REVIEW VISION Abu Dhabi www.valustrat.com ValuStrat Price Index – VPI Abu Dhabi Residential Base: Q1 2016=100 All prices are quoted in UAE Dirhams unless otherwise stated Sales and Rent performance are measured on a quarterly basis while hotel performance are on yearly basis Q12019 REVIEW • The VPI – Residential first quarter 2019 stood at 75.1 points, this is compared with 100 points from the 2016 base Economy • Abu Dhabi’s declining residential capital values were 18.7% lower than the same period in 2017, 12.2% lower than last year and 3.2% • Moody’s confirmed long term issuer rating of Abu Dhabi at Aa2 below the previous quarter • Fitch Ratings awarded highest credit rating to Abu Dhabi National • The weighted average residential value this quarter was AED 10,150 Oil Company per sq m (AED 943 per sq ft), apartments stood at AED 11,259 per sq m (AED 1,046 per sq ft), and villas at AED 7,513 per sq m (AED • Oil prices averaged USD 60.5 per barrel, declined 6% annually 698 per sq ft) • The residential rental VPI stood at 77.2 points, declining 22.8% VPI Residential VPI Residential since 2016, softening 2.1% quarterly and 6.9% annually Capital Values Rental Values • Abu Dhabi’s gross yields averaged 7.1%, with apartments at 7.4% 75.1 77.2 and villas at 6.5% Sales -3.2% -2.1% • Al Murjan Tower sold for AED 289 million Q1 Y-o-Y Q1 Y-o-Y Residential • Aldar sets up a comprehensive property management arm – Provis • Aldar unveiled AED 2 billion Alreeman project Hotel • New residential tower with 525 units released at Pixel in Makers District • Interfaith visit and 17th edition of Asian Football Cup positively affected hotel performance • Hilton Abu Dhabi hotel rebranded as Radisson Blu Abu Dhabi Corniche Office Asking Office Asking • Al Watha Desert Resort was opened Sales Price Rents 10,290 904 Office AED/sq m p.a. AED/sq m p.a. • Notable expected completions included Eclipse Twin Towers with 51,590 sq m (555,294 sq ft) GLA, Reem Tower 1 with 27,650 sq m (297,614 sq ft) GLA and Al Mansouri Commercial Tower having -10.5% -1.9% 14,364 sq m (154,608 sq ft) GLA Q-o-Q Q-o-Q Industrial • Masdar City launched Tech Park depicted for start-ups • Khalifa Industrial Zone Abu Dhabi (KIZAD) launched Polymers Park • DHL announced plans to build a distribution centre in KIZAD Retail • Eithad Plaza with approx. 1,000 sq m (10,764 sq ft) GLA of retail space acquired by Aldar Hotel Average Hotel Infrastructure Daily Rate Occupancy • Under construction mall GLA is estimated at 978,334 sq m (10.5 • Internal road and infrastructure project at Al Shawamekh reached million sq ft) as of Q1 416 81% 74% completion as per Musanada AED 16.0% 0.5% Q1 Y-o-Y Q1 Y-o-Y Tourism Legal • Qasr Al Watan in the Presidential Palace compound was opened • Two new laws enacted and issued by HH Sheikh Khalifa Bin Zayed Al Nahyan in relation to Abu Dhabi Investment Office and PPPs • Special Olympics Garden was inaugurated • Abu Dhabi Department of Culture and Tourism (DTCAD) reduced tourism fees to 5.5% to help boost the sector • Louvre Abu Dhabi unveiled a rare Rembrandt masterpiece, Head of a Young Man in Prayer (circa 1655) Projects • AED 535 million Hub71 project in Abu Dhabi Global Market Square announced Q22019 REVIEW • The VPI – Residential second quarter 2019 stood at 72.7 points, this is compared with 100 points from the 2016 base Tourism • Abu Dhabi’s declining residential capital values were 19.5% lower than the same period in 2017, 13.3% lower than last year and 3.3% • DTCAD signed a five-year agreement to host UFC fights below the previous quarter • Oldest Christian site in the UAE opened for tourist by DTCAD • The weighted average residential value this quarter was AED 9,795 per sq m (AED 910 per sq ft), apartments stood at AED 10,861 per • Louvre Abu Dhabi launched highway gallery along E11 sq m (AED 1,009 per sq ft), and villas at AED 7,244 per sq m (AED 673 per sq ft) • About 200,000 visited The Founder’s Memorial after its first year of opening • The residential rental VPI stood at 75.6 points, declining 24.4% VPI Residential VPI Residential • Al Qana waterfront destination unveiled and will include largest since 2016, softening 2% quarterly and 7.9% annually. Abu Dhabi’s Capital Values Rental Values gross yields averaged 7.3%, for apartments at 7.5% and villas with aquarium in the Middle East 6.7% 72.7 75.6 -3.3% -2.0% Q2 Y-o-Y Q2 Y-o-Y Industrial Economy • KIZAD announced to receive AED 36.7 billion investment • S&P gave AA credit rating for Abu Dhabi • ICAD Business Park and ICAD Gate projects to be built at Industrial • Abu Dhabi government announced nine new initiatives to help boost City Abu Dhabi 3 (ICAD 3) economic performance • Oil prices averaged USD 65.1 per barrel, declined 9% annually Office Asking Office Asking Sales Price Rents