UAE REAL ESTATE MARKET REPORT

Transcription

1 UAE REAL ESTATE MARKET REPORT UAE REAL ESTATE MARKET REPORT ISSUE

2 FIND A HOME IN THIS ISSUE ISSUE - JULY 07 CONTENTS THE PERFORMANCE TRENDS MARKET REVIEW p.0 Property Trends p.6 Cautious Optimism p.0 Increasing Transparency p. Abu Dhabi Regulation Progress p. Rental Scene p. Maturing Market p. Levy Of VAT p.6 Serviced Apartments p.9 Market - Data p. Our Performance p. Dubai Community Focus p.6 Abu Dhabi Community Focus p.66 Norern Emirates Community Focus DIGITAL UPDATE AGENT SPOTLIGHT 6 INVESTORS p.7 Newest Releases p.7 Tech Trends p.78 Propertyfinder Real Estate Brokage Award p.8 Our Awesome Agents p.8 Top Investors in Dubai p.86 Optimising Property Returns in Turbulent Times p.88 Maintaining And Maximising Your Investment YOU SPRINT FROM 7 OFF- PLAN 8 LUXURY MARKET 9 AGENT SECTION p.9 Should Developers Show Some Restraint? p.9 Dubai: Placemaking p.9 Saadiyat Island Premier Residential Offering p.96 Outlook On Lending p.00 Thriving Luxury Sales p.0 Bridging e Gap Between Luxury And Affordability p.0 Consumer Search Patterns p.06 Top Searched Communities Disclaimer propertyfinder Trends is published by propertyfinder.ae 0 Shaa Tower, Dubai Media City, PO Box 09, Dubai UAE For article reprints, permissions and licensing: marketing@propertyfinder.ae The information contained in propertyfinder Trends is intended to be for general use only. propertyfinder.ae is not responsible for any errors or omissions contained in e document. If you wish to use or copy any of e text or oer materials found in is report, you must first contact propertyfinder.ae for a written copyright permission in relation to e proposed use.

3 MESSAGE FROM THE COMMERCIAL DIRECTOR DEAR READER, Our mission is simple; to provide consumers wi a fast and reliable search experience, and increase transparency in e UAE property market. Fortunately, at s what end users are looking for too, resulting in record lead levels for our customers. Welcome to e second edition of propertyfinder Trends. We received such positive feedback from e first issue, we set ourselves e task of producing is data-packed part two wi more articles, more information and an abundance of market insight. Our mission is simple; to provide consumers wi a fast and reliable search experience, and increase transparency in e UAE property market. Fortunately, at s what end users are looking for too, resulting in record lead levels for our customers. On average we attract around million visits per mon across e Group, generating a pleora of data. Our challenge is to interpret and present ese findings in e most insightful way. Propertyfinder Trends is designed to do just at, provide valuable insights for all ings property in Dubai, Abu Dhabi and e Norern Emirates, wi e main emphasis placed on highlighting key trends at our customers may find useful when running eir business or property portfolio. In is edition, you will find consumer search trends including e most popular communities (which may include a few surprises), articles from leading industry experts on e current market, e impact of RERA s recent legislative changes and how The Municipality of Abu Dhabi are regulating e industry in e capital. 07 has brought several changes in e real estate market, especially in Dubai, but e good news is at transaction numbers are significantly higher an last year. The market remains fiercely competitive. We have seen some consolidation wi company mergers and expect to see more in e second half of e year. We are also seeing record numbers of new customers taking listing subscriptions which is really encouraging. We hope you find is publication insightful - one ing is for sure, technology and consumer behaviour are changing daily, which is why we continue to invest heavily in attracting e best global talent to join Propertyfinder Group. We ank ose for eir work in is volume of propertyfinder Trends! Paul Spargo Commercial Director

4 MARKET SNIPPETS BLUEWATERS Ain Dubai { Ain in Arabic means eye } will be e largest and tallest observation wheel in e world once it opens at Bluewaters, an island destination by Meraas located off e souern shoreline of Jumeirah Beach Residence. The wheel itself will stand at over 0 metres and is e latest landmark to be added to Dubai s iconic skyline by Meraas, a company at has set itself apart rough a series of imaginative designs and architecture at places like City Walk, Boxpark and Last Exit. These unique destinations are reimaging how e city looks and feels. As e centerpiece of a new destination at Bluewaters, Ain Dubai stands alongside 700 apartments and penouses spread across 0 elegant mid-rise residential buildings. The island community will also have 7 townhouses, luxury hotels and 00 retail and dining outlets, wi access to a monorail and 6-metre long pedestrian bridge at connects to anoer Meraas destination at The Beach. Construction at Bluewaters is 7 complete and e handover for e residences is scheduled to commence in Q, 08. MARKET SNIPPETS THE DAME ZAHA HADID Dubai s status as a world-renowned destination for bo residents and tourists is being reinforced by e launch of multiple state-of-e-art projects at will take e city s wow factor to new heights. The Zaha Hadid styled and designed Opus, by premier Dubai based developer Omniyat, is scheduled for completion is summer. The Opus is e first Dame Zaha Hadid designed building in Dubai and will be home to e region s first ME by Meliá hotel. The building will be a combination of residential, serviced apartments, hotel and commercial units. The Opus will be e next iconic building in Dubai s cityscape, instantly recognisable for e organic void at its heart. The Opus aligns wi Omniyat s vision of treating each project as if it were a unique work of art, showcasing once more at Omniyat are e pioneers of producing inimitable luxury lifestyle experiences. Casablanca Villas is a collection of fully furnished and serviced luxury boutique villas inspired by e enchanting vibes of Casablanca city. Wi a Casablanca Villa, you re getting more an just a villa it s e value proposition e property carries; from inspiring architecture, to undeniable vigour and peaceful ambiance. CASABLANCA VILLAS DUBAI CREEK HARBOUR The Tower at Dubai Creek Harbour supports e goals of Dubai Plan 0 to establish e city as a global business and leisure hub, and will add real economic value by driving e grow of e core sectors of tourism, hospitality, aviation and retail, among oers. Emaar has unveiled high-end residences in Dubai Creek Harbour, including Dubai Creek Residences, Creekside 8, Harbour Views and Creek Horizon in The Island District all scheduled to be completed ahead of e opening of Expo 00. Wheer you are an investor or end-user, furnished and serviced Casablanca Villas will appeal to you as a high-yielding property investment or a home in an international golf community. Located in AKOYA Oxygen, a completely self-contained master development wi everying needed for a happy, healy lifestyle is right ere onsite. The whole family will find someing to interest and engage em for every occasion. There is a huge choice of shopping, dining and entertainment, all set wiin a stunning green backdrop, along wi quality, everyday amenities such as schools and nurseries. Wi its location in an international golf community, Casablanca Villas bring e ultimate golfing lifestyle to residents doorsteps from a championship-standard course to PGA qualified coaches, a pro shop, state-ofe-art clubhouse and world-class dining. Generous offering of fully furnished and serviced luxury boutique villas from AED.6 million are offered directly from DAMAC Properties.

5 ATTRACTIONS DUBAI SAFARI PARK Dubai Safari Park is set to open in 07 after logistical delays stalled e launch of e $7 million attraction. Around,000 animals from e much-maligned Dubai Zoo will be relocated to e 0-hectare site in Al Warqa, bringing e total number of creatures accommodated ere to,000, according to local media reports. Wi e likes of La Perle by Dragone, touted as e region s first permanent eatre show, also slated to welcome eir first visitors is year, Dubai is furer bolstering its status as a family tourism destination following e opening of several eme parks in 06. ATTRACTIONS Shaped like an oval spaceship and wi a D-printed structure, e Museum of e Future will become a hive of innovation and technology. His Highness Sheikh Mohammed bin Rashid Al Maktoum, whose poetry will be engraved in e exterior, predicts e museum will be a global destination for inventors and entrepreneurs. Located close to Burj Khalifa, e completion date is slated for 07. "The world is entering a new era of accelerated knowledge and great technological revolutions. We aim to lead in at era, not to follow and lag behind. The Museum of e Future is e first step of many to come, marking e beginning of great achievements." said His Highness Sheikh Mohammed. MUSEUM OF THE FUTURE ALADDIN CITY Aladdin City will feature ree golden glistening towers to resemble e folk hero s lamps. There will be two commercial towers and a -storey hotel, connected by two bridges made to look like dragons and lizards. Aladdin City will be built on Dubai Creek, alough no completion date has been announced. The development of such a project in is area will have a global cultural and historical impact and pride for generations to come, and will contribute to e progress of e emirate and its dream to be No in everying, says Hussain Nasser Lootah, Director-General of e Dubai Municipality. 6 7

6 Say goodbye to TRENDS onecheque payment Property Trends Cautious Optimism

7 PROPERTY TRENDS DUBAI APARTMENTS FOR : TRENDS Apartment rents in Al Furjan have dropped a massive 0.8% compared to just 6 mons ago due largely to new stock being handed over which means ere are some great rental offers currently available in Al Furjan. Apartments in DSO (-7.7%), International City (-7.%), IMPZ (-6.%) and JVT (-6.%) also fell significantly over e given period. The declines were not restricted to emerging communities. The Palm Jumeirah (-.8%) and Downtown Dubai (-.7%) also saw significant falls. Downtown wi its high concentration of high end serviced apartments, has traditionally been Dubai s most expensive place to rent an apartment, but wi so many big and impressive developments under construction wi more to come, it s subdued low rise neighbour, Old Town is proving more popular wi renters. Rents have held steady in Old Town falling just -0.8% in e past 6 mons, and wi a median advertised price of AED per square foot has just become Dubai s most expensive. Critics have described e UAE property market as one driven by hype as opposed to solid fundamentals of supply and demand. In e days when developers would advertise new project launches wi offers to Win Your Own Private Island and prospective buyers would queue overnight to secure an expensive piece of air wi e plan to on-sell for a premium wiin hours, few could argue. THE HISTORY: Those of us who ve been here for more an 0 years remember ese heady days Pre-Gobal-Financial-Crisis. The days of newly minted cowboy real estate agents and unregulated developers. The days when virtually everyone became a frenzied property punter rushing to big property expos to buy and flip. Buyers rushed in to make a quick buck, and like most get rich quick schemes, many got burnt. Those days are long gone and ankfully, will never return. The UAE is only years old. It s one of e youngest countries in e world. This fact is easily forgotten when you go about your daily life in super modern convenience. Expats who make up reportedly over 8 of e UAE total population, have been able to purchase property in freehold communities for less an years. The UAE property market is still in its infancy compared to oer property markets around e world; some of whom have hundreds of years of history and regulation. The UAE freehold property market, to continue e analogy, is virtually a new born. Today it s a market driven mostly by end users and, to a lesser extent, long term investors, mortgaged as opposed to cash buyers. Rises and falls in prices are temperate and influenced by fundamentals of supply and demand and sentiment caused by regional and international political and economic events and currency movements. In a small market heavily reliant upon expats and international investors, ripples abroad can cause waves on local shorelines. We saw at in 008/009 and again in 06 when record low oil prices and regional turmoil exasperated and prolonged a softening of e UAE market which had already been in slow decline since mid 0. When not so coincidentally is when, e oil price started to fall steeply from $00-$0 per barrel to $6 per barrel in Feb 06. A year low. The oil price has stayed above $0 for most of e past mons, still low by historical standards. Lukman Hajje Chief Commercial Officer, Propertyfinder GROUP Dubai, wi it s riving SME sector, is e most diversified GCC economy, and e UAE as a whole is far better diversified an oer GCC economies wi only 0% of revenues coming directly from fossil fuels. Oil continues to underpin e local and regional economy so a sluggish oil price will directly and indirectly influence e UAE property sector. $00+ per barrel oil prices are a ing of e past. GCC governments have had to heavily reassess eir revenue streams and expenditure. A VAT will be introduced across e region at e start of next year. This is e new reality. We hear much about e affordability crisis in Dubai and Abu Dhabi, but e UAE property market is far better diversified an ever. There are definite affordable pockets wiin Dubai and Abu Dhabi and property in e Norern Emirates is by almost any metric; affordable. Today it s a market driven mostly by end users, and to a lesser extent, long term investors, mortgaged as opposed to cash buyers. Rises and falls in prices are temperate and influenced by fundamentals of supply and demand and sentiment caused by regional & international political and economic events and currency movements. DUBAI APARTMENTS AREA PRICE PER SQ FT 06 MAR 07 %CHANGE PRICE PER SQ FT AL YIELD PER SQ FT 06 MAR 07 %CHANGE 06 MAR 07 Al Furjan % 99, % 8.% 7.9% Barsha Heights (Tecom) %,66, -.97% 7.8% 7. Business Bay ,00,8.0% 6.% 6.9% Culture Village %,7,67 -.7%.89% 6.0% DIFC % %.70%.77% Discovery Gardens % 9.7% 9.7% Downtown Dubai %,8,8-6.67%.7%.9% Dubai Investment Park (DIP) % % 8.97% Dubai Land % % 8.% 8.9% Dubai Marina %,66,6 -.88% 6.% 6.0% Dubai Silicon Oasis (DSO) % % 9.% 8.6% Dubai Sports City (DSC) % % % Greens %,0, 0.07% 7.76% 7. IMPZ % 8.79% 8. International City % 9.% 8.77% Jumeirah Beach Residence (JBR) %,60,6 -.% 6.% 6.% Jumeirah Lakes Towers (JLT) %,6, -0.% 7.89% 8.00% Jumeirah Village Circle (JVC) % % 8.67% 8.% Jumeirah Village Triangle (JVT) %, % 9.% 9.6% Motor City % % 8.0% 7.9% Old Town -0.8%,8, %.8%.88% Palm Jumeirah %,899,878 -.%.8%.% The Views -0.88%,6,6-0.06% 6.8% 6.78% Data is based on median advertised price per square foot on propertyfinder.ae and may not reflect e reality of property transactions. - means e data was inconsistent or based on an insufficient number of listings in at area. 0

