REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 2015

Transcription

1 REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 215

2 Q3 215 RENTAL INDEX ABU DHABI REAL ESTATE MARKET OVERVIEW RENTAL INDEX ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 215 FOREWORD ADIB Real Estate Services comprises a comprehensive real estate banking and advisory platform providing the full range of professional services from a single provider. Our services include:- MPM PROPERTIES FACTS AND FIGURES Real estate financing Strategic development advisory Investment advisory Asset management Project management Valuation Agency Market research Property management Facilities management One of the aims of this report is to aid with improving market transparency by basing our analysis wherever possible on primary transactional evidence derived from our own managed portfolio and from the analysis of our sales and home financing activities. We believe that this adds credibility to the analysis and we hope provides confidence in its reliability. REPORT HIGHLIGHTS Residential Property values in the residential market have remained stable in Q3, reflecting low transaction volumes in the secondary market. The low transaction volumes are a product of three factors:- 1) Weaker investor sentiment due to the impact of lower oil revenues which has seen a period of price stagnation in Abu Dhabi and prices falling in Dubai. 2) A lack of availability of good stock, as owners remain unmotivated to sell in the current market, with many enjoying healthy rental yields. 3) The increase in off-plan investment opportunities offering attractive payment plan terms is diverting some liquidity into this segment of the market. There is evidence that rents may be approaching their ceiling level at the top end of the market demonstrated by modest growth of only 1% in the last 3 months despite a low level of vacancy and new supply in the high-end/luxury sectors. Developments in this segment have experienced year on year growth of between 7 to 1% hence many tenants are still facing sizeable increases at lease renewal. Office The commercial office market remains subdued and has seen low leasing activity during the last quarter. Although demand has declined, particularly from the government sector, this has been balanced by a lack of new supply entering the market, which has resulted in marginal rental increases of between 1-3%. There are a number of office developments which are close to entering the market, including the ADIB HQ Tower 2 situated on Airport Road, Maryha Tower on Maryha Island, developed by Al Hilal Bank and the Al Qudra HQ at Khalifa Park, which together will add approximately 6, sqm of net leasable space. Retail Sector The retail sector has witnessed no major supply entering the market in Q3 with the majority of new supply comprising ancillary street retail on Abu Dhabi Island and mainland. This in turn is allowing the retail malls to focus on increasing their foot-falls by attracting tourists and residents in an increasingly competitive environment. Retail rents across Abu Dhabi malls have remained stable during Q3 215, although some mall tenants are requesting rental reductions at lease renewal, driven falling revenues witnessed by small retail stores during Q Hospitality Sector Growth in guest arrivals into Abu Dhabi (up by 22% in Q2 215 vs. Q2 214), driven mainly by growth in tourists from China (68%), US (3%), Philipines (29%) and KSA (27%). The hospitality sector is gearing up for the opening of Lourve Abu Dhabi, which is expected to increase the number of tourist arrivals into Abu Dhabi. CONTENTS Demand Drivers 4 Macro Trends 6 Residential Sector 8 Project in Focus 16 Office Sector 18 Retail Sector 22 Hospitality Sector 24 Definitions & Methodology 28 Contact Information 29 Supply - Photo Gallery 3 Development Location Map

3 Q3 215 DEMAND DRIVERS REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 215 DEMAND DRIVERS DEMAND DRIVERS Q3 215 GOVERNMENT INITIATIVES In line with the directives of President His Highness Sheikh Khalifa bin Zayed Al Nahyan and His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces and Chairman of Abu Dhabi Executive Council, new housing loans worth AED2,44 billion for 1,22 beneficiaries have been approved in the Emirate of Abu Dhabi According to the World Economic Forum s Global Competitiveness Index, UAE has moved to 17th position from 37th position in 27 as the most competitive nation in the world, placing it firmly in the ranks of the world s elite innovation-based economies The UAE will introduce new labour reforms aimed at tightening oversight of employment agreements for the millions of temporary migrant workers who make up the bulk of the country s workforce. The reforms are being implemented through three decrees that will take effect on January 1. Three new labour rules issued by the Ministry of Labour include ministry-approved contracts, conditions for terminating employees and labour permits to work for new employers REAL ESTATE AND CONSTRUCTION - CREATING JOBS Reem Mall, ($1 billion project) is on target to complete by mid- 218 after Abu Dhabi s Urban Planning Council (UPC) granted approval for its concept plan. The mall is being developed by Kuwait s National Real Estate Company alongside the United Projects for Aviation Services Company (Upac). Upac, through its subsidiary Al Arfaj Real Estate, is investing up to $224 million in the project which will compose 2 million sq.ft. of space including 45 stores, and 85 food and beverage outlets Bloom Properties, the Abu Dhabi-based developer, owned by the Abu Dhabi conglomerate National Holding, launched Soho Square, comprising 1-storeys with 32 homes ranging from studios to three-bedroom apartments, town houses and penthouses as well as shops and offices next to New York University s Saadiyat campus Gulf Related is about to begin construction on Al Maryah Central, a 2.3 million square foot super-regional shopping center. Australian contractor Brookfield Multiplex was awarded a $425 million contract to build the Al Maryah Central mall in Abu Dhabi OIL & GAS The Shah gas project, which is being developed by Al Hosn company to tap sour gas in the Western region of Abu Dhabi has reached its full capacity. Al Hosn is a 6-4 joint venture between Abu Dhabi National Oil Company (Adnoc) and Occidental Petroleum (Oxy) from the US with total investment estimated to be around $1 billion (Dh36.7 billion). The Shah gas project located about 21 kilometers south-west of Abu Dhabi is expected to contribute significantly to the energy needs of the UAE for over 3 years TOURISM INITIATIVES The Ministry of Interior has launched a 9 days visit visas accessed, either via the ministry website or its smartphone app 26 events spread across eight-months have been announced by The Abu Dhabi Tourism and Culture Authority around the capital, in the Liwa desert and in Al Ain. The Abu Dhabi Classics season will run until May next year and includes performances by well-known names in western and eastern classical music under the theme Music and Poetry, exploring how the genres blend Under the patronage of Sheikh Mansour bin Zayed, Deputy Prime Minister and Minister of Presidential Affairs, Abu Dhabi is to host Red Bull X-Fighters World Tour finale on October 3 KEY EVENTS Ramadan and Eid Festival 7th July 28th July Eid al-adha Exhibition 1th September 21st September Abu Dhabi International Hunting and Equestrian Exhibition (ADIHEX) - 9th 12th September Abu Dhabi Summer Season 11th June 5th September Louvre Abu Dhabi Stories 21st June 3th August at Manarat Al Saadiyat FREEZONES SIGNING UP NEW TENANTS; FORMING KEY ALLIANCES Abu Dhabi Ports has signed a standard Musataha agreement (SMA) with Al Gharbia Pipe Company to open a new pipe manufacturing facility at Khalifa Industrial Zone Abu Dhabi (Kizad). The agreement will see Al Gharbia Pipe Company invest a projected total of AED 1.1 billion, with their new facility requiring a plot size of 2, square metres. Al Gharbia Pipe Company, a joint venture between Senaat, one of the largest industrial holding companies in the UAE, and two of Japan s leading steel firms, JFE Steel Corporation and Marubeni-Itochu Steel Inc. (MISI), expects the facility to be completed by March 218. The plant will employ over 37 staff and is expected to produce 24, tons of steel pipe a year Abu Dhabi Ports signed a standard Musataha agreement (SMA) with Al Mazroui International Cargo Company (MICCO) to establish a new Logistics Business Centre at Khalifa Industrial Zone Abu Dhabi (Kizad). MICCO s new Centre will be built in three phases and will cater to MICCO s temperature controlled storage facilities, bulk storage through open yards, distribution services, and a service centre for their trucking fleet. The first phase will see MICCO, a leading freight contracting company in the UAE and one of the oldest logistics service providers in Abu Dhabi, invest an initial AED 35 million. Their new facility, requiring a plot size of 3, square metres, is expected to be ready by 216 and fully operational by January

