Abu Dhabi Real Estate Report Q1 2018

Transcription

1 Property Review Abu Dhabi Real Estate Report In the Middle East for over 30 Years

2 CONTENT MARKET OVERVIEW APARTMENT RENTAL RATES VILLA RENTAL RATES OFFICE RENTAL RATES SUPPLY APARTMENT SALES PRICES VILLA SALES PRICES PROPERTY MAP 2

3 ABU DHABI MARKET OVERVIEW SUPPLY RENTAL RATES SALES PRICES Approximately 1,600 residential units were delivered in with the bulk (more than 75%) located within the Investment Zones, including, but not limited to Yas Island, Al Reem Island and Al Raha Beach. In addition to a number of stand-alone buildings in different locations, the key projects that were handed over included Ansam- Yas Island, Al Hadeel- Al Raha Beach and Muhaimat Tower- Al Reem Island. Apartment and villa rental rates declined on average by 3% and 2% since Q4 2017, whilst recording annual decreases of 11% and 9%, respectively. Apartment sales prices remained broadly unchanged over the quarter for the majority of locations, with the exception of Marina Square (-5%), Reef Downtown (-6%) and Sun & Sky Towers (-6%), which faced increased competition from new off-plan developments offered at attractive rates and favourable payment plans. Furthermore, a number of new projects were launched this quarter such as the Al Fahid Island Master Development by Al Nahda Investment and the Reflection Towers on Reem Island by Aldar. The most noteworthy announcement, however, was the Saadiyat Grove Development by Aldar and Emaar, which falls under a strategic alliance between both Developers to develop local and international projects worth AED 30 billion. As a result of the continuous delivery of new supply during a period of restrained economic growth and subdued market sentiment, vacancy rates increased across all residential unit types. Office demand levels continued to be low resulting in a Q-o-Q drop in rental rates of 2% on average. Nevertheless, a number of Landlords offered space with discounts of up to 5% in order to retain Tenants and/or entice new take-up. Similarly, Al Reef was the only area recording a drop in villa sales prices at an average rate of 2%. Although healthy demand for high-quality, off-plan and newly delivered projects continued, inferior residential units remained under pressure. Whilst more than 7,300 units are earmarked for handover before the end of 2018, previous delivery patterns suggest a number of these are likely to be delayed and will spill over into The expected supply includes: Over 2,500 units on Reem Island; 1,800 on Yas and Saadiyat Islands (i.e.: West Yas, Jawaher Al Saadiyat and Mamsha Al Saadiyat); More than 1,650 units on the Abu Dhabi Mainland; and Remainder located on Abu Dhabi Island. No major office supply was delivered in the first quarter of The anticipated Omega Towers on Reem Island and the ADIB HQ on Airport Road are due for handover before year-end. 3

4 SUPPLY COMPLETED IN 2017 COMPLETED IN EXPECTED BY END OF 2018 APARTMENTS NO. OF UNITS 3,000 1,600 4,500 VILLAS NO. OF UNITS ,800 OFFICES SQ.M. 85, ,000 4

5 APARTMENT RENTAL RATES (All figures in AED 000 s p.a.) TYPE PRIME PROPERTIES ABU DHABI ISLAND % -15% INVESTMENT AREA % -4% HIGH END PROPERTIES ABU DHABI ISLAND INVESTMENT AREA MID AND LOWER END PROPERTIES LOW END PROPERTIES STUDIO 1 BEDROOM 2 BEDROOMS 3 BEDROOMS % CHANGE FROM TO FROM TO FROM TO FROM TO Q Q Central Abu Dhabi % -14% Corniche % -13% Khalidya / Bateen % -12% Al Raha Beach % -12% Marina Square % -14% Shams Abu Dhabi % -17% Saadiyat Beach % -5% ABU DHABI ISLAND % -13% INVESTMENT AREA Shams Abu Dhabi % -16% Najmat & Tamouh % -12% OFF ISLAND Khalifa & MBZ City % -14% ABU DHABI ISLAND Central Abu Dhabi % -12% Corniche % -7% Khalidiya / Bateen % -1 INVESTMENT AREA Al Reef % -12% OFF ISLAND Khalifa & MBZ City % -8% 2% % Change Q-o-Q Since Q Y-o-Y Since Q Since peak Q Since market low Q % -11% -2 5

