Q1 2020 UAE Property Market Report PDF

Q1 2O2O UAE PROPERTY MARKET REPORT
ABOUT
Established in 2008, Cavendish Maxwell is one of the largest and most respected property
consultancies in the region. An influential partner and trusted advisor to key stakeholders in
real estate markets throughout the Middle East and Africa, we offer a comprehensive range of
exceptional property services across a diverse mix of sectors and asset classes.
Cavendish Maxwell is a certified member firm of the Royal Institution of Chartered Surveyors
(RICS), bringing together a world-class team of handpicked property consultants and surveyors,
unmatched elsewhere in the region.
Our team of highly qualified professionals is trusted by real estate market stakeholders throughout
the region, including international and domestic banks, property developers, governments,
owners and investors, asset managers and professional services firms. We service a diverse mix
of specialist property sectors including retail, offices, hospitality, healthcare, education, industrial
and logistics.
Cavendish Maxwell also publishes independent reports, prepared to globally accepted standards,
for loan security, bank lending, audit, insurance reinstatement, dispute resolution, risk management,
debt recovery, performance analysis, purchase and sale advice, and third-party reliance purposes.
Our quarterly market reports provide updates on price movement, rent and yield statistics,
residential transactions, and upcoming supply of residential properties through the real estate
data intelligence platform, Property Monitor.
FOREWORD
The trajectory of the first quarter of the year has been unlike any other, quickly
going from business-as-usual to social distancing measures and restrictions in a
bid to contain the spread of a highly contagious virus. At the same time, the focus
on diversification is greater than ever, with hydrocarbon prices once again under
pressure, fuelled by weak demand.
At this crucial time, support from authorities has been extended to help businesses
across sectors survive and minimise monetary and manpower loss. As the situation
continues to evolve, the impact on various sections of the economy, including real
estate, is yet to be fully ascertained.
Against this backdrop, in our Q1 2020 report we take a look at the performance of
the UAE real estate market with a focus on the measures introduced to mitigate the
economic impact of the COVID-19 contagion. The analysis provides a comprehensive
overview of the residential, office, retail, hospitality and industrial sectors in Dubai,
Abu Dhabi and the Northern Emirates with the aim to be a valuable tool in our clients’
decision-making process.
CONTENTS
6 Residential Market Overview
26 Commercial Market Overview
30 Hospitality Market Overview
32 Industrial Market Overview
34 A Word From Our Chief Economist

KEY POLICY CHANGES
LEHMAN BROTHERS
COLLAPSE
OIL PRICES COLLAPSE NEW M

TO $32/BARREL PE
UAE REAL EARLY SIGNS OF EXPO 2020

ESTATE BOOM TROUBLE ANNOUNCEMENT
BOND ISSUANCE REBOUND GROWTH

OIL PRICES PEAK TO BY THE UAE CENTRAL BANK
FOR THE GENERAL
$145/BARREL CENTRAL BANK MORTAGE CAP
MARKET - OIL PRICES
170
Property Monitor Dynamic Price Index Value
NAKHEEL AND DWC

ANNOUNCE PLANS
FOR DEBT
160 RESTRUCTURING
150
ABU DHABI’S $10
BILLION LOAN
TO DUBAI
140
130
120
110
100
2008 2009 2010 2011 2012 2013 2014
The
TheProperty
PropertyMonitor
MonitorDynamic Price Price
Dynamic Index (DPI)
Index tracks
(DPI)trends of trends
tracks propertyof
prices throughout
residential 42 key communities
property in Dubai 42
prices throughout andkey
is in
AGE LIMIT REMOVED FOR LAST
ABU DHABI MORTGAGE REPAYMENT
MARKET OIL PRICE OPEC LIMITS
EAK DEREGULATION UPDATES FREEHOLD
CRUDE OUTPUT
OWNERSHIP LAW
EARLY SETTLEMENT FEE FOR

MORTGAGES REMOVED
GOLDEN CARD,
A PERMANENT
OIL PRICES COLLAPSE
RESIDENCY
TO $47/BARREL SYSTEM ANNOUNCED
INTEREST RATE CUT
RUSSIAN CURRENCY AFFORDABLE 20% CAP FOR BANKS’ PROPERTY

BREXIT VOTE LENDINGREMOVED
CRISIS HOUSING ARRIVES
REAL ESTATE INVESTMENT

OPPORTUNITIES INITIATIVE
LAUNCHED
HIGHER COMMITTEE
FOR REAL ESTATE
PLANNING FORMED
INTEREST
RATES CUT TWICE
DLD AND RERA SPLIT

RESPONSIBILITIES
WORLD HEALTH ORGANISATION

DECLARES COVID-19 A GLOBAL
PANDEMIC AND COUNTRIES
NEW JOINT CLOSE THEIR BORDERS
OWNERSHIP LAW TO CONTAIN THE SPREAD
ANNOUNCED
INTEREST RATES
CUT TWICE
2015 2016 2017 2018 2019 Q2 Q3 Q4 2020 Q1
ndexed to a basein
communities period
Dubaiof and
January 2008. to a base period of January 2008.
is indexed
DUBAI
APARTMENT PRICE PERFORMANCE
According to Property Monitor, median apartment prices declined 12% over the 12-month period
from Q1 2019 to Q1 2020.
Whilst communities such as Dubai Silicon Oasis, Palm Jumeirah and Liwan registered declines of over 20% during the year, others have registered
significant gains. Prices at Mohammed Bin Rashid City and Dubai South (Dubai World Central) have gained over 15% between Q1 2019 and Q1 2020.
Similar to past years, there is higher availability of affordable options in the property market. New concepts and formerly expensive options which are
now within reach due to softening prices are increasingly becoming available and enticing tenants to become homebuyers. The sector’s growth is
also promoting the proliferation of the fit-out, home design and renovations industries.
New and emerging areas such as Dubai Hills Estate, Dubai Creek Harbour and Al Jaddaf are seeming even more attractive now as prices are under
pressure especially considering the superior quality of infrastructure in these new areas.
A possible shot in the arm to the buyer segment will likely come from the recent stimulus by the UAE Central Bank which increases the loan-to-value
(LTV) ratio applicable to mortgages for first-time buyers by 5% for off-plan and secondary market transactions. With the recent interest rate cuts,
loans are also cheaper than before.
-1%
Dubai South (Dubai World Central) 16%
-4%
Al Furjan -14%
4%
Dubai Sports City -3.%
Culture Village 6%
-8%
4%
Dubai Silicon Oasis -21%
4%
International City -10%
3%
Jumeirah Golf Estates -7%
-3%
Discovery Gardens -12%
3%
Business Bay -1%
-4%
Jumeirah Beach Residence -15%
Barsha Heights (Tecom) -4%

-5%
-5%
Palm Jumeirah -23%
-5%
The Hills
-6%
City Walk -17%
-3%
Dubai Marina -17%
-10%
Liwan -23%
-8%
Downtown Burj Khalifa -17%
-9%
Jumeirah Village Circle -20%
Damac Hills (Akoya By Damac) -10%

-10%
23%
Mohammed Bin Rashid City 15%
-24 -21 -18 -15 -12 -9 -6 -3 0 3 6 9 12 15 18 21 24

% change
Source: Property Monitor
Median prices calculated based on 6-month moving averages. Quarterly Q4 2019 - Q1 2020 Yearly Q1 2019 - Q1 2020
6
RESIDENTIAL
Business Bay
AED 1,061/sq ft Culture Village
AED 1,356/sq ft
City Walk
AED 1,554/sq ft
Downtown Burj Khalifa

AED 1,336/sq ft
Palm Jumeirah International City

AED 1,322/sq ft AED 600/sq ft
Mohammed Bin Rashid City

AED 1,515/sq ft
Jumeirah Beach Residence
AED 1,138/sq ft
Dubai Silicon Oasis
AED 599/sq ft
The Hills
Liwan
AED 1,143/sq ft
AED 519/sq ft
Barsha Heights (TECOM)

