAHIDA KARAMA JUBRAN AL HASHMI Head of Property Operations Head of Property Services T: +971 (02) 610 0435 T: +971 (0)2 610 0232 M: +971 (0)50 765 7679 M: +971 (0)50 122 0041 DISCLAIMER: [email protected] [email protected] The information contained in this report has been obtained are subject to change without notice. Figures contained in from and is based upon sources that ADIB Real Estate Services this report are derived from a basket of locations highlighted believes to be reliable, however, no warranty or representation, in this report and therefore represent a snapshot of the Abu expressed or implied, is made to the accuracy or completeness Dhabi market. Due care and attention has been used in the KHALED AL SOLEH BSC MRICS JASON FIELDEN BSC (HONS) MRICS of the information contained herein, and same is submitted preparation of forecast information. However, actual results Head of Valuation – Abu Dhabi Valuation Manager - Abu Dhabi subject to errors, omissions, change of price, rental or other may vary from forecasts and any variation may be materially T: +971 (0)2 610 0085 T: +971 (0)2 510 0653 conditions, withdrawal without notice, and to any special listing positive or negative. Forecasts, by their very nature, involve M: +971 (0)50 722 9718 M: +971 (0)56 244 7696 conditions imposed by our principals. ADIB Real Estate Services risk and uncertainty because they relate to future events and [email protected] [email protected] will not be held responsible for any third-party contributions. circumstances which are beyond ADIB Real Estate Services’ All opinions and estimates included in this report constitute control. For a full in-depth study of the market, please contact ADIB Real Estate Services, as of the date of this report and ADIB Real Estate Services team.

28 29 Q3 2015 | SUPPLY - PHOTO GALLERY REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW REAL ESTATE SERVICES | ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 2015 | SUPPLY - PHOTO GALLERY

18 M TOWER 19 SKY GARDENS 20 LEAF TOWER SUPPLY - PHOTO GALLERY REEM ISLAND REEM ISLAND REEM ISLAND

SAMPLE OF NEW & UPCOMING SUPPLY

NEW SUPPLY (Q3 2015)

1 ADDAX TOWER 2 HYDRA AVENUE 3 ALI & SONS 4 BAWABAT REEM ISLAND C40 RAWDHAT SHARQ APARTMENTS NON INVESTMENT AREA - UPCOMING SUPPLY

21 ADTC PHASE 3 22 AL JAZEERA TOWER 23 AWQAF BUILDING 24 BLOOM CENTRAL CORNICHE KHALIDIYAH AIRPORT ROAD

5 C49, ME-9, MBZ 6 JANNAH PLACE 7 C9, E-25, 8 C86, E-11 9 C149, E-19/2 ABU DHABI AL NAHYAN CAMP TCA TCA

25 EMI STATE REALTY 26 FOUNDATION PROPERTIES 27 C38 - GSCS TOWER 28 C40 - UNB TOWER HAMDAN STREET AIRPORT ROAD DANET ABU DHABI DANET ABU DHABI

INVESTMENT AREA - UPCOMING SUPPLY

10 FOUR SEASONS 11 HORIZON TOWERS 12 SHEIKH OMAR 13 UNB TOWER 1 & 2 29 THE VIEWS 1 & 2 30 JOWARAH TOWER 31 MINA TOWER 32 SARAYA AL MARYAH ISLAND REEM ISLAND REEM ISLAND REEM ISLAND SARAYA SARAYA SARAYA

14 SEASIDE TOWER 15 THE KITE RESIDENCES 16 THE SHAMS TOWER 17 YASMINA RESIDENCES 33 SARAYA 34 C74, C75 & C76 35 C41 RAWDHAT 36 HILTON AL FORSAN REEM ISLAND REEM ISLAND REEM ISLAND REEM ISLAND RAWDHAT

30 31 E 11

Q3 2015 RENTAL INDEX | ABU DHABI REAL ESTATE MARKET OVERVIEW RENTAL INDEX | ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 2015

Hydra Q2 2014 NEW SUPPLY UNDER CONSTRUCTIONQ3 NEW & UPCOMING SUPPLYVillage

Residential Residential New Supply E12 Sheikh Khalifa Hway Offices Offices Investment Retail Retail Non-investment

Hotels Hotels 10 16 Jubail Island 17 14 32 Al Maryah 15 31 11 18 30 33 Island 1 2 29 20 C Al Reem 19 Island Yas Island 21 Abu Dhabi - Dubai Rd 8 Sheikh Maktoum Bin Rashid Rd

A 25 13 D 12 22 Corniche Rd 6 Salam Street E 10 Electra St23 9 24 B Airport Rd 26 7 Zayed The First St E F Al Reef

Salam Street Al Raha Beach

Al Saada Street St G th H 25 Airport Rd 27 28 Masdar Abu Dhabi - Dubai Rd E 10 City 3 Salam Street 35 34 I Khaleej Al Arabi Street

E 20 36 E 20 Q-Q CHANGE OVERALL COMMON TREND E 11 ADIB RENTAL AVERAGE (Q3 2015) (ANNUAL % INDEX ZONE RENTAL INCREASE) Q3 2015 Q2 2015 Q1 2015 Q4 2014 Q3 2014 Q2 2014 Q1 2014

Zone A 0 to 4.99% 3.05% 4.58% 3.71% 8.05% 5.01% 2.37% 4.05%

Zone B 0 to 4.99% 2.60% 5.08% 6.94% 7.75% 10.56% 3.86% 6.33% E 22 Zone C 0 to 4.99% 5.63% 7.46% 9.25% 9.79% 12.34% 10.26% 5.06% J Zone D 0 to 4.99% 6.48% 7.06% 8.51% 10.31% 10.26% 9.07% 6.18%

Zone E 0 to 4.99% 3.76% 4.02% 7.54% 5.09% 10.20% 5.32% 4.49% E 30 5 Zone F 0 to 4.99% 4.77% 3.17% 4.01% 6.58% 7.63% 3.25% 2.41% K

Zone G 0 to 4.99% 4.42% 2.34% 2.20% 2.59% 2.69% 2.42% 2.92%

Zone H 0 to 4.99% 3.68% 5.58% 3.46% 1.46% 3.42% 5.31% 2.44%

Zone I 0 to 4.99% 3.08% 3.41% 1.86% 5.48% 1.14% 1.33% 1.21%

Zone J 0 to 4.99% 3.32% 5.78% 0.96% 4.04% 3.06% 1.55% 1.64%

Zone K 0 to 4.99% 5.30% 5.89% 2.88% 4.31% 4.18% 3.51% 3.65%

4

32 33

E 11

PAUL MAISFIELD BSC (HONS) MRICS VAIBHAV SHARMA MCOM; MDBA CEO Director of Strategic Advisory and Research T: +971 (0)2 610 0545 T: +971 (0)2 412 8914 M: +971 (0)50 660 9437 M: +971 (0)50 660 9295 [email protected] [email protected]

OFFICE CONTACT DETAILS MPM Properties Head Office 6th Floor, Al Wahda Tower P.O Box 114686 Abu Dhabi

Tel. 02 412 8914 Email. [email protected] www.mpmproperties.ae