ABU DHABI PROPERTY TRENDS 2015-2017 RESIDENTIAL PRICE SHIFTS, WHAT’S BEING BUILT AND THE COMMERCIAL SECTOR OVERVIEW A REPORT BY & 1 CONTENTS . to adeclineinprices Factors contributing 6/ 4/ Transparency Improving 3/ Introduction 2/ Market Overview 1/ up untilQ12017 Rental Market 5/ up untilQ12017 Sales Market PAGE 15 PAGE 9 PAGE 5 PAGE 4 PAGE 2 PAGE 23 Data Sources Contact Us& 10/ Prospects for2017 9/ Commercial Supply Residential & 8/ 7.2 Popular Community Types Price shifts Q12017vs. Q12016 7.1 Community Level &BuildingLevel Communities: Focus onSelected 7/ A dubizzle& JLL report
PAGE 31+32 PAGE 30 PAGE 27 PAGE 24 2015-2017 2 . 1 OVERVIEW MARKET volumes andweaker sentiment. downward pressure ontransaction to declinein2016duethe throughout 2015, pricesstarted residential pricesremained stable overall softening inprices. While and sentiment, leading toan impact ongovernmentspending the declineinoilpricesand subsequently declinedfollowing unsustainable andgrowth rates growth wasThis levelof 14% growth overthesameperiod. prime residential rents averaged growing at25%perannum, while with primeresidential prices led bytheresidential salesmarket, and improved sentiment. This was governmentcapitalspendingof 2013 to2014, drivenbythereturn experienced amajorupswingfrom Abu Dhabi’s residential market / returns. selective governmentspending rebound overthecomingyears as We expect market conditions to therental decline.the extent of than previous years, mitigating completions remain muchlower On thepositiveside, annualsupply residential rents. in residential occupierdemandand incomes –leading alsotoadecline population growth anddisposable impacted employmentand government spendinghave services, combinedwithreduced as petrochemical andfinancial within certainindustriessuch Various mergers andchallenges spending amidstloweroilprices. by governmenttoreduce conditions andprudentmoves in response totoughereconomic restructuringthrough aperiodof entities are currently going Abu Dhabi’sMany of government A dubizzle& JLL report 2015-2017 3. A dubizzle & JLL report 4. A dubizzle & JLL report 2015-2017 2015-2017
2/ INTRO- DUC- The future market conditions are dependant on many factors, predominantly the looming TION CONTINUED.. anticipation for an oil-price Will there be a further decline in recovery. However, growing trade property prices in the capital? Do with Iran due to the nuclear- tenants really have bargaining related sanctions being lifted, power now? What communities In the residential sector, the increase in non-oil activity as are most popular for tenants and approximately 3100 units were a whole and a hopeful ramp up buyers? Is this a time for buyers, be completed. Expected supply in in investment ahead of the EXPO they investors or end-users, to grab There is a general consensus 2017 stands at approximately 2020 should assist in a modest the best deals before the market that sales and rental prices have 5000 units largely in Abu Dhabi’s and gradual recovery over the shifts upwards? declined in Abu Dhabi during 2016. new Island districts that include Al years. The Abu Dhabi real estate market Reem Islands, Saadiyat Island, Yas To address some of these lags behind by about a year to a Island, Sowwah and Al Raha Beach. A increase in global economic questions dubizzle and JLL have year and a half when compared to activity in the first quarter of 2017, come together to provide real Dubai. This means a decline both including Asia and Europe, is estate stakeholders with a better in the rental and sale segment is already being reflected in global understanding of the factors that further expected in the capital - trade data and could have a knock- have influenced the market over the fragmented in nature, with some on effect on the UAE. It will likely past years and provide an outlook communities affected more than be a key beneficiary of this trend on 2017 onwards. others. given its role as a conduit in both North-South and East-West trade according to chief economists in Abu Dhabi Commercial Bank. 5. A dubizzle & JLL report 6. A dubizzle & JLL report 2015-2017 2015-2017
3/ IMPROVING TRANSPARENCY In preparing this report, we have times to sustain itself as a city dubizzle and JLL both feel strongly had regard to data from a number of that still offers an internationally that the Abu Dhabi market would credible sources including: benefit from greater transparency competitive expat lifestyle. A key which would allow developer, dubizzle’s internal data warehouse marker to monitor the evolution of investors, end-users and tenants for sales and rental asking price IMPROVED a nation, especially one as young as to make more well-informed evolution the UAE, is the development of the decisions. By consolidating market LEGISLATION legal framework that best protects data and co-authoring this report, JLL’s proprietary supply data Since the formation of the all parties and serves a positive both brands hope to contribute federation in 1971 under the rule of role in promoting best practice for to improved transparency, which the highly respected visionary, His residents and citizen alike – a fair will not only help existing players, Highness Sheikh Sultan Bin Zayed law drives a nation’s credibility. The but also help re-build Abu Dhabi’s Al Nahyan, Abu Dhabi triumphed Abu Dhabi Property law has been market credibility to international in 2008 due to historic high oil molded over the years in reaction to investors. prices at $95 a barrel and has since changing market conditions. surfaced through many turbulent 7. A dubizzle & JLL report 8. A dubizzle & JLL report 2015-2017 2015-2017