4 Q3 215 MACRO TRENDS REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 215 MACRO TRENDS MACRO TRENDS STOCK MARKET vs OIL vs GOLD REAL GDP GROWTH RATE Wholesale and retail trade; repair of motor vehicles and motorcycles Accommodation and food service activities Source: Source: DED DED Manufacturing Transportation and storage and communications Financial and insurance activities 6.8% 1.% 1.% 11.1% 15.% % 3% 6% 9% 12% 15% ABU DHABI REAL GDP FORECAST % 5% 4% 3% 2% 1% % Source: DED 5.2% 5.5% 213 Avg Jan-11 Jan-12 Abu Dhabi Murban Crude Oil Gold CPI vs RENTAL CONTRIBUTION TO CPI 12 Jan-13 Abu Dhabi Stock Market Index Jan-14 Jan-15 Dubai Stock Index ABU DHABI CITY - BUSINESS LICENCE NUMBERS 2, Sept-15 CONSUMER CONFIDENCE INDEX BUSINESS CLIMATE INDEX 15, , 5, Jan 212 Jul 212 Jan 213 Jul 213 Jan 214 Jul 214 Jan 215 Jul 215 Aug 215 Q1 21 Q2 21 Q Q1 211 Q2 211 Q Q1 212 Q2 212 Q Q1 213 Q2 213 Q Q1 214 Q2 214 Q Q1 215 Q2 215 CPI Rental Contribution to CPI New Business Licences Business Licence Renewals 1 5 Source: SCAD and MPM Properties Research Source: DED Q1 21 Q2 21 Q Q1 211 Q2 211 Q Q1 212 Q2 212 Q Q1 213 Q2 213 Q Q1 214 Q2 214 Q Q1 215 Q2 215 Q1 21 Q2 21 Q Q1 211 Q2 211 Q Q1 212 Q2 212 Q Q1 213 Q2 213 Q Q1 214 Q2 214 Q Q1 215 Q2 215 Source: DED Source: DED REALTY STOCK INDEX ABU DHABI vs DUBAI 2, BUSINESS CYCLE INDEX 15, Decreases in both oil prices and the general index of Abu Dhabi s stockmarket, affected the value of the Business Cycle index during the 4th quarter of 214, signalling some uncertainty amongst those participants who were surveyed on the performance of the economy in , 5, 1 Jan-7 Jul-7 Jan-8 Jul-8 Dubai realty index Jan-9 Jul-9 Jan-1 Jul-1 Jan-11 Abu Dhabi realty index Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Sept-15 8 Q1 21 Q2 Q3 Q1 211 Q2 Q3 Q1 212 Q2 Q3 Q1 213 Q2 Q3 Q1 214 Q2 Q3 Q1 215 Q2 Shorooq Abdulla Al Zaabi Head, Development Indicators & Future Studies Division Source: Bloomberg and MPM Properties Research Abu Dhabi Department of Economic Development 6 7

