Property Review Abu Dhabi Real Estate Report Q1 2018 In the Middle East for over 30 Years CONTENT 03 05 07 09 MARKET APARTMENT VILLA OFFICE OVERVIEW RENTAL RATES RENTAL RATES RENTAL RATES 04 06 08 10 SUPPLY APARTMENT VILLA PROPERTY SALES PRICES SALES PRICES MAP 2 Abu Dhabi Real Estate Report - Q1 2018 ABU DHABI MARKET OVERVIEW SUPPLY RENTAL RATES SALES PRICES Approximately 1,600 residential units were delivered in Q1 2018 Apartment and villa rental rates declined on average by 3% and Apartment sales prices remained broadly unchanged over with the bulk (more than 75%) located within the Investment 2% since Q4 2017, whilst recording annual decreases of 11% and the quarter for the majority of locations, with the exception of Zones, including, but not limited to Yas Island, Al Reem Island 9%, respectively. Marina Square (-5%), Reef Downtown (-6%) and Sun & Sky Towers and Al Raha Beach. In addition to a number of stand-alone (-6%), which faced increased competition from new off-plan buildings in different locations, the key projects that were handed As a result of the continuous delivery of new supply during a developments offered at attractive rates and favourable payment over included Ansam- Yas Island, Al Hadeel- Al Raha Beach and period of restrained economic growth and subdued market plans. Muhaimat Tower- Al Reem Island. sentiment, vacancy rates increased across all residential unit types. Similarly, Al Reef was the only area recording a drop in villa sales Furthermore, a number of new projects were launched this prices at an average rate of 2%. quarter such as the Al Fahid Island Master Development by Al Office demand levels continued to be low resulting in a Q-o-Q Nahda Investment and the Reflection Towers on Reem Island by drop in rental rates of 2% on average. Nevertheless, a number of Although healthy demand for high-quality, off-plan and newly Aldar. Landlords offered space with discounts of up to 5% in order to delivered projects continued, inferior residential units remained retain Tenants and/or entice new take-up. under pressure. The most noteworthy announcement, however, was the Saadiyat Grove Development by Aldar and Emaar, which falls under a strategic alliance between both Developers to develop local and international projects worth AED 30 billion. Whilst more than 7,300 units are earmarked for handover before the end of 2018, previous delivery patterns suggest a number of these are likely to be delayed and will spill over into 2019. The expected supply includes: • Over 2,500 units on Reem Island; • 1,800 on Yas and Saadiyat Islands (i.e.: West Yas, Jawaher Al Saadiyat and Mamsha Al Saadiyat); • More than 1,650 units on the Abu Dhabi Mainland; and • Remainder located on Abu Dhabi Island. No major office supply was delivered in the first quarter of 2018. The anticipated Omega Towers