REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEW Q3 2016

REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEW Q3 216

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:- Real estate financing Strategic development advisory Investment advisory Asset management Project management Valuation Agency Market research Property management Facilities management During Q3 216, c.3,9 residential units (apartments and villas) were added to the market, taking the total supply to around 491, units, an increase by 2.5% year-on-year. During the quarter, off-plan market remained very active with the launch of 5,5 new units spread across 2 projects. Attractive payment plans and competitive pricing strategies remained catalyst in drawing end users towards owning properties rather than renting. Average apartment rents dropped marginally by 1% quarter-on-quarter and 3% year-on-year while average apartment sales rates declined by 6% year-on-year. Average villa sales and rental rates recorded a 5% decline year-on-year. During the quarter, much of the rental pressure was recorded across high-end properties while the mid-end market villa segment saw an increase in enquiries. Office sales rates declined by 1% in the quarter and 1% year-on-year. The main freehold locations of Lakes Towers and Business Bay recorded the highest yearly declines of 17% and 13% respectively. The total retail stock of has reached 34.2 million sq.ft. of Gross Leasable Area (GLA) with the addition of GLA 43, sq.ft. spread across the Outlet Village, My City Centre Barsha and Community retail centre in International City. Shopping mall rental revenues remained relatively unchanged during the quarter, with some pressure from larger retail groups applying cost management initiatives across the country. During the third quarter, c.35, sq.ft. of space entered the market, taking the total office stock to 93.2 million sq.ft. However, we are seeing a significant drop in strata office space as compared to the past two years. Office rents remained stable during the quarter across prime and secondary locations. However, the market is witnessing an increase in landlord incentives. Prime office rents ranged from AED9-26 per sq.ft. per annum while in the secondary locations rents varying from as low as AED55 to AED2 per sq.ft. per annum. s hospitality stock rose by 1 % from the previous quarter, with an addition of 1,3 new hotel rooms and apartments during Q3 216, surpassing the 1, mark. Hotel performance indicators showed a drop in average ADR by 7+% year-on-year, while occupancy rates remained strong at over 75% which is still relatively high in comparison to hotel markets globally. 2

MPM PROPERTIES FACTS AND FIGURES 16+ 95+ 3+ TOTAL UAE STAFF PROPERTY MANAGEMENT STAFF ADVISORY STAFF 35+ LEASING & SALES STAFF No.1 LARGEST ABU DHABI MAINLAND PORTFOLIO 1,7 LANDLORD CLIENTS 23,5+ UNITS UNDER MANAGEMENT 2+ DEDICATED VALUATION PROFESSIONALS 98.5% OCCUPANCY RATE 9bn COMBINED MARKET VALUE OF PROPERTIES VALUED SINCE JANUARY 212 7,6+ MORTGAGE VALUATIONS SINCE JANUARY 212 CONTENTS Demand Drivers 4 Macro Trends 6 Residential Sector 8 Project Focus 16 Office Sector 18 Retail Sector 22 Hospitality Sector 24 Definitions & Methodology 26 Contact Information 27 Supply - Photo Gallery 28 Development Location Map 3 3

Q3 216 REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEW DEMAND DRIVERS GOVERNMENT INITIATIVES ATTRACTING ENTREPRENEURS; IMPROVING EASE OF DOING BUSINESS The UAE s cabinet has approved the bankruptcy law which is expected to come into effect by early 217. The law is expected to boost investor confidence and drive foreign investments. The law safeguards the rights of both creditors and debtors in liquidation situations and secures creditor rights and enables companies to restructure without unanimous creditor approval. The four main pathways of the new law include: Financial restructuring, whereby the company s debts are restructured to the satisfaction of a majority of creditors holding at least two-thirds of the outstanding debt, in a process overseen by the courts; and The raising of new funds, according to criteria determined by the courts. Financial reorganisation, an initial solution available to financial entities regulated by the Central Bank and/or the Securities and Commodities Authority, overseen by experts appointed by the Committee of Financial Restructuring (CFR); A pre-emptive settlement, overseen by the courts, which allows a bonafide debtor to agree a settlement with creditors, which will be nullified if the debtor fails to abide by the settlement terms agreed; Expo 22 to allocate 2% of the Expo 22 contracts valued at more than AED 5 billion to local and international SMEs. Of the 787 contracts awarded to date, 32 have been awarded to SMEs. The Bureau Expo 22 has also relaxed the procurement process to allow SMEs to bid competitively by offering a proposal validity period of 6 days, exclusion of tender bonds and no advanced payment guarantee, 5% advanced payment for goods/ materials, 25% advanced payment for services, and a 3 days payment from receipt of an approved invoice. REAL ESTATE AND CONSTRUCTION HEALTHY INVESTOR INTEREST FOR LARGE AND SMALL ASSETS Municipality approved Desert Rose City project, an eco-friendly master planned development occupying 14, hectares of land in Al Ruwayyah area, along the Al Ain road. The project is to be built at a cost of AED3 billion and comprises of 3, residential units, of which 2, units will be allocated to UAE nationals and the rest 1, affordable units for expatriates. The project will also house schools, hospitals, shopping centres, clinics, mosques and other community services. His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE, and Ruler of launched Central project along Sheikh Zayed Road. The mixed-use master planned development, being developed by Holding, will offer 47 million sq.ft. gross floor area across residential, retail, hospitality and office space. The development will have 9 million sq.ft. of retail space including three malls, 4.5 million sq.ft. of outdoor shopping area, 7,2 hotel rooms, 33 parks, schools, offices and parking space for 44, cars. The entire development is anticipated to be built at a cost of AED73.4 billion, with phase 1 expected to cost AED24 billion. Q3 216 KEY EVENTS Modesh World, 25 th June 2 nd August, 216. The Leisure Show, 17 th 19 th September 216 Cityscape Exhibition and Conference, 6 th 8 th September 216 Intersolar Middle East, 19 th 21 st September 216 The Hotel Show, 17 th 19 th September 216 Music Week, 21 st 24 th September 216 4

REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEW Q3 216 FREEZONES SIGNING UP NEW TENANTS; CREATING EMPLOYMENT OPPORTUNITIES Terumo Medical Corporation, a medical products and equipment company opened its Middle East and Africa office in Airport Freezone to serve its customers in the GCC, Levant, Pakistan and Africa. The Middle East branch will market Terumo products in interventional cardiology, interventional oncology, peripheral intervention, pharmaceutical, cardiovascular, diabetes management and other medical products like syringe and infusion pumps, infusion sets, safety hypodermic and dental needles etc. KAMCO Investment Company, a subsidiary of United Gulf Bank BSC Bahrain, has opened its first international office in International Financial Centre (DIFC). KAMCO is the region s largest private sector Assets Under Management firms with assets valued at around US$11.2 billion as of end 215. TRANSPORTATION IMPROVING ACCESSIBILITY AND REACH IN DUBAI; CREATING JOBS RTA has awarded the Metro Redline, 15 kilometre extension from Nakheel Harbour station to the Expo 22 site. The AED1.6 billion contract was awarded to a consortium led by French Alstom, Spanish Acciona and Turkish Gulermack. The Expo 22 route will comprise of seven stations of which five will be above the ground and two underground and will serve areas of the Gardens, Al Furjan, Discovery Gardens, Golf Estates and DIP. South has awarded AED3 million contract to Tristar Engineering and Construction company for infrastructure works for phase 1 and 2 of the Residential district. The work is slated to complete by Q4 217. Metro passengers increased 9% year-on-year based on latest figures from RTA. The Metro (Red & Green lines) recorded 96.48 million passenger movements during H1 216 compared to 88.25 million passenger movements during the same period last year. Of these, 61.2 million passenger movements were recorded at the Red line and 35.28 million across the Green line. TOURISM INITIATIVES The quarter has seen the opening of multiple cultural and leisure facilities, which are expected to enhance the hospitality and leisure offering of. park has a capacity to hold 3, people per day and the management expects to attract over 4.5 million people in the first year of its operation. Opera, a multi-format performing arts centre opened on August 31 216 with a performance by Placido Domingo. The dhow shaped structure has a seating capacity of 2, seats and can be converted into a traditional theatre, concert hall, banquet hall or exhibition space. IMG Worlds of Adventure: The largest indoor theme park managed by IMG Worlds and owned by the Ilyas and Mustafa Galadari Group opened its door to the public on 31st August 216. The theme park is spread over 1.5 million sq.ft. and features international brands of Marvel and Cartoon Network along with local brands of IMG Boulevard and Lost Valley (Dinosaur Adventure). Other attractions include roller coasters, kids rides, 12 screen Novo Cinema multiplex, 25 retail outlets along with 28 food and beverage outlets. The theme Aqua Park, the largest inflatable water park designed in the shape of s official logo the word in both English and Arabic opened on September 1, 216. The inflatable park measures 77 metres by 33 metres and includes ramps, slides, bridges, curves and towers. The aqua park can hold up to 5 people at a time. The construction award for the Mohammed bin Rashid Library in Al Jaddaf at a cost of AED 1 billion has been approved by H.H. Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of, UAE Minister of Finance, and Chairman of Municipality. Construction work on the 65, sq.ft. structure is expected to be completed by mid-218 and is expected to attract 42 million visitors annually. 5

Q3 216 REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEW MACRO TRENDS DUBAI GDP SHARE BREAKDOWN BY ECONOMIC SECTORS - 216 YTD 5% 6% 12% 29% 11% 15% 22% Source: Statistics Center and MPM Properties Research DUBAI POPULATION (GROWTH & HOUSEHOLD SIZE) POPULATION (MILLIONS) 3. 2.5 2. 1.5 1..5 1.77 29 1.9 2. 2.1 2.21 21 211 212 213 214 215 Q3 216 2.32 2.43 2.56 8. 7. 6. 5. 4. 3. 2. 1. GROWTH RATE (%PA) AND HOUSEHOLD SIZE Population Source: Statistics Center Growth Rate Household Size DUBAI CONSTRUCTION ACTIVITY %YoY 3.% 2.% DUBAI CPI VS RENTAL CONTRIBUTION TO CPI Q3 216 115. 11. %YoY 1.%.% 15. 1. -1.% -2.% 95. 9. -3.% 26 27 28 29 21 211 212 213 214 GDP Construction Source: Statistics Center 215 216e 85. JAN 12 JUN 12 JAN 13 JUN 13 JAN 14 JUN 14 JAN 15 JUN 15 JAN 16 JUN 16 SEPT 16 Housing CPI Contribution to CPI Source: Statistics Center 6

REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEW Q3 216 INVESTOR ANALYSIS DUBAI LAND TRANSACTIONS VOLUME vs VALUE DUBAI LAND TRANSACTIONS QoQ% CHANGE Transactions 12, 1, 8, 6, 4, 2, Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 212 213 214 215 216 3, 25, 2, 15, 1, 5, Value (in Millions) 8% 6% 4% 2% % -2% -4% -6% -8% -1% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 212 213 214 215 216 Sales Value Sales Transactions * Established Real estate Source: DLD and MPM Properties Research Sales Transactions Source: DLD and MPM Properties Research TOP NATIONALITIES INVESTING IN DUBAI PROPERTY IN H1 216 Value (AED' Billions) 15 12 9 6 3 UAE India Saudi Arabia United Kingdom Pakistan Iran Canada Jordan Egypt Kuwait Source: DLD TOP LOCATIONS - RESIDENTIAL TRANSACTION VALUE Transaction Value AED million 8 7 6 5 4 3 2 1 Source: DLD Emirates Living Downtown Marina Beach Residence Q3 216 Q2 216 Palm Arabian Ranches Lakes Towers Sports City Village Business Bay 7

Q3 216 REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEW RESIDENTIAL SECTOR RESIDENTIAL SUPPLY During Q3 216, approximately 3,9 new residential units (apartments and villas) were added to the market, taking the total supply to around 491, units. About 34% of the new supply comprised of villas and townhouses and the remainder was apartments. Over the past 12 months c.12, new units entered the market, registering an increase of 2.5% year-on-year. Looking at the ongoing construction activity, we expect a further addition of 2,5-3, units during the course of 216. During the third quarter, off-plan market remained active and witnesse the launch of over 2 projects with a cumulative inventory of over 5,5 units comprising of villas, townhouses, apartments and serviced apartments. Developers continue to launch off-plan properties targeted towards a new stream of investors entering the market. Attractive payment plans and competitive pricing strategies are acting as a catalyst in drawing end users towards owning properties rather than renting. RESIDENTIAL SUPPLY BY UNITS 213-217 YoY 1.9% 3.1% 2.7% 1.3%.8%.7% 3.6% 6 5 4 3 2 1 8.5 213 3 1.2 1.2 1 1 4 14 11 5 3 3 14 444 452 469 481 488 492 495 214 215 H1 216 Q3 216 Q4 216 217 Existing Supply Apartments Supply Villas +% Change 8

REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEW Q3 216 SAMPLE OF RESIDENTIAL UPCOMING PROJECTS LOCATION PROPERTY NAME District 1, MBRC Sobha Meydan Villas Palm Muraba Residences Al Qusais Emirates Airlines Accommodation Marina Escan Marina Tower Business Bay Shafar Tower Living Legends, land Hercules Tower Village Circle Spica Residences Studio City Glitz 1 Al Furjan Iris Residence SAMPLE OF ANNOUNCED PROJECTS IN Q3 216 NAME OF PROJECT TYPE DEVELOPER LOCATION Akoya Imagine Townhouses Damac Akoya Oxygen Acacia at Park Heights Apartments Emaar Hills Estate The Galleries Apartments Rockweill Real Estate Meydan Avenue Roy Mediterranean Serviced Apartments Azizi Developments Al Furjan Azizi Mina Hotel Apartments Azizi Developments Al Furjan Casa Dora Townhouses Properties Mudon Urbana Townhouses Emaar South Act One & Two Apartments Emaar Downtown Creek Horizon 1 & 2 Apartments Emaar Creek Safi Townhouses Townhouses Nshama Townsquare Imperial Avenue Apartments Shapoorji Pallonji Downtown Al Jawahara Residences Apartments Tiger Properties Village Triangle Hartland Green - Building 3 Apartments Sobha Sobha Hartland - Meydan Hartland Green - Building 4 Apartments Sobha Sobha Hartland - Meydan Casa Familia Townhouses National Bonds Motor City Sobha Hartland Townhouses Townhouses Sobha Sobha Hartland - Meydan Bloom Heights Apartments Bloom Properties Village Circle Montrell Serviced Apartments Azizi Developments Al Furjan Cassia at the Fields Townhouses G&Co District 11, MBRC 9