8 Apartment rents in Dubai Marina (-0.9%), JBR (-%) and Business Bay (-.%) were relatively flat. Business Bay was no doubt boosted by e opening of e Dubai Canal. Dubai Marina and JBR rents holding at AED 0 and AED 97 per square foot respectively, as tenants settle in to watch e Bluewaters Island Project emerge just off e coastline. Bluewaters is expected to be (partially) operational wiin mons and will add amazing views and lifestyle benefits to Marina and JBR residents. According to our figures, apartment rents in JLT which increased by % were e only in Dubai to buck e downward trend. Traditionally e poor cousin of Dubai Marina life, traffic flow and amenities in JLT have steadily improved over recent years. JLT is home to several parks, many restaurants and interesting small businesses as well as metro stations. And you still get 8% more space for your dirham in JLT compared to Dubai Marina. DUBAI APARTMENTS FOR : In general Dubai apartment prices continued to fall over e past 6 mons. The biggest declines were seen in Downtown (-6.7%), JVT (-.6%), JBR (-.%), Culture Village (-.%) and JVT (-.6%). Most oer Dubai communities fell modestly or were relatively flat but a few communities including JVC (+.%), Dubai Sports City (+.6%), Business Bay (+.%), Al Furjan (+0.7%) & International City (+0.%) actually witnessed increases. DUBAI VILLAS FOR : Affordable villas continue to be hot property in Dubai and two affordable villa communities; Mudon and Dubai Land saw price rises of % and.% respectively in e past 6 mons, while prices in JGE (-7.%), Jumeirah Park (-6.6%), Dubai Sports City (-) and e Meadows (-.%) saw notable declines. By comparison, all higher ticket items, ese communities suffered from in increased external competition and in e case of JGE, internal new releases. Emirates Hills and Palm Jumeirah continue to demand prices above AED,00 per square foot and remain Dubai s most expensive. While JVC asks just AED 7 per square foot and remains Dubai s most affordable villa community. AL YIELD PER SQUARE FOOT - DUBAI VILLAS: TRENDS For investors, Dubai villas can offer interesting options. Like eir apartment counterparts e best villa rental yields per square foot can be found in affordable (mostly) emerging communities like JVC (6.), JVT (.) and Al Furjan (.%). Some of e more established popular villa communities also offer decent yields such as The Springs (6.%), Arabian Ranches (.%), Dubai Sports City (.%) and The Lakes (.%). Again if e villa community is relatively affordable e rental yield is healy but ey steadily decline as you move up e food chain. Emirates Hills and Palm Jumeirah bo offer.% yields per square foot which in virtually any oer market in e world is acceptable, but in Dubai appear distinctly lacklustre. In e case of Al Furjan and JVC, completed, affordable, ready-to-move-in apartments were handed over. This is still an undersupplied segment in e Dubai market. International City at AED 78 per square foot is still Dubai s most affordable. Despite its large steady declines, at AED,8 per square foot, Downtown is still Dubai s most expensive community, ahead of Old Town at AED,09 per square foot. AL YIELD PER SQUARE FOOT - DUBAI APARTMENTS: Dubai continues to be a multi-tiered market where e most desirable locations offer e worst rental yields, while e best yields are found in emerging communities surrounded by desert and mass construction. Discovery Gardens (9.), JVT (9.%) and DIP (9%) continue to offer world-leading rental yields per square foot. Apartment yields in International City (8.8%), DSC (8.7%), IMPZ (8.6%) DSO (8.6%), Dubai Land (8.%), JLT (8%) and Motor City (7.9%) continue to be excellent. Dubai s worst apartment rental yields per square foot are found in its most desirable locations: Palm Jumeirah (.%), Downtown (.6%) and DIFC (.8%). Still excellent by international standards, all offer mortgaged buyers positive cash flows. Here market forces present a neat risk versus reward synopsis. Blue Chip communities for investors are deemed to be safer and, despite eir popularity have a relatively smaller pool of well-heeled tenants who can afford AED 0+ per square foot per annum in rent. Emerging communities cater to at large and growing middle income segment seeking affordable rents but for buyers ere are many, many projects and apartments complete, under construction and off plan to choose from so ese communities tend to be less liquid. Dubai continues to be a multi-tiered market where e most desirable locations offer e least favourable rental yields per square foot, while e best yields are found in emerging communities surrounding by desert and mass construction. DUBAI VILLAS AREA PRICE PER SQ FT 06 MAR 07 %CHANGE PRICE PER SQ FT AL YIELD PER SQ FT 06 MAR 07 %CHANGE 06 MAR 07 Al Barsha 8 0.7%,0, %.%.7% Al Furjan 7 9.6% %.90%.0% Arabian Ranches ,9,70 -.9%..8% Dubai Land -.7% %.97%.7% Dubai Sports City (DSC) %,77, -.0%.%.8% Emirates Hills %,67,67 0.0%.%.07% Jumeirah Golf Estates (JGE) %,9,9-7.7%.66%.0% Jumeirah Islands 6 -.6%,0,6 -.7%.99%.89% Jumeirah Park %,8,06-6.9%.. Jumeirah Village Circle (JVC) % % 6.% 6.0% Jumeirah Village Triangle (JVT) %,0, %.%.8% Meadows %,0,9 -.%.6%.6% DUBAI VILLAS FOR : Dubai villas have had a mixed 6 mons. We saw significant increases in Al Furjan (+.%) and Al Barsha (+.%). Villa rents were flat in JGE and JVC, yet ese were e abnormalities. Most communities saw declines; a direct result from a continued sluggish oil price and regional economy. Mudon by DP witnessed e biggest decline wi rents dropping a big 0% in e past 6 mons driven largely by e completion and handover of 00 homes in Phase of e development in October 06. But any large scale handover will have a short term impact on rents and owners will compete wi one and anoer for limited tenants. Mudon % %.7%.87% Palm Jumeirah %,,60 0.%..% The Lakes %,9, -.%.%.0% The Springs %,0, % 6.% The next largest declined came in The Springs (-8.%), Emirates Hills (-7.9%), Jumeirah Park (-6.6%), Dubai Sports City (.9%) and Jumeirah Islands (-.%). While e declines in Emirates Hills and Jumeirah Islands can be largely attributed to regional economic stagnation which in e UAE often hits e very top of e market hardest, oer communities in is list are all direct competitors of Al Furjan, where a high volume of large affordable villas came online in Q 07. Data is based on median advertised price per square foot on propertyfinder.ae and may not reflect e reality of property transactions. - means e data was inconsistent or based on an insufficient number of listings in at area.

9 TRENDS ABU DHABI APARTMENTS FOR : Rents continue to decline in Abu Dhabi where a reduction in government spending in direct correlation to sluggish oil prices has reduced employment and demand for housing in e capital. Abu Dhabi s most popular communities including Al Reef, (-8.%) Al Reem Island (-8.%), Al Ghadeer (-7.%) and Corniche Area (-.%) all saw significant declines. Al Raha Beach remained flat while Saadiyat Island bucked e trend wi a.9% increase. Apartments in Saadiyat are Abu Dhabi s most expensive asking AED 06 per square foot per annum. ABU DHABI APARTMENTS FOR : Saadiyat apartments saw a 6.% decline and are now no longer Abu Dhabi s most expensive to buy. Prices held better in Al Raha Beach despite a decline of almost %. Al Reem Island (-%) and Al Reef (-.%) also saw similar declines, while apartments in Al Ghadeer and Yas Island actually saw small increases. Al Ghadeer sits on e Dubai border and alough technically in Abu Dhabi, is closer to Dubai s commercial and lifestyle centres an to ose in Abu Dhabi. While prices in Yas Island may have received a boost wi e announcement of AED billion to be invested in developing e promenade and surrounding areas; e relocation of e Abu Dhabi Media Free Zone Auority TwoFour and e world s first Mercedes Benz AMG showroom. AL YIELD PER SQUARE FOOT - ABU DHABI APARTMENTS: Al Reef (8.6%) offers e best yield per square foot in Abu Dhabi while apartments in Abu Dhabi s oer popular communities all achieved close to and over 7%. ABU DHABI VILLAS FOR : Villa rents in Abu Dhabi continue to fall across all segments of e market from e most affordable communities; Al Reef (-0.9%) and Hydra Village (-.%) to e mid range; Khalifa City (-8%) and Al Salam Street (-%) to e very top end; Saadiyat Island (-8.). ABU DHABI VILLAS FOR : As wi rents, Abu Dhabi villa sale prices in general have continued to fall at a steady pace wi Al Raha Gardens (-.8%) seeing e biggest decline. Falls were more modest in Al Raha Golf Gardens (-.%), Saadiyat Island (-.%) and Khalifa City (-.) yet still significant. Villa prices in Al Salam Street and Hydra Village witnessed very small increases. AL YIELD PER SQUARE FOOT - ABU DHABI VILLAS: Hydra Village offers e best rental yields per square foot in Abu Dhabi wi 7.8% just ahead of Al Raha Gardens. All popular Abu Dhabi villa communities continue to offer investors +. ABU DHABI VILLAS AREA PRICE PER SQ FT PRICE PER SQ FT AL YIELD PER SQ FT 06 MAR 07 %CHANGE 06 MAR 07 %CHANGE 06 MAR 07 Al Raha Gardens 6 6.9% % 6.9% 7.9% ABU DHABI APARTMENTS Al Raha Golf Gardens %,09,0 -.%.9%.7% AREA PRICE PER SQ FT 06 MAR 07 %CHANGE PRICE PER SQ FT AL YIELD PER SQ FT 06 MAR 07 %CHANGE 06 MAR 07 Al Reef % % 7.% Al Ghadeer %,0,0 0.99% 8.% 7.6% Al Salam Street %,6,8.6%.77%.0% Al Raha Beach %,, % 6.96% Hydra Village 7 -.6% % 8.% 7.8% Al Reef % % 9.0% 8. Khalifa City % % 6.0%.80% Al Reem Island %,6, % 7.0% Saadiyat Island %,86,0 -.7%.7%.99% Saadiyat Island %,0,6-6.% 6.67% 7.8% Yas Island - - -, % - - Corniche Area % THE NORTHERN EMIRATES Corniche Road % Yas Island - - -,, 0.6% Prices have been more stable in e Norern Emirates. Always e cost effective option for budget conscious renters and buyers, many of whom commute to and from Dubai each day. Prices moved up and down in e very low single digits across e Norern Emirates in bo sale and rent over e past 6 mons. For investors e rental yield per square foot in Sharjah and Ajman in particular looks particularly enticing. We ve seen some launches of freezone off-plan projects recently in Sharjah which is now competing wi Dubai and RAK for non GCC buyers. Al Raha Beach remained flat while Saadiyat Island bucked e trend wi a.9% increase. Apartments in Saadiyat are Abu Dhabi s most expensive asking AED 06 per square foot. NORTHERN EMIRATES - AJMAN - RAS AL KHAIMAH - SHARJAH HOUSING TYPE PRICE PER SQ FT PRICE PER SQ FT AL YIELD PER SQ FT 06 MAR 07 %CHANGE 06 MAR 07 %CHANGE 06 MAR 07 Apartment % 0 7.% 6.7% 6.% Villa.9% % 6.0% Data is based on median advertised price per square foot on propertyfinder.ae and may not reflect e reality of property transactions. - means e data was inconsistent or based on an insufficient number of listings in at area.

10 CAUTIOUS OPTIMISM TRENDS In a market at has encountered considerable headwinds in recent years, it s understandable at few agents anticipate prices will increase in e second quarter of 07 just 8% predict residential villa prices will rise and only % expect apartments to make gains. Alough ese forecasts are explicitly for e current quarter, it s likely at -mon predictions would paint a similar picture. From a front row seat, I have watched e residential property market erode value for e past years. I have read e reports, listened to clients, and importantly, paid close attention to our own transaction data. A variety of factors laid e foundations and exacerbated e market decline. These are now well documented, ranging from e strong US dollar and rising interest rates, to e increase in new housing supply, not to mention e negative impact at a low oil price can have on market sentiment. It should also not go unnoticed at e market decline occurred after a ree year cycle of exceptional grow. That grow rate was clearly unsustainable and hindsight can now tell us at a cyclical downturn and change in sentiment was inevitable. After e last ree years of decline, it is tempting to stick wi e crowd and focus on e negatives. Particularly since ose risk factors are still clear for all to see. It is undeniable at continued US dollar streng, rising interest rates, togeer wi a significant pipeline of housing supply and geopolitical tension in e region, all impact on e fragile state of confidence in Dubai s property market. However, a combination of big picture inking and positive market fundamentals encourages us to believe at modest price grow might now be on e horizon in prime residential communities. The big picture inking is raer subjective, yet insightful noneeless. It is a general principle at guides one basic assumption which is as follows: e longer we are in e correction phase of e cycle, e closer we must be to e start of e new upwards trending cycle. This might seem like an obvious statement but it is one at is often overlooked by e crowd. I have witnessed several clients, bo end-users and investors, choosing to buy, despite e fact at ey continue to have legitimate concerns about e market. This is e weight of money in action. In e latter stages of e cycle, it usually pays off to have a contrarian view. Wi only 8% of agents predicting price grow, it is starting to feel like e crowd is overly focused on e negatives. Wi regards to positive fundamentals, ere are e obviously positive GDP statistics; population grow and e general hype surrounding Expo00. However, what s really interesting is someing at does not attract much attention. That is, e extent to which e weight of money can act as a stimulant to e residential property market. I have been looking for evidence to support my opinion at ere is a significant amount of cash sitting on e sidelines. It is my belief at is weight of money is now acting as a stimulant to e market. This is a trend at is expected to continue to unfold in e mons ahead. In recent years, I have watched previously active investors remain stubbornly inactive, and listened to many end-users who take e decision to rent (or continue to rent) raer an buy. The reason for is has been simple. Who wants to buy into a market at is in e midst of a double digit decline? It has also been e case at yields were low which reduced e incentive for investors, and removed e financial benefit of owning your own home. I remember crunching e numbers for e apartment I was renting in 0. I realised I would only generate a net return of circa % on my equity, if I chose to buy e property raer an rent it. This was not a sufficient incentive for me at at time. If I am to run e same calculation today, my previous apartment would now deliver me circa 8% net return on my equity. It is now clearly more appealing to buy. The higher yield also provides a cushion against any continued rental price declines. Interestingly, in e popular Springs community, it is now possible to achieve net yields of up to 6. and net returns on equity of circa 0% for finance buyers using 7 LTV mortgage products. This provides great financial incentive to buy raer an rent, which is a very different picture to at of 0. In 07, I have witnessed several clients, bo end-users and investors, choosing to buy, despite e fact at ey continue to have legitimate concerns about e market. This is e weight of money in action. One client told me, I don t really like e market but I have to do someing wi my cash. He understands at as a cash investor ere is an opportunity cost of around 6 per cent per annum when holding liquid cash raer an property. Effectively, e market would have to decline by more an 6% every year for it to reward him for e decision to hold a liquid cash deposit over a residential property investment. To support my view on e weight of money, I have looked closely at e Money Supply Data from e UAE Central Bank. I compared e different measures of Money Supply in February 07 to at of e previous mon of January 07 and also to at of December 0, when e residential market was reaching its peak and found e following: M* Money Supply for February 07 is.89% above January 07 and 8% above December 0 M** Money Supply for February 07 is.% above January 07 and 9% above December 0 M Monetary Deposits for February 07 is.% above January 07 and 8.9% above December 0 The increase in Money Supply is due to a combination of factors, ranging from an increase in population and new account openings, as well as continued weal creation at is still held in liquid assets wiin e UAE. This brings me to my conclusion and to e final component of my cautiously optimistic outlook for e residential market. It is e environment in which I immerse myself every day, e front line of e residential real estate market. I attend ree morning sales meetings every week. I see every offer, every new listing, and track our buyer enquiry volumes on a weekly basis. I know of every property at we sell and I speak regularly to each of our brokers to better understand e opinions and motivations of eir clients. All of is acts as a general barometer which gives me a clear understanding of e market, and helps to shape my opinions and confidence levels. The first quarter of 07 has been Espace s best on record. When I analyse our year-on-year performance for e first quarter I see e following: Revenue grow of % more sales transactions 8% more leasing transactions Increase in cash buyers, wi 8% of our 07 first quarter transactions being in cash, compared to 0% for 06 in e same quarter. Alough I am certainly not blind to e risks of buying a property in Dubai, I am more optimistic an I have been at any time during e last years. I also ink at e inflationary risks of not buying should not be overlooked, particularly for anyone wi a longer term strategy in mind. John Lyons Head of Sales & Leasing, Espace Real Estate EspaceRealEstateDubai Espace Real Estate EspaceRealEstate EspaceRE 6 7

11 THE MARKET 6 Increasing Transparency Abu Dhabi Regulation Progress Rental Scene Maturing Market Levy of VAT Serviced Apartments