on Reem Island and the ADIB HQ on Airport Road are due for handover before year-end. 3 Abu Dhabi Real Estate Report - Q1 2018 ABU DHABI SUPPLY COMPLETED IN COMPLETED IN EXPECTED BY 2017 Q1 2018 END OF 2018 3,000 1,600 4,500 APARTMENTS NO. OF UNITS 750 50 2,800 VILLAS NO. OF UNITS 85,000 0 100,000 OFFICES SQ.M. 4 Abu Dhabi Real Estate Report - Q1 2018 ABU DHABI APARTMENT RENTAL RATES (All figures in AED 000’s p.a.) TYPE STUDIO 1 BEDROOM 2 BEDROOMS 3 BEDROOMS % CHANGE Q4 2017 - Q1 2017 - FROM TO FROM TO FROM TO FROM TO Q1 2018 Q1 2018 PRIME PROPERTIES ABU DHABI ISLAND - - 85 130 130 170 165 255 -2% -15% INVESTMENT AREA 90 105 110 155 135 215 180 300 -3% -4% HIGH END PROPERTIES Central Abu Dhabi - - - - 80 135 140 170 -5% -14% ABU DHABI ISLAND Corniche - - 75 90 100 135 145 190 -4% -13% Khalidya / Bateen 83 - 85 105 85 150 135 200 -3% -12% Al Raha Beach - - 80 105 120 150 150 195 -5% -12% Marina Square 50 - 65 95 85 140 120 175 -5% -14% INVESTMENT AREA Shams Abu Dhabi 60 - 70 80 100 120 125 160 -4% -17% Saadiyat Beach - - 105 118 163 165 190 200 -2% -5% MID AND LOWER END PROPERTIES ABU DHABI ISLAND 45 65 55 100 75 145 120 170 -5% -13% Shams Abu Dhabi - - 65 80 80 120 115 150 -4% -16% INVESTMENT AREA Najmat & Tamouh 42 55 65 80 80 120 110 155 -4% -12% OFF ISLAND Khalifa & MBZ City 40 45 55 82 70 125 140 150 -4% -14% LOW END PROPERTIES Central Abu Dhabi 35 40 50 65 60 80 85 115 -3% -12% ABU DHABI ISLAND Corniche 40 50 55 65 75 80 90 118 -1% -7% Khalidiya / Bateen 40 45 55 60 70 80 90 115 -3% -10% INVESTMENT AREA Al Reef 50 55 63 70 75 85 95 120 -3% -12% OFF ISLAND Khalifa & MBZ City 30 45 40 50 55 70 70 90 -2% -8% 2% Q-o-Q Y-o-Y Since peak Since market low % Change Since Q4 2017 Since Q1 2017 Q4 2015 Q2 2012 -3% -11% -20% 5 Abu Dhabi Real Estate Report - Q1 2018 ABU DHABI APARTMENT SALES PRICES Q-o-Q % Change Y-o-Y % Change AED per sq.ft. 0 500 1,000 1,500 2,000 (Q4 2017-Q1 2018) (Q1 2017-Q1 2018) AL BANDAR 1,400 1,800 0% -6% AL MUNEERA 1,200 1,350 0% -12% AL ZEINA 1,100 1,350 0% -6% CITY OF LIGHTS - HYDRA 750 850 0% -22% MARINA SQUARE 950 1,150 -5% -14% REEF DOWNTOWN 750 900 -6% -15% SAADIYAT BEACH RESIDENCES 1,350 1,500 0% -5% SUN & SKY TOWERS 1,100 1,300 -6% -14% THE GATE 1,100 1,350 0% -9% YAS ISLAND 1,300 1,500 n/a n/a 28% Q-o-Q Y-o-Y Since peak Since market low % Change Since Q4 2017 Since Q1 2017 Q4 2015 Q3 2012 -2% -12% -15% 6 Abu Dhabi Real Estate Report - Q1 2018 ABU DHABI VILLA RENTAL RATES (All figures in AED 000’s p.a.) TYPE 1 BEDROOM 2 BEDROOMS 3 BEDROOMS 4 BEDROOMS % CHANGE Q4 2017 - Q1 2017 - FROM TO FROM TO FROM TO FROM TO Q1 2018 Q1 2018 Khalidiya / Bateen - - 160 180 170 180 180 220 -1% -8% ABU DHABI ISLAND Mushrif / Karama / Manaseer - - 155 175 160 185 180 210 -1% -8% Nahyan Camp / Muroor - - 125 170 160 185 170 200 0% -6% Al Raha Beach - - 180 190 200 270 250 285 -2% -10% Al Reef 90 