2005 2006 2010 2011 2012 2015 2016
The introduction of Law No. (20) - Tenancy Updated Tenancy Law; In regard to registration Administrative Resolution No. 12 New real estate law – No. Abu Dhabi Department of Law No. (19) for 2005 Law introduced. Rent Cap Rent cap adjusted of tenancy contracts, of 2012 Concerning the Controls (3) of 2015 Regulating Municipal Affairs appointed to Concerning Real set to a maximum 7% to a maximum 5% resolution (4) of 2011 of Residential Unit Occupancy in Real Estate Sector in the perform same functional role Property Ownership increase. increase due to rent introduced rules the Emirate of Abu Dhabi. This Emirate of Abu Dhabi – as RERA in Dubai. The DMA’s “Real Property Law” was price increases reaching and procedures for resolution provides restrictions published late 2015 to responsibilities will include: the first to allow non- unrealistic highs. landlords to register on occupancy of residential units take effect as of January implementing the law UAE nationals to own their tenancy contracts such as: 2016. issuing licences property in the Emirate The updated law also with the Municipality, The area allocated to for each controlling escrow accounts of Abu Dhabi. stated that landlords known as the Abu Dhabi member of the unit should not cancelling real estate projects now had legal rights to Municipality’s TAWTHEEQ be less than 14 sqm. system, in order to Number of occupants per room ask a tenant to vacate a Introduction of a real estate property upon expiry of maintain a register of should not exceed 3 persons tenancy contracts that It shall be prohibited to divide register on a central government the tenancy contract and database could reject renewal. did not previously exist. the residential unit for the purposes of leasing, unless if such division is made by a prior No registration fees to be charged permission of the competent to investors by developers, only authority. administrative fees
Issuance of Executive Council Constitutions on creation and Decision No. 32 for 2012 lifted rights of an Owners Association the rent cap of 5% For the sale and marketing of Many of the legislative changes were made not just in Landlords need to provide off-plan units it is mandatory for a 2 month notice period for a developer to set up an escrow reaction to several macro-economic factors driving a evictions or price increase for account. volatile market but also as an inevitable organic progress residential properties and 3 of the judicial system as the city evolved to a more months for commercial. The DMA may fine developers to mature property market. This plus the aim to weed out compensate purchasers where the New Mortgage Law is introduced developer is delayed beyond six negative market sentiment, encourage foreign direct months. investment by regaining credibility through announcing dubizzle publishes first property more clear property laws. Following in the footsteps of market trends infographic report Developers now have a 10-year due to identified user need for liability relating to fundamental Dubai’s strengthened legislation over the past decade increased data transparency structural building defects. It is testament to a city with a plan to create a strong and means developers will be legally responsible to fix any defects that sustainable real estate sector. manifest 10 years after handover and this will also include a one-year defects liability period. 9. A dubizzle & JLL report 10. A dubizzle & JLL report 2015-2017 2015-2017 SALE PRICES TREND ANALYSIS Q12015 TO Q1 2017 Q1 2015 vs. Q1 2016 PRICE DECREASE /MID-MARKET PRICE INCREASE
ALL FIGURES ARE ASKING PRICES IN AED PER SQ FT 891 891 Number of searches 4/ APARTMENTS on dubizzle (2016) 930 929 909 AL REEF 1.1M SALES MARKET DOWNTOWN Q1 Q3 Q1 Q3 Q1 2BR WAS MOST POPULAR Q1 -4% IN 2016 2015 2015 2016 2016 2017 2016 vs. 2017
Residential rents within prime areas Golf Garden Villas in Umm Al started to decline in 2016 due to Nar decreased by 11% Y-O-Y higher vacancy rates following the now holding an asking price of ALL FIGURES ARE ASKING PRICES IN AED PER SQ FT wave of job cuts within government, AED 1005/sqft whereas Al Reef Number of searches 800 784 oil and gas and financial services Apartments experienced a 4% drop on dubizzle (2016) 818 825 804 VILLAS sectors, particularly affecting now selling for AED 891/sqft. Al higher-end segments and larger Ghadeer Apartments on the other 1.3M AL REEF residential units. Sales prices have hand, saw a 2% increase with an VILLAS also declined in 2016 affected asking price of AED1048/sqft. Q3 Q1 Q3 Q1 -5% Q1 Q1 by the continued reduction in 2016 vs. 2017 2015 2016 2016 transaction volumes and sentiment. 2015 2017 According to dubizzle and JLL Residential asking prices in prime The Abu Dhabi residential sales developments decreased 11%, Q1 market saw a decline of an average 2016 vs Q1 2017. ALL FIGURES ARE ASKING PRICES IN AED PER SQ FT 5% both for apartments and This decline is a result of the 1025 1048 Number of searches villas in 2016. Looking only at continued reduction in transaction APARTMENTS 1014 1032 1062 on dubizzle (2016) the new island districts such as Al volumes and sentiment. Reef Downtown & Villas, Al Reem AL 218K Islands, Saadiyat Island and Al Raha GHADEER Beach the average drop was 4%; Q1 Q3 Q1 Q3 Q1 however it is evident to see that 1BR WAS MOST POPULAR 2015 2016 2016 Q1 2% some communities experienced 2015 2017 2016 vs. 2017 larger dips than others, portraying a fragmented market correction.