12 INCREASING TRANSPARENCY WITH TRAKHEESI PERMITS AND QUALITY LISTINGS ABU DHABI REGULATION PROGRESS MAKING BABY STEPS WITH KEY STAKEHOLDER MEETINGS MARKET OUTLOOK The most common complaints we hear from consumers are at properties are not available, e images are not representative of e property, or e advertised price is inaccurate. As e leading portal in e UAE, our mission has always been to promote best practice in e industry, to drive quality listings on our site and improve transparency in e market. Why? Because at's what consumers want, plus ere are many studies to show at investors gravitate towards transparent property markets and at has to be a good ing for everyone living and working in e UAE. In October 06, Dubai's RERA (Real Estate Regulatory Agency) introduced a new initiative, one of many designed to regulate e industry, by introducing permits for all advertised listings. In January, is rule became mandatory and now real estate companies advertising listings in Dubai cannot advertise any property wiout a valid permit. We welcome is initiative and any at improve transparency in e market. As a direct result, we have seen a significant reduction in Dubai listings on propertyfinder. In April 06 ere were 6,96 Dubai listings and at figure reduced to,79 in April 07, a reduction of %. So what does at mean for consumers and our customers? Well for consumers, it's great news - ey browse rough fewer listings and almost certainly hear "Sorry, at properties not available" a lot less because duplicate or fake listings have dramatically reduced. For e majority of our customers, it's great news too. Traffic to propertyfinder.ae continues to grow and is currently at an all time high - we had.m sessions in April 07 which represents an increase of 9% year on year. So e number of people coming to our site continues to increase and at combined wi a reduction in listings, means our customers listings appear more often in search results resulting in more leads. We delivered nearly 00,000 leads in April 07, an increase of.6% year on year. It's not such good news for some smaller companies, less willing to adhere to regulations or adapt eir business - ey will undoubtedly suffer. In e first four mons of is year we have seen a significant increase in e number of small business closures which is likely to continue. In addition, we have seen a number of mergers and acquisitions which are also likely to continue as e market matures and consolidates. Paul Spargo Commercial Director, Propertyfinder GROUP Dubai transactions in Q of 07 are also + on e previous year according to The Land Department. It's obviously too early to say what effect e Trakheesi permits have had on e market, but it's certainly a step in e right direction of improved transparency and a more professional industry which have always been a high priority at propertyfinder. Abu Dhabi Municipality are following RERA's lead and alough progress has been slower, it is attempting to regulate e industry in e capital. The market is extremely tough still - e most recent merger of NBAD wi FGB to form First Abu Dhabi Bank is just one example of a large scale merger impacting many employees and having a knock-on effect for e property market. There is undoubtedly a big issue wi e distribution of bank stock and lack of regulation, causing large duplication, not least of all e amount of duplicate listings on e portals. The distribution of properties by e banks to most real estate agents has always resulted in a large duplication giving consumers a false sense of supply in turn giving em bargaining power. A new training program for Real Estate Agents was introduced in February is year. The programme is conducted by e Department of Municipal Affairs And Transport (DMAT), in collaboration wi education institute, e Abu Dhabi Centre for Technical and Vocational Education and Training (ACTVET). The course is mandatory for all Brokers (e cost of which must be covered by e company) however e majority of Brokers I've spoken to have yet to complete e training. So ere are certainly moves to regulate e industry in Abu Dhabi and raise standards, but ere's a long way to go yet. In established markets like e UK or America, ere is full market transparency wi transaction data, listing history and price changes all readily available on any property. In e digital age, consumers are smart and usually time poor. They want to know ey're getting a good deal. They spend significant time researching online before engaging wi any Real Estate Agent or Developer. When was e last time you walked into a car showroom or booked a holiday wiout first doing your research online? That's why it's so important to present your brand in e best possible way wi great quality, available listings and competitive pricing. The responsibility for regulating e real estate sector in Abu Dhabi was handed to e Department of Municipal Affairs And Transport (DMAT) by law no of 0. That law came into force on December 06 and now all brokers, surveyors, developers, auctioneers, Owners Association managers and assessors have fallen under eir remit. This has essentially become e equivalent of Dubai s RERA. Abu Dhabi is starved of foreign investment into its real estate sector. The overwhelming majority of developers are Abu Dhabi-based and e larger ones such as Aldar, TDIC and Aabar are government-backed. The remaining are largely made up of smaller Abu Dhabi-based developers wi a few from Dubai and Sharjah. There are en a handful from e GCC region, and you can count on e fingers of one hand e developers from e rest of e world. The Abu Dhabi government is looking to bring in more foreign real estate investment in e form of developers to diversify e market and also investors, and ey see ese regulations as paving e way. A well regulated market is a secure one and understandably when money is looking abroad it needs at security before investors will commit to a region. We are yet to see e end results but we are now nearly year and a half into e new law and good progress has been made. The new law is heavily focused on e off-plan market. A large portion of it is dedicated to regulating off-plan sales and ensuring at e abuses which occurred in 008, where funds were taken but noing was built, are eliminated. DMAT quickly set about e process of registering developers and staging training courses for e various regulated functions. We are now nearly a year and a half into e new law and progress has been measured. Developers are well on eir way to being registered while progress wi brokers and surveyors has been slower. The new law is also just 00 Articles wi lots of implementing regulations still to be published. The truly admirable ing about e DMAT however is its willingness to listen to e stakeholders. The department is largely made up of civil servants will little or no knowledge of e activities ey are licensing, and wi at comes e danger of em developing a framework based on eir partial knowledge. To combat is, ey are holding regular open forum Q&A sessions wi various groups. They invite people to meet em and ere is no presentation, no speaking from eir side, ey just listen to questions and concerns and answer em. I cannot ink of an example of such an open and collaborative approach from my own United Kingdom and I find it wonderfully refreshing. To meet and speak to e people who are making e decisions, understand eir inking and to try and help make is a success is a unique opportunity which no-one impacted by ese regulations should miss out on. We are yet to see e end results but if it is a reflection of e process en I ink it will be great. Ben Crompton, Managing Partner, Crompton Partners CromptonPartnersEA Crompton_Partners Crompton Partners Estate Agents CromptonPartners 0

13 AL SCENE Say goodbye to one-cheque payments and e doubledigit yields of a landlord-driven market and welcome in e dawn of e tenant-favoured era. It s certainly not e story at any landlord wants to hear but it is rapidly becoming e new norm of e Dubai rental market. Our internal market intelligence, kwiqlytics, reveals at from e peak of e market (September 0) we have seen rents fall by 9.7% for apartments and.% for villas. Some sub-markets have been affected more heavily an oers. In e villa segment, Jumeirah Islands fell 7.%, Arabian Ranches 6.7%, Jumeirah Village Triangle.%, Emirates Hills.6% and Jumeirah Park.6%. In e apartment segment Jumeirah Beach Residence slumped by.9%, Discovery Gardens.8%, Marina.9%, Downtown 9.% and International City.%. Research among e nearly,00 Dubai apartments and villas advertised for rent on propertyfinder.ae shows at just about one in six specify e number of cheques required. Out of ose at do,,8 listings state at tenants can pay in four cheques. A furer 9 mention one cheque,,0 refer to two cheques and only 0 will permit twelve. About a decade ago, putting down an entire year s rent upfront was e norm and ose tenants whose employers did not offer such advances were often forced to borrow from e bank. However, greater competition among landlords helped ease e burden on tenants forming a new norm of two-ree cheques, wi four cheques also being common. MARKET OUTLOOK The current market has seen some power returning to tenants ey can start to dictate more favourable terms and e amount of cheques is often one of ose negotiation points. Lukman Hajje Chief Commercial Officer propertyfinder Group As we now close e books on Q of 07 and reflect on e most recent quarter it s clear at e downward trend on rents continues broadly across e market, wi final signed lease prices (not initial asking prices) for apartment rents down.96% and villas dropping.% quarter-over-quarter. Again, some sub-markets are experiencing steeper drops an oers for e quarter. Jumeirah Islands fell by.%, Emirates Hills.9% and Jumeirah Park.8% in e villa segment. Apartments also took a hit in areas such as The Views which dropped.8%, International City.6%, Downtown.9% and Palm Jumeirah.7%. Why is it at e market continues to weaken? The macroeconomics of falling GDP, rising inflation and cost of living, coupled wi a softening of e job market for bo new and existing positions are all contributing factors, however it may be even simpler an at. It largely comes down to basic supply and demand. In recent years, Dubai s new development market has gone from streng to streng, wi a myriad of new projects being announced as well as delayed projects from e last boom market resuming. Handovers for is year alone are slated to be upwards of 0,000 units wi approximately a ten of at amount already delivered year to date. In addition to ese new handovers, we are also seeing secondary market shadow inventory finally hit e market, where properties which were initially primarily purchased to park money or for capital appreciation, and en left untenanted post-handover, are now being switched to income producing assets as investors come to terms wi e drawn-out stagnant period and minimal capital appreciation. Expect to see more of ose perpetually dark apartments in e towers around you finally have some lights on! As overall supply continues to increase, it is unfortunately not being met by an appropriate net increase in demand. Until job numbers, population grow, and economic grow enter eir next positive phase, which we anticipate seeing in mid-to-late 08 in response to spending from bo government and private sector in e lead up to Expo00, expect to see furer weakening of e rental market. While e ongoing decline in rents seems to not have a short-term endpoint in sight, savvy tenants and equally astute landlords are keeping e market moving forward. In addition to lower rents, new tenants and eir brokers have been able to negotiate concessions at were previously dismissed or largely unheard of in e Dubai market such as rent free periods, owner paid broker commissions and an increase in e number of cheques accepted. Cheque frequency has by far been e most prevalent of ese wi e days of one-time lump sum payments a ing of e past and four cheques e new standard. We ve even seen e uninkable monly cheques for a growing handful of landlords. For tenanted properties, ere has been a rise in landlords eager to keep eir current tenants raer an face e prospect of any vacancy loss period. Instead of simply offering a renewal at e same terms ey have proactively been extending similar favourable incentives such as rent reductions and an increased cheque frequency roughout e lease term. Considering a one-mon vacancy period equates to a loss of 8.%, which typically is close to, if not more an, e yield at most properties produce annually, concessions like ese are not only smart business for e investor but a win-win for all parties regardless of e market. Zhann Jochinke Chief Executive Officer, Keller Williams Real Estate We don t believe more legislation is required to move towards a monly payment structure. It is more a matter of time for landlords to become accustomed to a new reality a combination of economic factors has occurred over e past - years where companies are paying eir employees differently and e new workforce is putting pressure on e landlords to adjust. Mark Towers Managing Director, Edwards & Towers kwdubai Keller-Williams-Dubai kwdubai kwdubai

14 MATURING MARKET LEVY OF VAT MARKET OUTLOOK The short-term future of e property market looks likely to follow e current trend and I don't foresee any dramatic changes over e next mons. The current market has shifted from being mainly investor-led to what is now a more mature end userdominated market. House prices have been steady for e past mons wiout e dramatic peaks and troughs Dubai was accustomed to experiencing. This is due to e world economy changing since 0 when e economic landscape was totally different to what we see today. Take e following ree facts into account and it is pretty clear as to why e market has changed from being investor led to end user led:. In July 0 a dollar would cost you 7 Russian Ruble. In 07 e same dollar costs 7 Russian Ruble.. In July 0 a dollar would cost you 0.8 GBP. In 07 e same dollar costs 0.77 GBP. In July 0 a barrel of oil would cost $. In 07 a barrel of oil costs $7. I can summarise ese facts as follows: Russians were dominant investors of Dubai real estate prior to mid 0 and are now virtually non existent. UK investors were always very active in e Dubai real estate market but since Brexit have been eier dormant or have repatriated funds to e UK. We live in an area at it still very dependent on oil and our oil rich neighbours are currently taking stock whilst prices are so low and are reluctant to invest in real estate to e same level as before. The current market has shifted from being a mainly investor led to what is now a more mature end user dominated market. I don't believe at any economist would argue at ese ree factors are likely to change much in e near future and erefore I believe at e market will carry on shifting towards one at sees more tenants becoming owners, whilst investors remain quiet. In effect, e beginning of e next phase to a mature market. This trend has been apparent for e past -8 mons and we are seeing, in our specialist areas, at it is becoming more and more difficult to find real 'bargains' as prices have stabilised roughout e year so far. Undoubtedly at some point e dollar will weaken and most experts predict oil prices to settle above $60 per barrel and I believe if ese factors occur simultaneously we will see e investors re-enter e market, and as a consequence house prices will surely rise. When will is happen? Of course we don't know but ose ex-tenants who are now end users are surely set to benefit. The UAE is set to levy a value-added tax (VAT) starting on January, 08. The decision is broadly in line wi an effort to raise government revenues in e region, which have recently lowered due to oil prices. The capped VAT percentage has been recommended by e World Bank and e International Monetary Fund and will be liable to affect e UAE real estate market. By a general rule of umb of taxing in e UK, Australia, Malaysia and Singapore, it is forecasted at VAT will be payable for bo e sale and lease of commercial properties. High-end investors will also need to get to grips wi being taxed and staying on e right side of tax efficiency. The UAE s Ministry of Finance has yet to cement a specified VAT framework on residential and commercial property, yet residential buying is expected to be taxable on e first sale but exempted on subsequent ones. By guidance of already taxing nations, when businesses charge a VAT fee on a sale it makes, it can en recover VAT ey have paid on at purchase. The VAT amount payable to e government is calculated on e sum difference between what e businesses have charged in eir sale and paid on eir purchase. Residential leasing is planned to be relieved of e financial burden of taxation, which will prohibit landlords from adding VAT on rent. As a result, landlords will stand to lose on recovering taxes on expenses ey incur, which will subsequently influence a surge in higher rents for a lucrative return on investment. The UAE s gross domestic product is incentivised to jump and on is assessed value, e country is expected to bag $6. billion of grow in e economy by e implementation of VAT by 09, which will ultimately characterise e future of e real estate market. The VAT inclusion will also have to be factored in by ose shopping for luxury goods, yet it is estimated to bypass inflation for e average resident s household expenses on staple foods. These 00 basic foods, which include coffee, tea, children s milk, pasta, rice and cereals, will be exempt from VAT. The healcare and education sectors will also not be impacted and result in zero rated VAT. The low rate taxation is equally expected to not hit commodity prices for UAE citizens for crude oils, gold, natural gas and agricultural products such as cattle or corn. The International Monetary Fund has indicated at a VAT rate of could hike e revenue of e total value of goods produced and services provided in e country by. in one year. The UAE s gross domestic product is incentivised to jump and on is assessed value, e country is expected to bag $6. billion of grow in e economy by e implementation of VAT by 09, which will ultimately characterise e future of e real estate market. The recovery of e property sector since e financial slowdown in 008 has shown a continued upturn in buyer activity. To carry over a robust and stable market post VAT, administration processes and compliance procedures will need to adapt to e landscape of e taxation system. It is too early to set in stone what e final UAE VAT law will choose to incorporate, yet official rules will be imprinted by e summer. After its inception in e UAE, all GCC countries will be ushering in eir own VAT legislation. Mark Towers Managing Director, Edwards & Towers EdwardsTowersRealEstate EdwardsTowersRealEstate EandTdubai Winner of e propertyfinder Real Estate Brokerage Awards 06 in e Best Brokerage Service Category Lukman Hajje Chief Commercial Officer, Propertfinder GROUP

15 SERVICED APARTMENTS MARKET OUTLOOK IS THE CONVENIENCE TRUE? We all know at when you first come to e UAE, e process of finding somewhere to live is hard. Of course, having propertyfinder assisting you every step of e way makes it much easier, but as a newcomer it s still a daunting task. Propertyfinder s Area Guides, Price Trackers, Blogs and e huge range of properties available on e portal all help but let s be realistic: you re new, naïve, and possibly never been an expat before. You are settling into a new country, new job and trying to get used to a new life. Even when you ink you ve done e hard part of finding a suitable property in a desirable neighbourhood and en agreeing a price wi e landlord, you soon realise e moving process has really only just begun! The costs keep on rising, e bureaucracy is frustrating and ere s e endless waiting at home for utility connections and deliveries of furniture and oer essentials. So at first sight, serviced apartments absolutely look more expensive. That s to be expected, but let s add in some additional data on what you need to consider when living in e UAE: Additional Costs* (AED monly average) Paul Stewart-Smi Chief Operating Officer, Propertyfinder GROUP Serviced Rental DEWA Included 800 Could renting a serviced apartment offer a better, simpler way get settled quickly? More and more people, especially when new to e UAE, are opting to do just so, at least in e short term. And is is just an option for newbies or could serviced apartments be a good alternative for longer term residents too? Are ey significantly more expensive? Is ere less time-consuming bureaucracy involved? Are what are e drawbacks? To really understand e issue you have to break down e raw data, add in a dose of reality and en add in personal preferences. So what does e data tell us about average monly costs? Apartment Type Serviced (AED per square foot per mon) Rented (AED per square foot per mon) Budget. 6. Mid Range.7 8. Luxury (Source: propertyfinder data, 07. The metric represents e median price per square foot for each category. Apartment type split: Budget (lowest 0% prices), Mid range (mid range prices between Budget and Luxury - middle 60% of prices) and Luxury (highest 0% of prices). Chiller Included 00 Maintenance Included 00 TV/Internet Included 00 Maid Service (/week) Included 800 Gym/Spa Included 00 Furnishings** Included 00 TOTAL -,00 *Approximate for an average bedroom apartment. ** Based on annual expenditure of AED,600 per year on furniture (beds, sofa, white goods, TVs etc. on a second hand basis) So, we need to add a conservative AED,00 per mon, or AED 7,00 per year, to your rent. There s still a gap on a bed,00 sq. ft. apartment in e mid-range, but e true costs are getting much closer! Now let s add in an extra dose of reality As tenants, Dubai Municipality charges you of your annual rental contract. This is spread over mons and added to your DEWA bill each mon. Brokers also charge a fee, paid upfront, so just when you ink you ve negotiated a great deal and written your, or cheques, you have to write anoer one. The Security Deposit is anoer and anoer cheque no wonder many banks charge for additional cheque books! Security deposits normally apply to bo rental and serviced apartments so no gain or loss here except maybe until you try and get your deposit back, but more on at later. The DEWA experience for many is one ey will never forget! The creating of accounts, e documents required - and en going back wi e documents you never knew you needed! The process takes time and patience and en you find you need a deposit -,000 dirhams for apartments, double at for villas! Each mon e DEWA bill arrives and you wonder how it can cost at much. The Chiller e what? Yes, in many areas ere is a separate charge for e air-conditioning chiller in addition to your electricity bill. Chiller fees are meant to be fairer and reduce e big spike in AC costs in e summer, but still you try to keep your consumption to a minimum. Battles between couples can erupt at e AC control! The it s too hot versus it costs a fortune discussion is one at can run forever, especially when e monly bill comes. In a serviced apartment e chiller cost is included so you can keep your AC running all day if you wish wiout financial repercussions but only if you re not a fan of e Paris Agreement! Nevereless, serviced apartments offer bo cost savings and fewer arguments over e AC gauge. Maintenance some form of free maintenance is usually included in a standard rental lease, but typically you will need to pay at least a fixed fee, plus extra for a good service or essential repairs out of normal office hours. Unfortunately, e failed AC, e leaking pipe in e false ceiling and e electrics don t respect working hours and it always seems to be am when ey go wrong! Why is at? Serviced apartments usually have eir own maintenance teams which are located on site and operate hours a day at no extra cost to you. TV/Internet we can probably live wiout e TV, especially when you have so many oer ings to do here, but we all need e internet. So off you go, armed wi every document you ever ought you could need in duplicate, colour copies, cheque book, credit card at e ready you vow ere ll be no second visit for you because you have all e correct paperwork! In you go, take a ticket, you look at your number. and en read e small print warning ere are 7 people in front of you. How long can at take? Two hours later you re still sitting ere, forlornly staring at e screen where e numbers move slower an a glacier and you realise it can take some time! Eventually you walk out after being served, wondering how you have just signed up to $0 wor of internet, a home phone you will never use and a TV package at is at best underwhelming oh sorry, did I mention e deposit? So it s time consuming, expensive and we will get to e cancellation process later! In a serviced apartment, you walk in, log on to e internet, switch on your TV and look at e land-line phone at will never ring and know at it s all included in your charge: no hassle, no queuing, no deposits and no monly bills. 6 7