Q3 216 REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEW RESIDENTIAL SECTOR APARTMENT SALE PRICES During Q3 216, a total of 2,147 residential apartments were transacted with a cumulative value of AED2.75 billion. The highest number of transactions in value and volume terms were recorded in Marina wherein 39 transactions were recorded with a total value of AED524 million. Other active areas were Palm recording residential apartment transactions worth AED38 million followed by Downtown with AED261 million. On average apartment sales rates for ready properties declined marginally by 1% in the quarter and 6% year-on-year. The drop was largely fragmented with few areas recording above the average drop. Despite Q3 being a historically weak period for the real estate sector, the market witnessed the launch of over 4, off-plan apartments. Affordability and payment plans remained key selling points for the new launches. Properties with a ticket size of AED7, to AED 1. million, targeted towards mid-income households, recorded relatively high absorption. As inventories continue to rise from completed as well as off-plan properties, we foresee a further decline in sale rates and transaction volumes. However, much of the impact is likely to be towards luxury and high-end segments of the market while affordable properties are expected to perform better over the short term. APARTMENT AVERAGE SALES PRICES (Q3 216) AND PERCENTAGE CHANGE QoQ.% -1.3%.% -3.%.%.% -2.7%.%.% YoY -8% -8% -4% -4% -2% -1% -7% -3% -9% AED/sq.ft. 2,5 2, 1,5 1, 5 Downtown Old Town DIFC Palm The Views 2,15 Marina Business Bay 1,925 1,8 Beach Residence The Greens 1,6 1,6 1,4 1,25 1.385 1,225 1

REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEW Q3 216 APARTMENT RENTS Apartment leasing performance remained subdued during Q3 216 as compared to the previous quarter. Historically, the third quarter recorded lower activity due to the peak summer and vacation period. During Q3 216, average apartment rents dropped marginally by 1% and 3% year-onyear. Established residential locations of Downtown, Sheikh Zayed road and Bur have been able to retain high occupancy while emerging new master communities of Sports City, Silicon Oasis and Al Furjan have recorded rental deflation of 5%, which is marginally above the average decline. The pressure on retaining existing tenants remained high on most landlords radar. Even though the RERA Rental matrix permits rent increases, most landlords have chosen to continue with previous rents. New properties entering the market are taking a longer time to lease, with a few landlords offering tenant incentives in the form of rent free period or relaxed payment terms of 6-8 cheques, while waiving of commission and chiller charges for one year. AVERAGE APARTMENT ANNUAL RENTS Q3 216 (AED ) LOCATION STUDIO 1BR 2BR 3BR Q-ON-Q Y-ON-Y Business Bay 66 85 118 165.% -3.96% DIFC 8 11 155 215-1.41% -3.79% Discovery Gardens 49 7 93 - -.% -1.7% Downtown 75 11 155 22 -.88% -2.31% Marina 63 93 138 195-2.5% -5.34% Greens 68 88 13 16.% -2.5% International City 36 48 7 - -.9% -3.16% Beach Residence 78 15 13 175 -.82% -1.89% Lakes Towers 6 85 118 155-2.8% -5.75% Palm 88 123 165 195 -.63% -1.78% Barsha Heights 6 82 15 14 -.88% -3.25% 11

Q3 216 REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEW RESIDENTIAL SECTOR VILLA SALE PRICES According to the data sourced from the Land Department, a total of 279 villas were transacted with a total value of AED1.1 billion during Q3 216. About 6% of these transactions, in value terms, were across Emirates Living and Arabian Ranches. The total value of transactions recorded in Emirates Living was AED 344.8 million followed by Arabian Ranches at AED 3.3 million, highlighting healthy demand in established communities. C.9 villas/townhouses were launched during the third quarter, achieving an overall absorption rate of 52% which is a healthy indicator for the market. It has been noticed that properties with an affordable ticket size were comparatively more attractive among investors and occupiers than high end properties during Q3. Examples can be drawn from Safi townhouses in Town Square development wherein all the units launched by the developer were taken up by investors, within a record time primarily due to attractive pricing and payment strategy adopted by the developer. Average villa sales rates across villa communities declined by 5% year-on-year. However, a few developments which were handed over the past two quarters recorded an increase in the range of 3-5%. The increase was mainly noticed across smaller unit sizes of three to four bedrooms units in Arabian Ranches and Park developments. AVERAGE VILLA SALE PRICE AED/ sq.ft. Q3 216 QoQ -2.%.%.% -2.%.% -5.% -2.%.% YoY -5.% -4.% -6.% -8.% -6.% -9.% -8.% +5% 2,5 AED/sq.ft 2, 1,5 1, 5 2,5 1,325 1,15 1,125 1,1 1,5 1, 1, Palm The Lakes Sports City Arabian Ranches Park Springs & Meadows Village Al Furjan 12

REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEW Q3 216 VILLA RENTS Average villa rents during Q3 216 recorded a marginal drop of 1% and 5% year-on-year. During the quarter, much of the rental pressure was recorded across high-end properties while the mid-end market villa segment saw an increase in enquiries. Rental decline remains fragmented with areas such as Palm, Islands, Meadows and Arabian Ranches recording rental deflation of 5%+ year-on-year. Rental decline in Arabian Ranches was largely linked to 6 villas being handed over during the Q3. Completion of community facilities in Park development is aiding towards rental stablisation after a sharp drop in rental values during 215 to H1 216. During Q3 216, rents remained stable with five bedroom villas renting in the range of AED25,- 32, per annum per unit. Looking at the pipeline supply, we expect villa rents to remain under stress during the course of this year; however, much of the impact is likely to be towards luxury and high-end segments. In order to avoid any issues related to rental payments, a few landlords have started requesting for bank statements / salary letters, etc to check tenant s financial status before signing on the tenancy agreement. AVERAGE VILLA ANNUAL RENTS Q3 216 (AED ) PROJECT 2 BEDROOM 3 BEDROOM 4 BEDROOM 5 BEDROOM Q.O.Q Y.O.Y Al Furjan - 16-215 -.76% -6.83% Arabian Ranches 15 185 25 295-1.81% -5.15% Sports City - 18 2 285 -.57% -2.3% Park - - 25 285 -.98% -6.65% Village 14 155 18 - -.34% -1.37% Meadows - 225 25 285 -.86% -5.7% Palm - 335 43 495-1.43% -6.18% Springs 13 175 - -.% -3.% Islands - - 3 37-1.61% -5.69% Golf Estates - 275 32 39-1.2% -4.1% 13