Source: dubizzle 11. A dubizzle & JLL report 12. A dubizzle & JLL report 2015-2017 2015-2017 SALE PRICES TREND ANALYSIS SALE PRICES TREND ANALYSIS Q1 2015 vs. Q1 2016 Q12015 TO Q1 2017 PRICE DECREASE Q12015 TO Q1 2017 Q1 2015 vs. Q1 2016 PRICE DECREASE PRICE INCREASE /PREMIUM PRICE INCREASE /BUILDING LEVEL
ALL FIGURES ARE ASKING PRICES IN AED PER SQ FT ALL FIGURES ARE ASKING PRICES IN AED PER SQ FT Number of searches 1376 1261 on dubizzle (2016) APARTMENTS 1594 1394 1368 1356 1300 1409 1414 1514 844K AL REEM AL ISLAND ZEINAAbu Dhabi/Al Raha Beach Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 -7% 2BR WAS MOST POPULAR Q1 Q1 2016 vs. 2017 2015 2016 2016 2015 2016 2016 2015 2017 Q1 -1% 2015 2017 2016 vs. 2017
ALL FIGURES ARE ASKING PRICES IN AED PER SQ FT ALL FIGURES ARE ASKING PRICES IN AED PER SQ FT Number of searches 1176 1077 VILLAS 1967 1561 on dubizzle (2016) 1160 1165 1065 1705 1971 1871 49K AL RAHA AL
BEACH BANDARAbu Dhabi/Al Raha Beach Q1 Q3 Q1 Q3 Q1 Q1 Q3 Q1 Q3 Q1 2BR WAS MOST POPULAR Q1 -8% 2015 2016 2016 2015 2016 2016 2016 vs. 2017 2015 2017 Q1 -21% 2015 2017 2016 vs. 2017
VILLAS ALL FIGURES ARE ASKING PRICES IN AED PER SQ FT ALL FIGURES ARE ASKING PRICES IN AED PER SQ FT 1271 1005 Number of searches 1594 1474 UMM AL 1150 1127 1141 on dubizzle (2016) 1566 1529 1467 NAR-GOLF 242K AL
GARDENS MUNEERAAbu Dhabi/Al Raha Beach Q1 Q3 Q1 Q3 Q1 Q1 Q3 Q1 Q3 Q1 Q1 -11% 2015 2016 2016 2016 vs. 2017 2015 2016 2016 2015 2017 Q1 -4% 2015 2017 2016 vs. 2017
ALL FIGURES ARE ASKING PRICES IN AED PER SQ FT 1670 1442 SUN 1546 1492 1489
TOWERSAbu Dhabi/Al Reem Island /Shams Abu Dhabi Q1 Q3 Q1 Q3 Q1 2015 2016 2016 Source: 2015 2017 Q1 -3% dubizzle 2016 vs. 2017 13. A dubizzle & JLL report 14. A dubizzle & JLL report 2015-2017 2015-2017 SALE PRICES TREND ANALYSIS Q1 2015 vs. Q1 2016 Q1 2015 vs. Q1 2016 PRICE DECREASE Q12015 TO Q1 2017 PRICE DECREASE PRICE INCREASE PRICE INCREASE CONTINUED.. ALL FIGURES ARE ASKING PRICES IN AED PER SQ FT /VILLA LEVEL 1580 1352 SKY 1599 1542 1429
ALL FIGURES ARE ASKING PRICES IN AED PER SQ FT TOWERSAbu Dhabi/Al Raha Beach Q1 Q3 Q1 Q3 Q1 SAADIYAT 1627 1524 Q1-12% 2015 2016 2016 1637 1525 1608 2016 vs. 2017 2015 2017 BEACH
ALL FIGURES ARE ASKING PRICES IN AED PER SQ FT VILLASAbu Dhabi/Saadiyat Island SAADIYAT 2071 1469 /Saadiyat Beach Q1 Q3 Q1 Q3 Q1 1606 1578 1527 3BR Median Size: 2723 2015 2016 2016 Q1 0% 2015 2017 BEACH 2016 vs. 2017
APARTMENTSAbu Dhabi/Saadiyat Island/Saadiyat Beach Q1 Q3 Q1 Q3 Q1 Q1 -7% 2015 2016 2016 2016 vs. 2017 2015 2017
ALL FIGURES ARE ASKING PRICES IN AED PER SQ FT ALL FIGURES ARE ASKING PRICES IN AED PER SQ FT 1550 1429 AL 800 778 THE GATE 1450 1505 1429 REEF 818 825 804
TOWERAbu Dhabi/Al Reem Island 1 VILLASAbu Dhabi/Al Reef Villas Q3 Q1 Q3 Q3 Q1 Q3 Q1 Q1 3BR Median Size: 2424 Q1 Q1 Q1 -5% 2015 2016 2016 2015 2016 2016 2016 vs. 2017 Q1 -6% 2015 2017 2016 vs. 2017 2015 2017
ALL FIGURES ARE ASKING PRICES IN AED PER SQ FT 1550 1405 THE GATE 1650 1440 1478