5 Q3 215 RESIDENTIAL SECTOR REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 215 RESIDENTIAL SECTOR MARKET OVERVIEW Q3 215 RESIDENTIAL SECTOR THE ADIB RENTAL INDEX SUPPLY New supply The most significant new supply that entered the rental market this quarter was the release of 9 apartments in Gate Towers, which had remained vacant since the project was handed over. Also on Reem Island, Sea View Tower which is situated on Shams Abu Dhabi was handed over in September, comprising 28 apartments which have all been leased to Etihad. A number of small infill developments have completed in the last three months, including Plot C9 in Sector E-25 and Plot C149 in Sector E-19/2 on the main Abu Dhabi Island in addition to Plot C49 in Sector ME-9 in Mohammed Bin Zayed City, which together have added just over 1 apartments. In the last 3 months MPM Properties have renewed close to 2,7 tenancy contracts in Abu Dhabi on behalf of landlords, and granted over 252 new leases ADIB Rental Index continues to show, that across its portfolio, the common rental change trend is to +5% increase during the last 3 months. We expect the rents to continue growing as the market is witnessing limited residential supply entering in the prime areas of Abu Dhabi There are exceptions where rents have increased by over 2% and in some cases much higher, however such cases are very limited (representing in overall terms less than 5%-7% of the portfolio) and relate predominantly to the bottom end of the rental market typically with rents below AED4, per annum. These exceptional increases have impacted the overall Q-on-Q average change for each zone ADIB INDEX (see map at end of report) ABU DHABI NEW HOUSING SUPPLY 15, ZONE < % % to 4.99% 5% 5% to +9.99% 1% to % 1% to % A % 71% 12% 9% 6% 2% Number of residential units 12, 9, 6, 3, 2,13 2,925 5,135 3, ,221 5,945 3,212 2,863 4,691 3,97 2,411 4,64 1,613 2,371 1,953 1, Q1-Q3 On-Island Off-Island Investment Area 2, ,371 3, ,755 3,769 1, B % 71% 12% 9% 8% 1% C % 44% 15% 25% 12% 4% D % 54% 12% 18% 9% 7% E % 75% 6% 3% 9% 6% F % 54% 1% 15% 18% 3% G % 57% 23% 11% 3% 6% H % 63% 9% 13% 13% 3% I % 54% 2% 26% % % J % 6% 13% 2% 7% % K 1% 58% 13% 22% 1% 5% CUMULATIVE RESIDENTIAL SUPPLY Number of Residential Units 25, 2, 15, 1, 5, 4.5% 177,4 Pre 21* 5.68% 187, Q1-Q3 Total Supply 3.54% 194, % 26, % 217, % 225, % 23,964.4% 231, % 2.61% 239,12 245, *per UPC ADIB RENTAL INDEX NOTES The ADIB Rental Index relates to the performance of the ADIB portfolio only and the data is derived exclusively from transactions completed by MPM Properties. The ADIB Portfolio in Abu Dhabi comprises over 12, units (7% apartments, 3% villas) with a spread of quality and locations both on the Abu Dhabi Island and the growing Off-Island areas. The ADIB Rental Index has been compiled with a view to enhancing transparency in the Abu Dhabi real estate market and to provide a credible market indicator for rental trend movements. Rental Index Zones are identified on the Map located at the end of this report. 8 9

6 Q3 215 RESIDENTIAL SECTOR REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW RESIDENTIAL SECTOR APARTMENT SALE PRICES RESIDENTIAL DEMAND Property values in the residential market have in overall terms remained stable in Q3, reflecting low transaction volumes in the secondary market. The only exception has been Al Reef Downtown where values have risen by up to 5% for some unit types, highlighting that investor demand is weighed towards the affordable end of the market driven by attractive rental yields. The low transaction volumes are, in part, due to a lack of availability of good quality stock, as owners remain unmotivated to sell in the current market, with many enjoying healthy rental yields. MPM has witnessed a decline in sales enquiries during the last quarter and a corresponding fall in sales transactions closing in the secondary market. This could be attributed in part to the summer holiday period, which traditionally sees a decline in market activity, although sustained price stagnation and falling prices in Dubai is also having an impact on investor sentiment (both buyers and sellers) reducing transaction volumes. Moreover the increase in offplan investment opportunities offering attractive payment plan terms is also diverting some liquidity into this segment of the market. Analysis of MPM sales leads shows demand is heavily focused towards properties priced at less than AED 2 million, comprising almost 6% of all our enquiries (39% of which are looking for properties priced less than AED 1.5 million). The most popular developments comprise Al Reef, Raha Beach and Reem Island. 6% 11% 12% <1m 3m - <4m AVERAGE APARTMENT SALES PRICE AED/sq.ft. Q % 27% 1m - <1.5m 4m - <5m Q-on-Q Y-on-Y.%.%.% -1.7% -1.7%.%.%.% -3.4% -.5% 5.3% -8.7% 11.2% -7.3% -6.6% -5.% -2.9% -1.8% -8.6% -8.% -5.% 2.6% 11% 18% 1.5m - <2m 2m - <3m 5m+ 25 AED/sq.ft ,25 St. Regis 1,85 SBR 1,75 Al Bandar 1,45 Gate District 1,425 Al Muneera 1,425 Al Zeina 1,375 Shams 1,325 Marina Square 1,15 City of Lights 1,5 Al Ghadeer 1, Al Reef Downtown An indicator that demand has weakened is the compression in interest rates which has been witnessed, with some banks reducing rates by 75 basis points as they chase market share in a bid to meet year end targets. It is too early to analyse the impact on the market at this stage. In terms of the off-plan market, demand is driven predominantly by the reputation of the developer and the payment plan in the first instance and then by price, product quality and location. Following a sustained period of inactivity in terms of new project launches during , over the last 18 months Abu Dhabi has seen 16 new developments launched to the market, comprising over 6 units. The first new projects launched in 214 by Aldar and TDIC demonstrated there was very strong pentup demand for new prime located product from government backed developers and consequently projects sold out quickly. Whilst more recent off-plan developments released by various developers have on the whole witnessed good demand the volume of sales closed indicates a decline in demand in comparison to last year. The principal reason for this is the change in market sentiment over the last 12 months which has seen a decline in investor confidence impacted by prices stagnating in Abu Dhabi and declining in Dubai combined with the fall in the oil price. There is virtually no demand for developments being sold off-plan by less well known independent developers who may have to realign strategy and sell on post completion in order to achieve optimum value. 1 11