AED 1,024/sq ft
Jumeirah Village Circle

AED 636/sq ft
Dubai Marina
AED 1,014/sq ft
Discovery Gardens Dubai Sports City

AED 620/sq ft AED 812/sq ft
Al Furjan Jumeirah Golf Estates

Damac Hills (Akoya by Damac)
AED 749/sq ft
AED 895/sq ft
AED 953/sq ft
Dubai South (Dubai World Central)

AED 833/sq ft
7
DUBAI
VILLA/TOWNHOUSE PRICE PERFORMANCE
According to Property Monitor, median villa/townhouse prices declined 4%

over the 12-month period from Q1 2019 to Q1 2020, outperforming apartment
prices during the same period.
During the year, the range of declines in the villa communities in Dubai has been fairly wide. While Al Furjan recorded a drop of 32%,
others including Jumeirah Golf Estates, Damac Hills (Akoya By Damac) and Arabian Ranches 2 saw declines in the range of 2-5%.
-8%
Al Furjan -32%
Arabian Ranches 2 -12%

-5%
0%
Damac Hills (Akoya By Damac) -2%
-7%
Dubai Silicon Oasis -17%
0%
Jumeirah Golf Estates -2%
0%
Jumeirah Islands -25%
-3%
Jumeirah Village Circle -16%
-3%
Mohammed Bin Rashid City -13%
-24%
Palm Jumeirah -15%
1%
The Villa -18%
-1%
Town Square -7%
-33 -30 -27 -24 -21 -18 -15 -12 -9 -6 -3 0 3
% change
Quarterly Q4 2019 - Q1 2020 Yearly Q1 2019 - Q1 2020

Median prices calculated based on 6-month moving averages.
8
RESIDENTIAL
Palm Jumeirah
AED 1,696/sq ft

AED 805/sq ft
Dubai Silicon Oasis

Jumeirah Islands AED 635/sq ft
AED 855/sq ft
The Villa
Jumeirah AED 642/sq ft
Village Circle
AED 442/sq ft
Arabian Ranches 2
AED 998/sq ft
Damac Hills (Akoya by Damac)

AED 937/sq ft
Al Furjan Villas Jumeirah Golf Estates Town Square

AED 640/sq ft AED 1,044/sq ft
AED 630/sq ft
9
DUBAI
RENT PERFORMANCE
According to Property Monitor, median apartment rents declined 14% whilst

villa/townhouse rents were lower by 10% over the 12-month period from Q1
2019 to Q1 2020.
In a major development earlier this year, a new property leasing law came into effect in the Dubai International Financial
Centre (DIFC) providing enhanced protection for landlords and tenants in the financial district. Some of the features of
the law include an upper limit on security deposits to 10% of the annual rent of a residential lease, and the requirement
of a written notice by the landlord to the tenant of a proposed rent increase at least 90 days prior to the expiry of a lease.
-15
Given the current global health alert with COVID-19, the emerging residential co-living concept may see heightened Barsha Heights
AED 38,815
interest. As companies worldwide have applied measures including installing hygiene dispensers, conducting
AED 56,935
awareness campaigns and applying work-from-home policies, co-living options would provide its largely young and AED 72,679
professional audience the ideal setting of working remotely within a community, without having to rent office space
-8
or commute to a job. Within Dubai, Emaar Properties offers this concept through Collective, Collective 2.0, and Socio
Palm Jumeirah
projects at Dubai Hills Estate. Other projects under development include UNA by Nshama at Town Square and KOA’s
AED 61,755
Canvas off Mohammad Bin Zayed Road.
AED 92,975
AED 134,801
To withstand the current situation, some landlords are providing relief to tenants by way of rent waivers as a temporary
measure.
-14
Annual rent by bedroom
-13 JLT
* Data as of March 2020 AED 38,782
Dubai Marina
AED 58,281
APARTMENT VILLA/TOWNHOUSE AED 53,036 AED 86,639
AED 69,520
Studio 3 BR AED 106,079
1 BR 4 BR
2 BR 5 BR
12-month % change 12-month % change
Median rental prices calculated based on 6-month moving averages.

1
Al Furjan Villas -10

NUMBER OF RENTAL CHEQUES FOR APARTMENTS AND
AED 126,021
VILLAS/TOWNHOUSES Al Furjan
AED 128,119
AED 167,670 AED 40,991
0.1% 0.1% AED 53,725
7 cheques 8 cheques AED 75,522
4.2% 0.1%
6 cheques 10 cheques
0.2% 1.6%
5 cheques 12 cheques
31.5% 36.4%
4 cheques 1 cheque
5.9% 19.9%
3 cheques 2 cheques
10
RESIDENTIAL
RESIDENTIAL
-12
-18
-13 Downtown Burj Khalifa
AED 51,621 Culture Village
Business Bay AED 78,506 AED 58,137
AED 45,738 AED 151,872 AED 71,598
AED 64,210 AED 122,066
AED 87,928
-11
-10
DIFC
City Walk AED 54,339
AED 113,715 AED 84,841
AED 151,509 AED 118,119
-7
Al Khail Heights
AED 28,616 Mohammed Bin Rashid City
AED 34,701
s (Tecom)
AED 151,613 -13
AED 67,402
AED 193,124
Dubai Silicon Oasis
AED 26,732
AED 38,154
AED 57,163
-14
JVC
Dubai Silicon Oasis
AED 121,676
AED 137,676
AED 134,715
-10 AED 152,037
-17 Liwan
-15 AED 36,705
Arjan
JVC AED 27,500
AED 32,105 AED 38,953
AED 50,142 AED 58,497
AED 71,035 -9
The Villa
-21 AED 93,746

AED 150,509
-14
Dubai Sports City AED 162,976
AED 33,109 Arabian Ranches 2
AED 39,139 AED 135,802
AED 57,086 AED 168,257
AED 195,675
-9
Dubai Sports City

AED 115,954 -10
AED 145,517
Mudon
AED 223,975
AED 109,666
AED 145,076
1
-5
Jumeirah Golf Estates
Town Square
AED 224,233
AED 31,932
AED 232,421
AED 46,136
AED 254,606 -17
AED 49,707
-28 Damac Hills (Akoya By Damac)

AED 114,888
Dubai South (Dubai World Central) AED 177,821
AED 24,111 AED 182,076
AED 31,726
AED 49,378
11
DUBAI
2020 UPCOMING SUPPLY
According to Property Monitor, over 6,200 apartments and over 800

villas/townhouses were handed over in Dubai during Q1 2020.
Following the establishment of the Higher Committee for Real Estate Planning in November 2019, which aims to
match property supply to demand in Dubai, several developers have slowed down project launches and have
chosen to instead focus on completing existing projects.
Among the new project launches during Q1 2020 was Danube Properties’ AED 400 million Olivz project in
Al Warsan First. The development will house 741 apartments along with retail and recreational facilities and
is scheduled for completion in early 2022. The other launch was Sobha Realty’s Creek Vistas Reservé Tower
in Sobha Hartland. The luxury tower, scheduled for a March 2023 handover, will offer 330 apartments spread
across 33 floors.
For Q2 and the remainder of 2020, delivery of new units is expected to be impacted as many construction
companies, contractors and suppliers temporarily suspended activities from March as a precautionary measure
against the further spread of COVID-19. Fewer new launches and potential delays in handovers of existing
projects may constrict supply overall, providing support to prices and rents in the upcoming quarters.
APARTMENTS VILLAS/TOWNHOUSES
78% 22%
SUPPLY SCHEDULED TO BE COMPLETED BY Q2 2020
101-500
501-1,000
1,001-2,000
2,001-2,500
>2,501
Source: Cavendish Maxwell
12
RESIDENTIAL
Al Mamzar
Al Nahda
Muhaisnah
Deira Waterfront
Al Qusais
Dubai Maritime City
Al Raffa Rigga Al Buteen
Al Mankhool
Al Kefaf
Mirdif Hills
Al Jaddaf
Dubai Creek Harbour