TOWERAbu Dhabi/Al Reem Island 2 Q1 Q3 Q1 Q3 Q1 Q1 -2% 2015 2016 2016 2016 vs. 2017 2015 2017
ALL FIGURES ARE ASKING PRICES IN AED PER SQ FT 1568 1415 THE GATE 1525 1461 1412
TOWERAbu Dhabi/Al Reem Island 3 Q1 Q3 Q1 Q3 Q1 Q1 -3% 2015 2016 2016 2016 vs. 2017 2015 2017 15. A dubizzle & JLL report 16. A dubizzle & JLL report 2015-2017 2015-2017 RENTAL PRICE TRENDS ANALYSIS Q1 2015 vs. Q1 2016 Q12015 TO Q1 2017 PRICE DECREASE 5/ /MID-MARKET PRICE INCREASE RENTAL MARKET ALL NUMBERS ARE ASKING IN 2016 RENTALS IN AED PER ANNUM APARTMENTS 1BR 1BR 85K 78K 1BR 1BR 1BR 2BR 85K 90K 80K 2BR Number of searches AL REEF 95K 2BR 2BR 2BR 90K on dubizzle (2016) Rental prices have declined by Landlords have responded to the 105K 110K 105K 3BR 3BR an average of 8% in new island current period of weaker demand 125K 3BR 3BR 3BR 2.3M developments, but when taking into by being flexible in offering minor DOWN- 130K 135K 125K 115K consideration Abu Dhabi city center reductions to rents and prices to TOWN as well, the citywide decline stand maintain occupancy. Q3 Q1 Q3 at around 6%. Q1 2015 2016 2016 Q1 1BR -13% 2015 2017 2BR -18% 3BR -15% The new 3% municipality fee on Q1 2016 vs. 2017 expat rentals along with reduced employment benefits and reduced ALL NUMBERS ARE ASKING RENTALS IN AED PER ANNUM subsidies have reduced disposable VILLAS incomes leading some residents to Number of searches on dubizzle(2016) consider downsizing into smaller 3BR 3BR 3BR 3BR 3BR and cheaper options. 1.8M 145K 145K 150K 145K 130K AL REEF VILLAS Q3 Q1 Q3 3BR -13% Q1 2015 2016 2016 Q1 Q1 2016 vs. 2017 2015 2017
ALL NUMBERS ARE ASKING RENTALS IN AED PER ANNUM
APARTMENTS 1BR 1BR 50K Number of searches 1BR 1BR 1BR 55K on dubizzle (2016) 55K 60K 60K 2BR 2BR 2BR 2BR 2BR AL 70K 75K 80K 74K 73K 778K GHADEER Q3 Q1 Q3 1BR -8% Q1 2015 2016 2016 Q1 2015 2017 2BR -9% Q1 2016 vs. 2017
Source: dubizzle 17. A dubizzle & JLL report 18. A dubizzle & JLL report 2015-2017 2015-2017 RENTAL PRICES TREND ANALYSIS RENTAL PRICES TREND ANALYSIS Q1 2015 vs. Q1 2016 Q1 2015 vs. Q1 2016 Q12015 TO Q1 2017 PRICE DECREASE Q12015 TO Q1 2017 PRICE DECREASE PRICE INCREASE PRICE INCREASE /PREMIUM ALL NUMBERS ARE ASKING /BUILDING LEVEL RENTALS IN AED PER ANNUM ALL NUMBERS ARE ASKING RENTALS IN AED PER ANNUM 1BR 1BR 95K 85K 1BR 1BR 1BR 1BR 1BR 2BR 125K 110K 95K 100K 90K 2BR APARTMENTS 1BR 1BR 1BR Number of searches 2BR 2BR (2016) 137K 2BR 2BR 2BR 125K 125K 110K 110K on dubizzle 135K 135K 130K 3BR 3BR 158K 2BR 2BR 2BR 158K 3BR 3BR 3BR 160K 152K 152K 3.9M 178K AL 3BR 3BR 185K 185K 175K 165K AL REEM 3BR 3BR 3BR 235K 250K 216K 205K 205K ISLAND ZEINAAbu Dhabi/Al Raha Beach 2BR Median Size: 1500 Q3 Q1 Q3 Q3 Q1 Q3 Q1 Q1 Q1 Q1 1BR 0% 2015 2016 2016 1BR -15% 2015 2016 2016 2BR 4% 2015 2017 2BR -7% 2015 2017 3BR -5% 3BR -11% Q1 2016 vs. 2017 Q1 2016 vs. 2017 ALL NUMBERS ARE ASKING ALL NUMBERS ARE ASKING RENTALS IN AED PER ANNUM RENTALS IN AED PER ANNUM 1BR 1BR 1BR 1BR 150K 125K 1BR 1BR 1BR 120K 155K 2BR 140K 140K 140K 2BR 1BR 1BR 1BR APARTMENTS 2BR 128K 124K 