7 REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 215 RESIDENTIAL MARKET PERFORMANCE REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 215 RESIDENTIAL MARKET PERFORMANCE RESIDENTIAL SECTOR Q-on-Q Y-on-Y APARTMENT RENTS Following a sustained period of growth over the last 18 months it appears that rents may be approaching their ceiling level at the top end of the market demonstrated by modest growth of only 1% in the last 3 months despite a lack of vacancy AVERAGE APARTMENT ANNUAL RENT Q3 215.% SBR RENTAL DEMAND MPM has witnessed significant demand from both individuals and corporate tenants for apartments in Mussafah where demand currently outstrips supply thus providing land owners in this location with development opportunities providing potentially healthy returns and new supply in the high-end/luxury sectors. It should be noted that developments in this segment have experienced year on year growth of between 7 to 1% hence many tenants are still facing sizeable increases at lease renewal. -.7%.%.4%.% 1.1% -.3% -1.2% -4.4% 2.7% -4.6% -1.4% 7% 6% 3% % 8% 6% 1% 3% 6% 15% 7% 4% St. Regis Al Ghadeer Al Bandar 1 BR Studio 2 BR 3 BR Al Zeina Al Muneera Gate District Marina Square Shams MPM receives on average over 6, leasing enquiries every quarter from prospective tenants in Abu Dhabi. An analysis of these enquiries shows that demand is heavily focused at the affordable end of the market with 56% of all enquiries from tenants with a budget of less than AED 1, per annum Al Reef Downtown Non Investment Prime Zone Non-Investment Zone Grade B NEW LAW REGULATING THE ABU DHABI REAL ESTATE MARKET In June 215 a new law was announced by the General Secretariat of the Executive Council which comes into force in January 216. In our view, the new law is a positive step towards attracting increased real estate investment in Abu Dhabi as it tackles many of the concerns raised by investors in the past. Some of the key provisions in the new law are outlined below:- Regulating Real Estate Developers & Professionals Real estate developers and brokers, owners association (OA) managers, appraisers and surveyors may not engage in any activity before obtaining a licence from the Department of Municipal Affairs (DMA) and are not entitled to claim remuneration and fees if they are not licensed. Failure to comply with this requirement may lead to imprisonment and a fine between Dh5, and Dh2,, or up to Dh2 million in the case of real estate developers. Mortgage Enforcement The law provides for more effective enforcement in the event a debtor defaults on mortgage payments. A bank can now enforce the mortgage immediately through the court after giving notice to the debtor, without having to obtain a court judgment that the debtor owes the debt. Off-Plan Mortgage Financing The law allows units sold off-plan to be mortgaged provided that the loan amount is paid into the relevant escrow account and the loan is allocated for payment of the purchase price. These new provisions should encourage banks to become more actively engaged in this segment of the market Protecting Investors The law prohibits real estate companies from selling off-plan units unless the developer and the project have been registered with the DMA and the company has opened an escrow account for the project and obtained written permission from DMA to advertise and market it. The law also protects investors by requiring developers to register units sold off-plan in the interim real estate register. In addition, it sets out how a breach of this requirement by developers is to be dealt with. The law sets out clear guidelines for the DMA to follow in dealing with developers when there are delays in meeting project milestones, to ensure that investors rights are protected and there is no delay in legal proceedings. Registration Fees The law prohibits developers from collecting registration fees (usually 2% of the property price) from investors and only allows developers to charge administrative fees, which must first be approved by the DMA. Formation of Owners Associations The law includes provisions for setting up OAs that will be independent legal entities that hold title to the common areas and are responsible for its management in accordance with international standards. 15% 4% 4% 3% <5k 5k - <1k 1 - <15k 22% 52% 15k - <2 2k - <25k 25k

8 Q3 215 RESIDENTIAL SECTOR REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 215 RESIDENTIAL MARKET PERFORMANCE RESIDENTIAL SECTOR VILLA PERFORMANCE: SALES AND RENTS Al Zeina townhouses, Golf Gardens and Al Reef villas continue to see healthy demand from investors and end users alike, leading to a positive increase in prices Q-on-Q. Properties under AED5 million witnessed higher transaction volume vs. properties over AED5 million Aldar s launch of West Yas was well received by the market and highlighted demand for mid-priced properties in Investment zones that cater to investors and end users. Investors continue to prefer villas within gated communities as they are yielding healthy rental return and high occupancy Saadiyat Beach townhouses, Golf Gardens, Bloom Gardens and villas within gated communities on Abu Dhabi Island continue to be popular tenant choices for families and senior management staff of Government entities and banks VILLA VALUES NON-INVESTMENT AREAS The analysis below is based on data gathered from the transactions financed by ADIB, villas managed by MPM and data from agency (sales and leasing) team, for villas in non-investment zones and highlights the current prevailing prices and yields The demand for villas and villa compounds was slow during Q3 215, as multiple projects like Al Merief, Nareel plots and West Yas attracted market demand. The market is currently witnessing mismatch in yield expectations between seller and buyer, which in turn is leading to a slow-down in transaction volumes Demand for good quality villa compounds in Khalifa City A and Mushrif areas continues to be healthy at 8% gross yield, despite some sellers currently attempting to sell villas at 7% gross yields AED/sq.ft. AVERAGE VILA SALES PRICE AED/sq.ft. Q3 215 Q-on-Q Y-on-Y 2, % -1.7% 4.5%.%.% 5.4% 1.9%.%.% -3.6%.% -4.55% -2.43% 8.33% -3.55% 3.33% SBV 1,75 1,425 Bloom Gardens 1,15 Golf Gardens 1,5 Al Raha Gardens 1,5 Al Ghadeer 975 Al Zeina 815 Al Reef 62 Hydra Village AED (Million) VILLA COMPOUND PRICES (Q3 215) Main island KCA MBZ Shakbout City High Low Average Note: Data relates to compounds of 4 to 6 villas 5/6 BEDROOM VILLA PRICES (Q3 215) VILLA COMPOUND GROSS YIELDS (Q3 215) 8.% 7.% 6.% Main island KCA MBZ Shakbout City 7/8 BEDROOM VILLA PRICES (Q3 215) VILA AVERAGE ANNUAL RENTS Q Al Ghadeer Al Reef Al Zeina Hydra Village SBV (Townhomes) Golf Gardens Al Raha Gardens Bloom Gardens 3 35 Al Bateen Gardens Al Mushrif Gardens AED (Million) Main island KCA MBZ High Low Average AED (Million) Main island KCA MBZ High Low Average 3 BR 2 BR 4 BR 5 BR 14 15