Downtown Dubai
Nadd Al Hamar
Ras Al Khor
Al Warqa
Business Bay Meydan One

Meydan Avenue
Al Warsan International City
Dubai International Academy City
Palm Jumeirah Al Sufouh

Dubai Silicon Oasis
Sidra Community
Al Barsha
Dubailand
Dubai Marina
Jumeirah Lake Tower

Jumeirah
Village Circle
Dubai Sports City
Al Furjan Damac Hills
Town Square
Akoya Oxygen
Dubai South
13
DUBAI
TRANSACTION OVERVIEW
The total transfers in Q1 2020 were 8,700 for both villas/

townhouses and apartments compared to 12,444 in Q4 2019.
Whilst transactions have declined on a quarterly basis, the full impact will only be seen over
the next few weeks or months once normal activity resumes.
Off-plan transfers continued to lead in Q1 2020, accounting for approximately 58% of total
transfers.
Mohammad Bin Rashid City, Downtown Burj Khalifa and Jumeirah Village Circle were the
most sought-after locations for off-plan apartment transfers in Q1 2020.
For villas/townhouses, the total volume of off-plan transactions increased from 775 to 911
transactions between Q1 2019 and Q1 2020.
14
Number of transactions Number of transactions
0
50
100
150
200
250
0
50
100
150
200
250
300
350
400
450
500

Arabian Ranches 3
Mohammed Bin
208
Rashid City
488
Dubai South (Dubai
Downtown
198
World Central)
Burj Khalifa
466
Villanova
OFF-PLAN
OFF-PLAN
Jumeirah Village
160
Circle
417
The Valley
76
Business Bay
398
Serena
75
Dubai Creek
Harbour
348
Number of transactions
Number of transactions
0
50
100
150
200
250
300
350
0
10
20
30
40
50
60
70
80
90
100
110
120
Dubai Marina
Dubai Hills Estate
333
112
Q1 2O2O
TOP 5 LOCATIONS FOR VILLA TRANSFERS IN Q1 2020

International City
Emirates Living
211
107
TOP 5 LOCATIONS FOR APARTMENT TRANSFERS IN Q1 2020
Jumeirah
Akoya Oxygen Village Circle
177
71
SECONDARY MARKET
Jumeirah
SECONDARY MARKET
Beach Residence
177
Mudon
63
Arjan
162
Arabian Ranches
50
UAE PROPERTY MARKET REPORT
15
RESIDENTIAL
ABU DHABI
PRICE PERFORMANCE
Average sales prices declined in Abu Dhabi’s major residential

zones by 13.2% for apartments from Q1 2019 to Q1 2020. Villa/
townhouse prices registered a slightly lower decline of 9.5% over
the same period.
16
RESIDENTIAL
As prices increasingly fall within budget for many, the long-term UAE residency visa scheme and the opening up of 15 zones to foreign buyers,
both of which were announced last year, are expected to be a tailwind for the sector going forward.
Keeping with the broader UAE Sustainable Development Goals (SDG) agenda, UAE’s Ministry of Infrastructure Development and Sheikh Zayed
Housing Programme are working to combine smart technology and sustainable standards in infrastructure and housing projects. Over the last two
decades, the programme has developed applications of sustainability in housing, enabling responsible electricity and water consumption. Most
recently Dr. Abdullah Balheif al-Nuaimi, Minister of Infrastructure Development and Chairman of the Sheikh Zayed Housing Programme, launched
the first-of-its-kind geospatial infrastructure platform which uses large geospatial data when making strategic decisions.
Undertaking further public realm improvement in the capital, the Abu Dhabi City Municipality has completed the first phase of planting palm and
fruit trees along the Khalifa Bin Shakhbout Street. Meanwhile, Phase 2 which extends from Al Falah Street to Shakhboot Bin Sultan Street was also
undertaken in Q1 2020.
APARTMENT PRICE PERFORMANCE
Saadiyat Beach -10.2%

-1.9%
1,285
Residences
-2.5%
-12.4% 1,121
Al Raha Beach
Percentage change
AED/sq ft
-3.7% 881
Al Reem Island -19%
-2.3%
728
Al Ghadeer -12.1%
Al Reef Downtown -12.2%

-2.5%
653
-22% -20% -18% -16% -14% -12% -10% -8% -6% -4% -2% 0 200 400 600 800 1000 1200 1400 1600
Quarterly Q4 2019 - Q1 2020 Yearly Q1 2019 - Q1 2020 Average price per sq ft
VILLA/TOWNHOUSE PRICE PERFORMANCE
-3%
Al Raha Gardens -12.9% 742
Percentage change
Al Reef Villas -3.2%

AED/sq ft
600
-4.8%
-1.9% 1,320
Saadiyat Beach Villas -10.9%
-14% -12% -10% -8% -6% -4% -2% 0 200 400 600 800 1000 1200 1400 1600
Quarterly Q4 2019 - Q1 2020 Yearly Q1 2019 - Q1 2020 Average price per sq ft
17
ABU DHABI
RENT PERFORMANCE
Rents in Abu Dhabi registered declines in Q1 2020 for both apartments and
villas/townhouses, however, rents for the latter sharply outperformed those
for apartments. The average decline was 15.7% for apartments in the 12-month
period from Q1 2019 to Q1 2020 compared to 5.6% for villas/townhouses.
Leading developer Aldar Properties has taken several measures as part of an AED 100 million plan to support its customers, tenants and partners
through the COVID-19 situation. The developer will ensure timely payments to suppliers and contractors, offer monthly payment plans to tenants
in need, enhance distance learning capabilities and is also introducing a virtual personal shopper programme to help its residents.
These measures, along with the stimulus initiatives launched by the Abu Dhabi Executive Council and the UAE Central Bank are aimed at
cushioning the economic impact of the pandemic.
APARTMENT RENT PERFORMANCE
-5.9% 133,000
Saadiyat Beach Residences -13%
82,500
-0.9% 103,000
Al Raha Beach
Rent (AED/annum)
70,000
-12.5% 55,000
Percentage change
-4.3% 80,000
Al Reem Island -17.7%
58,500
44,000
-4.1% 50,000
Al Ghadeer -14.3%
36,750
26,000
-4.8% 70,000
Al Reef Downtown -20.7% 35,500
51,000
-22% -20% -18% -16% -14% -12% -10% -8% -6% -4% -2% 0 50,000 100,000 150,000 200,000
Quarterly Q4 2019 - Q1 2020 Yearly Q1 2019 - Q1 2020 Studio 1 BR 2 BR
VILLA/TOWNHOUSE RENT PERFORMANCE
-2.2% 180,000
Al Raha Gardens -2.2%
150,000
124,000
Rent (AED/annum)
Percentage change
-2.6% 127,000
Al Reef Villas -3.3%
120,000
97,000
-4.9% 350,000
Saadiyat Beach Villas -11.2%
305,000
290,000
-12% -10% -8% -6% -4% -2% 0 100,000 200,000 300,000 400,000
Quarterly Q4 2019 - Q1 2020 Yearly Q1 2019 - Q1 2020 3 BR 4 BR 5 BR
18
RESIDENTIAL
ABU DHABI
2020 UPCOMING SUPPLY
According to Property Monitor, apartments will continue to dominate

upcoming supply in Q2 2020 making up over 80% of deliveries.
Among the communities, Khalifa City is expected to receive the highest number of apartment deliveries in the upcoming quarter whilst Al Ain
and Wahat Al Zaweya will have increased villa/townhouse handovers.
86% 14%
Supply scheduled to be completed in Q2 2020
>1,000 100-500
100-500 <100
<100
Wahat Al Zaweya
Al Zahiyah
Al Danah
Saadiyat Island
Saadiyat Island
Al Hisn
Al Raha Beach Development
Khalidiyah Al Reem Island
Khor Al Raha (Samaliyah Island)
Rawdhat
Khalifa City
Shamka South
Al ‘Azeeziyyah Khalifa City
19
NORTHERN EMIRATES
RESIDENTIAL MARKET OVERVIEW
As of Q1 2020, the market stabilised slightly, but continued to register

low rents and rates. On a quarterly basis, single digit declines in rents
continued into 2020.
Whilst some activities have been restricted on a nationwide level to control the ongoing health situation, individual emirates have
implemented their own set of restrictions as they have deemed necessary.
AVERAGE APARTMENT RENTAL RATES Q1 2020
45,000
40,000
35,000
28,000
28,000
Rent (AED/annum)
25,000
30,000
24,000
22,000
21,000
21,000
20,000
20,000
25,000
18,000
17,000
16,000
16,000
15,000
15,000
15,000
20,000
14,000
14,000
14,000
14,000
15,000
10,000
5,000
0
Studio 1 BR
Sharjah Ajman Ras Al Khaimah (excluding Fujairah Umm Al Quwain

premium locations)
20
34,000
32,000
30,000
28,000
27,000
2 BR
26,000
32,000
30,000
23,000
23,000
Average Apartment Rental Rates Q4 2019