119K 2BR 180K 2BR 2BR 2BR 175K 152K Number of searches 195K 190K 168K 2BR 2BR 2BR 175K on dubizzle (2016) AL 3BR 3BR 170K 174K 168K 3BR 3BR 3BR 3BR 3BR 250K 260K 260K 260K 265K 3BR 3BR 3BR SAADIYAT 205K 220K 230K 202K 193K 39K BANDARAbu Dhabi/Al Raha Beach Q3 Q1 Q3 2BR Median Size: 1575 Q1 Q1 1BR -11% 2015 2016 2016 ISLAND 2BR -14% 2015 2017 Q3 Q1 Q3 3BR 4% Q1 2015 2016 2016 Q1 1BR 25% Q1 2016 vs. 2017 ALL NUMBERS ARE ASKING 2BR 1% RENTALS IN AED PER ANNUM 2015 2017 3BR -16% Q1 2016 vs. 2017 1BR 1BR ALL NUMBERS ARE ASKING RENTALS IN AED PER ANNUM 113K 110K VILLAS 1BR 1BR Number of searches 2BR 113K 116K 2BR on dubizzle(2016) 140K 2BR 2BR 2BR 147K 3BR 3BR 160K 160K 165K 3BR 3BR 3BR AL 3BR 3BR 3BR 3BR 112K 265K 365K 255K 255K 225K AL RAHA 200K 210K 220K 190K MUNEERAAbu Dhabi/Al Raha Beach BEACH Q3 Q1 Q3 2BR Median Size: 1498 Q1 Q1 Q3 Q1 Q3 1BR -5% 2015 2016 2016 3BR -12% Q1 Q1 2BR -8% 2015 2016 2016 3BR -10% 2015 2017 Q1 2016 vs. 2017 2015 2017 Q1 2016 vs. 2017 ALL NUMBERS ARE ASKING RENTALS IN AED PER ANNUM VILLAS 1BR 1BR 105K 95K ALL NUMBERS ARE ASKING 1BR 1BR 1BR RENTALS IN AED PER ANNUM 2BR 110K 110K 105K 2BR Number of searches UMM AL 155K 2BR 2BR 2BR 130K on dubizzle (2016) 150K 145K 145K SUN 3BR 3BR 3BR 3BR 3BR 3BR 3BR 3BR 3BR NAR-GOLF 190K 230K 230K 220K 281K 180K 190K 185K 175K 165K TOWERSAbu Dhabi/Al Reem Island /Shams Abu Dhabi Q1 Q3 Q1 Q3 Q1 GARDENS 1BR -14% 2BR Median Size: 1392 Q3 Q1 Q3 2BR -10% 2015 2016 2016 3BR -4% 2015 2017 Q1 2015 2016 2016 Q1 3BR -11% Source: 2015 2017 Q1 2016 vs. 2017 Q1 2016 vs. 2017 dubizzle 19. A dubizzle & JLL report 20. A dubizzle & JLL report 2015-2017 2015-2017 RENTAL PRICES TREND ANALYSIS Q1 2015 vs. Q1 2016 Q1 2015 vs. Q1 2016 PRICE DECREASE Q12015 TO Q1 2017 PRICE DECREASE CONTINUED.. PRICE INCREASE /BUILDING LEVEL PRICE INCREASE ALL NUMBERS ARE ASKING ALL NUMBERS ARE ASKING RENTALS IN AED PER ANNUM RENTALS IN AED PER ANNUM 1BR 1BR 1BR 1BR 110K 100K 96K 90K 1BR 1BR 1BR 1BR 1BR 1BR 2BR 110K 114K 105K 2BR 2BR 95K 103K 90K 2BR 155K 2BR 2BR 2BR 130K 143K 2BR 2BR 2BR 130K 165K 160K 155K 150K 135K 135K SKY 3BR 3BR THE GATE 3BR 3BR 3BR 3BR 3BR 3BR 3BR 3BR 185K 190K 213K 200K 160K 180K 178K 185K 169K 160K TOWERSAbu Dhabi/Al Reem Island TOWERAbu Dhabi/Al Reem Island 3 Q3 Q1 Q3 Q3 Q1 Q3 2BR Median Size: 1437 1BR -14% Q1 Q1 2BR Median Size: 1323 1BR -13% Q1 Q1 2BR -19% 2015 2016 2016 2BR -4% 2015 2016 2016 3BR -25% 2015 2017 3BR -14% 2015 2017 Q1 2016 vs. 2017 Q1 2016 vs. 2017 ALL NUMBERS ARE ASKING ALL NUMBERS ARE ASKING RENTALS IN AED PER ANNUM RENTALS IN AED PER ANNUM 1BR 1BR 1BR 118K 119K 110K 1BR 1BR 1BR 1BR 1BR 1BR SAADIYAT 2BR 124K 125K 119K 2BR 110K 110K 110K 2BR 170K 2BR 2BR 2BR 168K 2BR 2BR 2BR 170K 220K 175K 170K 160K 160K 160K BEACH 3BR 3BR CAPITAL 3BR 3BR 3BR 3BR 3BR 3BR 3BR 201K 290K 260K 200K 200K 220K 220K 220K 215K APARTMENTSAbu Dhabi/Saadiyat Island PLAZAAbu Dhabi/Abu Dhabi Island /Saadiyat Beach Q3 Q1 Q3 /Abu Dhabi City Center/Al Markaziyah Q3 Q1 Q3 1BR -4% Q1 Q1 Q1 Q1 2BR Median