9 Q3 215 KEY INDUSTRY PLAYER - MARKET VIEW REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 215 KEY INDUSTRY PLAYER - MARKET VIEW PROJECT IN FOCUS MAYAN RESIDENCE Yas Island benefits from a number of major development anchors both existing and planned that will drive demand and value creating both an attractive lifestyle destination and investment proposition. YAS ISLAND Mayan enjoys a prominent position on the world-renowned Yas Island, known for its destination-led lifestyle experience and the Formula One circuit which hosts the Abu Dhabi Grand Prix on an annual basis. Yas Island, whose population is expected to grow significantly as projects both under development and planned come on stream, is already home to major retail attractions in the form of Yas Mall, IKEA, Geant and ACE Hardware. Two theme parks are already in operation on Yas Island Yas Water World and Ferrari World, with two more theme parks marked out for development on the island s master plan. Yas Island is home to numerous food and beverage and entertainment venues ranging from the Yas Island Yacht Club, to the Beach Club as well as concert venues. ENTERTAINMENT Ferrari World Yas Water World Marina Circuit Warner Bros Golf Marina Beach Outdoor Sports LIFESTYLE SHOPPING Yas Mall Ikea Ace Schools (u/c) Dining Parks FAMILY MAYAN - OVERVIEW Located in the Yas Beach area of Yas Island and adjacent to the destination s Hotel District, Mayan is a low-rise master planned community. With no restrictions on purchaser nationality due to its Investment Zone status, Mayan has been designed to appeal to a broad base of investors and end users. Mayan offers a range of 7 apartment choices from studios to 1,2,3 and 4 bed options as well as beach houses. Mayan benefits from stunning golf course and sea views, in addition to a variety of high-end amenities, from luxury infinity pools overlooking the sea, gyms, steam rooms, saunas, and access to Yas Island s members-only beach club. Residents of Mayan will benefit from private parking, an exclusive concierge service, CCTV monitored security and 24-hour maintenance

10 Q3 215 OFFICE SECTOR REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 215 OFFICE SECTOR MARKET OVERVIEW Q3 215 NLA (in s Sq.m.) SUPPLY Q3 215 The only major addition to the market in the last quarter is the office space currently being handed over at Addax Tower, where we estimate approximately 2, sqm (representing approximately 25% of the tower) is now available in the market for either rent or for sale A number of small developments, predominantly situated off-island, have been completed this quarter which together have added a further 5, sqm of ancillary Grade C office space ABU DHABI OFFICE SUPPLY (29-217) 4, 3, 2, 1, ,8 1,8 1, ,495 FUTURE SUPPLY There are a number of office developments which are close to entering the market, including the ADIB HQ Tower 2 situated on Airport Road, Maryah Tower on Maryah Island, developed by Al Hilal Bank and the Al Qudra HQ at Khalifa Park, which together will add approximately 6, sqm of net leasable space Post 215, with the exception of handover delays of existing projects, there are limited new office developments in the pipeline. The developments that are underway are predominantly owneroccupier developments like ADNOC HQ, ADIB HQ Tower 1, etc. The demand for business park with ample parking continues to be strong from the SME sector and this is an opportunity that needs to be tapped by developers and investors , ,121 3,22 3,292 3,359 3,733 NLA (in s Sq.m.) NLA (in s Sq.m.) ABU DHABI OFFICE SUPPLY COMPOSITION Q1-Q3 Speculative Owner Occupation / Pre-Let ABU DHABI NEW OFFICE SUPPLY - LOCATION On-Island Off-Island Investment Area Q1-Q3 NEW SUPPLY BREAKDOWN - LOCATION Q1-Q Running Total New Supply Completed Scheduled New Supply NLA (in s Sq.m.) On-Island Off-Island Investment Area 18 19

11 REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 215 OFFICE SECTOR REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 215 OFFICE SECTOR OFFICE RENTS OFFICE PROJECT IN FOCUS: ADIB HQ TOWER 2 Rent / Sq.m. (AED) The commercial office market remains subdued and has seen low leasing activity during the last quarter. Although demand has declined, particularly from the government sector this has been balanced by a lack of new supply entering the market, which has resulted in marginal rental increases of between 1-3%. The lack of Grade A space available for immediate occupation is seeing rents appreciate in prime buildings which enjoy low vacancy rates 2, 1,5 1, 5 1.3% 11.8% 3.2% The lack of availability and leasing activity in the Grade A segment is having a positive impact on some Grade B office buildings where we have seen leasing transactions closing at headline rents of AED 1,325 per sqm representing growth of 8% in comparison with the previous quarter. We don t expect to see this growth sustained given the new supply due to be delivered to the market over the next six months OFFICE HEADLINE RENTS, Q-ON-Q% AND Y-ON-Y% CHANGE 1.3% 6.1% 13.% 21,869 sqm of net leasable area arranged over ground and 12 upper floors Shell & Core finish ready for tenant fit out works 4 levels of basement parking providing 4 car parking spaces (1:5 sqm) Additional parking available (subject to negotiation) Efficient floor plates extending to 1638 sqm Grade A Specification Common atrium with Tower 1 (ADIB HQ) with coffee shop and retail units 27mm finished floor to ceiling height Capacity for 2mm raised access floors 8 high speed lifts dedicated to exclusively serve Tower 2 from B4 through to Level 12 Average wait time estimated at 1-15 seconds LEED Gold for Building Design and Construction All common areas are covered by CCTV, access control system, fire alarm and intrusion detection system Location The development is situated on Airport Road opposite the Hilton Hotel providing excellent connectivity to Downtown and the airport Grade A Fitted Q2 215 Grade A S&C Grade B Q3 215 % Q-on-Q change % Y-on-Y change OFFICE SALES Floors and units within Addax Tower on Reem Island continue to be handed over to investors and hence progressively more space is becoming available in the secondary market with prices generally ranging from AED 1,5 to AED 1,2 per sqft, with some owners offering extended payments plans. The marketability of this space is being negatively impacted by the parking ratio although we understand that Tamouh is looking to address this with the construction of a multistorey parking structure next to the tower AVERAGE OFFICE SALES PRICE Sales Price / Sq.ft. (AED) Q-on-Q Y-on-Y 1,5 1, %.% -2.1% -4.2%.% 1.% -15.% -2.2% 5.3% 1,475 1,25 1,15 1,15 1,1 Sky Tower The Wave Addax Tamouh Tower Prestige Tower MBZ Sales Price / Sq.ft. 2