42,000
42,000
37,000
35,000
33,000
3 BR
33,000
40,000
36,000
Q1 2O2O
30,000
28,000
UAE PROPERTY MARKET REPORT
21
RESIDENTIAL
SHARJAH
Soft prices, new launches and increasingly affordable options have helped
Sharjah record a busy period of transactions. According to the Sharjah Real
Estate Registration Department, 61,357 transactions were recorded in 2019,
rising 13.4% from a year ago.
Whilst some within Sharjah continued their flight to Dubai in light of more affordable options available closer to work, others are choosing to
upgrade to newer communities away from the city centre. Open spaces within gated communities, newer and superior construction and less
traffic and pollution are key attractions of these emerging residential hubs.
Tilal City, developed by Tilal Properties, a joint venture between Sharjah Asset Management and Eskan Real Estate Development, permits UAE
residents to buy properties on a 100-year leasehold basis, based on Sharjah’s property market laws.
Sharjah Sustainable City, Muwailah Community and Arada’s ‘The Boulevard’ residential community within its Aljada megaproject are some other
new launches that have hit the market in recent months, unlike neighbouring Dubai where launches have slowed.
Activity is also healthy in Sharjah’s secondary market, where investors who may have previously bought properties or bought into projects at initial
stages are now able to find buyers who are willing to pay a premium.
In a move to protect investors and promote property ownership at its Al Zahia development, Sharjah Holding, a partnership between Majid Al
Futtaim Properties and Sharjah Asset Management, launched a limited-period Value Protection Programme that guaranteed that investments
are protected against any future swings in price.
With the approval of the record budget for 2020 at AED 29.1 billion, Sharjah’s government has announced that a large portion of spending will be
allocated to enhancing the emirate’s infrastructure. Approximately 33% of the general budget will be allocated to infrastructure development,
growing 10% from the 2019 spending plan.
AVERAGE RENTAL RATES (AED/ANNUM) Q4 2019
PRIME APARTMENTS PRIME APARTMENTS

Studio 1 BR 2 BR 3 BR Studio 1 BR 2 BR 3 BR
18,000 - 20,000 23,000 - 27,000 30,000 - 34,000 40,000 - 45,000 23,000 37,000 50,000 60,000
SECONDARY APARTMENTS SECONDARY APARTMENTS

12,000 - 15,000 20,000 - 23,000 25,000 - 27,000 35,000 - 37,000 18,000 25,000 32,000 40,000
PRIME VILLAS
4 BR 5 BR 6 BR
90,000 - 100,000 110,000 - 120,000 130,000 - 140,000
SECONDARY VILLAS
4 BR 5 BR 6 BR
75,000 - 85,000 90,000 - 100,000 110,000 - 115,000 Note: Abu Shagara trades at a premium to Rolla
22
RESIDENTIAL
Al Azra
Rolla
Wasit Suburb
Al Majaz Abu Shagara
Al Khan Al Rahmaniya
Al Taawun
Al Nahda
Hoshi
Al Jurainah
Al Suyoh
Al Tai
PRIME APARTMENTS PRIME APARTMENTS

18,000 - 20,000 23,000 - 27,000 30,000 - 34,000 40,000 - 45,000 22,000 36,000 48,000 58,000
SECONDARY APARTMENTS SECONDARY APARTMENTS

12,000 - 15,000 20,000 - 23,000 25,000 - 27,000 35,000 - 37,000 18,000 24,000 32,000 38,000
PRIME VILLAS
4 BR 5 BR 6 BR
80,000 - 90,000 100,000 - 120,000 130,000 - 140,000
SECONDARY VILLAS
4 BR 5 BR 6 BR
75,000 - 85,000 85,000 - 100,000 100,000 - 115,000 Note: Abu Shagara trades at a premium to Rolla
23
AJMAN
Al Jurf
Al Bustan
On a quarterly basis, average apartment rents

Al Rashidiya
in Ajman largely remained stable continuing
Al Naemiya Al Rawda
the trend from previous quarters.

Ajman has largely benefited from increased interest in its affordable
properties which are now available at attractive price points PRIME APARTMENTS
compared to previous years and even more so than those available Studio 1 BR 2 BR 3 BR
in neighbouring Sharjah. Overall, areas of Ajman Downtown, Al 17,000 24,000 31,000 40,000
Naeimiya and Al Rashidiya have performed well.
SECONDARY APARTMENTS
After Dubai, Ajman Municipality has become the second entity in the Studio 1 BR 2 BR 3 BR
Middle East to mandate the use of building information modelling 14,000 18,000 26,000 35,000
(BIM) software across all projects in the emirate by the end of 2020.
Apart from avoiding rework and duplication of efforts, the practice
improves productivity and efficiency across the supply chain. AVERAGE RENTAL RATES (AED/ANNUM) Q1 2020
PRIME APARTMENTS
This is one of the latest efforts by Ajman Municipality to bring about Studio 1 BR 2 BR 3 BR
overall improvement in the emirate for businesses and the larger 17,000 24,000 31,000 40,000
community. Last year, with the aim to reduce traffic congestion in the
emirate, the municipality commenced construction of the AED 150 SECONDARY APARTMENTS
million Al Rashidiya Bridge. Stretching over three km, the bridge will Studio 1 BR 2 BR 3 BR
provide access to Sheikh Khalifa Street. 14,000 18,000 25,000 32,000
UMM AL QUWAIN
As of Q1 2020, the annual rent for apartments in Umm Al Quwain ranged from AED 12,000
per annum for studios to AED 28,000 per annum for three-bedroom apartments, based
on property location, condition and specification.
As part of identifying the UAE’s housing needs up to 2040, Dr. Abdullah bin Mohammed Belhaif Al Nuaimi, UAE’s minister of infrastructure
development and chairman of the board of directors of the Sheikh Zayed Housing Programme discussed with HH Sheikh Saud bin Rashid
Al Mu’alla, Supreme Council Member and Ruler of Umm Al Qaiwain plans for the emirate to construct 3,900 housing units over the next
20 years. SZHP has already received 700 accumulated housing requests in Umm Al Quwain.
24
RESIDENTIAL
RAS AL KHAIMAH