Size: 1710 2BR -3% 2015 2016 2016 2BR Median Size: 1238 2015 2016 2016 3BR -23% 2015 2017 2015 2017 Q1 2016 vs. 2017 1BR 0% ALL NUMBERS ARE ASKING 2BR 4% ALL NUMBERS ARE ASKING RENTALS IN AED PER ANNUM 3BR -2% RENTALS IN AED PER ANNUM 1BR 1BR Q1 2016 vs. 2017 1BR 100K 90K 90K 1BR 1BR 1BR 1BR 1BR 1BR 2BR 100K 100K 88K 2BR 105K 105K 100K 2BR 145K 2BR 2BR 2BR 130K 2BR 2BR 2BR 130K 140K 135K 130K 150K 154K 136K THE GATE 3BR 3BR RAK 3BR 3BR 3BR 3BR 3BR 3BR 189K 180K 180K 180K 175K 205K 195K 168K TOWERAbu Dhabi/Al Reem Island 1 TOWERAbu Dhabi/Al Reem Island Q3 Q1 Q3 Q3 Q1 Q3 2BR Median Size: 1350 1BR -10% Q1 Q1 2BR Median Size: 1647 1BR -14% Q1 Q1 2BR -4% 2015 2016 2016 2BR -15% 2015 2016 2016 3BR -3% 2015 2017 3BR -18% 2015 2017 Q1 2016 vs. 2017 Q1 2016 vs. 2017 ALL NUMBERS ARE ASKING ALL NUMBERS ARE ASKING RENTALS IN AED PER ANNUM RENTALS IN AED PER ANNUM 1BR 1BR 1BR 1BR 97K 90K 115K 113K 1BR 1BR 1BR 1BR 1BR 1BR 2BR 105K 110K 103K 2BR 2BR 120K 115K 135K 2BR 145K 2BR 2BR 2BR 125K 170K 2BR 170K 138K 135K 130K 168K THE GATE 3BR 3BR ETIHAD 3BR 3BR 3BR 3BR 3BR 3BR 3BR 175K 178K 180K 164K 179K 230K 228K 200K 225K TOWERAbu Dhabi/Al Reem Island 2 TOWERAbu Dhabi/Abu Dhabi Island2 Q3 Q1 Q3 /Abu Dhabi City Center/Corniche Q3 Q1 Q3 2BR Median Size: 1410 1BR -18% Q1 Q1 1BR -2% Q1 Q1 2BR -7% 2015 2016 2016 2BR Median Size: 1395 2BR 1% 2015 2016 2016 Q1 2016 vs. 2017 2015 2017 3BR -2% 2015 2017 Q1 2016 vs. 2017 21. A dubizzle & JLL report 22. A dubizzle & JLL report 2015-2017 2015-2017 RENTAL PRICES TREND ANALYSIS Q1 2015 vs. Q1 2016 Q1 2015 vs. Q1 2016 PRICE DECREASE Q12015 TO Q1 2017 PRICE DECREASE PRICE INCREASE PRICE INCREASE CONTINUED.. /VILLA LEVEL ALL NUMBERS ARE ASKING RENTALS IN AED PER ANNUM 1BR ALL NUMBERS ARE ASKING 110K RENTALS IN AED PER ANNUM 1BR 1BR 110K 115K 2BR 2BR 2BR ETIHAD 140K 175K 155K 3BR AL 3BR 3BR 3BR 3BR 3BR 240K 230K 240K 255K 255K 225K TOWERAbu Dhabi/Abu Dhabi Island4 ZEINAAbu Dhabi/Al Raha Beach /Abu Dhabi City Center/Corniche Q3 Q1 Q3 Q3 Q1 Q3 Q1 Q1 3BR Median Size: 3343 Q1 Q1 2BR Median Size: 1335 2015 2016 2016 2015 2016 2016 2015 2017 3BR -12% 2015 2017 1BR 0% Q1 2016 vs. 2017 Q1 2016 vs. 2017 ALL NUMBERS ARE ASKING RENTALS IN AED PER ANNUM
ALL NUMBERS ARE ASKING RENTALS IN AED PER ANNUM 2BR 2BR 163K 2BR 2BR 140K ETIHAD 150K 140K AL RAHA 3BR 3BR 3BR 3BR 3BR 190K 190K 190K 185K 175K GARDENSAbu Dhabi/Khalifa City A TOWERAbu Dhabi/Abu Dhabi Island5 /Abu Dhabi City Center/Al Markaziyah Q3 Q1 Q3 Q3 Q1 Q3 Q1 Q1 3BR Median Size: 2722 3BR -8% Q1 Q1 2015 2016 2016 Q1 2016 vs. 2017 2015 2016 2016 2BR Median Size: 1300 2015 2017 2015 2017 2BR -7%
Q1 2016 vs. 2017 ALL NUMBERS ARE ASKING RENTALS IN AED PER ANNUM
1BR 1BR ALL NUMBERS ARE ASKING 135K 130K RENTALS IN AED PER ANNUM 1BR 1BR 1BR 2BR 135K 135K 135K 2BR 173K 2BR 2BR 2BR 150K 165K 155K 168K NATION 3BR 3BR AL REEF 3BR 3BR 3BR 3BR 3BR 3BR 3BR 3BR 210K 245K 205K 225K 200K 145K 145K 150K 145K 135K VILLASAbu Dhabi/Al Reef TOWERAbu Dhabi/Abu Dhabi Island A /Abu Dhabi City Center Q3 Q1 Q3 Q3 Q1 Q3 Q1 Q1 3BR Median Size: 2424 3BR -10% Q1 Q1 /Corniche/Al Khalidiyah 1BR -4% 2015 2016 2016 Q1 2016 vs. 2017 2015 2016 2016 2BR Median Size: 1300 2BR -3% 2015 2017 2015 2017 3BR -2% Q1 2016 vs. 2017 23. A dubizzle & JLL report 24. A dubizzle & JLL report 2015-2017 2015-2017