12 Q3 215 RETAIL SECTOR REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 215 RETAIL SECTOR MARKET OVERVIEW Q3 215 RETAIL SPACE CLASSIFICATION RETAIL SUPPLY PRE-21 NEW SUPPLY DELIVERED Q3 RETAIL SUPPLY AS AT Q3 215 RETAIL DEVELOPMENT PIPELINE 7,3 1% SUPPLY Retail Sector Set to Grow Rapidly Over the Next Three to Four Years Q3 215 The retail sector has witnessed no major supply entering the market in Q3 with majority of the supply being driven by street retail on Abu Dhabi Island and mainland. This in turn is allowing the retail malls to focus on increasing their foot-falls by attracting tourists and residents Apple Store has recently opened at Yas Mall and this is a major addition to the retail brands within Abu Dhabi and is expected to yield higher foot falls to the mall FUTURE SUPPLY The retail sector within Abu Dhabi is expected to see multiple community retails and convenience stores being built all across the city. This in turn is expected to increase the competition amongst supermarkets, while enhancing the lifestyle of residents with more retail options available at their door-step Al Mariyah Central is on course for a Q1 218 opening has Gulf Capital has secured a AED2.3billion funding and 1/3 rd of the mall has been pre-let with key anchors currently announced being Macy s and Bloomingdales. The funding covers phase one of the project, which will involve 2.3 million of a total of 3.1 million square feet being developed. This will include a mall with more than 4 stores, 145 restaurants and cafes and a 2-screen cinema 333, 24% 33,277 22% 763,723 54% RETAIL SPACE LOCATION PRE-21 35, 3% 147, 15% 75,453 8% 232,256 24% 517,894 53% 48,453 17% 232,256 1% 45,277 19% 1,281,617 54% District Neighborhood Regional Super Regional The above charts show supply of malls only and exclude all street retail. Figures are NLA (sq.m.) NEW SUPPLY ADDED POST 21 3,19 31% 436,753 45% 236,241 24% RETAIL SUPPLY LOCATION AS AT Q ,19 13% 471,753 2% 96,4 9% 92, 9% RETAIL DEVELOPMENT PIPELINE 12,5 1% 299, 29% ABU DHABI RETAIL SUPPLY (29-217/18) 1,365, 97% 1,61,241 67% On-Island Off-Island Investment Area 621,2 61% 3,5 872 NLA (in s) per Sq.m. 3, 2,5 2, 1,5 1, 5 1,4 28 1, ,428 29* Q1-Q3 Running Total New Supply Completed 113 1, ,8 1,985 2,327 2,372 2, /19 Scheduled New Supply 2,524 *as per UPC TAKE-UP & RENTS SPACE TYPE Specialty Store Anchor Store (more than 1, sq.m.) F & B AVERAGE RENT (AED) PA 1,8-3,9 per sq.m. 4-1,25 per sq.m. 3,5-5,75 per sq.m. ATM s 9,-18, Kiosks 85,-155, High street retail (Prime areas) 2,5 3,85 per sq.m. Retail rents across Abu Dhabi malls have remained stable during Q3 215, although some mall tenants have started requesting for rental reductions / renewals at previous rents, driven by drop in revenues witnessed by small number of retail stores during Q On the other hand high street retailers across Abu Dhabi s major locations have accepted 5% rental increase on renewals as rents on high street catch-up with rents inside established malls Occupancy across malls remains high within Abu Dhabi Island, with malls on Abu Dhabi mainland witnessing healthy take-up for vacant space albeit at attractive rents or with attractive tenant incentives High street retail (Non-prime areas) 1,55-2,85 per sq.m. The rents quoted above are base rents excluding any turnover provisions and service charges. The majority of existing contracts are being renewed at turnover rent. In turn this will ensure greater involvement from mall owners to drive foot-falls and revenue to stores within their malls 22 23

13 Q3 215 HOSPITALITY SECTOR TRADING PERFORMANCE REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 215 HOSPITALITY SECTOR TRADING PERFORMANCE MARKET OVERVIEW Q3 215 HOTEL PERFORMANCE SNAPSHOT HOTEL APARTMENTS PERFORMANCE SNAPSHOT % 8% 7% 6% 5% 4% 3% 2% 1% % % 9% 8% 7% 6% 5% 4% 3% 2% 1% % Jan-13 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-14 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-15 Feb Mar Apr May Jun Jul Aug Sep Jan-13 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-14 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-15 Feb Mar Apr May Jun Jul Aug Sep ARR RevPar Occupancy Source: TCA Abu Dhabi and MPM Properties Research ARR RevPar Occupancy Source: TCA Abu Dhabi and MPM Properties Research Q3 PERFORMANCE BY RATING HOTELS 5 STAR 4 STAR 3 STAR 2 STAR 1 STAR Guests 1,172,45 894, ,865 45,67 87,648 Guest Nights 3,573,21 2,497,15 1,912, , ,341 Avg. Length of Stay ARR Occupancy 75% 82% 8% 78% 77% RevPar Revenues 3,49,9, 94,38, 639,1, 48,2, 7,7, Q3 HOTEL APARTMENT PERFORMANCE BY RATING HOTEL APARTMENTS DELUX SUPERIOR STANDARD Guests 92,435 94,161 65,822 Guest Nights 76,762 67,29 295,815 Avg. Length of Stay ARR Occupancy 85% 86% 89% RevPar Revenues 244,821, ,815,77 64,5,852 HOTEL MAIN INDICATORS (YTD) HOTEL APARTMENTS MAIN INDICATORS (YTD) Guests Guest Nights Occupancy Revenues (Mil.) Avg Length of Stay 2% increase 15% increase 6% increase 14% increase 4% decrease Growth in guest arrivals into Abu Dhabi (up by 22% in Q2 215 vs. Q2 214), driven mainly by growth in tourists from China (68%), US (3%), Philipines (29%) and KSA (27%) Five star hotels continue to witness the highest spend / guest at AED2,61 and was second only to Deluxe hotel apartments 4 and 3 star hotels have experienced occupancy levels above 8% so far this year with 5 star properties witnessing 75% occupancy YTD this year Guests Guest Nights Occupancy Levels Revenues (Mil.) Average Length of stay 5% increase 13% increase 8% increase 9% increase 7% increase Hotel apartments continue to outperform hotels with higher occupancy and average length of stay Average guest spend at Deluxe apartments was the highest across hotel establishments, greater than five star hotels as well Q3 witnessed an increase in all key parameters for hotel apartments, highlighting the strength of this segment within the hospitality sector 24 25