On a quarterly basis, average apartment
rents across various bedroom configurations PRIME APARTMENTS
Studio 1 BR 2 BR 3 BR
showed declines close to 5%.
20,000 30,000 45,000 60,000
SECONDARY APARTMENTS
In 2020, Abu Dhabi listed developer RAK Properties planned to hand
over under construction buildings and launch construction of two Studio 1 BR 2 BR 3 BR
new projects with an investment of AED 200 million. 14,000 20,000 25,000 30,000
Apart from residential projects, the developer is also working to

complete two hospitality projects - Intercontinental Hotel and Resort
and the Anantara Mina Al Arab Hotel and Resort.
PRIME APARTMENTS
Al Marjan Island
Studio 1 BR 2 BR 3 BR
Al Hamra Village
20,000 28,000 43,000 57,000
Mina Al Arab
Al Seer SECONDARY APARTMENTS
Al Uraibi Studio 1 BR 2 BR 3 BR
14,000 20,000 24,000 28,000
FUJAIRAH
As of Q1 2020, the annual rent for apartments in Fujairah ranged from AED 15,000 - 20,000
per annum for studios to AED 32,000 - 38,000 per annum for three-bedroom apartments,
based on property location, condition and specification.
In February this year, construction was completed on the AED 1.9 billion Mohamed bin Zayed City housing project in Fujairah. The
complex, which was built over four years, is spread across 2.2 sq km and accommodates 1,100 residential villas, aimed at providing
housing to 7,000 citizens. The project includes 20 public parks with schools, mosques, shops, a cultural centre and a majlis set to open
in due course.
25
DUBAI
OFFICE MARKET OVERVIEW
The professional services sector made up the majority of enquiries during Q1 2020, compared to a 10% share in the previous quarter. In terms of
unit size, enquiries for spaces up to 1,000 sq ft declined compared to Q4 whilst bigger spaces above 5,000 sq ft increased.
In light of the extraordinary conditions brought on by the pandemic, Dubai Free Zones announced a raft of measures as part of an economic
stimulus package. These include the postponement of rent payments for up to six months, cancellation of some fines and penalties, monthly
installments for payments and refunding insurance and guarantees. Approximately 45,000 companies and 390,000 employees which are part of
the free zones are expected to benefit from the measures, Taking cues from the free zones, some private landlords are also offering rent waivers
of up to three months with headroom to extend this further if the situation demands.
Apart from rent considerations, companies are also likely to benefit from the AED 100 billion stimulus package extended by the UAE Central Bank.
As part of the measures, the amount of capital banks have to hold for their loans to small and medium enterprises (SMEs) has been reduced by
15-20%. Banks have been advised to use the funding made available to them to grant temporary relief to private sector corporate customers and
retail clients for a period of up to six months.
The pandemic will also invariably impact the commercial offering modelled on community and collaboration: co-working. Prior to the shutdown
which has temporarily closed these spaces, increasing demand has led to some providers to offer spaces even on a daily or monthly rent basis at
increasingly affordable rates. The first quarter also marked the entry of co-working major WeWork to the UAE, with an official launch in Abu Dhabi
and an upcoming opening in Dubai. Co-working has given a boost to the commercial real estate market in the UAE, which has faced a prolonged
period of uncertainty brought on by a slowing economy and businesses across sectors shedding jobs.
In addition to co-working, other trends to watch out for once the situation passes is the evolution of commercial fit-outs to include sustainable
practices, biophilia to increase human interaction with nature, multi-functional spaces and enhanced use of technology. Given that the current
situation has triggered the largest work-from-home experiment globally and in the UAE, remote and flexible working will also be explored further,
allowing companies to reduce their real estate footprint and therefore, their overheads.
DIFC
DUBAI OFFICE RENT PERFORMANCE Sheikh Zayed Road
147-167 235-255 49-78 78-93
59-93 113-132
(AED RANGE PER SQ FT PER ANNUM) Deira
Dubai Media City,

Internet City, 39-49 59-69
Shell and Core (Min/Max) Dubai World Trade
Knowledge Village
Fitted (Min/Max) 83-93 160-190 Centre
57 109
Dubai Healthcare City
(Rates quoted are inclusive of service charge
JLT
but excluding chiller/utilities) 25-83 78-93 44-74 83-103 132-147 167-186
Business Bay Dubai Design
District
49-74 74-93
JAFZA
Barsha Heights
39-132 162-172 93-113 142-157
Dubai
78-93 93-113 Downtown Dubai Silicon Oasis
Dubai South Dubai Marina 39-59 70-90
(Dubai World
Central) Dubai
39-49 59-69 Investment Park
20-59 49-69
DUBAI OFFICE ENQUIRIES BY SECTOR - Q1 2020 DUBAI OFFICE ENQUIRIES BY SIZE (SQ FT) - Q1 2020
8% 8% 8%
5% Professional Services 0-1,000
15%
10%
Technologies
1,001 - 5,000
53% Construction-related
10% Financial Services 5,001 - 10,000
Health, Beauty, Pharma >10,000
14% Other 69%
26
COMMERCIAL
DUBAI
RETAIL MARKET OVERVIEW
Along with travel and hospitality, retail is perhaps one of the other major sectors likely to witness an impact from the restrictions on regular life.
Malls in the UAE have been attempting to innovate, offering experiences to shoppers rather than simple retail stores. With temporary closure
of entertainment centres, cinemas, indoor parks and food courts, malls can now expect revenue to trickle in from groceries, pharmacies, food
delivery and online sales from certain stores.
Retail giants have acknowledged these challenges, with several players offering waivers in some form to tenants. Nakheel Malls has announced
an AED 230 million economic relief package to clients. As part of the measures, retail and hospitality tenants across Nakheel’s malls will be
granted free rental periods once the malls reopen. The company will waive administration charges across services for three months and also
lower district cooling charges by 10% for the same period for commercial and residential customers.
Al Futtaim group has also offered some relief to its malls’ tenants who are experiencing a slowdown. It has created a fund worth AED 100 million
which will cover three months’ rent for eligible tenants across its malls. Meanwhile, Dubai-Holding-Meraas announced an AED 1 billion package
for commercial tenants at developments including City Walk, Bluewaters Island and La Mer, among others.
Whilst physical retail has come to a standstill, its online counterpart is experiencing a surge in activity. With physical stores and restaurants shut
down and people urged to stay home, retail players have ramped up online operations to essentially bring stores to customers’ homes. Most
recently, Emaar Malls announced a partnership under which a virtual store of The Dubai Mall which will be listed on noon.com.
Naturally, this spike in online retail has created corresponding demand for logistics services, especially delivery riders. In an attempt to reduce the
pressure on online delivery services, the Roads and Transport Authority (RTA) will help these platforms deliver items using Dubai Taxi Corporation
vehicles and franchised taxis.
Whilst it is undoubtedly a challenging time, Dubai and the UAE have demonstrated agility and resilience in the past and in the current situation.
With unparalleled offerings available and more being developed, the sector and wider economy is expected to bounce back rapidly once the
recovery process begins.
RETAIL RENTAL RATES Q1 2020 (AED/SQ FT)

Retail Type Minimum Maximum
Strip Retail or retail in residential buildings 60 250
Community Malls 60 275
Regional Mall/Destination Retail 165 350
Central Business District (DIFC/Downtown/

150 400
Sheikh Zayed Road/City Walk)
Super Regional Malls 250 1,500
* Rates are inclusive of service charge and exclude rent fee/CapEx Source: Cavendish Maxwell
27
ABU DHABI
In the first quarter of 2020, rents in Abu Dhabi had generally stabilised compared to Q4 2019. However, the trend might be disrupted in the near
term as the impact of COVID-19 extends across sectors. The UAE directed the public and private sector to implement remote working policies
for employees in March and asked non-essential businesses to shut physical operations and offer only online services. As a result, office space
demand for the current and upcoming quarters faces significant uncertainty.
With the aim to cushion the economic impact of the disruptions, Abu Dhabi launched a new set of initiatives under “Ghadan 21”. These include
stimulus measures for small and medium enterprises (SMEs), exemptions on real estate fees, water and electricity subsidies for citizens and for
commercial and industrial activities, and easy access to loans for local companies, among others.
Before the current situation disrupted travel plans and events calendars across the emirates and the world, Abu Dhabi National Exhibitions
Company (ADNEC) was set for a busy season in Q1. However, many events are expected to be rescheduled to the latter part of the year and
beyond contingent on the improvement of the situation globally.
OFFICE RENT PERFORMANCE (AED/SQ FT)
Al Reem Island Abu Dhabi MainIand
Shell and Fitted Shell and Fitted