16 Maid service we all ink we won t use one and en we all do! Serviced apartments will typically provide a maid service ree times a week, replenishing towels and sheets, cleaning, tidying and ironing. Some offer a daily service, but usually it s less often. Whatever e frequency, you won t have to deal wi a maid company, monly bills and of course e additional cost on top of your rent. It s also wor mentioning gym and spa facilities, even if is isn t strictly a cost saving - serviced apartments must be attractive to short-term guests and holidaymakers, so e facilities are typically better and well-maintained. This is especially true in hotel serviced apartments, where all facilities are available to long-term residents. In reality, e cost of ese facilities is included in your rent, but you re not paying an additional fee to a gym which you en feel guilty about not visiting! MARKET - DATA Furniture yes, not all serviced apartment furniture will be to your taste but at least it s ere e day you move in. A normal rental will come wi lights bulbs and at is it! No curtains, lamps, TVs, sofa, beds, white goods, knives, forks, glasses, kettle, etc anying you can ink of. Not only is it a hassle to make your rented apartment liveable but it s an expensive one too! Overall, e pure financial equation probably still leans towards a conventional rental, but when you consider e hassle factor, e monly bills for various services and e peace of mind a serviced apartment provides en maybe it does add up. But is isn t e full story - what about when you come to move to a new home or decide to leave e UAE? Leaving and closing down e various home services is much, much harder an it sounds. Internet and TV companies force you to visit eir shops (and only certain ones) to cancel a subscription, and changing your address is not as easy as it should be eier! Getting final DEWA bills in one place, transferring e account back to e landlord and en reopening a new account for a new property it can feel like groundhog day! If you are leaving e country, you will need to get your final bills all sorted, sell your furniture and close your bank account. After proving to e landlord you have done all of is, repainted e property and argued over wheer e dents and damage were already ere when you moved in to e property, you get your deposit cheque back. It s very rarely e full amount - and en realise you have closed your UAE bank account! Of course, wi a serviced apartment you have to give notice and ere can be an early fee charged if you leave before you overall commitment ends (as ere would be wi renting) but at s it, you pack your cloes, close e door and leave. If you are reaching at point of not just moving but leaving e UAE, consider getting out of a rental well before your last day and go into a serviced apartment. So how does it all stack up? Well much of it is still personal choice, dependent on individual circumstances and preferences. But e hasslefree financial side of serviced apartments certainly makes em an appealing option. What is my personal opinion? When I first moved here, I entered e unknown. My family remained in e UK for e first nine mons while I established ings here business-wise and closed ings off in e UK. I moved to an amazing serviced apartment in e Marina. Hassle-free and perfect for someone needing to settle quickly and ensure my professional life got e required attention. Not having to worry about e small stuff made settling into Dubai so easy and allowed me to work out which areas I liked, get bank accounts sorted and understand e true cost of living in Dubai. The monly charge meant I didn t need to commit to a year long agreement and outlay it was perfect. Would I recommend it to oer newbies? Absolutely! One final ought, I have seen a few of my friends leave Dubai since I ve been here and it s not a simple ing to do. The propertyfinder.ae blog has a great article on moving called 8 steps to make moving a breeze you may find helpful. If you are reaching at point of not just moving but leaving e UAE, consider getting out of a rental well before your last day and go into a serviced apartment. That way, you can close everying, go rough e arduous processes at always take much longer an expected and place yourself in a serviced apartment for e last mon or so. That way, you can also send furniture home, close DEWA, get deposits back and be living in comfort for a monly fee, knowing at when your last day comes around all you need to do is just pack a suitcase and close e door behind you. Dubai Market Abu Dhabi Market Noern Emirates Market 8

17 EVOLUTION OF PRICES MARKET OUTLOOK UAE property prices have in general continued to fall between Q 06 and Q 07, bo in sales and rentals, largely driven by completion of new stock adding to e availability pool in emerging communities. DUBAI ABU DHABI RAS AL KHAIMAH AJMAN SHARJAH APARTMENT FOR - PRICE PER SQUARE FOOT IN AED APARTMENT FOR - PRICE PER SQUARE FOOT IN AED T 6 OCT 6 NOV 6 DEC 6 JAN 7 FEB 7 MAR 7 T 6 OCT 6 NOV 6 DEC 6 JAN 7 FEB 7 MAR 7 VILLA FOR - PRICE PER SQUARE FOOT IN AED VILLA FOR - PRICE PER SQUARE FOOT IN AED T 6 OCT 6 NOV 6 DEC 6 JAN 7 FEB 7 MAR 7 0 T 6 OCT 6 NOV 6 DEC 6 JAN 7 FEB 7 MAR 7 Data is based on median advertised price per square foot on propertyfinder.ae and may not reflect e reality of property transactions. N/A means e data was inconsistent or based on an insufficient number of listings in at area. 0

18 DUBAI MARKET AL YIELD PER SQUARE FOOT: DUBAI MARCH 07 TEMBER 06 DUBAI APARTMENTS ADVERTISED MEDIAN PRICE IN AED PER SQUARE FOOT TEMBER 06 TO MARCH 07 Dubai Marina,660 0,0,60 0 0,00,60 0,600 0,0, ,60,00 80,0 70,0,0 60,00,00 0 MARKET OUTLOOK Business Bay COMMUNITY APARTMENTS VILLAS AL YIELD PER SQ FT COMMUNITY AL YIELD PER SQ FT Dubai Downtown Jumeirah Village Circle Al Furjan Barsha Heights (Tecom) Business Bay Culture Village DIFC 7.9% 8.% % 6.9% 6.% 6.0%.89%%.77%.70% Al Barsha Al Furjan Arabian Ranches Dubai Land Dubai Sports City.7%.%.0%.90%.8%..7%.97%.8%.%,00,0,00,0,00,0, , Discovery Gardens Downtown Dubai Dubai Investment Park Dubai Land Dubai Marina Dubai Silicon Oasis 9.7% 9.7%.9%.7% 8.97% 9.% 8.9% 8.% 6.0% 6.% 8.6% 9.% Emirates Hills Jumeirah Golf Estates Jumeirah Islands Jumeirah Park Jumeirah Village Circle Jumeirah Village Triangle.07%.%.0%.66%.89%.99%.. 6.0% 6.%.8%.%,670,660,60,60,60,60,60 The Views ,00, Al Furjan Dubai Sports City 8.7% 8.8 Meadows.6%.6%, Greens IMPZ International City Jumeirah Beach Residence Jumeirah Lakes Towers Jumeirah Village Circle Jumeirah Village Triangle Motor City Old Town Palm Jumeirah The Views % % 8.77% 9.% 6.% 6.% 8.00% 7.89% 8.% 8.67% 9.6% 9.% 7.9% 8.0%.88%.8%.%.8% 6.78% 6.8% Mudon Palm Jumeirah The Lakes The Springs.87%.7%.%..0%.% 6.% 6.0% Discovery Gardens (9.), JVT (9.%) & DIP (9%) continue to offer world leading rental yield per square foot. Apartment yields in International City (8.8%), DSC (8.7%), IMPZ (8.6%) DSO (8.6%) & Dubai Land (8.%), JLT (8%) & Motor City (7.9%) continue to be excellent ,00,0,00,0,00,0,00 Dubai Silicon Oasis Greens ,90,900,80,800,70,700,60,600,0,00,00,000,90,900, Palm Jumeirah Old Town Data is based on median advertised price per square foot on propertyfinder.ae and may not reflect e reality of property transactions. - means e data was inconsistent or based on an insufficient number of listings in at area. Note: The scale varies for each chart as it aims to highlight e changes, even if e change is not at significant. Data is based on median advertised price per square foot on propertyfinder.ae and may not reflect e reality of property transactions. - means e data was inconsistent or based on an insufficient number of listings in at area.

19 MARKET OUTLOOK DUBAI APARTMENTS ADVERTISED MEDIAN PRICE IN AED PER SQUARE FOOT TEMBER 06 - MARCH 07 DUBAI VILLAS ADVERTISED MEDIAN PRICE IN AED PER SQUARE FOOT TEMBER 06 - MARCH Dubai Land Discovery Gardens ,00,9,90,8,80,7,70,6,60 Arabian Ranches ,80,70,60,0,0,0,0,0,00 Palm Jumeirah , 6.,90 7,0,00,0,00,00,000 Jumeirah Lakes Towers ,90,90,900,880,860,80,80 DIFC ,0,0,0,0,0,00,090,080,070 The Springs Jumeirah Village Circle International City ,60,600,0,00,0,00,0,00,0,00 Jumeirah Beach Residence Mudon ,,00,80,60,0,0,00 Meadows Dubai Sports City , Motor City ,0,0,00,09,090,08,080 Al Barsha Dubai Land ,000 IMPZ 8,00 Jumeirah Park 6,00 Dubai Sports City ,80,60,0,0, ,80,60,0,0, ,080,060,80, Note: The scale varies for each chart as it aims to highlight e changes, even if e change is not at significant. Data is based on median advertised price per square foot on propertyfinder.ae and may not reflect e reality of property transactions. - means e data was inconsistent or based on an insufficient number of listings in at area.

20 ABU DHABI MARKET AL YIELD PER SQUARE FOOT: ABU DHABI MARCH 07 TEMBER 06 COMMUNITY APARTMENTS VILLAS MARKET OUTLOOK AL YIELD PER SQ FT COMMUNITY AL YIELD PER SQ FT Hydra Village offers e best rental yield per square foot in Abu Dhabi wi 7.8% just ahead of Al Raha Gardens. All popular Abu Dhabi villa communities continue to offer investors +. Al Ghadeer Al Raha Beach Al Reef Al Reem Island Saadiyat Island Corniche Area Corniche Road % 8.% 6.96% 6.76% % 7.0% 7.%% 7.8% 6.67% Al Raha Gardens Al Raha Golf Gardens Al Reef Al Salam Street Hydra Village Khalifa City Saadiyat Island 7.9% 6.9%.7%.9% 7.% 7.8%.0%.77% 7.8% 8.%.80% 6.0%.99%.7% Yas Island - Corniche Area - ABU DHABI APARTMENTS ADVERTISED MEDIAN PRICE IN AED PER SQUARE FOOT TEMBER 06 - MARCH 07 ABU DHABI VILLAS ADVERTISED MEDIAN PRICE IN AED PER SQUARE FOOT TEMBER 06 - MARCH 07,0,0,00,90,80,70,60,0,0,0 Al Reem Island Al Reef Khalifa City ,600,80,60,0,0,00,80,60 Saadiyat Island ,0,0,0,00,90,80,70,60,0 Al Raha Beach ,0,0,00,80,60,0,0,00,80 Saadiyat Island Al Reef ,90,80,70,60,0,0,0,0 Al Salam Street ,00,0,00,0,00,0,00,00, Al Ghadeer Al Raha Gardens ,00,080,060,00,00, Al Raha Golf Gardens Note: The scale varies for each chart as it aims to highlight e changes, even if e change is not at significant. 6 Data is based on median advertised price per square foot on propertyfinder.ae and may not reflect e reality of property transactions. - means e data was inconsistent or based on an insufficient number of listings in at area. 7

21 NORTHERN EMIRATES MARKET MARKET OUTLOOK AL YIELD PER SQUARE FOOT: NORTHERN EMIRATES NORTHERN EMIRATES - AJMAN - RAS AL KHAIMAH - SHARJAH HOUSING TYPE PRICE PER SQ FT PRICE PER SQ FT AL YIELD PER SQ FT 06 MAR 07 %CHANGE 06 MAR 07 %CHANGE 06 MAR 07 Apartment % 0 7.% 6.7% 6.% Villa.6.9% % 6.0% Data is based on median advertised price per square foot on propertyfinder.ae and may not reflect e reality of property transactions. N/A means e data was inconsistent or based on an insufficient number of listings in at area. NORTHERN EMIRATES APARTMENTS NORTHERN EMIRATES VILLAS ADVERTISED MEDIAN PRICE IN AED PER SQUARE FOOT TEMBER 06 - MARCH 07 ADVERTISED MEDIAN PRICE IN AED PER SQUARE FOOT TEMBER 06 - MARCH Ajman Ras Al Khaimah 0 9 8, Ajman Ras Al Khaimah Sharjah For investors e rental yield pe square foot in Sharjah & Ajman in particular looks particularly enticing. We ve seen some launches of freezone off plan projects recently in Sharjah which is now competiting wi Dubai & RAK for non GCC buyers Sharjah Note: The scale varies for each chart as it aims to highlight e changes, even if e change is not at significant. Data is based on median advertised price per square foot on propertyfinder.ae and may not reflect e reality of property transactions. - means e data was inconsistent or based on an insufficient number of listings in at area. 8 9

22 PERFORMANCE REVIEW Our Performance Dubai Community Focus Abu Dhabi Community Focus Noern Emirates Community Focus

23 OUR PERFORMANCE LEADS PER LISTING DUBAI PERFORMANCE REVIEW ONLINE SEARCH INTEREST Established in Dubai in 007 e propertyfinder Group now employs around 0 individuals from over nationalities, across 7 countries. Our clear simple objective is to create e shortest pa for property seekers to connect to e right property and to be e most effective marketing channel for real estate brokers and developers across e region. increase 78% increase In our core UAE market, propertyfinder.ae has been e clear number one property portal for majority of e past decade and continues to increase its market share as well as its ROI for clients. KEY STATS MARKET SHARE MAR 6 ABU DHABI MAR 7 MAR 6 MAR 7 6% of all UAE visits to property portals come to propertyfinder.ae Over 0,000 users per mon view on average million pages and million properties on our portal % YOY increase in total leads per mon sent to broker and developer clients (March 06 vs March 07) % increase in leads per listing in all Emirates (Mar 7 vs Mar 6) A recent survey of our client base by our Customer Care department recorded a 9% client satisfaction rate % % % 6% b Q 07 UAE Desktop Visits, SimilarWeb independent comparison data MAR 6 MAR 7 NORTHERN EMIRATES % increase MAR 6 MAR 7 7% increase Users spend on average 7.7 minutes on our portal compared to less an 6 on oer websites, making our portal most engaging Househunters visit on average 9 pages on propertyfinder.ae;.6% higher an e nearest competitor increase 9% increase LEADS TO PROPERTYFINDER.AE MAR 6 MAR 7 MAR 6 MAR 7 PAGE VIEWS 9% INCREASE. increase March 06 March 07 SESSIONS 0,06,09 9% INCREASE,00,00 March 06 March 07,00,9,07,9 USERS 6% INCREASE March 06 March 07 08,8,7 MAR 6 MAR 7 Data shows e unique number of users, page views, sessions, leads and leads per listing on propertyfinder.ae. This is an overall snapshot of e data over e entire timeframe (Mar'6 to Mar'7), hence it may not reflect e actual situation on e propertyfinder at a particular moment in time. Data source: Propertyfinder.ae internal data and Google Analytics. Online Search Interest is e ratio of e number of searches to e number of listings on propertyfinder.ae

24 PERFORMANCE REVIEW DUBAI APARTMENTS FOR Dubai Marina has maintained its number one position since last year and remains e most viewed apartment community for rent wi e highest number of listings. VILLAS FOR DUBAI Arabian Ranches, The Springs and Jumeirah remained e ree most popular areas for villas for rent wi e highest number of listings. 7-8 BR % Top 0 most popular communities -8 BR % Top 0 most popular communities 6 BR 6% Dubai Marina Palm Jumeirah Downtown Dubai Jumeirah Lakes Towers Business Bay Jumeirah Beach Residence Al Nahda Dubai Sports City Jumeirah Village Circle International City X 0 Rank Total Listings 9% 9% 8% 7% 6% % % % % Total Views 9% 7% 8% 6% % % % % % % BR BR Arabian Ranches The Springs Jumeirah Jumeirah Park Umm Suqeim Reem Palm Jumeirah Al Barsha Meadows Mirdif X Rank Total Listings % 9% 7% 7% 7% 7% % Total Views 0% 9% 8% 8% 6% % 6% BR % BR 9% BR 0% Median size (SQ FT) Median size (SQ FT) 000 BR % BR 8% STUDIO % Views by bedroom BR % Views by bedroom Top 0 communities: Data shows e unique number of listings and impressions on propertyfinder.ae. This is an overall snapshot of e data over e entire timeframe (Sep'6 to Mar'7), hence it may not reflect e actual situation on propertyfinder at a particular moment in time. Median size: Data is based on median advertised price per square foot on propertyfinder.ae and may not reflect e reality of property transactions. Data source: Propertyfinder.ae internal data Views by bedroom: Data shows e total number of impressions on propertyfinder.ae. This is an overall snapshot of e data over e entire timeframe (Sep'6 to Mar'7), hence it may not reflect e actual situation on propertyfinder at a particular moment in time. Data source: Propertyfinder.ae internal data.