Infrastructure 11,055 904 • Abu Dhabi General Service Company (Musanada) opened a new Cityscape AED/sq m p.a. AED/sq m p.a. bridge, B17 ICAD Bridge along Shaikh Khalifa Bin Zayed International Highway • Aldar launched Lea at Yas Island and Alreeman 2 • Sheikh Zayed Bin Sultan Road (Eastern Mangroves Road) Traffic • Official data revealed 14,000 attendees, as per post show report 7.5% -1.9% Improvements Project started construction, as per Musanada Q-o-Q Q-o-Q • Top visiting nationalities were locals, Indians, Egyptians, Jordanians • Al Zahiya area road project finished construction and British citizens • Al Maqtara – Hamim road traffic safety improvement project completed, according to Musanada Hotel • Al Sherifi Hotel and Al Ameri Hotel Airport Road expected to finish costruction Residential Hotel Average Hotel • With increased tourist attractions and event offerings in the city, Daily Rate Occupancy • Leonardo Residence Masdar City, Al Qudra Danet Abu Dhabi and tourists Average Length of Stay (ALOS) in hotels went up 2.8% YoY West YAs Villas were completed 323 67% AED 3.5% -1.6% Q2 Y-o-Y Q2 Y-o-Y Retail Mergers and Acquisitions • Three-way merger of ADCB, UNB and Al Hilal Bank • First City Centre shopping centre in the UAE capital opened, My City Centre Masdar • Al Maryah Central renamed to The Galleria Al Maryah Island and will serve as extension to The Galleria • Apparel Group entered into a lease agreement with Aldar malls to occupy 9,290 sq m (100,000 sq ft) GLA of shopping space in three malls Transportation • Careem acquired bike-sharing company Cyacle Legal • Abu Dhabi announced freehold ownership law in investment areas in the capital Launches • A law was issued to form Abu Dhabi Digital Authority • Jubail Island development officially launched. Estimate to have up to 6,000 residents once completed Q32019 REVIEW • The third quarter VPI - Residential Capital Values declined 2.4% quarterly to 70.9 points, registering a slower rate of decline than the past 4 quarters Tourism • Abu Dhabi capital values were 12.6% lower than the third quarter • Department of Culture and Tourism Abu Dhabi announced AED 600 last year, 29.1% lower than Q1 2016, the base of the VPI million budget to help boost entertainment and events sector • The weighted average residential value this quarter was AED 9,505 • A new landmark development in Saadiyat Island will be built as part per sq m (AED 883 per sq ft), apartments stood at AED 10,044 per of the UAE’s vision of tolerance and hospitality called The sq m (AED 977 per sq ft), and villas at AED 7,083 per sq m (AED 658 Abrahamic Family House which will be a place of worship for per sq ft) Christians, Jews and Muslims • The residential rental VPI declined 2.4% quarterly and 9.2% • Abu Dhabi was included in the list of most cultural cities, as per VPI Residential VPI Residential Skyscanner annually to 73.8 points. Abu Dhabi’s gross yields averaged 7.4%, Capital Values Rental Values with apartments at 7.7% and villas at 6.6% • DCTAD announced partnership with Miral to enhance Yas Island 70.9 73.8 offerings -2.4% -2.4% Q3 Y-o-Y Q3 Y-o-Y Economy • UAE Central Bank lowered interest rates by a quarter point, Retail mirroring US Federal Reserve move • The Galleria Al Maryah Island expansion was opened boasting an • OPEC+ meeting held in the city discussed possible oil production estimated 23,226 sq m (250,000 sq ft) GLA, with 250 shops, 70 dining cut as crude hovered in the low USD 60 per barrel options and 21-screen cinema complex • A total of 16 MoUs were signed at the UAE-China Economic forum • Dalma Mall launched its new Zeal Entertainment Centre with 3,252 sq m (35,000 sq ft) GLA • Oil prices averaged USD 59.7 per barrel, declined 18% annually • Construction contract for North Riyadh City's (formerly known as Wathba North/South Samkha) Retail Strip Mall has been awarded by Modon Properties Office Asking Office Asking Sales Price Rents 10,620 836 AED/sq m p.a. AED/sq m p.a. Residential • An estimated total of 1,000 villas and 733 apartments were -3.9% 2.8% Industrial completed Q-o-Q Q-o-Q • The China – UAE Industrial Capacity Cooperation Demonstration • Aldar launched 306 villa plots at Saadiyat Reserve Project has so far attracted 20 Chinese companies pumping investments worth AED 6.2 billion in Khalifa Industrial Zone Abu Dhabi (KIZAD) • KIZAD lowered its fees and charges for more than three-fourths of its services Office • WeWork announced to open its first UAE co-working facility at Abu Dhabi’s Hub71 Hotel Average Hotel Daily Rate Occupancy Transportation • Aldar inaugurated new Provis and Khidmah headquarters 279 70% AED • Registration for road toll started with roll-out to officially begin in 1st January 2020 -1.0% 4.1% Q3 Y-o-Y Q3 Y-o-Y Hotel • Andaz Capital made it into the