C H E S T E R T O N S M E N A Q OBSERVER A B U D H A B I R E S I D E N T I A L 1 A B U D H A B I R E S I D E N T I A L Q R E P O R T

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1 C H S T T O N S M N OBSV B U Q P O T D H B B U D H B Q S D N T L S D N T L 1

2 eport Highlights Chestertons MN Services Valuations Mortgage and Secured Lending Portfolio Plant and Machinery ppraisals dvisory and esearch Financial feasibilities Highest and Best Use studies (HBUs) Market research Conceptual advisory and project positioning studies Project redevelopment/repositioning advisory nvestment strategies Divestment strategies Sales and Leasing partments Office ndustrial Warehouses Property/Facilities Management esidential Serviced apartments Mixed- use Commercial nternational Properties London residential homes nternational homes and investments Prices: Sales prices decreased by 3% for apartments and 4% for villas during 2Q The change in prices was due mostly to the launch of several new residential projects and the lack of investor-confidence in the market. ents: ental rates also declined by 3% for apartments and 2% for villas due mostly to job-cuts and lower oil prices. However, rents declined at a slower pace in Q than they did in the previous months, especially for villas. Yields: The average yield for apartments in Q2 was at 6%, a percentage lower than Q1, while the average yield for villas remained at 5.1%. esidential Market Movement Q Price Movement QoQ -3% partments -4% Supply: ldar Properties, shraq Properties and TDC are expected to release up to 4,000 units onto the market in 2017, most of which will be located near eem sland and the Corniche. dditionally, Mubadala eal state and nfrastructure recently unveiled the master plan for rzanah, a new community development near Zayed Sports City in bu Dhabi. Outlook: Sales prices and rents are expected to remain under pressure during 2017 as the market continues to be oversupplied. Moreover, the sluggish economic growth of the mirate may lead to a slump in Government spending and potentially further job losses which will increase vacancy rates within the mirate. ental Movement QoQ -3% partments -2% 2 3 B U D H B S D N T L

3 SDNTL Sales Prices & Quarterly Change PTMNTS Q Q QoQ Change 6.0% 4.0% D SLS PCS 1,601 1,560 1,009 1, ,363 1, % -6.0% l aha Beach rea l Ghadeer l eef Downtown l eem sland -8.0% Figures in D/sq ft VLLS Q Q QoQ Change Market Commentary D SLS PCS % -8.0% -1 Price correction partment sales prices fell 3% while villa prices decreased by 4% QoQ despite communities like l Ghadeer recording a slight rise in apartment prices compared to Q Outlook Prices are expected to remain under pressure during 2017 due to flat economic sentiment. l Ghadeer l eef l aha Gardens Khalifa City -12.0% Figures in D/sq ft 4 5 B U D H B S D N T L

4 SDNTL Market ent & Quarterly Change PTMNTS 1B 2B 3B QoQ Change 250, % -0.5% 200, % D NTL 150, ,000 50, % -2.5% -3.0% -3.5% 0 l aha Beach rea l Ghadeer l eef Downtown l eem sland Figures in D 000 p.a VLLS 550,000 3B 4B 5B QoQ Change Market Commentary D NTL 450, , , ,000 50, l eef l aha Khalifa -0.5% -1.0% -1.5% -2.5% -3.0% -3.5% ental ates partment and villa rents declined by 3% and 2% respectively in Q ecent economic events and general uncertainty surrounding the region hung over consumers sentiment which resulted in a higher decline of rents in all communities. Demand Slower economic growth, higher cost of living, lower oil prices, and further layoffs continue to place pressure on the market. dditionally, tenants are moving towards more affordable housing options. Outlook esidents will continue to downsize their accommodation moving to more affordable areas until positive economic events present better prospects for the real estate market in the mirate. Figues in D 000 p.a 6 7 B U D H B S D N T L

5 OBSV Contact Us Nick Witty, Bsc (Hons) MCS Managing Director - MN nick.witty@chestertons.com Mamoon Durrani Director, Valuations & dvisory - U mamoon.durrani@chestertons.com vana Gazivoda Vucinic Head of dvisory and esearch - U ivana.vucinic@chestertons.com Vladimir Cvetinovic, MCS ssociate Director, Valuations & dvisory - UH vladimir.cvetinovic@chestertons.com ussell Owen Head of gency - U russell.owen@chestertons.com Khizar Hayat Head of Plants and Machinery - U khizar.hayat@chestertons.com MN HD OFFC 1802, Blvd. Plaza Tower 1 Sheikh Mohammed Bin ashid Blvd., Downtown Dubai P.O. Box , Dubai, United rab mirates Office Fax mail uae.enquiry@chestertons.com DUB OFFC 106, asis Business Center, l Barsha 1 PO Box , Dubai, United rab mirates Office mail uae.enquiry@chestertons.com BU DHB OFFC Office M01, Mezzanine Floor, l Ghazal Building, Khalifa Park P.O Box , bu Dhabi, United rab mirates Office Fax mail abudhabi@chestertons.com QT OFFC Suite 1101, Shangri-La Hotel, Conference Centre Street, West Bay P.O. Box 9282, Doha, State of Qatar Office mail qatar@chestertons.com Disclaimer: ll articles and data presented herein is intended for information purposes and has been compiled from sources deemed reliable including the Valuations and esearch Department of Chestertons, sales and leasing staff, published data, and secondary sources. Though information is believed to be correct, materials presented is subject to errors, omissions, changes or withdrawal without notice. 8