7/ FOCUS ON SELECTED COMMUNITIES 7.1 Community Level & Building Level Price Shifts Q1 2017 vs. Q1 2016
Sales market (Q1 2016 vs. Q1 2017)
6/ VILLAS APARTMENTS Villa projects experienced the Al Reef Downtown apartment FACTORS CONTRIBUTING steepest Y-O-Y decline; Golf Garden prices, Al Reef villas and Al Reem Villas dropped by 11% now selling Island apartments dropped by 4%, TO THE DECLINE at a median sale price AED 1005/ 5% and 7% respectively. sqft and Al Raha Beach Villas IN PRICES IN 2016 declined by 8%. On the other hand Ghadeer Slowdown in the UAE economy Ample levels of new supply apartments experienced a 2% (GDP growth went from 4.0% in despite developers holding some Al Zeina and Al Reef villas prices increase. 2015 to 2.3% in 2016). This was projects off the market. declined 4% and 6% respectively largely due to the decline in oil selling at AED 1398 and 778 When analyzing specific buildings respectively. prices Restrictions on mortgages as we identified that Al Bandar part of the UAE Government’s declined the most - by 21% followed by Sadiyaat Beach Lower oil prices have also successful attempt to cool the Saadiyat Beach Villas experienced Apartments by 11%. resulted in less investment from housing market and prevent no change. AED 1524 surrounding GCC nations another bubble from developing (as it had from 2006 to 2008). Job cutting in various industries predominately oil & gas, banking Introduction of the 3% and finance. municipality fee on top of reduced employee benefits citywide and reduced subsidies mean individuals or families are left with less disposable income and are looking for more affordable housing options. 25. A dubizzle & JLL report 26. A dubizzle & JLL report 2015-2017 2015-2017
Rental market (Q1 2016 vs. Q1 2017) 7.2 Popular Property Types Abu Dhabi is known for it’s family- Al Ghadeer village however, feel, hence the most searched attracts bachelors or young property types on dubizzle in 2016 couples on mid-to-low level VILLAS APARTMENTS for key popular communities were income who are willing to Rental prices for 3BR villas in Al 2 Br apartments were the most 2 BR apartments for apartment commute 40 minutes to an Zeina, Raha and Al Reef decreased popular searched properties in Al seekers and 4 and 5 BR for villa hour to the capital, and would by 8% to 12% ; currently priced Reem Island and experienced the seekers both in the rent and sale like to stay close to Dubai as at approximately 225k, 135k and lowest decline in rental prices by segment. well, hence 1BR apartments 175K respectively. 7% as opposed to 1 BR apartments were the most searched in that declining by 15% - 125K and 85K specific district. respectively.