Core Low High Core Low High
Grade A - 75 95 Grade A - 100 130
Grade B - 60 70 Grade B 50 60 75
Grade C 35 40 50 Grade C 30 35 65
Mussafah
Al Maryah Island
Shell and Fitted
Shell and Fitted Core Low High
Core Low High Grade B 40 50 65
Grade A - 150 175 Grade C - 25 40
Whilst the measures to contain the COVID-19 outbreak have impacted the retail and entertainment sectors, future plans to further the appeal of
Abu Dhabi as an entertainment destination are in place. Furniture retail giant IKEA will open its second store in Abu Dhabi City, spread over 23,000
sq ft in Al Wahda Mall later this year.
In February, Abu Dhabi Ports inaugurated Marsa Mina, the latest waterfront lifestyle destination at Zayed Port. The open-air quayside leisure
destination provides a range of pop-up retail concepts, casual dining options and entertainment facilities. Keeping with the wider theme of
sustainability, retail and dining outlets have been designed with recycled containers.
With a view to relieve retailers of some of the pressure from the current situation, certain retail developers in Abu Dhabi have waived rents for retail
tenants for a limited time period. Retailers are also expected to benefit from the government’s 15-point economic stimulus package and the UAE
Central Bank’s AED 100 billion stimulus package aimed at supporting businesses in this unprecedented time.
28
COMMERCIAL
NORTHERN EMIRATES
Compared to the previous quarter, office rates remained largely unchanged in Q1 2020. With work-from-home measures mostly coming into play
in March, the impact is likely to be seen in the upcoming quarters.
In line with efforts of Dubai and Abu Dhabi, the Northern Emirates too are taking measures at their individual levels to mitigate the impact for
various stakeholders and support smaller businesses with resources.
His Highness Sheikh Ahmed bin Humaid Al Nuaimi, Chairman of Ajman Free Zone announced a package of economic incentives including
exemptions of fines, suspension of fees and coverage of e-channel smart service warranty for new companies. The measures would benefit
8,000 companies, including those within the free zone, China Mall, and its affiliates.
The Sharjah Entrepreneurship Centre (Sheraa) has introduced initiatives for all entrepreneurs and its community of founders including free
webinars, a Slack channel for small businesses, and free access to resources on managing start-ups through the crisis.
In Ras Al Khaimah, real estate developer and investment firm, Al Hamra will extend an economic relief package to its mall tenants, freehold
owners, residents and customers. The measures include rental waivers for up to three months, lowering cooling consumption charges, fee
deferrals, payment delay penalty waivers and extension for payment due dates.
SHARJAH OFFICE RENTAL RATES (AED/SQ FT)
Abu Shagara/Al Qasemiah Al Taawun Road

Shell and Core Fitted Shell and Core Fitted
25 - 30 40 - 50 25 - 35 40 - 60
Corniche Area (Al Khan, Al Majaz) Industrial Area
Shell and Core Fitted Shell and Core Fitted

25 - 35 40 - 60 25 - 30 40 - 50
Before the restrictions for malls and shopping centres were put in place in March, the 24-store centre of Al Musali stores was inaugurated
in Sharjah, coinciding with the Sharjah Spring 2020 offerings. The centre is owned by Sharjah Holding Company, a joint venture between
Sharjah Asset Management and Majid Al Futtaim Real Estate. Sharjah Asset Management, the investment arm of Sharjah Government, has
announced that all tenants in Haraj and Jubil markets will not have to pay rent for three months.
Over the next couple of years, Sharjah is expected to further expand its retail capacity, boosted by the Aljada development. Developed
by Arada, the first phase of the master-planned destination covering over 2.2 sq km was launched in February 2020. Madar at Aljada is a
new entertainment complex features multiple F&B outlets, an events hall, an amphitheatre, a skate park and a children’s adventure zone.
In the same month, Ras Al Khaimah also launched a 620 sq m skate park within Saqr Park featuring obstacles including a bowl, pyramids,
ledges, banks and round rails. This adds to the list of attractions after Ras Al Khaimah Tourism Development Authority launched the Jais
Adventure Peak featuring more ziplines, a viewing deck, an adventure centre and a Sky Maze.
29
DUBAI
HOSPITALITY MARKET OVERVIEW
As anticipated, as the health situation intensified and led to the cancellation of events and travel curbs, the Dubai hotel market saw declines in
occupancy, average daily rate (ADR) and revenue per available room (RevPAR) in Q1 2020. The sector has already been under pressure from new
hotel supply.
According to STR Global, occupancy rates in Q1 fell 20.5% from a year ago to 66% whilst ADR declined 11.4% to AED 586 and RevPAR slipped 29.6%
to AED 386.71.
To mitigate the impact, many hotels were offering staycation deals and discounts on services to entice local travellers. On the other end of the
spectrum, prominent hotel chains including Emaar Hospitality, Meydan Hotels and Hospitality and Marriott International have announced the
temporary closure of some of their properties in order to focus on others.
Among the new launches during the quarter were the Crowne Plaza Dubai Marina, the flagship hotel of InterContinental Hotels Group (IHG). The
five-star hotel comprising 273 keys maintains a keen focus on technology and aims to become a hub for business travellers. The ME Dubai also
opened its doors in March in The Opus by Omniyat building, designed by the late Dame Zaha Hadid. The hotel features 74 keys and 19 suites, three
food and beverage outlets and a spa. Guests also benefit from the other facilities available at the Opus, including 15 restaurants and bars.
OCCUPANCY % AND ADR OCCUPANCY % AND REVPAR (AED)
700 83%
90% 600 90%
83%
Occupancy
Occupancy
650 80% 500 80%
Rate (AED)
Rate (AED)
600 66% 70% 400 66% 70%

550 60% 300 60%
662 586 549 387
500 50% 200 50%
2019 2020 2019 2020
ADR OCC % Rev PAR OCC %
Data for Jan-Mar 2020 Source: STR Global
ABU DHABI
At least until the end of February. Abu Dhabi’s decline in key hospitality performance indicators trailed Dubai as events were still underway in the
emirate. With entry restricted into the UAE, the decline is now largely expected to be in line with other markets.
600 85% 500 85%

82% 82%
550 80% 450 80%
Rate (AED)
Occupancy
Rate (AED)
500 75% 400 75%

Occupancy
450 68% 70% 350 68% 70%

400 65% 300 65%
530 429 431 283
350 60% 250 60%
2019 2020 2019 2020
ADR OCC % Rev PAR OCC %
30
HOSPITALITY
NORTHERN EMIRATES
According to STR Global, Ras Al Khaimah recorded a 14% decline in occupancy in Q1 2020 versus a year ago compared to 7% for Fujairah. However,
in terms of ADR during the same period, Ras Al Khaimah registered a 8% decline versus -9.7% for Fujairah.
450 76%
650 73% 74% 400 73% 74%
600 72% 350 72%
550 70% Occupancy 300 70%
Rate (AED)
Occupancy
68% 68%
500 68% 250 68%
Rate (AED)
450 66% 200 66%

400 63% 64% 150 63% 64%
62% 62%
350 62% 100 62%
300 60% 50 60%
559 359 515 324 406 243 321 204
250 58% 0 58%
2019 2020 2019 2020
Ras Al-Khaimah ADR Fujairah+ ADR Ras Al-Khaimah RevPAR Fujairah+ RevPAR
Ras Al-Khaimah OCC Fujairah+ OCC Ras Al-Khaimah OCC Fujairah+ OCC
UAE UPCOMING SUPPLY

7% 1%
In terms of upcoming supply, whilst many hotels are in various stages Midscale Class Economy Class
of construction and scheduled for completion this year, the actual 12%
20%
materialisation rate will likely be much lower than in previous years. Also, with Upper
Luxury Class
new dates proposed for the Expo 2020 with a possible starting delay of up to Midscale Class UPCOMING
SUPPLY
a year, many hotel completions may move to 2021. Within 2020, two Dubai
SPLIT
hotels that are likely to begin operations during the year are Marriot The Palm 35% BY CLASS 26%
with 608 keys and Paramount Tower Hotel and Residences with 521 keys. Upscale Class Upper
Upscale Class
UPCOMING SUPPLY SPLIT BY EMIRATE
DUBAI Upcoming supply ABU DHABI Upcoming supply UMM AL QUWAIN Upcoming supply
Luxury Class 21% Upper Upscale Class 89% Upper Upscale Class 100%
Upper Upscale Class 22% Upscale Class 11%
Upscale Class 38%
RAK Upcoming supply
Luxury Class 23%