6 APARTMENT SALES PRICES AED per sq.ft ,000 1,500 2,000 Q-o-Q % Change (Q ) Y-o-Y % Change (Q ) AL BANDAR 1,400 1,800-6% AL MUNEERA 1,200 1,350-12% AL ZEINA 1,100 1,350-6% CITY OF LIGHTS - HYDRA % MARINA SQUARE 950 1,150-5% -14% REEF DOWNTOWN % -15% SAADIYAT BEACH RESIDENCES 1,350 1,500-5% SUN & SKY TOWERS 1,100 1,300-6% -14% THE GATE 1,100 1,350-9% YAS ISLAND 1,300 1,500 n/a n/a 28% % Change Q-o-Q Since Q Y-o-Y Since Q Since peak Q Since market low Q % -12% -15% 6

7 VILLA RENTAL RATES (All figures in AED 000 s p.a.) TYPE 1 BEDROOM 2 BEDROOMS 3 BEDROOMS 4 BEDROOMS % CHANGE FROM TO FROM TO FROM TO FROM TO Q Q ABU DHABI ISLAND INVESTMENT AREA OFF ISLAND Khalidiya / Bateen % -8% Mushrif / Karama / Manaseer % -8% Nahyan Camp / Muroor % Al Raha Beach % -1 Al Reef % Hydra Village % -11% Saadiyat Island - Beach Residences % -1 Hidd Al Saadiyat na na Al Raha Gardens % -11% Golf Gardens % -8% Khalifa City % -8% Mohamed Bin Zayed % -6% % Change Q-o-Q Since Q Y-o-Y Since Q Since peak Q Since market low Q % -3% -9% -1 7

8 VILLA SALES PRICES AED Million Q-o-Q % Change (Q ) Y-o-Y % Change (Q ) AL REEF VILLAS 2 BR 3 BR 4 BR 5 BR % -5% GOLF GARDENS 3 BR 4 BR 5 BR % HIDD AL SAADIYAT 4 BR 5 BR n/a n/a HYDRA VILLAGE 2 BR 3 BR % RAHA GARDENS 3 BR 4 BR 5 BR % SAADIYAT BEACH VILLAS (STANDARD) 3 BR 4 BR 5 BR % Change Q-o-Q Since Q Y-o-Y Since Q Since peak Q Since market low Q % -8% 8

9 OFFICE RENTAL RATES (All figures in AED 000 s sq.m. p.a.) TYPE AVERAGE RENTAL RATES % CHANGE FROM TO Q Q PRIME STOCK FITTED* 1,500 2,500-3% QUALITY STOCK FITTED 770 1,300-3% -5% SHELL AND CORE 700 1,050-3% OLDER STOCK GOOD % -7% TYPICAL BUILDING % LOW QUALITY BUILDING % -2% * Includes developments such as Al Maryah Island, Aldar HQ, International Tower, Nation Towers, Ittihad Towers, Capital Plaza, Etihad Tower, etc. % Change Q-o-Q Since Q Y-o-Y Since Q Since peak Q Since market low Q % -4% -12% -14% 9

10 PROPERTY MAP 1 Al Bandar Raha Beach 2 Al Bateen Wharf 3 Al Gurm 4 Al Maqtaa 5 Al Muneera Al Raha Beach 6 Al Nahyan Camp 7 Al Raha Gardens 8 Al Rayanna 9 Al Reef 10 Al Zeina Al Raha Beach 11 Baniyas 12 Bateen Airport Area 13 Bateen Area 14 Bawabat Al Sharq 15 Capital District (ADNEC) 16 CBD / Tourist Club Area 17 Corniche 18 Danet Abu Dhabi 19 Eastern Mangroves 20 Golf Gardens 21 Hydra Village 22 Khalidia / Al Hosn / Al Manhal 23 Khalifa City A 24 Khalifa City B 25 Maryah Island 26 MBZ City 27 Mina 28 Mushrif / Karama / Manaseer / Muroor 29 Officer s City 30 Rawdhat Abu Dhabi 31 Reem Island - Marina Square 32 Reem Island Najmat Abu Dhabi 33 Reem Island rest of Shams Abu Dhabi 34 Reem Island City of Lights 35 Reem Island The Gate District 36 Rihan Heights 37 Saadiyat Beach District 38 The Hills YAS ISLAND Note: Area classification by affordability is provided for indicative purposes only as most areas in Abu Dhabi offer various types of residential units, from affordable to high end. As such, the map colour coding takes into account the most prevalent type of product and exceptions of a lower and / or higher price could be available. 10

