Abu Dhabi Real Estate Report Q4 2017

Historic Review and Outlook Abu Dhabi Real Estate Report Q4 2017 2 Property map 3 Historic Review 4 Highlights and Outlook In the Middle East for over 30 Years Apartment 5 6 Rentals Villa and Office Rentals 7 Apartment Sales 8 Villa and Office Sales

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 Most expensive Expensive Mid priced Affordable 2 17 22 13 16 27 6 25 28 31 34 32 3 33 35 18 37 15 19 12 30 36 38 29 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. 4 20 8 26 22 7 23 1 5 10 9 14 24 11 11 11 21 33 2 ABU DHABI

Historic Review Recession 2009-2011 Recovery and Growth 2012-2014 Stabilisation 2015 Downturn 2016-2017 Rapid Real Estate demand growth in an undersupplied market was followed by substantial corrections in rental rates and sales prices, which dropped in excess of 60% from their peak in Q4 2008 as a result of the global financial crisis. The decline in rental rates led to a strong leasing market with increased internal Tenant movement to quality properties. Transaction levels picked up towards the end of 2011 leading to take-up of new residential properties in well planned projects. However, with the amount of stock available, sales prices continued to decline. Subdued business growth put pressure on the office market resulting in decreased rental rates across all quality grades. 200 The market began to show signs of recovery in 2012 and rates stabilised throughout the year. Asteco recorded a marked increase in rental rates and sales prices from the end of 2012 due to improved sentiment. Several new prime and high-end projects were handed over during this period. As a result, rates for inferior quality stock advertised at above market averages corrected. Internal Tenant movement and flight-to-quality prevailed as people took advantage of the options available. Transaction levels improved in line with increased job security and market confidence leading to tenancy upgrades and a rise in home ownership. Off-plan sales also recommenced during 2013 and 2014. Residential sales prices rose considerably by approximately 50% compared to their lowest point. The office market was relatively stable, with lower quality space noting marginal declines whilst superior units recorded minimal increases. Limited new supply resulted in moderate increases in rental rates and sales prices in 2015, especially during the first half of the year and remained broadly stable thereafter. The drop in oil prices prompted a general slowdown in investment, whilst sales demand focused on completed rather than offplan properties. Bearish market sentiment, coupled with a number of major mergers and companies downsizing, had an unfavourable effect on Real Estate demand. As a result, apartment and villa rental rates recorded an average decrease of 17% and 12%, respectively, since the end of 2015, whilst sales prices declined by 13% and 8%. Approximately 5,000 units were delivered in 2016 and 2017, which put further pressure on rates. Whilst demand for completed projects declined, transaction volumes for newly launched projects offering competitive sales prices and payment plans increased. 180 160 Index Base 100 = March 2010 140 120 100 80 60 40 20 Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec 2009 2010 2011 2012 2013 2014 2015 2016 2017 Apartment Sales Apartment Rentals Villa Rentals Office Rentals The line graph above demonstrates the average percentage sales and rental trend on a quarterly basis. Asteco Property Management, 2018 3

Highlights and Outlook TRENDS 2017 2018 Sales Prices Rental Rates Project Launches Incentives Supply Demand - Off-plan Demand - Completed 2017 Highlights 2018 Outlook Residential Limited economic growth continued to translate into job cuts, reduction of staff allowances and limited new employment opportunities. This, coupled with the increase in new supply, resulted in a drop in sales prices and rental rates across all asset classes. The decline was most prominent for high and mid-quality properties. Apartment rental rates recorded average quarterly declines between 2% and 3% during 2017, whilst q-o-q drops in sales prices ranged from 2% to 4%. Quarterly decreases in villa rental rates and sales prices were less pronounced and varied from 0% to 3% throughout the year. Whilst transaction activity for completed properties slowed compared with previous years, newly launched off-plan quality projects with attractive payment plans and discounts continued to benefit from strong demand. Rental rates and sales prices are expected to follow a similar path as in 2017 and record moderate declines as a result of the continuous delivery of new supply during a period of moderate economic and market growths. Approximately 9,000 residential units, including 6,200 apartments and 2,800 villas and townhouses are anticipated for completion this year, predominantly within the districts of Reem Island, Al Raha Beach and Yas Island. Based on previous years, the delivery of some of this inventory may be delayed until 2019. Off-plan quality projects offering attractive sales prices and payment plans will continue to benefit from good levels of demand and ultimately increase investment in the real estate sector. Office Bearish market sentiment in line with reduced business growth and low oil prices resulted in limited demand for office space. Rental rates softened by 5% on average compared to the same period last year. However, evidence indicated declines of up to 10% on contract renewal in several Grade A and B office buildings. Approximately 85,000 square metres of office space was delivered in 2017, mainly within Al Maryah Tower on Maryah Island and the mixed-use Leaf Tower on Reem Island. Additional office developments anticipated for completion in 2017 were delayed and are likely to be handed over in 2018. Investor demand remained restricted by the limited availability of projects offering commercial units for sale, with average quoted sales prices ranging from AED 900 per sq.ft. (ADDAX Tower) to AED 1,500 per sq.ft. (Sky Tower). The overall outlook for the office market is expected to be subdued, with further rental declines projected across all quality grades. Vacancy rates are likely to increase as companies continue to downsize and relocate to smaller units. The delayed Omega Towers on Reem Island and the ADIB HQ on Airport Road are expected for handover in 2018. The recently introduced value-added tax (VAT) of 5% on commercial property is anticipated to adversely affect overall demand and put pressure on rental rates and sales prices in the short- to medium-term. In the long-term, however, it is believed to improve the financial position of the UAE and provide the necessary funds to further the economy, which would result in business and employment growth. Supply 2,800 APARTMENTS 750 VILLAS AND TOWNHOUSES 85,000 SQ.M. OFFICE SPACE 6,200 APARTMENTS 2,800 VILLAS AND TOWNHOUSES 100,000 SQ.M. OFFICE SPACE 4 ABU DHABI