25 PERFORMANCE REVIEW DUBAI APARTMENTS FOR Dubai Marina and Downtown bo maintained eir top two positions since last year and remain most viewed apartment communities for sale. VILLAS FOR DUBAI Arabian Ranches is e most popular community for villas for sale wi Palm Jumeirah and Jumeirah Park respectively ranking nd and rd. -8 BR % 7-8 BR % Top 0 most popular communities Top 0 most popular communities 6 BR 0% Dubai Marina Downtown Dubai Palm Jumeirah Jumeirah Village Circle Jumeirah Lake Towers Business Bay Dubai Sports City Jumeirah Beach Residence Al Furjan Dubai Silicon Oasis Total Listings Total Views X % % 0% 7% % % % 0% 9% 9% 8% 6% % % % % BR 6% BR Arabian Ranches Palm Jumeirah Jumeirah Park Reem The Springs Jumeirah Golf Estates Dubai Hills Estate Mudon Meadows Dubai Land X 7 X 8 9 X 0 Total Listings % 8% 7% 7% 6% % % % Total Views % 9% 6% 9% % % % 6% % BR % BR Rank Rank Median size (SQ FT) BR % Median size (SQ FT) BR 7% STUDIO % BR 7% Views by bedroom BR % Views by bedroom Top 0 communities: Data shows e unique number of listings and impressions on propertyfinder.ae. This is an overall snapshot of e data over e entire timeframe (Sep 6 to Mar 7), hence it may not reflect e actual situation on propertyfinder at a particular moment in time. Median size: Data is based on median advertised price per square foot on propertyfinder.ae and may not reflect e reality of property transactions. Data source: Propertyfinder.ae internal data Views by bedroom: Data shows e total number of impressions on propertyfinder.ae. This is an overall snapshot of e data over e entire timeframe (Sep 6 to Mar 7), hence it may not reflect e actual situation on propertyfinder at a particular moment in time. Data source: Propertyfinder.ae internal data 6 7

26 DUBAI COMMUNITY FOCUS PERFORMANCE REVIEW PROPERTYFINDER S MOST VIEWED NEIGHBOURHOODS From Arabian Ranches to The Lakes, we take a closer look at e most popular communities. Ranking: based on e number of views and a community has received Enquiries & views progession: gives you an idea of how ese differ when compared to e same mon YoY Apartment Villa Arabian Ranches Ranking DIFC Ranking st st < 0 Enquiries & views progression - Villas Views by number of bedrooms - Villas Enquiries & views progression - Apartments Views by number of bedrooms - Apartments 6% % % % % % --8% 6% -0% % 8% 8% 8% NUMBER OF BEDROOMS 6 TO MAR % % 6% 6% % 8% -0% -9% -8% % -% 8% 0% 9% 8% 7% -7% NUMBER OF BEDROOMS 6 TO MAR 7 PERCENTAGE % 0% 8% 9% % Studio 6% 6% Enquiries Views Enquiries Views Business Bay Ranking iii 6 st In Arabian Ranches, villas wi bedrooms are viewed e most. Downtown Dubai Ranking rd nd In Downtown, bedroom apartments receive e most views. Enquiries & views progression - Apartments Views by number of bedrooms - Apartments Enquiries & views progression - Apartments Views by number of bedrooms - Apartments 7 8% 6 8% 0% 9% 6%% % 6% 8% % 0% NUMBER OF BEDROOMS 6 TO MAR 7 % % 6% 0% Studio 7% 9% % % 7% % % % 0% -9% -% -% NUMBER OF BEDROOMS 6 TO MAR 7 0% 7% % Studio 8% Enquiries Views Enquiries Views Ranking: Based on e unique number of listings and impressions on propertyfinder.ae. Enquiries and views progresion: Data shows e unique number of listings, impressions and leads on propertyfinder.ae. Views per number of bedrooms: data is based on e number of views of properties per bedrooms, community and property type as advertised on propertyfinder.ae. This is an overall snapshot of e data over e entire timeframe (Sep'6 to Mar'7), hence it may not reflect e actual situation on propertyfinder at a particular moment in time. 8 9

27 PERFORMANCE REVIEW Apartment Villa Dubai Sports City Dubai Marina Ranking st st In Dubai Marina most viewed apartments are ose wi and bedrooms. Ranking 8 9 Enquiries & views progression - Apartments 7 Most popular by number of bedrooms - Apartments 8% 98% NUMBER OF BEDROOMS 6 TO MAR 7 Enquiries & views progression - Apartments Most popular by number of bedrooms - Apartments % 7% 0% 7%% 9% % 0% % % 9 8% 8% - 7% % % 7% 9%6% % % NUMBER OF BEDROOMS 6 TO MAR 7 % % 6% -6% Enquiries Views Enquiries & views progression - Villas 96% 7% Studio % Most popular by number of bedrooms - Villas Enquiries Views Studio 8% 8% 8% 98% % -0% % -% 68% % 0% - 9% -9% - NUMBER OF BEDROOMS 6 TO MAR 7 6 0% 6% % - Beds % Enquiries Views Dubai Silicon Oasis Ranking 7 0 > 0 More an half of e total views for apartments in Dubai Silicon Oasis are for bedroom. International City Ranking 0 > 0 > 0 In International City, studio apartments receive e most views. Enquiries & views progression - Apartments Most popular by number of bedrooms - Apartments Enquiries & views progression - Apartments Most popular by number of bedrooms - Apartments 7% 6% %0% 60% 7% 70% 7 8% 66% % 9% 6% NUMBER OF BEDROOMS 6 TO MAR 7 % % Studio % 0% 6% 67% 0% % 9% % 7% % % % 6% -% NUMBER OF BEDROOMS 6 TO MAR 7 7% Studio 7% Enquiries Views Enquiries Views 0 Ranking: Based on e unique number of listings and impressions on propertyfinder.ae. Enquiries and views progresion: Data shows e unique number of listings, impressions and leads on propertyfinder.ae. Views per number of bedrooms: data is based on e number of views of properties per bedrooms, community and property type as advertised on propertyfinder.ae. This is an overall snapshot of e data over e entire timeframe (Sep 6 to Mar 7), hence it may not reflect e actual situation on propertyfinder at a particular moment in time.

28 PERFORMANCE REVIEW Apartment Villa Jumeirah Beach Residence Ranking 6 8 Almost half of e total views for apartments in JBR are for bedrooms. Jumeirah Park Ranking Enquiries & views progression - Villas % Jumeirah Park is most popular community for villas for rent and rd most popular for villas for sale. Most popular by number of bedrooms - Villas NUMBER OF BEDROOMS 6 TO MAR 7 Enquiries & views progression - Apartments 78% 8% Most popular by number of bedrooms - Apartments 9% 7% 8% % 7% % 0% -% % -% 6% % % + % % 7% % 7% % 7%8% 0% % 8% 6% % 8% % NUMBER OF BEDROOMS 6 TO MAR 7 8% 6% Enquiries Views Studio 8% % Jumeirah Village Circle Enquiries Views Ranking Jumeirah Lakes Towers Ranking JLT is most popular community for apartments for rent and most popular for apartments for sale. Enquiries & views progression - Apartments 0% 9 9% 6 69% 7 9% 68% % 70% 7% % 7% % 0% 7% Most popular by number of bedrooms - Apartments NUMBER OF BEDROOMS 6 TO MAR 7 % 0% % Enquiries & views progression - Apartments 6% % %% % % 9%8% 7%6% % 6% 0% Enquiries Views 6% Most popular by number of bedrooms - Apartments NUMBER OF BEDROOMS 6 TO MAR 7 Studio 0% % 8% 9% Enquiries & views progression - Villas 0% Enquiries 9% -6% % % 6% % % 6% 0% Enquiries Views Views -0% 0% % 8% Studio % Most popular by number of bedrooms - Villas NUMBER OF BEDROOMS 6 TO MAR 7 PERCENTAGE + % 8% 8% 6% % Ranking: Based on e unique number of listings and impressions on propertyfinder.ae. Enquiries and views progresion: Data shows e unique number of listings, impressions and leads on propertyfinder.ae. Views per number of bedrooms: data is based on e number of views of properties per bedrooms, community and property type as advertised on propertyfinder.ae. This is an overall snapshot of e data over e entire timeframe (Sep 6 to Mar 7), hence it may not reflect e actual situation on propertyfinder at a particular moment in time.

29 PERFORMANCE REVIEW Meadows Ranking Apartment 9 9 Villa Meadows is 9 most popular commmunity for villas for rent and for sale. The Springs Ranking nd Enquiries & views progression - Villas % Most popular by number of bedrooms - Villas NUMBER OF BEDROOMS 6 TO MAR 7 Enquiries & views progression - Villas 8% Most enquiries by number of bedrooms - Villas 8% 9% 0% 7% 6% 8% 7% 9% -% -7% % 6% 0% 7% 0.% 6% 8% % 7% % % - -6% -% -9% -% -9% NUMBER OF BEDROOMS 6 TO MAR 7 + % 6% % Enquiries Views Enquiries Views Palm Jumeirah Ranking Enquiries & views progression - Apartments 9% -% 67% 0% nd rd nd 7 Enquiries 9% % -% % -% -6% % % -% -% % % % 9% % 0% Views & enquiries progression - Villas Enquiries Views Views -% -8% 0% % 8% 0% % 8% The Palm is nd most popular community for apartments to rent and for villas for sale. Most popular by number of bedrooms - Apartments NUMBER OF BEDROOMS 6 TO MAR 7 Studio % 9% 9% Most popular by number of bedrooms - Villas NUMBER OF BEDROOMS 6 - Bed 6 TO MAR 7 PERCENTAGE 9% 9% 6% % 0. The Lakes Ranking Enquiries & views progression - Villas 7 rd > 0 9% 7% 7% 80% 0% 7% Enquiries The Springs is nd most popular community for villas for rent, just behind Arabian Ranches, and most popular for villas for sale. Views -% % 6% 9% NUMBER OF BEDROOMS 6 TO MAR 7 Ranking: Based on e unique number of listings and impressions on propertyfinder.ae. Enquiries and views progresion: Data shows e unique number of listings, impressions and leads on propertyfinder.ae. Views per number of bedrooms: data is based on e number of views of properties per bedrooms, community and property type as advertised on propertyfinder.ae. This is an overall snapshot of e data over e entire timeframe (Sep 6 to Mar 7), hence it may not reflect e actual situation on propertyfinder at a particular moment in time. 8% 0% Most popular by number of bedrooms - Villas 6+ 8% 8% % 8% %

30 PERFORMANCE REVIEW APARTMENTS FOR ABU DHABI Al Reem Island and Khalifa City bo maintained eir top two positions since last year and remain most popular apartment communities for rent. VILLAS FOR ABU DHABI Khalifa City also maintained its top position since last year and remained most popular villa community for rent. Top 0 most popular communities -8 BR % BR 6% Top 0 most popular communities 7-8 BR 8% Total Listings Total Views Total Listings Total Views Al Reem Island Khalifa City % 9% 8% % Khalifa City Al Reef % % 0% 6 BR % Corniche Road 8 6% Mohamed Bin Zayed City 7% % Al Raha Beach 6 BR % Al Mushrif 6% % Al Khalidiya 6% Al Raha Gardens % Al Reef 9 6 % Al Bateen 9 6 % % Mohamed Bin Zayed City 7 % Between Two Briges 8 7 % % BR Muroor Area 8 % % Al Karama 0 8 % % Corniche Area X 9 % % Muroor Area 7 9 % % Al Mushrif X 0 % % BR 0% Eastern Road X 0 % % Rank Rank BR % Median size (SQ FT) BR 7% Median size (SQ FT) 7000 BR BR 8% 90 8 STUDIO % BR 7% Views by bedroom 0 00 Views by bedroom Top 0 communities: Data shows e unique number of listings and impressions on propertyfinder.ae. This is an overall snapshot of e data over e entire timeframe (Sep 6 to Mar 7), hence it may not reflect e actual situation on propertyfinder at a particular moment in time. Median size: Data is based on median advertised price per square foot on propertyfinder.ae and may not reflect e reality of property transactions. Data source: Propertyfinder.ae internal data. Views by bedroom: Data shows e total number of impressions on propertyfinder.ae. This is an overall snapshot of e data over e entire timeframe (Sep 6 to Mar 7), hence it may not reflect e actual situation on propertyfinder at a particular moment in time. Data source: Propertyfinder.ae internal data. 6 7

31 PERFORMANCE REVIEW APARTMENTS FOR ABU DHABI Al Reem Island, Al Raha Beach and Al Reef maintained eir top ree positions since last year and remain most viewed apartment communities for sale. VILLAS FOR ABU DHABI Al Reem Island is e top most popular villa community for sale and has e highest number of listings out of all Abu Dhabi communities. Top 0 most popular communities -8 BR 7% Top 0 most popular communities 7-8 BR 8% Al Reem Island Al Raha Beach Al Reef Yas Island Saadiyat Island Al Ghadeer Total Listings 9% 9% 6% % Total Views 6% % 8% BR % Al Reef Yas Island Saadiyat Island Al Raha Gardens Hydra Village Khalifa City Total Listings 6% % % 6% Total Views 7% 0% 0% 6% 0% 8% 6 BR 9% BR Rank Al Raha Golf Gardens 8 7 % % Al Salam Street 9 8 % % BR Abu Dhabi Gate City Mohamed Bin Zayed City X % % % % BR % Rank Median size (SQ FT) Median size (SQ FT) BR % BR BR % STUDIO % Views by bedroom BR % Views by bedroom Top 0 communities: Data shows e unique number of listings and impressions on propertyfinder.ae. This is an overall snapshot of e data over e entire timeframe (Sep 6 to Mar 7), hence it may not reflect e actual situation on propertyfinder at a particular moment in time. Median size: Data is based on median advertised price per square foot on propertyfinder.ae and may not reflect e reality of property transactions. Data source: Propertyfinder.ae internal data. Views by bedroom: Data shows e total number of impressions on propertyfinder.ae. This is an overall snapshot of e data over e entire timeframe (Sep 6 to Mar 7), hence it may not reflect e actual situation on propertyfinder at a particular moment in time. Data source: Propertyfinder.ae internal data. 8 9