Q3 216 REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEW GCC FREEHOLD VILLA VALUES Q3 216 AED (Million) 25. 2. 15. 1. 5. 24. 17. 15. 11.3 1. 8. 7.5 7.5 5.9 6. 3.8 4.5 Mirdif Al Barsha Umm Suqeim Al Warqa Low High Average GCC FREEHOLD VILLA RENTS Q3 216 AED (Thousands) 3 25 2 15 1 5 135 155 17 Mirdif 27 218 18 Al Barsha 21 235 28 Umm Suqeim 155 18 215 Al Warqa 4 Bed 3 Bed 5 Bed GCC FREEHOLD LAND VALUES Q3 216 AED / Sq.ft. 1, 9 8 7 6 5 4 3 2 1 35 5 425 35 5 425 6 95 775 35 313 275 Mirdif Al Barsha Umm Suqeim Al Warqa Low High Average 14

REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEW Q3 Q2 216 215 15

Q3 216 REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEWQ2 215 PROJECT FOCUS ZEN BY INDIGO - DUBAI GOLF CITY The Zen project is situated within Golf City, a master-planned community in an upcoming residential location. The project is strategically located at the junction of Hessa and Academic City roads and can be easily accessed via major road networks of Mohammed Bin Zayed Road and Emirates Road. The project offers 389 villas and townhouses within a gated community. It offers 3, 4, 5 and 6 bedroom villas and townhouses with plot sizes ranging from 2,3 9,9 sq.ft and built-up areas ranging from 2,8 8, sq.ft. The project is developed and marketed by Indigo Properties which has been in UAE s real estate foray since 24. The developer has a good track record of delivering projects on time with successful project delivery of Orange Lakes in Golf Estates, Indigo and Indigo Icon towers in Lakes Towers and Indigo Ville in Village Circle. Despite some negative sentiments regarding a market slowdown, the rental yields in continues to be the highest amongst the top cities worldwide. The real estate market decline is largely due to a significant fall in global oil prices, along with wider global economic factors, such as the sluggish growth in the Eurozone economies. It is likely that the real estate market specifically in will outperform the UAE on an aggregate basis over the next year, mainly because s economy is considerably less dependent on oil revenue compared to other Emirates. We expect more buyers to come out of the wait and watch mode. We have been seeing a gradual shift from investors towards more end-users accounting for the bulk of current transactions. With the current real estate market for buyers being slow, we have decided to simultaneously cater to a more reasonably priced niche market. We have done so by introducing townhouses of 2,9 sq ft in Indigo Zen, with the objective of catering to a wider range of end users. Dev Mitra CEO, Indigo Properties LLC ZEN BY INDIGO FACT SHEET 4.5 million square feet of prime freehold land; 2 clubhouses and multipurpose halls; Nature theme with over 6, exotic plants; 2 uniquely themed community parks; 6.5 kilometers of nature trail; Over 75, sq.ft. of flowing water bodies; Over 8, sq.ft. of retail community centre; Gated residential community featuring townhouses and villas; A varied mix of residential offerings from three to six bedroom villas catering to a diverse profile of investors and end-users; Each villa comprises of a designer swimming pool and panoramic glass elevators. The show villas are currently under construction and expected to be ready by end of 216 while the entire development is scheduled for completion by 218. 16

PAYMENT PLAN Payment Plan 15% booking amount 1% start of construction 1% on completion of 2% construction 1% on completion of 4% construction 15% on completion of 6% construction 4% on handover 17

Q3 216 REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEW OFFICE SECTOR OFFICE SUMMARY Limited availability of quality office space with large floor plates is driving several large occupiers towards custom built space with longer lease commitments mainly in the CBD and freezone areas. During the third quarter of 216, average lease rates remained unchanged across the board. However, we have noticed a rise in landlord incentives, viz offering rent free periods and relaxed payment terms or in few instances, the landlords are willing to absorb fit out costs to secure a long term tenant contract with a large occupier. Office properties across freezone locations such as International Financial Centre (DIFC), Tecom and Airport Freezone (DAFZA) are recording over 9% occupancy rate and are anticipated to remain in high demand due to limited new stock completing in near future, while tenant demand stays high. While demand for office space from SME s remains strong, the demand is largely limited to smaller office space of less than 2,5 sq.ft. The government initiatives of allocating AED5 billion of Expo contracts to SME s will further boost the sector. DUBAI OFFICE STOCK (28-217) Million sq.ft. 1 8 6 4 2 6. 45 8. 51 1. 59 6. 69 6. 75.2 81 2.5 81 6.8 84 2.3 91.3 93 1.7 93 4.2 95 28 29 21 211 212 213 214 215 H1 216 Q3 216 Q4 216 217 Stock Expected 18

REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEW Q3 216 OFFICE SUPPLY During the third quarter, c.35, sq.ft. of space entered the market, taking the total office stock to 93.2 million sq.ft. The entire space added during the quarter emerged from single owned assets, which reflects a shift in the market from the past two years, when the majority of the new office space was strata owned by multiple owners. The headline vacancy rates are expected to widen further with an addition of one million sq.ft. of office space expected during the course of the year. Locations like Business Bay, Lakes Towers and Silicon Oasis which have a large proportion of strata space are likely to receive the maximum brunt. OFFICE SALES According to the data sourced from the Land Department, circa 343, sq.ft. of office space transacted during the quarter with a total value of AED396.9 million as compared to AED49.1 million in Q2, 216, registering a decline of 19% quarteron-quarter. The freehold developments of Business Bay and Lakes Towers accounted for 76% of the total value of transaction in Q3 216. Business Bay registered AED181.9 million worth of transactions across 155,65 sq.ft. of space, averaging at AED1,17 per sq.ft. Whilst in Lakes Towers 125,5 sq.ft. of office space was transacted at a total value of AED121.1 million, averaging at AED965 per sq.ft. Across major freehold office locations, average office sale rates dropped by 1% quarter-on- quarter and 1% year- on- year. The main freehold locations of Lakes Towers and Business Bay recorded the highest year-on-year declines of 17% and 13% respectively. Despite the substantial drop in supply of strata space, capital values across freehold office locations are likely to decline further due to demand and supply imbalance. OFFICE AVERAGE SALE PRICES Q3 216 QoQ YoY -2.% -7.%.% -8.%.% -13.% -2.% -13.%.% -17.%.% -5.% 2,5 AED / sq.ft. 2, 1,5 1, 5 2,2 1,8 1,475 1,5 1, 95 Downtown DIFC Marina Business Bay Lake Towers Barsha Heights 19

Q3 216 REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEW OFFICE SECTOR OFFICE RENTS During Q3 216, majority of the office leasing enquiries were for smaller sized offices measuring less than 3, sq.ft. and primarily from new start-ups and tenants migrating from ageing properties and older business districts. Office rents in the CBD area remained stable for the sixth consecutive quarter, with average rents in Downtown and along Sheikh Zayed road ranging between AED9-26 per sq.ft. per annum. Office towers which have entered the market over the past 12-18 months across major freehold locations are struggling to achieve desired occupancy levels despite offering attractive rents, ranging between AED 6-19 per sq.ft. per annum. Due to weak demand and high vacancy rates, landlords in the secondary locations are increasingly willing to absorb fit-out charges for tenants with long term commitments. Buildings offering high quality amenities and facilities, good accessibility to public transportation, and strong property management continue to be in high demand from tenants. These office towers are recording healthy occupancy rates despite overall high vacancy rates being witnessed in the strata owned towers. OFFICE RENTS AED/sq.ft. Q3 216 AED/sq.ft. 35 3 25 2 15 1 5 175 DIFC High 34 14 Downtown Low 265 9 Sheikh Zayed Rd 18 65 Business Bay 15 6 Lake Towers 19 7 Barsha Heights 11 12 DIC & DMC 175 Port Rashid Sheikh Zayed Rd. Jebel Ali Freezone TO ABU DHABI Jebel Ali Port Jebel Ali Industrial Area Sheikh Mohamed Bin Zayed Rd. World Central Airport Investment Park 1 Sheikh Zayed Rd. Jebel Ali Village The The Gardens Greens The Meadows The Discovery Lakes JUMEIRAH Gardens LAKES TOWERS Islands RENT = AED 6 - AED 19 /sq.ft. Emirates Hills AVG. SALE = AED 1, /sq.ft. Park The Springs Investment Park 2 Golf Estates IMPZ Golf Estates DIC & DMC Marina RENT = AED 12 - AED 175 /sq.ft. Media / Internet City Lake Towers Village Village South Sport City Barsha Heights Sheikh Mohamed Bin Zayed Rd. Motor City The Palm Al Sufouh BARSHA HEIGHTS RENT = AED 7 - AED 11 /sq.ft. AVG. SALE = AED Al 95 Barsha /sq.ft. Burj Al Arab Umm Suqeim Road 2 21 Legends Nad Al Arabian Sheba 2 Ranches Murdif Sheikh Zayed Rd. Al Khail Road Umm Suqeim Al Barari Al Safa SHEIKH ZAYED Al RD. Quoz Al Quoz Industrial RENT Area = AED 9 - AED 18 /sq.ft. DOWNTOWN DUBAI RENT = AED 14 - AED 265 /sq.ft. Satwa Al AVG. Wasl SALE = AED 2,2 /sq.ft. Burj Khalifa Business Bay The BUSINESS BAY Lagoons RENT = AED 65 - AED 15 /sq.ft. AVG. SALE = AED 1,5 /sq.ft. Al Marqadh Nad Al Sheba Karama Emirates Towers DIFC DIFC Oud Metha RENT = AED 175 - AED 34 /sq.ft. Za abeelavg. SALE = AED 1,8 /sq.ft. Ras Al Khor Al Khail Road Al Raffa Festival City Naif Rigga Garhoud Port Saeed International Airport TO SHARJAH Al Mamzar Al Qusais