Apartment Rental Rates -3% (All figures in AED 000 s p.a.) TYPE 1 BEDROOM 2 BEDROOMS 3 BEDROOMS YEAR 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 PRIME PROPERTIES Abu Dhabi Island - - - - 125 125 125 128 123 108 - - - - 156 165 175 191 178 156 - - - - 230 235 265 275 253 215 Investment areas - - - 120 130 130 140 145 145 138 - - - 165 165 165 180 193 185 183 - - - 220 250 255 255 275 248 240 HIGH END PROPERTIES Abu Dhabi Island Central Abu Dhabi 165 110 90 80 85 85 90 95 90 85 250 140 140 130 110 135 145 150 139 123 290 175 175 160 130 165 175 177 170 155 Corniche 185 135 120 95 85 105 120 120 90 88 280 160 160 155 125 135 150 153 138 123 365 240 240 225 180 225 245 243 203 173 Khalidya / Bateen 185 135 120 90 85 105 120 123 113 98 280 160 160 140 125 155 160 165 146 123 365 230 230 190 155 210 215 213 190 173 Investment areas Al Raha Beach - - 110 110 100 100 110 115 110 103 - - 155 145 140 150 155 161 155 143 - - 205 200 185 190 200 205 190 175 Marina Square - - - - 80 85 100 105 98 85 - - - - 110 130 140 148 133 115 - - - - 140 170 175 185 175 155 Saadiyat Beach - - - - - 110 120 130 120 113 - - - - - 150 175 179 174 167 - - - - - 190 210 233 213 200 Shams Abu Dhabi - - - 95 95 110 115 115 98 80 - - - 130 130 150 155 154 143 113 - - - 165 165 170 195 193 173 150 MID AND LOWER END PROPERTIES Abu Dhabi Island Central Abu Dhabi 145 85 70 60 55 70 75 76 75 68 215 120 100 80 100 100 105 103 103 82 265 145 145 110 90 140 145 148 133 122 Corniche 155 120 95 80 70 80 80 86 85 74 225 145 145 120 100 105 120 125 115 105 325 175 175 155 130 155 170 165 148 127 Khalidya / Bateen 155 120 100 75 65 80 80 81 79 71 225 130 130 95 90 110 120 121 111 95 325 170 170 125 110 135 145 146 138 123 Investment areas Reef Downtown - - - - 60 70 80 83 79 67 - - - - 75 85 100 104 103 88 - - - - 90 100 130 130 120 109 Off Island MBZ & Khalifa City A 165 111 95 85 83 94 101 105 98 88 246 135 131 121 113 130 141 146 137 121 323 179 178 162 148 175 189 194 177 159 ABU DHABI AVERAGE 165 111 95 85 83 94 101 105 98 88 246 135 131 121 113 130 141 146 137 121 323 179 178 162 148 175 189 194 177 159 Annual % change - -32% -15% -11% -2% 14% 8% 4% -7% -10% - -45% -3% -8% -6% 15% 8% 4% -6% -11% - -45% -1% -9% -9% 18% 8% 3% -9% -10% since peak (2008) -46% -51% -51% since market low (2012) 7% 7% 8% since 2nd peak (2015) -16% -17% -18% Note: The Abu Dhabi Average and resulting Percentage Changes are based on a wide selection of areas, not all of which are shown in this table. The Percentage Change (since peak, market low, 2nd peak) is calculated using the last quarter of the year for reasons of consistency in the table. However, this may not necessarily correspond to the actual quarter the market peaked/bottomed-out and marginal variations may occur. Asteco Property Management, 2018 5

