Property Review Abu Dhabi Real Estate Report In the Middle East for over 30 Years Offices 2 3 4 5 Rent Sales Rent Sales Rent Sales Property map
Abu Dhabi -3% -4% -3% -3% Q-o-Q % change Prime High end Mid end Lower end Sales Prices Q-o-Q % change Limited public spending, job cuts and a reduction in staff allowances continued to affect market sentiment, which resulted in apartment rental rate decreases of 8% on average during the last 12 months. High-end units recorded the largest drop with 12% on average. Quarterly changes were less pronounced with decreases of 3% on average. The delivery of 2,700 new over the last 15 months put further pressure on rental rates as the majority of new supply was offered below prevailing rates to facilitate a higher take-up. Sales demand and transaction levels remained markedly low in ; this led to quarterly and yearly declines of 2% and 4% on average, respectively. 2016 1,350 1,350 expected by end of 2017 2,550 TYPE STUDIO 1 BEDROOM 2 BEDROOMS 3 BEDROOMS % CHANGE ALL FIGURES IN AED 000 S PER ANNUM FROM TO FROM TO FROM TO FROM TO Q4 2016 - PRIME PROPERTIES Abu Dhabi Island - - 95 145 135 220 170 335-1% -5% Investment Areas 90 105 130 155 150 220 195 300-1% -5% HIGH END PROPERTIES Abu Dhabi Island Central Abu Dhabi - - - - 122 150 155 180-7% Corniche - - 85 95 120 150 150 235-3% -15% Khalidya / Bateen 83 90 95 125 115 165 150 230-7% Investment Areas Al Raha Beach - - 100 120 140 165 170 210-1% -6% Marina Square 65 70 75 115 105 160 135 190-3% -10% Saadiyat Beach - - 105 128 165 175 195 220-3% -9% Shams Abu Dhabi 70 75 90 105 120 155 150 180-3% 3% MID END PROPERTIES Abu Dhabi Island 55 70 70 110 90 160 140 200-9% Investment Areas Shams Abu Dhabi - - 75 95 95 140 145 175-6% Najmat & Tamouh 45 65 70 92 90 140 120 180-4% -3% LOWER END PROPERTIES Abu Dhabi Island Central Abu Dhabi 40 50 60 70 70 95 85 135-1% Corniche 40 50 60 70 75 90 90 140-3% -5% Khalidiya / Bateen 40 45 60 75 75 100 90 135-3% -5% Investment Areas Al Reef 50 62 70 80 87 105 110 130-3% -9% Off Island MBZ & Khalifa City A 30 45 42 65 60 80 70 95 0% -1% Q1 2016 - Sales Prices AVERAGE SALES PRICES ALL FIGURES IN AED PER SQ M FROM TO Q4 2016 - % CHANGE Q1 2016 - Marina Square 1,150 1,300-5% Al Bandar 1,500 1,900 0% 0% Al Muneera 1,350 1,550-3% -3% Al Zeina 1,150 1,450 Reef Downtown 850 1,100 0% -5% Sun & Sky Towers 1,300 1,500-1% -3% The Gate 1,250 1,450-5% Saadiyat Beach Residences 1,400 1,600-4% -6% City of Lights - Hydra 900 1,150-5% -9% Apartment rental rates and sales prices continued to soften as a result of increased new supply and general bearish market sentiment. 2 ABU DHABI
Abu Dhabi Sales Prices Q-o-Q % change Q-o-Q % change Villa rental rates declined by 5% on average during the last 12 months. In some Communities this was more pronounced; Asteco recorded declines of up to 12% in Al Raha Gardens and in lower-end units located on Abu Dhabi Island. Over the quarter, rates declined marginally. Average sales prices declined by 5% since Q1 2016 and by 2% during the first three months of 2017. This was due to low demand and limited availability of quality units. However, competitively priced off-plan villas with flexible payment plans continued to generate interest from potential Buyers such as TDIC s Lagoons project. Bloom Gardens recorded the delivery of 150 villas in the first quarter of 2017. Another 900 are expected to be handed over by the end of the year, including, but not limited to projects on Saadiyat Island and in the Baniyas area. 2016 90 Demand for off-plan villa units was relatively positive, especially for competitively priced units. TYPE 2 BEDROOMS 3 BEDROOMS 4 BEDROOMS 5 BEDROOMS % CHANGE ALL FIGURES IN AED 000 S PER ANNUM FROM TO FROM TO FROM TO FROM TO Sales Prices Q4 2016 - Abu Dhabi Island Khalidiya / Bateen - - 170 200 180 210 185 235-6% Mushrif / Karama / Manaseer - - 160 175 165 200 195 260-5% Q1 2016 - Nahyan Camp / Muroor - - 125 170 170 190 175 250-6% -12% Investment Areas Al Raha Beach - - 190 220 210 290 290 330 0% -8% Al Reef 105 125 125 145 155 165 160 185-3% -7% Hydra Village 80 95 90 115 - - - - -1% 0% Saadiyat Island - - 300 320 350 400 400 850 0% 0% Abu Dhabi Island Al Raha Gardens - - 170 195 170 260 220 270-1% -12% -6% Golf Gardens - - 210 230 230 270 270 320-6% Khalifa City - - 115 150 140 160 150 180 0% -3% Mohamed Bin Zayed - - 100 115 130 150 150 165 0% -1% -7% -3% -5% -1% -1% -3% 150 expected by end of 2017 900 AED Million 2.60 2.95 4.50 3.20 Raha Gardens Golf Gardens Al Reef Saadiyat Beach (Standard) 2 Bedrooms 3 Bedrooms 4 Bedrooms 5 Bedrooms Q-o-Q % Change Y-o-Y % Change 4.00 4.88 1.55 1.85 2.20 2.80 5.75 6.55 10.75 1.10 1.28 Hydra Village Asteco Property Management, 2017 3
Abu Dhabi Offices Q-o-Q % change Limited new take-up and virtually no Tenants upgrading to larger units or better locations caused rental rates to decline by 10% on average compared with Q1 2016 and 2% over the quarter. Buildings with limited parking and larger floor areas in particular struggled and Landlords continued to subdivide units and offered reduced rates and incentives to entice Tenants. Rental rates in older Grade B buildings ranged from AED 650 to AED 930 per sq m, whilst fitted space in new prime buildings achieved AED 1,800 per sq m on average. 2016 expected by end of 2017 The office sales market remained restricted by the limited availability of properties offering commercial units for sale. Three major office towers are expected to be handed over in 2017, including the ADIB Headquarters building on Airport Road, as well as Leaf Tower and Omega Tower both located on Reem Island, comprising approximately 180,000 sq m of quality office space. 84,000 sq m 43,000 sq m 180,000 sq m AVERAGE RENTAL RATES % CHANGE ALL FIGURES IN AED PER SQ M PER ANNUM FROM TO Q4 2016 - Q1 2016 - Grade A - Prime 1,600 2,500 - - Grade B - Recent Build Fitted 780 1,430-1% -10% Shell and Core 700 1,100 0% -9% Older Stock Good 650 930-3% -7% Typical building 600 730-1% -8% Low quality building 550 600-4% -11% The office sector continued to remain under pressure as demand decreased for large units and buildings with limited parking. 4 ABU DHABI
Abu Dhabi 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 4 20 8 26 22 7 23 YAS ISLAND 1 5 10 9 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. 14 24 11 11 11 21 33 Asteco Property Management, 2017 5
Abu Dhabi Real Estate Report 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.