Q3 216 REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEW RETAIL SECTOR RETAIL SUMMARY The total retail stock of has reached 34.2 million sq.ft. of Gross Leasable Area (GLA). During the quarter, 43, sq.ft. of GLA was added through the opening of the Outlet Village (Meraas), My City Centre Barsha (MAF) and Community retail centre (Nakheel) in International City. During the quarter, Meraas opened the first of its 1 F&B drive - thru concept Last Exit, located near to Parks and Resorts last Exit offers 17 food truck outlets with a various mix of hot and cold menus and a sit down diner. s leisure offering experience is enhanced with the opening of IMG in Q3 and Legoland shortly, leading to major shopping malls looking to improve their leisure offerings by introducing new brands / experience such as Green Planet and Hub Zero in City Walk, Faby Land in Festival City and refurbishments of magic planets across MAF Properties. Given the importance of shopping malls in this region, we expect various retail mall operators to evolve and grow their leisure offerings over the next 6-12 months to attract the foot-falls and revenue spend. Shopping mall rental revenues remained relatively unchanged during the quarter, with some pressure from larger retail groups applying cost management initiatives across the country. However, with the winter months expected to see an uplift in retail sales, shopping mall rentals are expected to remain stable into the early quarters of 217. Whilst retail properties continue to provide stable returns, there are increasing signs of property management depriving operational and capital expenditure to improve returns which if continued over time is only going to drive property value and returns down. PRIME SHOPPING MALL AVERAGE RENTS Q3 216 1,2 1,1 1 9 8 7 6 5 4 3 2 1 Anchors Cinema Hypermarket Mini Majors Flagships Restaurants Food Court Line Shops AED/sq.ft. 22 21

REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEW Q3 216 Retail Mall Stock Q3 216 GLA sq.ft. (Millions) 4 3 2 1 2.7 2.1 2.6 1.1.4 2.6.7.5.3 1.3 24.5 27.1 27.9 28.4 28.7 3. 32.6 33.7 34.2 36.2 21 211 212 213 214 215 H1 216 Q3 216 Q4 216 217 Stock Expected - *Includes all retail malls with a GLA greater than 25, sq.ft. 23 22

Q3 216 REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEW HOSPITALITY SECTOR HOTEL SUMMARY Supply continues to grow: With the addition of 1,3 rooms in Q3 216, the hospitality stock of has surpassed the 1, mark, taking the total hotel supply to 1,929 rooms and apartments. Provided construction delays are minimal, we expect an addition 1,5 rooms during the remainder of the year. hospitality sector continues to be a strong performing market globally: Whilst we expect occupancy rates to remain around 75% to 8% for the remainder of the year, the room rates are anticipated to further soften over the short to medium term, with major operators competing for occupancy and growth in F&B revenue. Although the room rates have dropped by 7+% year-onyear, room rates are still performing well in comparison to hotel markets globally. Family entertainment offerings expanding package tour opportunities: With the new era of theme parks now starting to open in, we expect to see selective hotels adapting pricing and offerings towards a greater family focus and increase in children friendly DUBAI HOTEL ROOMS SUPPLY (212-217) No. of Rooms ('s) 12 8. 4.7 2.9 1.29 1.8 1 8 1 4 8 6 92 97 1 11 13 4 79 8 84 2 212 213 214 215 H1 216 Q3 216 Q4 216 217 Existing Supply New Supply 23 24

REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEW Q3 216 DUBAI HOTELS PERFORMANCE - 216 YTD AED 1,4 1,2 1, 8 6 4 2 Jan-14 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-15 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan-16 Feb Mar April May June July August September ADR RevPAR Occupancy 1.% 9.% 8.% 7.% 6.% 5.% 4.% 3.% 2.% 1.% % Occupancy HOTELS - NEW SUPPLY Q3 216 HOTEL NAME LOCATION STAR DATE NUMBER OF KEYS The Westin Sheikh Zayed Road 5 star Q3 216 14 Al Khoory Atrium Hotel Al Barsha 3 star Q3 216 227 White Sand Hotel Deira 1 star Q3 216 58 SAMPLE OF UPCOMING SUPPLY HOTEL NAME LOCATION STAR DATE NUMBER OF KEYS Al Naseem 5 star Q4 216 43 Rove City Centre Port Saeed 4 star Q4 216 27 Nikki Beach & Resort Pearl 5 star Q4 216 132 The Address Boulevard Downtown 5 star Q1 217 196 25 24

Q3 216 REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEW DEFINITIONS & METHODOLOGY RESEARCH STUDY AREA The geographic extent of the study area covers the key districts in. 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. 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 office developments are classified as delivered and thus entered into the new supply category when they are available for tenant fit-outs. Given the general lack of transparency in the local market rents quoted are headline rents, thus exclude any rent free period of 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 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 DTCM. FUTURE SUPPLY PROJECTIONS Our future supply projections across all sectors are based on a combination of regular site inspections and discussions with developers. 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. 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. DISCLAIMER: The information contained in this report has been obtained from and is based upon sources that MPM Properties 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. MPM Properties will not be held responsible for any third-party contributions. All opinions and estimates included in this report constitute MPM Properties, 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 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 MPM Properties control. For a full in-depth study of the market, please contact MPM Properties team. 26 25

REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEW Q3 216 A collaborative team providing our integrated services PAUL MAISFIELD BSC (HONS) MRICS CEO T: +971 ()2 61 545 M: +971 ()5 66 9437 paul.maisfield@adib.com ABDULLAH SAID AL KUWEITI Business Development Director T: +971 ()2 61 1554 M: +971 ()5 623 5854 abdullahs@mpmproperties.ae FRANK O DWYER MBA (Hons); BEng. COO T: +971 ()2 61 42 M: +971 ()5 812 17 f.odwyer@mpmproperties.ae VAIBHAV SHARMA MCOM; MDBA Director of Strategic Advisory and Research T: +971 ()2 412 8914 M: +971 ()5 66 9295 vaibhav.sharma@adib.com YOUSEF AL ZAROONI Regional Head Al Ain T: +971 ()3 78 8636 M: +971 ()5 6 12 yousef.alzarouni@mpmproperties.ae ALI ABDULLAH ABDUL RAHMAN Acting Regional Head Northern Emirates T: 971 ()6 597 2514 M: +971 ()5 656 2486 aliabdullah@mpmproperties.ae VINEET KUMAR Director of Agency T: +971 ()4 371 9462 M: +971 ()5 651 6491 vineet.kumar@adib.com DOMINIC BARLOW Head of Retail, Hospitality & Leisure T: +971 ()2 51 655 M: +971 ()56 288 1458 dominic.barlow@adib.com VIDHI SHAH MBA (FINANCE) Commercial Valuations Manager T: +971 ()4 371 9461 M: +971 ()5 459 269 vidhi.shah@mpmproperties.ae MOHAMMED FAHEEM Manager Strategic Advisory & Research T: +971 ()4 371 9471 M: +971 ()5 384 522 mohammed.abdulfaheem@adib.com WAHIDA KARAMA Head of Property Operations T: +971 (2) 61 435 M: +971 ()5 765 7679 wahida.karama@mpmproperties.ae JUBRAN AL HASHMI Head of Property Services T: +971 ()2 61 232 M: +971 ()5 122 41 jubran@mpmproperties.ae BALAJI NAGARAJ MSC MRICS Head of Residential Valuation & Northern Emirates T: +971 ()4 371 9463 M: +971 ()55 196 2396 b.nagaraj@mpmproperties.ae MOHAMED AL ZOUBI Head of Development Advisory BSc Civil Engineering T: +971 ()2 61 564 M: +971 ()5 31 357 mohammedalzoubi@mpmproperties.ae 27 26

Q3 216 REAL ESTATE SERVICES DUBAI REAL ESTATE MARKET OVERVIEW SUPPLY - PHOTO GALLERY NEW SUPPLY Q3 216 RESIDENTIAL SAMPLE OF UPCOMING PROJECTS Q3 216 RESIDENTIAL 1 AZIZI FEIROUZ AL FURJAN 2 AZIZI YASAMINE AL FURJAN 3 SILICON GATE DUBAI SILICON OASIS 4 WINDSOR RESIDENCE DUBAILAND 1 MURABA PALM JUMEIRAH 2 AL SHAFAR RESIDENCES BUSINESS BAY 3 ESCAN TOWER DUBAI MARINA 4 EMIRATES AIRLINE STAFF ACCOM. OFFICE OFFICE 1 THE EDGE TECOM 2 BUTTERFLY TECOM 3 OFFICE BUILDING UM AL SHEIF 4 OFFICE BUILDING UM AL SHEIF 1 PALAZZO VENEZIA MAJAN 2 THE COURT BUSINESS BAY 3 THE OPUS BUSINESS BAY 4 TAMANI ART OFFICE TOWER BUSINESS BAY RETAIL RETAIL 1 MY CITY CENTRE AL BARSHA 2 THE OUTLET VILLAGE JEBEL ALI 2 COMMUNITY CENTRE INTERNATIONAL CITY 1 FIRST AVENUE MALL MOTOR CITY 2 THE RIBBON MOTOR CITY 3 THE POINTE PALM JUMEIRAH 4 DUBAI MALL EXPANSION ZABEEL HOTEL HOTEL 1 AL KHOORY HOTEL APARTMENTS AL BARSHA 2 WESTIN AL HABTOOR CITY 3 WHITE SAND DEIRA 1 THE ADDRESS BLVD. DOWNTOWN 2 DUSIT EMIRATES SARAY PALM JUMEIRAH 3 JUMEIRAH AL NASEEM JUMEIRAH 4 ROVE CITY CENTRE PORT SAEED 28 29

Q3 216 Q3 216 NEW SUPPLY Residential Offices Retail Hotels UNDER CONSTRUCTION Residential Offices Retail Hotels 3 4 3 Jebel Ali Port 4 3 Al Mamzar Jebel Ali Freezone 2 4 3 2 1 Barsha Heights 4 3 2 2 4 2 1 1 3 3 2 1 Al Qusais 1 1 TO ABU DHABI 2 1 4 3 1 2 3 31

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