11 About Asteco The Middle East s largest full service Real Estate Services Company, Asteco was formed in Dubai in Over the years, Asteco has gained enormous respect for consistently delivering high quality, professional, valueadded services in a transparent manner. It is also widely recognised for its involvement with many of the projects that have defined the landscape and physical infrastructure of the Emirates. Asteco has an essential combination of local knowledge and international expertise. A deeply established brand, renowned for its application of the latest technological advances, its commitment to transparency, winning strategies and human expertise. Undisputed Real Estate experts, Asteco represents a significant number of the region s top property Owners, Developers and Investors. VALUATION & ADVISORY Our professional advisory services are conducted by suitably qualified personnel all of whom have had extensive Real Estate experience within the Middle East and internationally. Our valuations are carried out in accordance with the Royal Institution of Chartered Surveyors (RICS) and International Valuation Standards (IVS) and are undertaken by appropriately qualified valuers with extensive local experience. The Professional Services Asteco conducts throughout the region include: Consultancy & Advisory services Market research Valuation services SALES Asteco has established a large regional property Sales division with representatives based in the UAE, Qatar and Jordan. Our Sales teams have extensive experience in the negotiation and sale of a variety of assets. LEASING Asteco has been instrumental in the Leasing of many high-profile developments across the GCC. ASSET MANAGEMENT Asteco provides comprehensive Asset Management services to all property Owners, whether a single unit (IPM) or a regional mixed-use portfolio. Our focus is on maximising value for our Clients. OWNERS ASSOCIATION Asteco has the experience, systems, procedures and manuals in place to provide streamlined comprehensive Association Management and Consultancy services to residential, commercial and mixed-use communities throughout the GCC Region. SALES MANAGEMENT Our Sales Management services are comprehensive and encompass everything required for the successful completion and handover of units to individual unit Owners. LICENSING Our brand, network, system and procedures are now available in territories across the MENA region. Our Licensing services currently include Real Estate Brokerage Franchising and associated support services with many of the key elements designed specifically around the Franchisee, making it a truly unique and bespoke franchise opportunity. John Stevens MSc, BSc (Hons), MRICS Managing Director/ Director - Asset Services JohnS@Asteco.com John Allen BSc, MRICS Director - Valuation & Advisory JohnA@Asteco.com Derrick Maguire ARLA, NAEA Associate Director - Transactional Services DerrickM@Asteco.com James Joughin BSc (Hons), MRICS Associate Director - Valuation JamesJ@Asteco.com Jenny Weidling BA (Hons) Manager - Research and Advisory, Dubai JennyW@Asteco.com Ghada Amhaz MSc Manager - Research and Advisory, Abu Dhabi GhadaA@asteco.com Tamer Ibrahim Chaaban BE Branch Manager - Al Ain office TamerI@asteco.com DISCLAIMER: The information contained in this report has been obtained from and is based upon sources that Asteco Property Management believes to be reliable; however, no warranty or representation, expressed or implied, is made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. Asteco Property Management will not be held responsible for any third-party contributions. All opinions and estimates included in this report constitute Asteco Property Management s judgment, as of the date of this report and are subject to change without notice. Figures contained in this report are derived from a basket of locations highlighted in this report and therefore represent a snapshot of the UAE market. Averages, however, represent a wider range of areas. Particularly exclusive or unique projects have been excluded from the data to avoid distorting averages. Due care and attention has been used in the preparation of forecast information. However, actual results may vary from forecasts and any variation may be materially positive or negative. Forecasts, by their very nature, involve risk and uncertainty because they relate to future events and circumstances which are beyond Asteco Property Management s control. For a full in-depth study of the market, please contact Asteco Property Management s Research team. Asteco Property Management LLC. Commercial License No Paid-up Capital AED 4,000,000. ORN /astrep841