105 115 125 145 155 155 170 0% -9% INVESTMENT AREA Hydra Village 75 82 85 95 - - - - -4% -11% Saadiyat Island - Beach Residences - - 290 310 280 370 400 720 -2% -10% Hidd Al Saadiyat - - - - 300 340 360 790 na na Al Raha Gardens - - 155 180 170 205 190 240 -1% -11% Golf Gardens - - 200 220 220 240 240 290 -2% -8% OFF ISLAND Khalifa City - - 115 135 130 145 140 155 -2% -8% Mohamed Bin Zayed - - 100 115 120 135 140 155 -3% -6% Q-o-Q Y-o-Y Since peak Since market low % Change Since Q4 2017 Since Q1 2017 Q4 2015 Q4 2012 -2% -9% -10% -3% 7 Abu Dhabi Real Estate Report - Q1 2018 ABU DHABI VILLA SALES PRICES Q-o-Q % Change Y-o-Y % Change AED Million 0 2 4 6 8 10 12 (Q4 2017-Q1 2018) (Q1 2017-Q1 2018) 2 BR 1.43 3 BR 1.78 AL REEF VILLAS -2% -5% 4 BR 2.15 5 BR 2.65 3 BR 3.15 GOLF GARDENS 0% -1% 4 BR 3.95 5 BR 4.88 HIDD AL SAADIYAT n/a n/a 4 BR 6.65 5 BR 8.25 2 BR 0.92 3 BR 1.28 HYDRA VILLAGE 0% -8% 3 BR 2.55 RAHA GARDENS 0% -4% 4 BR 2.95 5 BR 4.10 SAADIYAT BEACH VILLAS 3 BR 5.75 0% 0% (STANDARD) 4 BR 6.55 5 BR 10.70 40% Q-o-Q Y-o-Y Since peak Since market low % Change Since Q4 2017 Since Q1 2017 Q4 2015 Q4 2012 0% -4% -8% 8 Abu Dhabi Real Estate Report - Q1 2018 ABU DHABI OFFICE RENTAL RATES (All figures in AED 000’s sq.m. p.a.) TYPE AVERAGE RENTAL RATES % CHANGE FROM TO Q4 2017 - Q1 2018 Q1 2017 - Q1 2018 PRIME STOCK FITTED* 1,500 2,500 0% -3% QUALITY STOCK FITTED 770 1,300 -3% -5% SHELL AND CORE 700 1,050 0% -3% OLDER STOCK GOOD 650 800 -5% -7% TYPICAL BUILDING 600 700 0% -2% LOW QUALITY BUILDING 530 600 -2% -2% * Includes developments such as Al Maryah Island, Aldar HQ, International Tower, Nation Towers, Ittihad Towers, Capital Plaza, Etihad Tower, etc. Q-o-Q Y-o-Y Since peak Since market low % Change Since Q4 2017 Since Q1 2017 Q4 2015 Q4 2012 -2% -4% -14% -12% 9 Abu Dhabi Real Estate Report - Q1 2018 ABU DHABI PROPERTY MAP 1 Al Bandar – Raha Beach 2 Al Bateen Wharf 3 Al Gurm 4 Al Maqtaa 5 Al Muneera – Al Raha Beach 6 Al Nahyan Camp 7 Al Raha Gardens 8 Al Rayanna 9 Al Reef 10 Al Zeina – Al Raha Beach YAS 11 Baniyas 12 Bateen Airport Area ISLAND 13 Bateen Area 14 Bawabat Al Sharq 15 Capital District (ADNEC) 16 CBD / Tourist Club Area 17 Corniche 18 Danet Abu Dhabi 19 Eastern Mangroves 20 Golf Gardens 21 Hydra Village 22 Khalidia / Al Hosn / Al Manhal 23 Khalifa City A 24 Khalifa City B 25 Maryah Island 26 MBZ City 27 Mina 28 Mushrif / Karama / Manaseer / Muroor 29 Officer’s City 30 Rawdhat Abu Dhabi 31 Reem Island - Marina Square 32 Reem Island – Najmat Abu Dhabi 33 Reem Island – rest of Shams Abu Dhabi 34 Reem Island – City of Lights 35 Reem Island – The Gate District 36 Rihan Heights 37 Saadiyat Beach District 38 The Hills Note: Area classification by affordability is provided for indicative purposes only as most areas in Abu Dhabi offer various types of residential units, from affordable to high end.