Upper Midscale Class 10% SHARJAH Upcoming supply
Midscale Class Upper Upscale Class 40%

8% Upscale Class 35%
Economy Class Upscale Class 18%
1% Upper Midscale Class 65%
Upper Midscale Class 19%
AJMAN Upcoming supply

FUJAIRAH Upcoming supply
Upper Upscale Class 100%
Luxury Class 100%
Source: STR Global
31
DUBAI
INDUSTRIAL MARKET OVERVIEW
Whilst most other segments of the economy are currently grappling with slowing business in the wake of the pandemic, the e-commerce space is
experiencing a boom, with consumers fulfilling all their shopping needs from groceries to fitness equipment through online channels. The surge in
demand, coupled with a potentially permanent change in shopping behaviour even post the COVID-19 situation to favour online retail will likely spur
demand for warehouses, fulfilment centres and other logistics facilities.
In Q1 itself, warehouse enquiries at freezones comprised 25% of the pie versus 0% in the previous quarter whilst logistics and distribution enquiries
climbed to take a 29% share versus 17% earlier. Meanwhile, general trading, which led enquiries in the previous quarters, declined in Q1 2020 for
freezone and onshore.
In terms of the other industrial developments this quarter, Jaguar Land Rover (JLR) has broken ground on its new Parts Distribution Centre in Jebel
Ali, set to replace its older centre operational since 2014. Scheduled to open in Q1 2021, the centre will span 19,000 sq m of storage capacity, with
the option to expand to 30,000 sq m.
Dubai’s “Industrial Strategy 2030” is well underway with public and private companies announcing their achievements in realising the vision. One of
the UAE’s largest manufacturing businesses, Ducab Group recently revealed a 5% rise in overall profitability in 2019, the latest of its achievements
over the past decades to grow in line with UAE’s wider efforts in industrial manufacturing.
Companies involved in various sectors from pharmaceuticals to food security are expected to leverage smart manufacturing techniques to help
the sector contribute 25% to the country’s overall GDP by 2025. Smart manufacturing and the Internet of Things (IoT) are essentially driving the fourth
industrial revolution, a key platform for the UAE to cement its position as a global hub and increasing contribution to the world economy through
innovation and technology. A key driver to achieve this goal is the UAE industrial sector where assets such as factories, warehouses and light industrial
units (LIUs) etc, are to be tailored to new trends’ specifications and meet investors requirements in terms of eaves height, loading bays, availability
of power and internet.
WAREHOUSE RENTS IN DUBAI
40 40
Rent (AED/sq ft)
30 30 30 30
20 20 20 20 20
15-20
10 10
0 0
15 25 18 35 22 45 17 27 15 27 22 33
JAFZA Dubai Investment Al Quoz NIP Dubai Dubai South
Park Techno Park Industrial Park (DWC)
*Transacted prices not listing/asking prices.

Minimum Maximum Sub Lease Fee in %
* Assumes logistics warehouse, min 8 m height, 2 loading bays without air conditioning
* Sub-lease fee is paid on top of rent to the freeholder/government
4% 5%
10%
General Trading
21%
Manufacturing
31%
25% Logistic and Distribution (L & D)
FREEZONE ONSHORE Engineering
WAREHOUSE 16% WAREHOUSE F&B
ENQUIRIES ENQUIRIES Oil and Gas
BY SECTOR BY SECTOR
Construction
7% Q1 2020 2% Q1 2020 3%
2% Services
4% 29% 7% Warehouses
8%
4% Learning and Development
7% 16%
32
INDUSTRIAL
ABU DHABI
Abu Dhabi’s industrial sector has benefited from several government initiatives to stimulate the sector.
Most recently, Khalifa Industrial Zone, a subsidiary of Abu Dhabi Ports lowered its land lease tariff on
new contracts by 25%.
Meanwhile, purpose-built economic zones operator, ZonesCorp reported encouraging investments

during Q1. The operator attracted over AED 350 million in investments serving a variety of sectors
including oilfield services, plastic and automotive. ZonesCorp’s facilities accommodate over 880
industrial establishments operating in multiple sectors.
On the infrastructure front, Abu Dhabi General Services Company (Musanada) completed projects worth
AED 254 million in the Al Shawamekh area of the emirate. Musanada delivered sectors 7 and 12 of the
project, constructing internal roads and building infrastructure for residential plots spanning 2.2 million
sq m.
In the immediate term, fluctuations in the prices of oil following the collapse of the OPEC+ agreement
on curbing oil production is likely to bring uncertainty in demand for industrial spaces as the oil and
gas industry is one of the main drivers of demand of such spaces in Abu Dhabi. At the same time, the
increased activity in the e-commerce sector following restrictions on physical activities recently is likely
to drive demand for industrial and logistics spaces such as warehouses and fulfilment centres.
NORTHERN EMIRATES
The biggest development of the quarter, and perhaps the year, was the new well of natural gas and
condensate discovered onshore in Sharjah by Sharjah National Oil Corporation and Italian oil company
Eni. The latest find, which is the biggest in over 30 years, will be instrumental in meeting Sharjah and the
UAE’s growing energy needs and achieving self-sufficiency in power generation.
Sharjah’s industrial sector is already the largest in the country with 21 industrial zones which together
account for 45% of the UAE’s industrial output. To further enhance its competitiveness and add to its
contribution to the UAE’s overall industrial output, Sharjah Chamber of Commerce and Industry, along
with partners, has announced the launch of an infrastructure development project for the 10th industrial
zone in Sharjah. The project will involve reconstructing the whole area of 2.16 million sq m and will be
built in 18 months by Sharjah Contracting and Khatib & Alami.
Meanwhile, the Port of Fujairah, a key global oil storage centre and the second-largest ship bunkering
hub in the world revealed plans to expand and enhance its oil handling infrastructure with a potential
investment of AED 752.6 million. Its current oil handling capacity stands at 700 million barrels per annum.
The expansion is part of the Port of Fujairah’s plans for the related sectors and the wider economy.
NORTHERN EMIRATES WAREHOUSE MARKET