COMMUNITY LEVEL RENT TYPE SALE TYPE
AL REEF DOWNTOWN 2 BR Apt 2 BR Apt With increased cost cutting and ongoing AL GHADEER redundancies across various industry 1 BR Apt 1 BR Apt sectors, it is evident that the reduction in employee housing allowances continues AL REEM to negatively affect demand in Abu Dhabi ISLAND 2 BR Apt 2 BR Apt with a number of tenants opting to downsize and/or move to more affordable SADIYAAT developments or to further inland where ISLAND 4 BR Villa 5 BR Villa for the same price you would get a newer property. AL RAHA BEACH 2 BR Apt 2 BR Apt
UMM AL NAR GOLF GARDENS 5 BR Villa 5 BR Villa
Source: dubizzle 27. A dubizzle & JLL report 28. A dubizzle & JLL report 2015-2017 2015-2017 There are currently around 5,000 Future residential supply is units scheduled to be completed expected to shift to the newer in 2017, however a significant masterplanned communities, proportion of this is likely to be particularly Reem Island, Yas Island, 8/ delayed at the final stages of Saadiyat Island and Al Raha Beach. approvals and handover, further RESIDENTIAL & mitigating the negative impact of COMMERCIAL SUPPLY reduced demand. RESIDENTIAL SUPPLY RESIDENTIAL SUPPLY Approximately 3,100 residential units were Limited supply completions have completed in 2016 mainly within Reem helped mitigate the negative impact Island, Saraya, Danet and Rawdhat bringing of reduced demand following the the total stock to 248,000 units. decline in oil prices and government Completed spending. (thousand units) Under Contruction 259K Average residential supply completions (thousand units) 253K remain limited compared to historic averages due to government supply 248K 249K controls and greater caution amongst 245K developers. 5K 5K 8K Source: JLL ABU DHABI 2015 2016 2018 2019 DISTRICT MAP 2017
CBD & Tourist Club 519 1 Area (3rd & 9th) 625 7 4 Corniche, Khalidiya, 2 Al Bateen MID- NORTH 500 2,517 TOWN Midtown (Rest of COAST 4 3 4 Abu Dhabi Island) MAINLAND 1 NORTH 4 New Islands (Sowwah, Reem, CORNICHE, 2 Raha, Saadiyat,Yas, KHALIDIYA, 674 Al Raha Beach) NEW AL BATEEN ISLANDS 4 Mainland North 5 (Between Bridges, CBD & 3 5 Khalifa A) TOURIST CLUB AEA 6 Mainland South 500 (MBZ, Mussafah, Khalifa B) 6 7 North Coast
Source: JLL 29. A dubizzle & JLL report 30. A dubizzle & JLL report 2015-2017 2015-2017 COMMERCIAL SUPPLY No major retail completions took place Opportunities remain for further during 2016 with total retail stock neighborhood and community remaining at about 2.6 million sqm. shopping centres surrounded by Approximately 58,000 sqm of retail space is strong catchment areas. scheduled for completion in 2017, mostly within residential communities or towers. The Abu Dhabi office market saw the completion of 214,000 sq m of GLA Quality retail supply is expected to increase in 2016, bringing the total stock to significantly with the delivery of Al Maryah 3.5 million sq m. A further 170,000 Central Mall in 2018 and others including sq m of GLA is expected to enter the Reem Mall over subsequent years. market in 2017, dominated by the delivery of ADIB HQ on Airport Road, Super Regional and Regional malls remain as well as Leaf and Omega towers on and are expected to continue to form the Reem Island. largest proportion of retail GLA in the market. 9/ PROSPECTS FOR COMMERCIAL PERFORMANCE Continuous growth in retail spending However, demand for office space 2017 (derived both from the resident population has remained generally flat during and higher tourism levels), supported 2016 due to the decline in oil prices It is likely that there will be further demand for retail space in Abu Dhabi over directly impacting the oil related decline in certain sub-sectors over previous years, with some retail centers sector and indirectly impacting the short term due to the current increasing rents during 2014, stabilizing at other sectors due to a slowdown decline in demand growth and AED 3,000 per sqm. in government spending. Average sentiment, and in some sectors Grade A and Grade B office rents increased supply. However, we However, retail spending from tourists have decreased by 2% and 5% in Q3 consider that the level of decline and residents has since been affected by 2016 reaching approximately AED will be relatively modest, with various factors including a reduction in 1,760 per sqm and AED 1,030 per rental rates and sales price Market recovery is to a large employment growth, reduced disposable sqm respectively. remaining above the levels that extent dependent on the return of incomes and a reduction in corporate existed in 2012, prior to the government spending, in spite of hospitality. The delivery of further office space 2013-2014 upswing. low oil prices. throughout the year at a time of Average Grade A office rents increased by weaker demand is expected to push 12% during 2014 and 7% during 2015 to up vacancy rates slightly, but with reach approximately AED 1,850 / sqm by Grade A rents being upheld. the end of 2015, due to the drop in vacancy With a slowdown in the oil rates and multi-let buildings reaching full sector and a short-term pause in occupancy. government spending, the market is dependent on new economic development initiatives and the return of government spending to grow demand. 31. A dubizzle & JLL report 32. A dubizzle & JLL report 2015-2017 2015-2017
DATA SOURCED FROM dubizzle FOR QUESTIONS AND Type: DATA REFERENCED INQUIRIES ON THE Sale and Rent asking prices AND ANALYZED Average Property Sizes REAL ESTATE MARKET, Quarterly Search Volumes Y-O-Y (2016-2017) Sale & Rent PLEASE CONTACT: Price data for key communities (in the affordable & premium From dubizzle: Exclusive Data Collaboration housing segment) Ann Boothello Partner: JLL Senior Product Marketing Manager From JLL: Type: Y-O-Y residential supply trends dubizzle David Dudley Proprietary Supply Data [email protected] Head of Research Y-O-Y volume of sales & RE [email protected] transaction values For media inquiries, please contact: Kathryn Athreya Health of the rent and sale Abdallah Touqan Director of Marketing property market & factors that Director PR, Communications & Events [email protected] affect the prices dubizzle [email protected] Rana Hossam Supply trends and key + 971 55 9866 891 communities [email protected] +971 4 362 5129 Or Or Grayling PR [email protected] [email protected] +971 (4) 360 0527 DATA SOURCES DATA CONTACT US WISHING YOU A PRODUCTIVE YEAR AHEAD!