Villa Rental Rates -3% (All figures in AED 000 s p.a.) TYPE 3 BEDROOMS 4 BEDROOMS 5 BEDROOMS YEAR 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Khalidiya / Bateen 395 275 235 210 190 185 185 185 185 170 460 290 310 225 230 240 230 225 195 180 530 325 330 280 255 270 245 240 220 203 Al Nahyan Camp / Muroor 365 260 250 195 175 170 160 160 158 148 430 290 283 210 210 212.5 200 200 190 173 535 290 325 268 265 250 260 260 228 185 Mushrif / Karama / Manaseer 390 235 220 180 170 195 180 170 170 165 455 270 260 230 210 190 190 185 185 175 535 315 345 260 240 250 265 255 233 198 MBZ / Mussafah - - 170 110 95 122.5 108 108 108 108 - - 195 135 127.5 145 140 140 140 130 - - 205 153 140 175 168 168 158 155 Khalifa A & B 360 190 155 125 100 130 135 133 133 125 400 205 180 150 135 170 150 150 150 140 445 255 220 180 170 185 180 180 165 153 Sas Al Nakhl - - 220 193 160 170 178 178 175 163 - - 240 230 180 190 200 200 200 200 - - 310 280 257.5 260 260 260 214 210 Al Raha Gardens 380 205 185 175 165 175 190 193 183 173 420 230 210 210 200 210 243 245 218 188 475 240 260 270 270 285 290 290 250 215 Golf Gardens - - 265 240 190 210 225 225 220 215 - - 200 285 260 255 260 260 253 235 - - 345 335 340 325 325 325 305 270 Al Reef - - 115 130 105 120 135 145 140 123 - - 140 155 125 150 160 168 163 150 - - 165 175 150 170 190 190 180 163 Saadiyat Beach - - - - 275 295 295 310 310 300 - - - - 305 295 330 375 375 335 - - - - 400 400 400 450 450 450 Al Raha Beach - - - - 220 250 250 255 205 185 - - - - 300 255 255 263 250 240 - - - - - 320 320 320 310 275 Hydra Village - - - - - 90 90 103 105 93 - - - - - - - - - - - - - - - - - - - - ABU DHABI AVERAGE 378 233 202 173 168 177 178 180 174 164 433 257 224 203 208 214 214 219 211 195 504 285 278 244 253 263 276 267 247 225 Annual % change - -38% -13% -14% -3% 6% 0% 2% -3% -6% - -41% -13% -9% 2% 3% 0% 2% -4% -7% - -43% -2% -12% 3% 4% 5% -3% -8% -9% since peak (2008) -57% -55% -55% since market low (2012) -2% -6% -11% since 2nd peak (2015) -9% -11% -16% Abu Dhabi Office Rental Rates Note: The Abu Dhabi Average and resulting Percentage Changes are based on a wide selection of areas, not all of which are shown in this table. The Percentage Change (since peak, market low, 2nd peak) is calculated using the last quarter of the year for reasons of consistency in the table. However, this may not necessarily correspond to the actual quarter the market peaked/bottomed-out and marginal variations may occur. * Includes developments such as Al Maryah Island, Aldar HQ, International Tower, Nation Towers, Ittihad Towers, Capital Plaza, Etihad Tower, etc. **Average Excluding Prime -1% (All figures in AED per sq.ft. p.a.) YEAR 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 PRIME STOCK Fitted* - - - - - - 215 215 210 190 QUALITY STOCK Fitted 320 179 156 135 111 114 111 118 104 100 Shell and core - - 125 107 91 91 91 95 84 81 MATURE STOCK Good quality 228 154 111 98 81 79 79 79 79 71 Typical 135 129 93 65 65 65 67 67 67 60 ABU DHABI AVERAGE** 228 154 121 101 87 87 87 90 83 78 Annual % change - -32% -21% -16% -14% 0% 0% 3% -7% -6% since peak (2008) -66% since market low (2012) -10% 6 ABU DHABI since 2nd peak (2015) -13%

Apartment Sales Prices AED per sq.ft. -3% 0 500 1,000 1,500 2,000 2,500 0 500 1,000 1,500 2,000 2,500 2,000 1,025 Marina Square 1,025 1,000 965 1,175 1,375 1,375 Reef Downtown 500 550 825 1,000 1,025 1,250 975 1,100 875 Raha Beach / Al Bandar 1,750 1,350 1,300 1,225 1,100 1,425 2,450 1,250 1,250 1,130 1,050 1,325 1,550 1,475 1,650 1,500 1,700 1,400 1,600 1,275 Sun & Sky Towers Raha Beach / Al Muneera 1,750 1,100 900 975 925 1,175 1,425 1,475 1,500 1,500 1,500 1,375 1,275 1,225 The Gate 1,175 Raha Beach / Al Zeina 1,750 1,100 900 1,015 930 1,175 1,200 1,300 1,300 1,225 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Asteco Property Management, 2018 7

Villa Sales Prices AED per sq.ft. 0% 0 500 1,000 1,500 2,000 2,500 3,000 3,000 3,500 0 500 1,000 1,500 2,000 2,500 3,000 3,000 3,500 Raha Gardens 1,190 900 825 770 730 890 600 1,115 660 1,115 660 1,050 630 985 565 Hydra Village Golf Gardens 1,200 860 850 810 770 870 1,020 1,020 960 940 Al Reef Villas 950 600 560 520 540 745 845 835 800 750 Saadiyat Beach Villas (Standard) 1,375 1,550 1,550 1,550 1,535 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 8 ABU DHABI

About Asteco The Middle East s largest full service Real Estate services company, Asteco was formed in Dubai in 1985. 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 +971 2 626 2660 GhadaA@asteco.com Tamer Ibrahim Chaaban BE Branch Manager - Al Ain office +971 3 7666097 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. 218551. Paid-up Capital AED 4,000,000. ORN 180