32 ABU DHABI COMMUNITY FOCUS PERFORMANCE REVIEW PROPERTYFINDER S MOST VIEWED NEIGHBOURHOODS IN ABU DHABI From Al Ghadeer to Khalifa City, we take a closer look at e most popular communities. Ranking: based on e number of views and a community has received Views & enquiries progession: gives you an idea of how ese differ when compared to e same mon YoY Apartment Villa Al Ghadeer Al Raha Beach Ranking Most popular by number of bedrooms - Apartments Ranking Most popular by number of bedrooms - Apartments < 0 7 NUMBER OF BEDROOMS 6 TO MAR 7 7% % Studio 9% 9 nd NUMBER OF BEDROOMS 6 TO MAR 7 % % Studio % Al Reem Island Ranking st 7 st < 0 Most popular by number of bedrooms - Apartments NUMBER OF BEDROOMS 6 TO MAR 7 6% 7% Al Raha Beach is most popular community for apartments for rent and nd most popular area for apartments for sale. Studio % % Al Raha Gardens Ranking 0 < 0 Enquiries & views progression - Villas Most popular by number of bedrooms - Villas 67% 6% % %% -9% -% -% -7% -6% -6% -% -% -% Enquiries Views NUMBER OF BEDROOMS 6 TO MAR 7 6 6% 8% 8% 0- % 60 Ranking: Based on e unique number of listings and impressions on propertyfinder.ae. Enquiries and views progresion: Data shows e unique number of listings, impressions and leads on propertyfinder.ae. Views per number of bedrooms: data is based on e number of views of properties per bedrooms, community and property type as advertised on propertyfinder.ae. This is an overall snapshot of e data over e entire timeframe (Sep 6 to Mar 7), hence it may not reflect e actual situation on propertyfinder at a particular moment in time. 6

33 PERFORMANCE REVIEW Al Raha Golf Gardens Ranking Apartment 0 8 Villa < < 0 7 Most popular by number of bedrooms - Villas NUMBER OF BEDROOMS 6 TO MAR 7 Al Reef is e most popular area for villas for sale in Abu Dhabi, nd most popular community for villas for rent and rd most popular for villas for sale % % % % % Saadiyat Island Ranking 6 rd Enquiries & views progression - Apartments -7% % -% Enquiries % -%-% OCT OCT Views % NOV NOV -% -% DEC DEC -0% JAN Enquiries & views progression - Villas JAN FEB % 7% % % 6% 9% % -% -6% -6% -% FEB -8% % MAR % MAR Most popular by number of bedrooms - Apartments NUMBER OF BEDROOMS 6 TO MAR 7 % 9% % 7% Studio 0% Most popular by number of bedrooms - Villas NUMBER OF BEDROOMS 6 TO MAR % % % % 0- % Enquiries Views Al Reef Ranking 6 nd Enquiries & views progression - Apartments % 6% % 7% 0% 9% % -% 8% -0% -8% - -% -9% Enquiries Views 6 rd st Most popular by number of bedrooms - Apartments NUMBER OF BEDROOMS 6 TO MAR 7 0% % 8% Studio % Most popular by number of bedrooms - Villas NUMBER OF BEDROOMS 6 TO MAR 7 6 % 9% 8% Yas Island Ranking 0 <0 nd Yas Island, which holds e Yas Marina Circuit, is nd most popular community for villas for sale. Most popular by number of bedrooms - Apartments NUMBER OF BEDROOMS 6 TO MAR 7 NUMBER OF BEDROOMS 6 TO MAR 7 Ranking: Based on e unique number of listings and impressions on propertyfinder.ae. Enquiries and views progresion: Data shows e unique number of listings, impressions and leads on propertyfinder.ae. Views per number of bedrooms: data is based on e number of views of properties per bedrooms, community and property type as advertised on propertyfinder.ae. This is an overall snapshot of e data over e entire timeframe (Sep 6 to Mar 7), hence it may not reflect e actual situation on propertyfinder at a particular moment in time. + Studio 6 % 6% % % Most popular by number of bedrooms - Villas 6% 7% 6% 6% % 6

34 FIND A HOME Apartment Villa Hydra Village Ranking Most popular by number of bedrooms - Villas >0 NUMBER OF BEDROOMS 6 TO MAR 7 8% 8% 0- % Khalifa City has maintained its number one spot as most popular community for villas for rent. Khalifa City Ranking nd st 6 6 Enquiries & views progression - Villas 70% % 9% 7% 8% % 0% % % Most popular by number of bedrooms - Villas NUMBER OF BEDROOMS 6 TO MAR % 6 9% 9% % 0- % THE BEACH EMPTIES -0% -% -% - Enquiries Views Ranking: Based on e unique number of listings and impressions on propertyfinder.ae. Enquiries and views progresion: Data shows e unique number of listings, impressions and leads on propertyfinder.ae. Views per number of bedrooms: data is based on e number of views of properties per bedrooms, community and property type as advertised on propertyfinder.ae. This is an overall snapshot of e data over e entire timeframe (Sep 6 to Mar 7), hence it may not reflect e actual situation on propertyfinder at a particular moment in time. 6

35 PERFORMANCE REVIEW APARTMENTS FOR NORTHERN EMIRATES Al Nahda maintained its top position since last year and remains e most viewed apartment community for rent in e Norern Emirates. VILLAS FOR NORTHERN EMIRATES Al Hamra Village and Mina Al Arab in Ras Al Khaimah are two most viewed communities for villas for rent in e Norern Emirates. 7-8 BR % Top 0 most popular communities -8 BR % 6 BR % Top 0 most popular communities Sharjah - Al Nahda Sharjah - Al Taawun Sharjah - Al Qasemiya Sharjah - Al Khan Sharjah - Al Majaz Sharjah - Al Mamzar RAK - Al Hamra Village Ajman - Downtown Ajman - Al Naemiyah Ajman - Emirates City Total Listings Total Views 8 7 X 6 X Rank 9% 9% 8% 7% % % % % % 6% 9% 0% % % % 7% BR % BR % RAK - Al Hamra Village RAK - Mina Al Arab Ajman - Al Mwaihat Ajman - Al Zahraa Sharjah - Al Riqqa Ajman - Uptown Ajman - Al Naemiyah Sharjah - Al Heerah Ajman - Al Rawda RAK -Waterfront X 7 X 8 X 9 X 0 Rank Total Listings 0% 9% 9% 7% 7% % % Total Views 9% 6% % % % 6% % BR BR % Median size (SQ FT) Median size (SQ FT) BR % BR 7% BR % STUDIO % Views by bedroom BR % Views by bedroom Top 0 communities: Data shows e unique number of listings and impressions on propertyfinder.ae. This is an overall snapshot of e data over e entire timeframe (Sep 6 to Mar 7), hence it may not reflect e actual situation on propertyfinder at a particular moment in time. Median size: Data is based on median advertised price per square foot on propertyfinder.ae and may not reflect e reality of property transactions. Data source: Propertyfinder.ae internal data. Views by bedroom: Data shows e total number of impressions on propertyfinder.ae. This is an overall snapshot of e data over e entire timeframe (Sep 6 to Mar 7), hence it may not reflect e actual situation on propertyfinder at a particular moment in time. Data source: Propertyfinder.ae internal data

36 PERFORMANCE REVIEW APARTMENTS FOR NORTHERN EMIRATES Al Mamzar in Sharjah is e most popular community for apartments for sale in e Norern Emirates. VILLAS FOR NORTHERN EMIRATES Al Mwalhat in Ajman is e most popular community for villas for sale in e Norern Emirates. -8 BR % 7-8 BR 6% Top 0 most popular communities BR 8% Top 0 most popular communities 6 BR % Total Listings Total Views Total Listings Total Views Sharjah - Al Mamzar 8 9% 8% Ajman - Al Mwaihat X % BR % RAK - Al Hamra Village 6% % BR % Ajman - Al Rawda 9 0% 6% Ajman - Emirates City 0% % Ajman - Al Zahraa 9% % Sharjah - Al Qasbaa X 8% % Ajman - Uptown Ajman - Downtown 8% 8% RAK - Al Hamra Village 7% RAK - Al Marjan Island 9 6 6% % RAK - Mina Al Arab 6 % 8% Sharjah - Al Khan 7 7% Sharjah - Muelih Commercial 7 % 8% Sharjah - Al Nahda 8 % 9% Ajman - Al Hamidiya X 8 % % Ajman - Uptown Ajman -Al Naemiyah 7 9 X 0 Rank % % % % BR % RAK - Waterfront RAK - Al Sheikh Mohammed Bin Zayed Road X 9 X 0 Rank % % % % BR % BR Median size (SQ FT) Median size (SQ FT) STUDIO % Views by bedroom BR 0% 0- BR % Views by bedroom Top 0 communities: Data shows e unique number of listings and impressions on propertyfinder.ae. This is an overall snapshot of e data over e entire timeframe (Sep 6 to Mar 7), hence it may not reflect e actual situation on propertyfinder at a particular moment in time. Median size: Data is based on median advertised price per square foot on propertyfinder.ae and may not reflect e reality of property transactions. Data source: Propertyfinder.ae internal data. Views by bedroom: Data shows e total number of impressions on propertyfinder.ae. This is an overall snapshot of e data over e entire timeframe (Sep 6 to Mar 7), hence it may not reflect e actual situation on propertyfinder at a particular moment in time. Data source: Propertyfinder.ae internal data

37 NORTHERN EMIRATES COMMUNITY FOCUS PERFORMANCE REVIEW Ras Al Khaimah Enquiries & views progression - Apartments Most popular by number of bedrooms - Apartments 8% 7% 0% % Enquiries 9% 68%70% % % Views 7% 0% 7% -9% 8% 6% 0% Enquiries & views progression - Villas % 0% % -6%-7% 0% -% % % 0% NUMBER OF BEDROOMS 6 TO MAR 7 + % 7. % 0% Studio 7% Most popular by number of bedrooms - Villas NUMBER OF BEDROOMS 6 TO MAR 7 + % % 0% 7% % Enquiries Views Sharjah Ajman Enquiries & views progression - Apartments Most popular by number of bedrooms - Apartments Enquiries & views progression - Apartments Most popular by number of bedrooms - Apartments 7% 7% -% 6% % % % % 7% % % NUMBER OF BEDROOMS 6 TO MAR 7 + % 6% % 8% % 70% % % 6% 66% % 68% % 7% -% 0% 8% NUMBER OF BEDROOMS 6 TO MAR 7 + 8% 8% % Studio % Studio % Enquiries Views Enquiries & views progression - Villas Most popular by number of bedrooms - Villas Enquiries Views Enquiries & views progression - Villas Most popular by number of bedrooms - Villas 8% 8% % 9% 7% 6% 9% 7% 7% % -6% -0% Enquiries Views NUMBER OF BEDROOMS 6 TO MAR % 7% % 0% 0- % 8 8% 9% % 07%99% 60%8% 9%% 8% 7% 0 6 Enquiries Views NUMBER OF BEDROOMS 6 TO MAR % 8% 0% % 0% Ranking: Based on e unique number of listings and impressions on propertyfinder.ae. Enquiries and views progresion: Data shows e unique number of listings, impressions and leads on propertyfinder.ae. Views per number of bedrooms: data is based on e number of views of properties per bedrooms, community and property type as advertised on propertyfinder.ae. This is an overall snapshot of e data over e entire timeframe (Sep 6 to Mar 7), hence it may not reflect e actual situation on propertyfinder at a particular moment in time. 70 7

38 DIGITAL UPDATE Newest Releases Tech Trends

39 NEWEST RELEASES TECH TRENDS Q & A WITH OUR CPO What are e latest trends in e industry? We have officially surpassed an important reshold: our traffic is now predominantly mobile in all our markets, which can be as high as 7% in Saudi Arabia. Alex Miauton Chief Product Officer, Propertyfinder GROUP Agent profiles on mobile Over,000 brokers feature on our dedicated Find Agent section of our website to help househunters find eir right property quicker. Now mobile users can also contact eir agents faster as Agent profiles also feature on e mobile version of our portal. esimsar.com & Sarouty.ma Brokers and developers in Saudi Arabia and Morocco are constantly on e go. Thanks to our Al Mosawiq by esimsar and Sarouty broker apps, ey can easily manage eir real estate business and upload properties from eir smartphone. mycrm has now over 00 local and international clients from e MENA region. Wi highly anticipated V now fully established, mycrm s performance and grow are exceptional. In just twelve mons we ve seen: - 60% increase in clients - Nearly 0. million leads per mon - % increase in published properties - times more registered owners (Source: mycrm data, May 07 vs May 06) mycrm has also launched market leading ios and Android apps which lets brokers upload and publish listings straight from eir smartphone, saving em valuable time and making it easier to manage stock on e go. Available now from e Apple Store and Google Play. Request a free demo at mycrm.com Building Reviews Househunters will soon be able to write building reviews for towers and areas ey live in on propertyfinder s new Review page to help us drive even more transparency in e market and help movers wi eir decision making process. These trends can also be observed among our advertisers. More and more agents are spending less time at e office and more time on-e-go, meeting vendors and home seekers. They have us ditched eir laptop and are managing eir entire activity directly from eir smartphone. What s propertyfinder s response to ese trends? We introduced many mobile tools for brokers and real estate agents in e last quarter and have made it a strategic priority to continue doing so in e mons to come. This focus on mobile products has facilitated e grow of our spectrum of customers and resulted in a huge escalation in e number of listings. We introduced many mobile tools for brokers and real estate agents in e last quarter and have made it a strategic priority to continue doing so in e mons to come. What objectives drive propertyfinder s new products? As a real estate marketplace, what we care about first and foremost is to match end users demand wi genuine supply at will result in real estate transactions. In order to be as efficient as possible in doing so, it is our job to make sure at e listings displayed on our portal are accurate, genuine and available. Verified Listings launched almost years ago and has been a massive success. The Trakheesi initiative launched by e Land Department is year is anoer great step in e right direction at will bring more market transparency and eradicate duplicate, fake or bait listings. The new Transactions section on Find Agent page highlights e number of sale and rental deals completed What do you ink is next for e real estate market? I believe at e next steps will be e gradual movement towards exclusivity. Alough we have seen an increase in landlords signing exclusive mandates wi real estate brokers, it is not a common practice in e MENA region yet. In at sense, we are convinced at wi today s market configuration, finding e right real estate professional is at least as important as looking for e right listing. How is propertyfinder developing its products to continue driving transparency in e market? Following at ought, we are heavily investing into developing a brand new Verified Agent section. Our objective is to connect e best agents directly to a home buyer, seeker and seller. In e continuity of Verified Agents, we have started to collect transaction data. This is also a big step for us at will help us promote e best operators, bring more transparency to e market and reduce e expectation gap between asking and transaction prices. Have a question for Alex? alexmiauton alex@propertyfinder.ae 7 7

40 AGENT SPOTLIGHT Propertyfinder Real Estate Brokerage Awards Propertyfinder Awesome Agents

41 PROPERTYFINDER REAL ESTATE BROKERAGE AWARDS TESTIMONIALS Our 06 award winners tell us WHY YOU should enter is year s race for e best in e industry. Darren Murphy BEST AGENT ''I ink over e last years, propertyfinder has emerged as e number one property portal in Dubai, so to win is award out of,000 brokers really meant a lot to me. I ink e awards are helping e clients really identify who are e right agents to go to, and have created a lot more trust in e market. I ink anybody who has had a successful year, would be crazy not to enter e award, because if you've got at award under your belt, it can only help wi clients, giving em trust and e believe at you're e agent to deal wi.'' Darren Murphy, Associate Director, Allsopp and Allsopp AGENT SPOTLIGHT Gulf Soeby's BEST MARKETING CAMPAIGN 'Recognising e leaders of e industry contributes to raising e standards of quality and service. I believe we managed to raise e brand awareness of our campaign in e local market and a special anks to propertyfinder who gave us e platform for e local players to be able to look at each oer s work, get inspired, and compete, and propertyfinder really encourages em to step up to e next level.'' Marie Jirat, Director of Marketing, Gulf Soeby s Edwards and Towers BEST BROKERAGE SERVICE "We're very proud of course, to be named as number one. I feel (e awards) give us a really good insight into who our competitors are, and to understand who is in e market, what we're up against, and what standards we need to reach to be number one. It also allows clients to understand e quality of who ey are dealing wi; if ey are dealing wi an agency at have been 'placed' in e awards, en ey know at e service at ey are going to get is going to be a lot better an perhaps e majority of e oer agencies in e market. The immediate impact (of e award win) is at it really boosts staff morale. It also really helps when pitching to owners for exclusive listings and it facilitates us bringing in new agents, as its a really good ing to mention during e interview, to help us stand apart at we've won is award. If you are doing e right ings in is market, propertyfinder will recognise you for it. They see how we are doing our listings on a day to day basis, how we are dealing wi our clients wi e Call Tracking on a day to day basis, e feedback, and level of complaints.'' Simon Kennedy, Managing Director, Edwards and Towers Winning e awards from a portal at is so significant in e market place is great. We've seen e awards raise e standards bo in e office and wiin e industry as a whole. We like e competition, we raised our standards to ensure we won in 06 and all e new people at enter e competition, only give us at extra emphasis to make sure at we do a better job, which can only be good for e industry.'' Mark Towers, Founder, Edwards and Towers Premier Estates BEST NEWCOMER BROKERAGE SERVICE I ink any company wiin any industry wants to be recognised for eir hard work and eir achievements. I ink it s also great for e general public, at ey know e industry is being monitored by a ird party. Its amazing how far e award reaches and how many people get to know about it. It really put Premier Estates on e realtor map and it allowed our brand to be instantly recognisable to e competition, and to buyers and sellers. I ink any company likes to receive awards, particularly when it s been given by such a well known brand as propertyfinder. What it did for us is it really made us look at our company under e microscope, as when you know you are presenting your company to a ird party, you really do start to look quite deeply into parts of your organisation. So e overall benefit at we gained from just entering, I would recommend to all companies to do. Jackie Johns, Managing Partner, Premier Estates Find out more at awards.propertyfinder.ae 78 79