14 Q3 215 HOSPITALITY SECTOR TRADING PERFORMANCE REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 215 HOSPITALITY SECTOR TRADING PERFORMANCE HOSPITALITY SECTOR TRADING PERFORMANCE Average room rate HOTEL ESTABLISHMENT PERFORMANCE HISTORICAL TRADING PERFORMANCE % 9% 8% 7% 6% 5% 4% Occupancy Q3 215 HOTEL APARTMENT SCHEDULED COMPLETIONS S.NO. ESTABLISHMENT NAME EXPECTED CLASS OPENING ROOMS 1 Jannah Place Deluxe Q TOTAL 62 Q3 215 saw Jannah Place on Airport Road entering the market with 62 keys. The property is deluxe hotel apartments offering short and long term stay options. The hospitality sector is gearing up for the opening of Lourve Abu Dhabi, which is expected to increase the number of tourist arrivals into Abu Dhabi. 1 3% 2% GUEST ARRIVALS Q3 215 YTD Jan-13 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-14 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-15 Feb Mar Apr May Jun Jul Aug Sep ARR RevPAR Occupancy United Arab Emirates 39% Source: TCA Abu Dhabi and MPM Properties Research Other GCC Countries 8% Other Arab Countries 1% Asia (Except Arab) 19% SUPPLY Australia & Pacific 2% Africa (Except Arab) 1% ABU DHABI HOTEL ROOM SUPPLY ( ) Europe 16% Number of rooms 35, 3, 25, 2, 15, 1, 5, Pre 29 5,374 8,278 8, Q1-Q3 215 New Supply Completed Running Total 2,397 2,646 2,653 13,652 16,49 18,695 2,312 21,348 2,85 1, ,386 23,66 26,465 27,948 28,522 2,73 3, Scheduled New Supply North & South America 5% GUEST ARRIVALS TOP 5 RANK NATIONALITY 215 YTD 214 YTD GROWTH RATE % 1 United Arab Emirates 92, ,15 2% 2 India 173, ,613 22% 3 United Kingdom 142, ,893 16% 4 China 125,678 74,636 68% 5 USA 98,975 76,96 3% Source: TCA Abu Dhabi and MPM Properties Research 26 27

15 Q3 215 DEFINITIONS & METHODOLOGY REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 215 DEFINITIONS & METHODOLOGY RESEARCH STUDY AREA A collaborative team providing our integrated services The geographical extent of the study area includes the Abu Dhabi Island, Investment Areas and the most populated Off-Island districts specifically Khalifa City A, Mohammed Bin Zayed City and Shakbout City. RESIDENTIAL New residential developments are classified as delivered and thus entered into the new supply category when they are made available for occupation. This is verified via a combination of site inspections and discussion with the developer and hence our supply numbers do take into consideration the phased release of large projects. The ADIB Rental Index relates to the performance of the ADIB portfolio only and the data is derived exclusively from transactions completed by MPM Properties. Given the general lack of transparency in the local market rents quoted are headline rents, thus exclude any rent free period or other financial incentives that may have been negotiated between the parties. The rents quoted are also exclusive of service charges. RETAIL New retail developments are classified as delivered and thus entered into the new supply category when the first units are open and trading. Our classification of malls is based on our own assessment having regard to size and the catchment area which the mall typically penetrates. HOSPITALITY PAUL MAISFIELD BSC (HONS) MRICS CEO T: +971 () M: +971 () paul.maisfield@adib.com YOUSEF AL ZAROONI Regional Head Al Ain T: +971 () M: +971 () yousef.alzarouni@mpmproperties.ae ABDULLAH SAID AL KUWEITI Business Development Director T: +971 () M: +971 () abdullahs@mpmproperties.ae ALI ABDULLAH ABDUL RAHMAN Acting Regional Head Northern Emirates T: 971 () M: +971 () aliabdullah@mpmproperties.ae Other rental and sales trend analysis is based on transactional data derived from the MPM Properties Agency team and data sourced from developers and owners. OFFICES New hotels are classified as delivered and thus entered into the new supply category when they are opened and trading. All trading performance data is provided by ADTCA. FUTURE SUPPLY PROJECTIONS VAIBHAV SHARMA MCOM; MDBA Director of Strategic Advisory and Research T: +971 () M: +971 () vaibhav.sharma@adib.com SAMUEL MORRIS BSC (HONS) FRICS Director of Valuation & Regional Head - Dubai T: +971 () M: +971 () s.morris@mpmproperties.ae New office developments are classified as delivered and thus entered into the new supply category when they are available for tenant fit-outs. Our future supply projections across all sectors are based on a combination of regular site inspections and discussions with developers. FRANK O DWYER MBA (Hons); BEng. COO T: +971 () M: +971 () f.odwyer@mpmproperties.ae DOMINIC BARLOW Head of Retail, Hospitality & Leisure T: +971 () M: +971 () dominic.barlow@adib.com BESPOKE CLIENT RESEARCH ADDING VALUE TO YOUR PROPERTY INTERESTS The ADIB Real Estate Services team covers all sectors of the real estate market. We provide bespoke market research to our valued clients to meet their specific requirements. DISCLAIMER: The information contained in this report has been obtained from and is based upon sources that ADIB Real Estate Services 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. ADIB Real Estate Services will not be held responsible for any third-party contributions. All opinions and estimates included in this report constitute ADIB Real Estate Services, as of the date of this report and We provide reports, information and presentations derived from primary market data that directly assist our clients to save or make money from real estate and shape strategies to enhance value. 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 Abu Dhabi market. 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 ADIB Real Estate Services control. For a full in-depth study of the market, please contact ADIB Real Estate Services team. KHALED CHAHAL Director of Agency Abu Dhabi T: +971 () M: +971 () k.chahal@adib.com WAHIDA KARAMA Head of Property Operations T: +971 (2) M: +971 () wahida.karama@mpmproperties.ae KHALED AL SOLEH BSC MRICS Head of Valuation Abu Dhabi T: +971 () M: +971 () khaled@mpmproperties.ae MOHAMED AL ZOUBI Head of Development Advisory BSc Civil Engineering T: +971 () M: +971 () mohammedalzoubi@mpmproperties.ae JUBRAN AL HASHMI Head of Property Services T: +971 () M: +971 () jubran@mpmproperties.ae JASON FIELDEN BSC (HONS) MRICS Valuation Manager - Abu Dhabi T: +971 () M: +971 () jason.fielden@mpmproperties.ae 28 29