Average Lease Rate (AED per sq ft) Q1 2020
Ajman Sharjah RAK

15 - 25 15 - 30 15 - 25
33
A WORD FROM OUR

CHIEF ECONOMIST
It is almost certain that macro-economic conditions worldwide

have never changed so swiftly as over the past month. Entire
economies have been shut down and borders closed. The
UAE has also had to contend with a rapid and unexpected
decline of the oil price, now very volatile but oscillating around
levels significantly lower than the USD 70 per barrel which the
International Monetary Fund conservatively estimated for fiscal
break-even in the UAE.
JULIAN ROCHE This is a time when effective governance really counts: countries’
CHIEF ECONOMIST responses have varied widely, with widespread recognition that
GCC countries have done extremely well in terms of health
policies1. Government monetary and fiscal policy has also been
timely, targeted and executed in tandem. The UAE Central Bank has moved twice so far to
reduce interest rates by a total of 125 basis points. There is little further room for manoeuvre in
monetary policy. More importantly, a package of fiscal measures has been enacted2 amounting
to an unprecedented AED 256 billion, 20% of GDP. The Central Bank has halved banks’ required
reserve requirements, down from 14% to 7%. As well as waiving payment service fees, the Central
Bank has made available a zero-interest rate collateralised loan facility of AED 50 billion, and
has also freed up for use AED 50 billion of funds from banks’ capital buffers. Banks’ SME loan
provisioning has been reduced by 15-25% and they have been asked both to limit their fees and
defer loan repayments where necessary until the end of the year.
Two measures designed to have a stabilising effect on the real estate market have been the
increase of loan-to-value ratio for first-time home buyers by 5%, raising the limit on banks’
exposure to the real estate sector from 20% to 30% of risk-weighted assets. In addition, rebates
on commercial lease payments in the tourism and hospitality sectors and active relief packages
launched by developers such as Dubai Holdings and Nakheel have been coordinated to support
commercial tenants. Rating agencies such as Moody’s have signalled their belief that taken
together, these support schemes should prevent commercial property borrowers’ liquidity issues
from escalating into the level of insolvency, but there is sufficient fiscal latitude to expand all of
these schemes both in duration and magnitude, if required. On the other hand, the UAE Central
Bank has also emphasised its commitment to the dirham peg to the USD, which continues to
value UAE real estate highly in terms of a global basket of currencies.
With borrowers and homeowners cushioned, the main effect for the real estate market now is that
of dramatically reduced liquidity. Results for Q1 2020 therefore take on especial importance, in
particular, as to the relative performance of specific locations. With infrastructure developments
continuing over the coming year, investors must now take a keen interest in the attractiveness
of individual districts that this report has highlighted in order to be properly prepared for when
liquidity returns to the market.
1 Brookings Institute (2020) Brookings experts on the implications of COVID-19 for the Middle East and North Africa. Available at: https://www.brookings.edu/
opinions/brookings-experts-on-the-implications-of-covid-19-for-the-middle-east-and-north-africa/ Retrieved 17 April 2020
2Central Bank of the UAE (2020) The Central Bank of the UAE announces a comprehensive AED 100 billion Targeted Economic Support Scheme to contain
the repercussions of the pandemic COVID-19. Available at: https://www.centralbank.ae/sites/default/files/2020-03/CBUAE%20announces%20a%20
comprehensive%20AED%20100%20billion%20Targeted%20Economic%20Support%20Scheme%20to%20contain%20the%20repercussions%20of%20the%20
pandemic%20COVID-19.pdf Retrieved 17 April 2020
34
METHODOLOGY
Supply projections for residential projects are based on the Cavendish Maxwell Supply Tracker, which
tracks supply in real time, including regular tracking of construction projects, new launches and delays. This
is achieved through site inspections as well as regular feedback from developers, contractors, Cavendish
Maxwell’s building consultancy team and related government entities.
Residential sales prices and rents are derived from Property Monitor, the region’s leading real estate intelligence
platform and the only data source powered by RICS-accredited professionals, bringing unprecedented
transparency and accuracy to local property markets. Property Monitor arrives at the average residential sales
price per sq ft by incorporating signed contracts, registered transactions, valuations and listings.
The Property Monitor Dynamic Price Index family (DPI) are calculated using a moving average algorithm of
median prices and the Dutot price index formula with cleansing of extreme values and outliers. The indices are
subject to backward revision should any new datapoint or datasets become available.
Through Property Monitor, market stakeholders can directly access real-time, transparent and accurate
intelligence, unmatched anywhere else in the region. The platform empowers investors, property specialists
and banking professionals with authoritative data, analytics and insights that closely correlate with market
movements, empowering confident and informed property-related decisions.
+971 4 453 9525

info@propertymonitor.ae
36
STRATEGIC CONSULTING
AND RESEARCH
Cavendish Maxwell’s Strategic Consulting and Research team has some of the
region’s most highly qualified data analysts with a wealth of international real estate
advisory experience. We work closely with a broad portfolio of banks, property
developers, government entities and private clients, providing authoritative,
industry-specific research and advice to maximise portfolio performance.
Our strategic consulting and research expertise spans a variety of sectors including
residential, office, hospitality, education and mixed-use developments, and our team
draws on reliable proprietary data to allow for thorough and accurate analysis of
trends and market fluctuations.
40
Our documents and advice meet
banking and audit criteria, proven
by our presence on over 40 bank
BANKS panels across the Middle East.
KEY SERVICES
Market research
Development recommendations
Highest and best use studies
Advisory services
Portfolio strategy
Feasibility studies
Property data
Market entry strategies
37
Aditi Gouri
Associate Partner
Strategic Consulting and Research
DUBAI ABU DHABI SHARJAH MUSCAT

2205 Marina Plaza 605 West Tower, Abu Dhabi Mall 1801 Sarh Al Emarat Tower Villa 836, Way 3012
Dubai Marina Tourist Club Area Buhaira Corniche Street Al Sarooj
P.O. Box 118624 P.O. Box 126609 P.O. Box 38583 P.O. Box 3438
Dubai Abu Dhabi Sharjah Muscat
United Arab Emirates United Arab Emirates United Arab Emirates Sultanate of Oman
T: +971 4 453 9525 T: +971 2 448 4677 T: +971 6 715 0444 T: +968 24 694 150
Disclaimer:
The information and analysis contained in this report is based on information from a variety of sources generally regarded to be reliable, and assumptions which are considered reasonable, and which was current at the time of
undertaking market research, but no representation is made as to their accuracy or completeness. We reserve the right to vary our methodology and to edit or discontinue the indices at any time, for regulatory or other reasons.
The report and analysis do not purport to represent a formal valuation of any property interest and must not be construed as such. Such analyses, including forward-looking statements are opinions and estimates only, and are based
on a wide range of variables which may not be capable of being determined with accuracy. Variation in any one of these indicators can have a material impact on the analysis and we draw your attention to this. Cavendish Maxwell
and Property Monitor do not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this report.

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Q1 2O2O UAE PROPERTY MARKET REPORT

26 Commercial Market Overview

30 Hospitality Market Overview

32 Industrial Market Overview

34 A Word From Our Chief Economist

OIL PRICES COLLAPSE NEW M

UAE REAL EARLY SIGNS OF EXPO 2020

BOND ISSUANCE REBOUND GROWTH

NAKHEEL AND DWC

EARLY SETTLEMENT FEE FOR

RUSSIAN CURRENCY AFFORDABLE 20% CAP FOR BANKS’ PROPERTY

REAL ESTATE INVESTMENT

DLD AND RERA SPLIT

WORLD HEALTH ORGANISATION

2015 2016 2017 2018 2019 Q2 Q3 Q4 2020 Q1

Barsha Heights (Tecom) -4%

Damac Hills (Akoya By Damac) -10%

-24 -21 -18 -15 -12 -9 -6 -3 0 3 6 9 12 15 18 21 24

Downtown Burj Khalifa

Palm Jumeirah International City

Mohammed Bin Rashid City

Barsha Heights (TECOM)

Jumeirah Village Circle

Discovery Gardens Dubai Sports City

Al Furjan Jumeirah Golf Estates

Dubai South (Dubai World Central)

According to Property Monitor, median villa/townhouse prices declined 4%

Arabian Ranches 2 -12%

-33 -30 -27 -24 -21 -18 -15 -12 -9 -6 -3 0 3

Quarterly Q4 2019 - Q1 2020 Yearly Q1 2019 - Q1 2020

Source: Property Monitor

Mohammed Bin Rashid City

Dubai Silicon Oasis

Damac Hills (Akoya by Damac)

Al Furjan Villas Jumeirah Golf Estates Town Square

According to Property Monitor, median apartment rents declined 14% whilst

12-month % change 12-month % change

Median rental prices calculated based on 6-month moving averages.

Al Furjan Villas -10

-21 AED 93,746

Dubai Sports City

-28 Damac Hills (Akoya By Damac)

Source: Property Monitor

According to Property Monitor, over 6,200 apartments and over 800

Source: Cavendish Maxwell

Dubai Creek Harbour

Mohammed Bin Rashid City

Al Warsan International City

Dubai International Academy City

Palm Jumeirah Al Sufouh

Jumeirah Lake Tower

Dubai Sports City

Al Furjan Damac Hills

The total transfers in Q1 2020 were 8,700 for both villas/

Source: Property Monitor

TOP 5 LOCATIONS FOR VILLA TRANSFERS IN Q1 2020

Average sales prices declined in Abu Dhabi’s major residential

APARTMENT PRICE PERFORMANCE

Saadiyat Beach -10.2%

Al Reef Downtown -12.2%

Quarterly Q4 2019 - Q1 2020 Yearly Q1 2019 - Q1 2020 Average price per sq ft

VILLA/TOWNHOUSE PRICE PERFORMANCE

Al Reef Villas -3.2%