42 PROPERTYFINDER REAL ESTATE BROKERAGE AWARDS AGENT SPOTLIGHT Earlier is year propertyfinder launched a new initiative exclusively for our Verified Agents to recognise eir achievements and success, be it a large residential or commercial deal. Multiple outstanding transactions or unbeatable customer service. We ve seen a record number of submissions each mon and here are our winners so far. Since 0 e propertyfinder Real Estate Brokerage Awards have celebrated brokers and agents who strive to deliver e highest standards of quality and service in e UAE. Each year industry experts gaer to review submitted entries in specialist categories and on e night best performing agents are recognised and awarded for eir efforts. WHY ENTER? The propertyfinder Real Estate Brokerage Awards offer brokers an excellent opportunity to: Benchmark agency success Stand out from competitors as an award winner Boost employee morale Boost client confidence in your products and/or services Celebrate your win wi industry peers FEBRUARY 07 Mohamed Adib Amin Senior Residential Consultant Better Homes An elite consultant specialising in luxury properties, Mohamed Adib Amin closed two deals for two villas wor AED 8 million. The two 8-bedroom mansion villa enquiries, received from propertyfinder, have e highest residential transacted values in Dubai to date. What do you ink contributed to your success in is particular deal? I always make a point to promptly answer clients calls at all times. In cases where I m not able to answer eir calls, I make sure to call em back as soon as I am available. This may seem like a simple ing to do, but it is often overlooked by many agents and is one ing at makes clients feel important and well looked after. I also made sure I m always on time to property viewings and come prepared to show e properties and answer all clients questions accurately. I always make sure at all aspects of e deal benefit and satisfy bo e seller and buyer. APRIL 07 Angela Gegg Head Of Commercial Edwards & Towers Sunny s achievements in March: MARCH 07 Sunny Adhiya Senior Property Consultant Arab Vision Sealed e deal wi an investor for 9 off-plan properties wor AED 8. million Completed a deal for units in Marina wor AED million Secured sales for independent Sidra Villas wor AED. million and anoer sale for a villa in Dubai Hills wor AED million All leads were received rough propertyfinder.ae in a span of only two weeks. Tell us, what advice would you give to a broker who is new to e UAE property market? The UAE market and e Land Department is evolving and getting bigger and better every day. You need to have up-to-date information on any new law, rules and regulations at are being injected. This lets agents portray a positive image of emselves because ey re are able to answer any question, big or small. You must follow e CET rules of real estate Commitment, Eic and Transparency to succeed. DO YOU HAVE WHAT IT TAKES? 80 Next Awards: December 07. propertyfinder Agents will be contacted for submissions after summer. In April Angela finalised e sale of an AED 7 million office wi full commission, after mons of negotiations. The deal was very complex as it had leasehold ownership, so unlike e majority of broker deals in Dubai, is involved a deep understanding of long-term lease agreements, Musataha title and fullbuilding management logistics. The building is located in Dubai Internet City and is one of e premium singleowned office properties in Dubai. What one ing do you do as a broker, to differentiate yourself from oers? I don t believe in 9 to. I'm constantly in touch wi my clients and always answer calls and messages, even after e clock. Most of my clients contact me late and expect me to be available for em and as an agent. I have met many agents who turn off eir phones in e evening and on weekends and don t understand at as we are commission-based, we must be available for our clients. I am also very straight forward and don t sugar coat ings. Can you be our next Awesome Agent? Did you secure a big win? Or closed a large commercial deal? Tell us why you ve got what it takes to win. What are e benefits of being our Awesome Agent of e mon? Carry e official Awesome Agent badge under your Agent profile Get extra exposure from featuring on our blog Get featured on our social media: Facebook, LinkedIn and Twitter Exclusive mention in our monly newsletter Personalised signature Chance to win e Agent of e Year Award Submit your winning entry to awesomeagent@propertyfinder.ae Read more on our blog: / 8

43 INVESTORS Top Investors in Dubai Ways To Optimise Returns Maintaining & Maximising Your Investment

44 GET LEADS TOP INVESTORS IN DUBAI WHERE DO THEY COME FROM? INVESTORS Dubai real estate transactions totaled more an AED 9 billion in 06, according to to Dubai Land Department (DLD). Nearly 6,00 investors from various nationalities bought property in e emirate last year. UAE nationals were e biggest investors in 06, while oer major buyers included Saudi Arabia, India, Britain, Pakistan and Jordan. In 06, developers launched new projects valued at over AED 00 billion. Among e 60,9 real estate transactions completed in Dubai last year,,776 were cash sales while mortgage-based transactions were wor AED 8 billion. Country of origin Transactions/ investors Value of transactions (AED) GCC,768 investors billion Saudi Arabia,9 transactions 8 billion Qatar and Kuwait,776 investors billion Oman and Bahrain investors billion Egypt,6 investors. billion Jordan, investors. billion India 6,6 investors billion Pakistan,7 investors. billion Great Britain,7 investors.8 billion Investors top areas YOU CAN CALCULATE LAST MONTHS Towards e end of 06 ere was a small but clear upturn in buyer activity, which has convinced many realtors and market experts to expect an increased activity in 07 as Expo 00 nears. 07 could be e start of a new cycle in e UAE property sector as investors who were previously hesitant enter e market. Business Bay Burj Khalifa Highest number of investments,08 Highest wor of value AED 7 billion Al Yafra Sheikh Mohammed Bin Rashid Gardens Al Thunaya Highest number of inland sales Highest number of building sales 699 Highest number of land mortgage transactions Source: Dubai Land Department data 06 8

45 OPTIMISING PROPERTY RETURNS IN TURBULENT TIMES WAYS INVESTORS CAN OPTIMISE THEIR RETURNS: INVESTORS This has been an interesting decade, from e cruelty of e global financial crisis where property prices nearly halved, to e 0 surge of investment activity at made Dubai e best performing property market worldwide and back to e mild slowdown we are currently experiencing. However, at is a typical cycle at every market participant should accept before and after entering into it. There are fundamental reasons driving e property market at are nearly always correlated wi e economy and overall visibility of what e future may hold for e subject market. In e Dubai market, e drop we have seen in e afterma of e global financial crisis was mainly attributed to overall global slowdown, as well as e fact at property prices were significantly overvalued at e time. How do we know it was overvalued? Well, it s simple look at e cap rates. The cap rate is e rate of return on a real estate investment property based on e income at e property is expected to generate. This is calculated by dividing e investment s net operating income (NOI) by e current market value of e property. Here's an example. Take e largest, full sea view two bedroom property on Shoreline, Palm Jumeirah and compare at property to pre and post crash: Rent AED 00,000 AED 00,000 Sale Price AED,000,000 AED,00,000 Gross Rental Yeld %.9% Then it s a perception of risk. What is e right cap rate for Dubai prime property? Let s consider e following factors: The risk-free rate (Look at EIBOR from time to time to determine e number) Age of e property Credit-woriness of e tenant Demand vs. supply dynamics Economic fundamentals (Population grow, employment grow, etc.) Intuitive judgments using e following tools can make e difference between smart, calculated decisions and rash, quick decisions.. Short-term model Using it to generate higher yields where short-term rental investors gain four-fold rough e following: HIGHER YIELDS Staging properties and renting em on a shortterm basis (daily or monly) can generate higher yields based on current rates as long as occupancy surpasses 70% per annum PROPERTY STAGING By staging e property, and having it well furnished, designed, and decorated, e liquidity will increase substantially VACANT POSSESSION Properties at have vacant possession currently command an appropriate premium (anywhere between 6-9%*) over properties wi longterm lets. This will also increase e liquidity of e apartment wi end-users having e upper hand in is market PERSONAL USE Properties at are rented on a short-term basis can be of significant use to its owner. For international owners, it serves as a holiday home for e family when ey are in town. For domestic owners, it serves as a guest house for e owner s guests or for personal use for weekends, holidays, etc. Taking all of e above into account, and taking into consideration at e risk-free 008 rate was significantly higher an today, it is intuitive to see how e property was overvalued back en. If we assume at Dubai prime property should have a cap rate of, en one can argue at property prices are undervalued today.. Invest in off-plan In uncertain times, developers, big and small come up wi very attractive payment and pricing plans for new schemes. If you believe in e supply/demand dynamics and e fact at ere will continue to be pent-up demand for e city as population grow is on e rise, en making smart off-plan property investments in neighbourhoods at are already in demand and have limited supply (e.g. Dubai Marina, Downtown, Palm Jumeirah) is a good way to optimise property returns. This is because property prices under construction are normally at a -0% discount to similar ready properties in e same location. You can benefit from e immediate upside at completion, as well as higher yields.. Keep your property available Short-term rentals ensure at your property is available and liquidity is certain. Ensure you have a good relationship wi your tenant so you do not face difficulties wi em in e future.. Use e low interest rate environment to increase IRR As long as e interest rate at your bank is charging you on your mortgage is less an e cap rate you are getting on your property, en you are "in e money" and your internal rate of return (IRR) will be relatively high. The higher e spread between e interest rate and e cap rate, e better off you are and subsequently e higher your IRR.. Seek e right advice Brokers will talk to you about capital appreciation and sell you e future and will sometimes hide e cap rate. You need to have a margin of safety today so at you can beat e market in case of a downturn. Thus, always ensure you talk to e right industry professionals and ensure at e cap rate of e property you are buying is above market cap rate for e subject location, and at your purchase price is at, or lower an, e last transaction price. Abdullah Alajaji Managing Director, Driven Properties DrivenPropertiesDubai Driven properties real estate DrivenProperties DrivenRE 86 87

46 MAINTAINING AND MAXIMISING YOUR INVESTMENT Effective property management is a convenient and cost saving solution for property owners. It is a beginningto-end hassle-free service at looks after property, owners, tenants, tenancy contracts and maintenance repairs. There are many factors to consider in order to maximise e revenue potential and maintain e investment of any property. The benefits of a reputable and reliable property management company can be vast. If you wish to generate revenue from your investment, your ultimate goal would be to find suitable tenants as quickly as possible for e right rental amount. A priority for busy property owners is e convenience of e service to assist wi tenant enquiries and receive timely notifications of tenancy requirements. To avoid any periods of vacancy, it is very important to have e confidence your property will be exposed effectively in e market to reach a wide audience of potential tenants. Many tenants prefer renting a property at is managed, as ey know at e property is better cared for, wi regular inspections and a maintenance contract. Tenants also have access to immediate contact rough e managing agent raer an direct contact wi e landlord, who can often be living overses and/or less contactable. This point of contact for bo landlords and tenants provides a convenient service at removes e time and stress involved for homeowners. There are many laws and regulations in Dubai regarding e leasing of properties. In e event of any leasing dispute, legal costs can be substantial and an effective property management company should offer background knowledge and experience to assist towards a quicker solution. Owners need professional and transparent advice and need to be kept informed of landlord rights and any amendments to e relevant laws, especially in an ever expanding and developing market such as Dubai. Property management companies can also assist wi ird-party payments which offers overseas owners an effective solution to onshore banking requirements. On-time payment of maintenance services can be vital for non-local owners. Equally as important are ongoing inspections and care of your property. Property inspections are generally conducted on a quarterly basis for ose occupied by longterm tenants. This will provide owners wi assurance at e terms and conditions of e contract are being abided by and tenants are maintaining e property to a satisfactory level. The knowledge, experience and contacts e property management companies possess in order to obtain e right maintenance company to service properties will save investors money in e long term. In e event at investors cannot travel to Dubai at e time of building completion for e handover, a property management company can step in and represent em. A legalised Power of Attorney is often required if e investor cannot attend in person. Familiarity wi not only e procedure but also e standards of developers in Dubai, an experienced property management company will ensure no defective items are missed during handover inspections. Identifying faults is key, as later is can result in costly repairs once e property warranty has expired. The management company should advise on required final payments and procedures at are outlined by developers to ensure a smoo collection of keys. Over e past 0 years, Dubai has seen a grow in property WHY CHOOSE TO HAVE YOUR PROPERTY FULLY MANAGED? Landlord Benefits: If you reside in or outside of Dubai and have a busy schedule or travel frequently, you ll need eyes and ears on e ground in Dubai at you can count on A point of contact for e tenant for emergencies, property maintenance and all enquiries pertaining to e tenancy Local landlord representation at will act in your best interest and provide a service at will ensure landlord compliance wi tenancy terms and Dubai policies To be kept up-to-date wi e laws and procedures to avoid error rough misunderstanding or lack of expertise To have access to established relationships wi developers, owners associations, utility and Government departments and orough knowledge of procedures Connections to professional and preferred partners at will present value-added services at e most competitive rates Assurance you are dealing wi a licensed and reputable company at is regulated and compliant wi e Real Estate Regulatory Agency policies and laws Thorough screening of tenants to provide full details of who will be residing in your property to present a good caliber of tenant Long term relationships wi large corporations and extensive client databases who have become good tenants for landlords Priority and maximum property exposure in many marketing and advertising avenues to limit periods of vacancy Collection and disbursement of funds for landlords who do not have a local bank account or require assistance wi ird party payments including service charges Property inspections check your tenants are abiding by e tenancy contract, to prevent subletting, over occupancy, incorrect use of property or a reat to e safety of e property or its occupants management companies. This activity is supported by a pool of international property owners who need eir investment to be under e right care in eir absence or simply for eir own convenience. When searching for a property management company, look for companies at have e right experience and credentials. Check e company s business operations which includes eir property portfolio (number of properties managed and in which communities), office location and working hours. Check e experience and longevity of e property management team as is is very important to build longterm connections and have assurance of expertise and know e people you can rely on and contact. Customer feedback and testimonials always provide insight into e existing client ratings of performance and service standards and can normally be found on company s websites. Tenant Benefits: Tenants like to rent property ey know is being managed professionally A tenancy contract wi terms at protect bo landlord and tenant wi tenancy contract registration wi e Government Ejari System A provided on-e-ground point of contact for emergencies, property maintenance and all enquiries pertaining to e tenancy Financial Benefits: Confidence at maintenance problems are monitored and attended to and advice on any action required to prevent or avoid major maintenance issues at can be very costly Marketing of property in advance of tenants' departure to find a suitable replacement tenant at e earliest A procedure to safeguard e landlord and ensure e property is handed back at e end of e tenancy wiout pending bills or outstanding debts Competitive cost for property refurbish including painting, general maintenance, pest control and cleaning rough reliable maintenance team Proactive and accurate notices to be issued to e tenant to prevent situations at could result in loss of revenue or delayed recovery of property Timely issuance of renewal notices, in line wi e law, to request rental increase or eviction and secure e landlord e maximum value for e property Representation at Dubai Police, Rental Dispute Centre and courts at could incur high legal costs wiout property management company support Tenants like to rent property ey know is being managed professionally and erefore managed properties rent sooner, saving e landlord money Zarah Evans Managing Partner, Exclusive Links ELREDdubai Exclusive-Links-Real-Estate-Brokers INVESTORS All real estate activities in Dubai are governed by RERA and in addition to a Trade License, a RERA certificate is required. Check e activity on e Trade License as ey can vary depending on e type of business. Management companies wi Real Estate Supervision Activity are not entitled to receive or collect rental cheques in favour of eir companies. A property management company must have e license activity of "Leasing and Management of Oer People's Property" which allows em to collect and disburse rental funds. This should be furer supported wi a Government capital commitment and bond of AED million. Exclusivelinks ELREDdubai 88 89