16 Q3 215 SUPPLY - PHOTO GALLERY REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW REAL ESTATE SERVICES ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 215 SUPPLY - PHOTO GALLERY SUPPLY - PHOTO GALLERY 18 M TOWER 19 SKY GARDENS 2 LEAF TOWER SAMPLE OF NEW & UPCOMING SUPPLY NEW SUPPLY (Q3 215) 1 ADDAX TOWER 2 HYDRA AVENUE 3 ALI & SONS C4 RAWDHAT 4 BAWABAT AL SHARQ APARTMENTS NON INVESTMENT AREA - UPCOMING SUPPLY 21 ADTC PHASE 3 22 AL JAZEERA TOWER CORNICHE 23 AWQAF BUILDING KHALIDIYAH 24 BLOOM CENTRAL AIRPORT ROAD 5 C49, ME-9, MBZ 6 JANNAH PLACE ABU DHABI 7 C9, E-25, AL NAHYAN CAMP 8 C86, E-11 TCA 9 C149, E-19/2 TCA 25 EMI STATE REALTY HAMDAN STREET 26 FOUNDATION PROPERTIES AIRPORT ROAD 27 C38 - GSCS TOWER DANET ABU DHABI 28 C4 - UNB TOWER DANET ABU DHABI INVESTMENT AREA - UPCOMING SUPPLY 1 FOUR SEASONS AL MARYAH ISLAND 11 HORIZON TOWERS 12 SHEIKH OMAR 13 UNB TOWER 1 & 2 29 THE VIEWS 1 & 2 SARAYA 3 JOWARAH TOWER SARAYA 31 MINA TOWER SARAYA 32 SARAYA 14 SEASIDE TOWER 15 THE KITE RESIDENCES 16 THE SHAMS TOWER 17 YASMINA RESIDENCES 33 SARAYA 34 C74, C75 & C76 RAWDHAT 35 C41 RAWDHAT 36 HILTON AL FORSAN 3 31

17 Q3 215 RENTAL INDEX ABU DHABI REAL ESTATE MARKET OVERVIEW RENTAL INDEX ABU DHABI REAL ESTATE MARKET OVERVIEW Q3 215 Q2 214 NEW SUPPLY UNDER CONSTRUCTION Hydra Village Q3 NEW & UPCOMING SUPPLY 22 Corniche Rd B A Electra St Zayed The First St 24 C 8 D Airport Rd 9 1 Al Maryah Island Al Reem 19 Island Salam Street E12 Saadiyat Island Sheikh Khalifa Hway Jubail Island Residential Offices Retail Hotels Yas Island E 1 Residential Offices Retail Hotels Abu Dhabi - Dubai Rd New Supply Investment Non-investment Sheikh Maktoum Bin Rashid Rd E F Al Reef Al Saada Street G 25 th St Airport Rd Salam Street H Salam Street Al Raha Beach Abu Dhabi - Dubai Rd E 1 I Masdar City Khaleej Al Arabi Street ADIB RENTAL INDEX ZONE COMMON TREND (Q3 215) (ANNUAL % RENTAL INCREASE) Q-Q CHANGE OVERALL AVERAGE Q3 215 Q2 215 Q Q3 214 Q2 214 Q1 214 E 2 36 E 2 E 11 Zone A to 4.99% 3.5% 4.58% 3.71% 8.5% 5.1% 2.37% 4.5% Zone B to 4.99% 2.6% 5.8% 6.94% 7.75% 1.56% 3.86% 6.33% E 22 Zone C to 4.99% 5.63% 7.46% 9.25% 9.79% 12.34% 1.26% 5.6% Zone D to 4.99% 6.48% 7.6% 8.51% 1.31% 1.26% 9.7% 6.18% Zone E to 4.99% 3.76% 4.2% 7.54% 5.9% 1.2% 5.32% 4.49% Zone F to 4.99% 4.77% 3.17% 4.1% 6.58% 7.63% 3.25% 2.41% E 3 K 5 J Zone G to 4.99% 4.42% 2.34% 2.2% 2.59% 2.69% 2.42% 2.92% Zone H to 4.99% 3.68% 5.58% 3.46% 1.46% 3.42% 5.31% 2.44% Zone I to 4.99% 3.8% 3.41% 1.86% 5.48% 1.14% 1.33% 1.21% Zone J to 4.99% 3.32% 5.78%.96% 4.4% 3.6% 1.55% 1.64% Zone K to 4.99% 5.3% 5.89% 2.88% 4.31% 4.18% 3.51% 3.65% E 11

18 PAUL MAISFIELD BSC (HONS) MRICS CEO T: +971 () M: +971 () VAIBHAV SHARMA MCOM; MDBA Director of Strategic Advisory and Research T: +971 () M: +971 () OFFICE CONTACT DETAILS MPM Properties Head Office 6th Floor, Al Wahda Tower P.O Box Abu Dhabi Tel vaibhav.sharma@adib.com