47 OFF- PLAN Should developers show more restraint? Dubai: Placemaking Abu Dhabi: Saadiyat Island s Premier Residential Offerings Outlook On Lending

48 SHOULD DEVELOPERS SHOW SOME RESTRAINT? DUBAI: PLACEMAKING OFF-PLAN Developers have been ramping up launches of eir off-plan projects in e last six mons wi no stop in sight. Even real estate agencies working almost entirely on off-plan projects have raised concerns at ere is an overload of new project launches. Developers are locking in e money, but in e long run, e situation may turn on its head as increasing supply may outstrip demand, and lead to a lull in interest or a slump in pricing trends. Currently, customers are starting to get bombarded wi -0 s and messages per week from different real estate agencies and developers advertising property launches multiple times. Developers should not have access to more an 0 projects at a time; and en more projects can be approved, once e first ree to five are delivered. Wi a nod to e pearls of wisdom from e secondary market, where an owner can engage only ree companies, developers should be required to use no more an five to seven agencies per project, and en rotate e agencies for e next project. Anoer resolution would be at developers should not have access to more an 0 projects at a time; and en more projects can be approved, once e first ree to five are delivered. This could contribute to a more robust formula for demand and supply, and a more stable investment scenario for all stakeholders. One of e latest trends in e market is real estate agencies buying domain names for every project launch wi some connection to e name of e project. On average, we see ten new websites or microsites springing up for every launch. This may be uneical because ese websites are created to confuse e consumer into believing ese are official communications from e developer, which is not only risky for e developer's brand but can also create questions regarding credibility of information. A solution could be invoked by RERA, which can draw strict guidelines for such activities. It is difficult to caution restraint as Dubai Expo00 edges nearer, but introducing auoritative rules will help e real estate market mature in e right direction and ultimately strengen e economy. HOW DOES IT CONTRIBUTE TO ECONOMIC DEVELOPMENT? In an age defined by e millennials and e shared and digital economies, e idea of placemaking has become more important an e actual development, especially when it comes to urban planning and e creation of mixed-use developments. In its simplest form, placemaking involves planning, designing, constructing, and managing public spaces in a way at promotes values ranging from heal, happiness, and well-being to creativity, diversity, and participation. People want to live, work, learn, and visit unique places at enable em to create a sense of belonging, and it is is connection at generates social capital and a competitive advantage. An essential step in e placemaking process is being able to identify what makes a place unique and can impact on perceptions towards quality of life, attractiveness to businesses, and economic development. This is one of e reasons why destinations like City Walk, The Beach, Boxpark, The Outlet Village, Last Exit, and Kite Beach include a mix of indoor and outdoor spaces filled wi walkways and activities at are designed to bring people togeer. It is also e case for Bluewaters, which will be home to Ain Dubai, e largest and tallest observation wheel in e world and a new landmark in Dubai. At over 0m, Ain Dubai will tower high above e coastline overlooking Jumeirah Beach Residences, offering visitors unforgettable views of e Burj Al Arab, Palm Jumeirah, and Burj Khalifa, among oer familiar sights. As e centrepiece of life at Bluewaters, Ain Dubai reflects e spirit of a city at continues to push engineering boundaries. Once back on e ground, residents and visitors will be able to explore e exciting entertainment zone located at e base of Ain Dubai, as well as a shoppers paradise wi over 00 retail and dining concepts at are designed to enhance Dubai s reputation as a leading choice for business and leisure travellers. Bluewaters will also be a modern family-oriented destination at embodies e richness of urban life in a city at is home to more an 00 nationalities. Wi an exclusive selection of premium apartments, penouses and townhouses, residences offer ose seeking a new life in e city a culture and an experience at extends beyond e home. The island will be connected to e shore by a multimode transport system providing ease of access to and from e island. A purpose-built bridge connects directly wi Sheikh Zayed Road, while a fleet of driverless vehicles will transport passengers from Dubai Metro s Nakheel Harbour and Towers station e same station at will ferry visitors to and from Expo00 Dubai. A leisurely walk across a 6-metre pedestrian bridge will lead to more experiences at The Beach and, wi Bluewaters expected to attract millions of visitors each year, e social and economic impact of e placemaking at has gone into e island is set to extend beyond e island s spectacular shoreline. Kalpesh Sampa COO, SPF Realty Michel M Nader Marketing Manager & Media Planning, MEERAS Spfrealty Spfrealty MeerasDubai MeerasDubai Spf Realty LCC Spfrealty Meeras Dubai MeerasDubai 9 9

49 SAADIYAT ISLAND S PREMIER RESIDENTIAL OFFERINGS OFF-PLAN Abu Dhabi s evolution into a world-class tourism destination continues apace, wi a firm focus on e future at also preserves e heritage and culture of e UAE. Saadiyat Island is Tourism Development and Investment Company (TDIC) s flagship project and e capital s premier island destination. Development on e 7-square kilometre island, which lies 00 metres off Abu Dhabi s coast, is based upon environmentally-sensitive principles, wi residential units centred around natural beauty, cultural experiences and architectural excellence. The island s premier selection of homes will provide visitors and residents unparalleled experiences set in inspired backdrops. Situated close to Saadiyat Marina District, Cultural District and Beach District, TDIC s masterplanned residential and leisure communities will place visitors and homeowners wiin easy reach of e island s exceptional hotels and restaurants. Jawaher Saadiyat, an exclusive gated community, is located minutes away from e Saadiyat Cultural District and faces e Gary Player-designed Saadiyat Beach Golf Club. Wi its bold geometric styles accented by premium glass, stone and wood, Jawaher s modern sculpted villas and townhouses aspire to transform e everyday life of residents into e extraordinary. Along wi e exclusivity of being close to Zayed National Museum, Louvre Abu Dhabi and Guggenheim Abu Dhabi, Jawaher Saadiyat s visitors and residents will also be near Saadiyat Beach District, a natural showcase of crystal clear waters and a Mediterranean-style beach club wi a view of e region s first championship golf course. Mamsha Al Saadiyat, a name quickly becoming synonymous wi beachfront living, will offer exclusive homes in a vibrant and cosmopolitan community. As e first residences completed in e Saadiyat Cultural District, Mamsha Al Saadiyat s homes will feature highend furnishings in contemporary glass, timber and metals designed specifically for distinguished beachfront living. Saadiyat Lagoons, a community tailored to nature and activity-focused lifestyles, will also include an equestrian centre and 0 kilometres of pristine landscaping in e form of parks, gardens, running tracks and cycle routes. Currently under development, Saadiyat Lagoons are destined to be e Island s largest residential and leisure district. Situated close to Saadiyat Marina District, Cultural District and Beach District, TDIC s master-planned residential and leisure communities will place visitors and homeowners wiin easy reach of e island s exceptional hotels and restaurants such as St. Regis Saadiyat Island Resort and Park Hyatt Abu Dhabi Hotel and Villas, outstanding educational institutions including New York University Abu Dhabi, Cranleigh School Abu Dhabi and Redwood Nursery, and plenty more incredible dining, shopping and leisure attractions. As for completion dates, Mamsha Al Saadiyat is expected to be completed in Q 08, Jawaher Saadiyat in 08 and Saadiyat Lagoons District in 09. TDIC Tdicae Tdicae Tdicae Tdicae 9 9

50 OUTLOOK ON LENDING Warren Philliskirk Director, Mortgagefinder.ae The year has started strongly wi an increase in mortgage applications from 06 of around 0% in e first quarter, being driven almost exclusively by e owneroccupier sector. This sector is e real catalyst for e market and it s very healy to have e demand being driven by genuine use and not speculation. Investor interest in mortgages is very limited as we see eir focus mainly in e off-plan sector where finance is more constricted, and coupled wi e advent of 0/70 payment plans being e norm, limits e finance requirement until completion. The biggest factor in e mortgage market in 07 will be a steady increase in interest rates. Wi e cost of local banks funding increasing due to liquidity squeezes and e US Fed increases, we are in for a steep hike based on e current data. We already have had two of e main players in e market increase eir offering in e first quarter and ere will be more to follow. Will is impact e market? Rates historically are still low and 0% lower an in at e peak of e property boom. Then e increase was being driven by sheer demand, and when property is increasing a year, paying 7% on your mortgage rate still made sense. Now e dynamic has changed, wi a still relatively flat housing market being driven by end users choosing to buy raer an rent, if e costs start to tip in favour of renting en we could see a swift knock-on effect. However, when you look at e average annual cost of a mortgage for a property purchased at AED million it would cost in e region of AED 00,000 per year. The same property to rent would cost in e region of AED 0,000. So rates will have to almost double from today to tip e scale negatively. Wi a still relatively flat housing market being driven by end users choosing to buy raer an rent, if e costs start to tip in favour of renting en we could see a swift knock-on effect. Could rates get at high? The best way to protect yourself from increasing rates is to lock in e best deal you can find and at present ere are some excellent two and ree-year deals still available from banks which will give some respite. Don t just go to e cheapest introduction deal or floating Eibor deal, as in a rising rate market is is e wrong strategy. By paying slightly more, but locking it in, you will avoid e inevitable jump, ink about what would happen if your mortgage went up 0%. Could you manage? Protect yourself from e start is our advice and 9 of our clients choose fixed-rate options once ey have reviewed all e options and scenarios. Your mortgage is a long term liability which you need to keep working on. Ensure you always seek e best offer to minimise your repayments over e term. Why choose us? Best fixed rates from. per annum Up to 00% discount on arrangement fees Professional advice from industry experts Wi access to more an 0 UAE lenders and over 0 mortgage products we've helped hundreds of families find eir happy place. Let us help find yours info@mortgagefinder.ae mortgagefinder.ae A Company 96

51 LUXURY MARKET Thriving Luxury Sales Bridging The Gap Between Luxury And Affordability

52 THRIVING LUXURY S PROPERTIES IN THE HIGH-END LUXURY SEGMENT SEE SIGNIFICANT INTEREST LUXURY MARKET BRIDGING THE GAP BETWEEN LUXURY AND AFFORDABILITY Defining an ideal place to call home is always evolving and now e lines between luxury and functionality are in e bounds of a blur leading to e conceptualisation of smart residential projects at let owners indulge in comforts at turn up e dial on eir quality of living while omitting an eyewatering financial burden. Luxury living continues to dominate e real estate sector in Dubai, yet now a rising demand for homes at answer e need of a new customer segment known as millennials is ushering in. According to recent findings, % of millennial expats are keen on purchasing a home in e UAE wiin e next ree years. Identifying e unique needs of is young, tech-savvy and connected new crop of individuals forms e first step in defining and designing concepts at best complement e urbanites fluid lifestyles. As e first quarter of 07 drew to a close, e top tier of e market continued to see high activity amid claims of softening and global gloom. The heal and pricing of luxury real estate markets is not always internationally fueled; spending habits of affluent prime property and trophy hunting buyers are always to be found. As e world s luxury property brand, our gateway into Dubai is served from our international offices which constantly attract e attention of affluent and high net wor individuals (HNWIs) coming into e UAE. Wi multiple property sales closed recently wiin Gulf Soeby s International Realty, all exceeding AED 00 million, is is fact not fiction and we do not see is slowing down anytime soon. Why is is positive news? Luxury property purchases tend to set e bar for e entire property market. Affluent high value sales build confidence, and if an individual is prepared to place hundreds of millions into Dubai realty, oers follow at sentiment. These sales also set standards, and so many of e amenities and features at are currently trending in e luxury market sector tend to trickle down roughout e entire marketplace making all sectors more appealing to purchase as trends are copied. Wheer completed or off-plan, we are experiencing grow in bo of ese sectors. High value villa sales tend to be more attractive wiin completed developments, often to families relocating from abroad to avoid homeland economies and in search of a healier climate and safer environments to set roots. Wiin off-plan, apartments tend to lead purchases and usually appeal to a younger audience, generally becoming trophy property purchases at will serve as vacation and entertainment homes. AKOYA Imagine, a cluster of homes surrounded by e lush greens and fairways of its international golf course is a prime example of is latest demand. Set at e heart of e AKOYA Oxygen master development, AKOYA Imagine offers a range of modern and stylish villas aimed at young couples and families, whose residential needs have outgrown traditional home-dwellers. Now at millennials are shaping e property market, it s crucial to consider at as Dubai s real estate market evolves and approaches maturity, ere is an even greater need for developers to integrate eir strategies to make plans for projects at cut rough all customer segments. Having identified e long-term impact of such a strategy, DAMAC Properties has committed itself to bringing to market a wide mix of products at appeal to its customers as attractive and lucrative investment opportunities. From less an AED million to tens of millions e range is broad, which essentially translates to a comprehensive product offering at accommodates everyone. The new-age home owner continues to cause e shift towards emerging real estate needs and fresh expectations. Real estate developers need to stay on top of eir game to keep is new wave of customers effectively and constantly engaged rough innovative offerings at best resonate wi eir idea of a home and inspired living. Chris Whitehead, Managing Director, Gulf Soeby's International Realty Niall McLoughlin, Senior Vice President, DAMAC Properties GulfSoebyRealty GulfSoebyRealty DamacPropertiesOfficial DamacOfficial Gulf Soeby Realty GulfSIR Winner of e propertyfinder Real Estate Brokerage Awards 06 in e Best Marketing Campaign Category Damac Properties DamacOfficial 00 0

53 AGENT SECTION Consumer Search Patterns Top Searched For Areas By Device Type

54 CONSUMER SEARCH PATTERNS ENQUIRIES: WEEKDAYS VS. WEEKENDS AGENT SECTION During e week, nearly 0% of enquiries are sent between 9am and pm, wi e highest volume at am. Weekends have a slightly different pattern as people will generally take eir time and wake up later. The majority of enquiries are being sent before lunch and in e evening, peaking at am and even more so after pm. Help your customers jump at property ladder by working wiin eir timeframes. Do you know when and how househunters browse on our portal? Check out ese key insights into consumer search trends and our top tips to help you get even more enquiries and eliminate missed opportunities! CALL ENQUIRIES: WEEKDAYS VS. WEEKENDS Weekdays are a busy time for calling enquiries. People tend to make most calls between 0am and pm, peaking at lunch time, between am and pm. Weekend peak times soar a little later and power rough till pm, after which e hubbub gradually falls flat. ENQUIRIES ENQUIRIES ENQUIRIES TIME OF DAY (H) ENQUIRIES PER HOUR - WEEK DAYS ENQUIRIES PER HOUR - WEEKENDS 7 Tip: The real estate market never sleeps. Make sure your agents are checking eir s outside of e usual working hours, or on Sunday morning to ensure any weekend leads are answered first ing. This will give you an advantage over your competitors, which will have a big impact on e decisions ey make when choosing eir agent. CALL AND ENQUIRIES BY DAY OF WEEK 9 The majority of call and enquiries are received during e week, especially from Tuesday rough to Thursday. Friday, being e start of e weekend, is quietest of all, yet we see a pickup on Saturday. 7 9 TIME OF DAY (H) DAY OF WEEK SUN MON TUE WED THU FRI SAT CALL ENQUIRIES PER HOUR - WEEK DAYS CALL ENQUIRIES PER HOUR - WEEKENDS CALL ENQUIRIES BY DAY OF THE WEEK ENQUIRIES BY DAY OF THE WEEK Tip: No missed calls. Are you ready to pick up ose important phone calls during peak hours? Minimise calls going to voic to help you sell or rent your properties as soon as ey hit e market. Agents are expected to offer professional service and be property experts, at means you need to be available when e market is at full steam. Tip: Busy times call for busy offices. It would be a good idea to have extra staff available when demand grows on busy days. You can ensure you won t miss e latest hot leads from us! Additionally, make sure to make e most of our Call Tracking feature to minimise missed opportunities. 0 0

55 TOP SEARCHED COMMUNITIES ON MOBILE VS ON DESKTOP GET LEADS Have you been wondering which areas generate e most interest is year? Here is a quick snapshot of top most popular communities split by e type of device used. Palm Jumeirah Dubai Marina Bur Dubai YOU CAN GET TO YOUR JLT Dubai Sports City JVC Business Bay Downtown Dubai Motor City Arabian Ranches Data is based on Google Analytics On Site Search report in Q 07, taking into consideration searches for Dubai communities only