Property Review

UAE Real Estate Report

Q2 2021
CONTENT

03 20 30
ABU DHABI NORTHERN EMIRATES NBD
EMIRATES

11 26 31
DUBAI AL AIN AL TAMIMI & CO.
ABU DHABI
MARKET OVERVIEW

SUPPLY* RENTAL RATES SALES PRICES

Asteco recorded the delivery of approximately 2,070 apartments Apartment rental rates softened marginally (by 1%) over Q2 2021, although several Apartment sales prices remained relatively
and villas in Q2 2021 including units in Water’s Edge and Mayan, properties remained more or less stable due to previously recorded drops. Annual stable over the last three months with prime
both located on Yas Island, as well as a number of buildings declines, however, were more pronounced and averaged 8%. Whilst the higher and high-quality units being the most sought
located in Al Raha Beach. reductions in Q1 2021 occurred in the lower end of the market, this quarter focused after.
on mid and high-end properties, with some units noting declines of 10% to 15%.
More than 9,350 residential units are anticipated for handover Similar to the rental market, demand for
before the end of the year; however, some projects are likely to Incentives such as multiple cheques, rent free periods and waived/discounted agency completed villas continued on a high note,
experience delays and spill over into 2022. fees have resulted in an increase in demand for mid and high-quality buildings, particularly within the upper end.
particularly on Reem Island and Al Raha Beach.
The second quarter also saw the launch of Noya Viva and Noya Villa sales prices increased by 1% on average
Luma by Aldar Properties PJSC, the second and third phases of Conversely, villa rental rates recorded an average increase of 1% in Q2 2021, which over Q2 2021 predominantly driven by Al Raha
their Noya development on Yas Island. The projects offer a mix of was predominantly driven by the rise in interest for well-developed villa communities Gardens and Al Reef, which recorded sales
townhouses (2 BR and 3 BR) and villas (3 BR to 5 BR) to all located on Yas Island, Saadiyat Island and Al Raha Beach, a trend that traces back to growth rates of 6% and 2%, respectively.
nationalities on freehold basis and registered significant levels of mid 2020 following the lift of the COVID-19 restrictions/lockdown.
demand. It should be noted however, that the current
Similar to last quarter, tenant movement was dominated by residents looking to uptick in villa sales prices is predominantly
Construction on both communities is expected to begin in 2021 upgrade/upsize, particularly in respect of villas and townhouses. This was facilitated by driven by the limited availability of good quality
with completion earmarked for Q1 2024. the increased availability within the mid to high end sector. properties offered for sale at attractive rates.

The office market continued to be challenging, despite only showing marginal rental
rate reductions in Q2 2020 (annual declines stood at 4%). Instead, landlords offered
incentives in regards to payment terms and conditions (i.e.: rent period, service charge
waiver and/or reduced fit out cost).

*It is important to note that whilst a number of projects may have received completion certificates, Asteco does not consider a project delivered until the handover process has been initiated and the units are available for Lease in the open market.

3 Abu Dhabi Real Estate Report - Q2 2021

ABU DHABI
SUPPLY

COMPLETED IN COMPLETED IN PROJECTED

Q1 2021 Q2 2021 H2 2021

APARTMENTS
1,700 2,000 9,050
NO. OF UNITS

VILLAS
50 70 300
NO. OF UNITS

4 Abu Dhabi Real Estate Report - Q2 2021

 ABU DHABI
APARTMENT RENTAL RATES
(All figures in AED 000’s p.a.)

STUDIO 1 BEDROOM 2 BEDROOMS 3 BEDROOMS % CHANGE

FROM TO FROM TO FROM TO FROM TO Q1 2021 - Q2 2021 Q2 2020 - Q2 2021
PRIME PROPERTIES
ABU DHABI ISLAND - - 60 100 100 140 150 230 -2% -7%
INVESTMENT AREA 65 90 90 145 110 185 170 285 0% -3%
HIGH END PROPERTIES
Central Abu Dhabi 40 45 55 60 75 105 110 140 -2% -11%
ABU DHABI ISLAND Corniche 50 55 60 75 75 110 120 155 -3% -19%
Khalidya / Bateen 65 70 65 80 68 130 105 170 -2% -4%
Al Raha Beach 55 65 65 85 100 130 130 185 -1% -2%
Marina Square 39 45 50 70 68 102 95 150 -1% -5%
INVESTMENT AREA Shams Abu Dhabi 42 45 50 65 77 115 110 145 -2% -7%
Saadiyat Beach - - 70 80 112 135 140 160 0% -4%
Yas Island 50 55 70 80 100 120 160 170 0% -5%
MID END PROPERTIES
ABU DHABI ISLAND 40 50 48 75 60 110 90 140 -2% -8%
Shams Abu Dhabi - - 48 60 65 85 95 125 -1% -6%
INVESTMENT AREA Najmat & Tamouh 35 42 45 58 63 95 90 128 -2% -7%
Al Raha Beach 42 45 50 62 75 110 - - -2% -8%
OFF ISLAND Khalifa & MBZ City 23 38 42 70 60 108 115 130 0% -3%
LOW END PROPERTIES
Central Abu Dhabi 30 35 40 45 45 58 55 90 -1% -9%
ABU DHABI ISLAND Corniche 30 35 42 50 55 60 68 80 0% -9%
Khalidiya / Bateen 25 35 38 45 50 60 65 85 -2% -11%
INVESTMENT AREA Al Reef 32 38 45 52 58 68 75 92 0% -5%
OFF ISLAND Khalifa & MBZ City 22 32 32 42 42 52 60 75 -1% -8%

Q-o-Q Y-o-Y Since peak Since market low

% Change
Since Q1 2021 Since Q2 2020 Q4 2015 Q2 2012

-1% -8% -33% -15%

5 Abu Dhabi Real Estate Report - Q2 2021
 ABU DHABI
APARTMENT SALES PRICES

% CHANGE
(All figures in AED per sq.ft.) 0 500 1,000 1,500 2,000 Q1 2021 - Q2 2021 Q2 2020 - Q2 2021

AL BANDAR 1,050 1,400 0% 0%

AL MUNEERA 925 1,100 0% -0%

AL ZEINA 825 1,000 0% 0%

CITY OF LIGHTS
750 850 0% 0%
(HYDRA)

CITY OF LIGHTS
750 950 0% 0%
(OTHER PROJECTS*)

MARINA SQUARE 775 950 0% -1%

REEF DOWNTOWN 600 800 0% -3%

SAADIYAT BEACH RESIDENCES 1,150 1,350 0% 0%

SUN & SKY TOWERS 850 975 0% 0%

THE GATE 850 975 0% 0%

YAS ISLAND 950 1,150 0% 0%

4%
Q-o-Q Y-o-Y Since peak Since market low
* Includes Meera Towers and Park View % Change
Since Q1 2021 Since Q2 2020 Q4 2015 Q2 2012

0% 0% -34%
6 Abu Dhabi Real Estate Report - Q2 2021
 ABU DHABI
VILLA RENTAL RATES
(All figures in AED 000’s p.a.)

2 BEDROOMS 3 BEDROOMS 4 BEDROOMS 5 BEDROOMS % CHANGE

FROM TO FROM TO FROM TO FROM TO Q1 2021 - Q2 2021 Q2 2020 - Q2 2021

Khalidiya / Bateen - - 140 160 145 175 165 210 0% 0%

ABU DHABI ISLAND Mushrif / Karama / Manaseer - - 140 160 140 165 150 205 0% 0%
Nahyan Camp / Muroor - - 125 155 145 170 150 175 0% 0%
Al Raha Beach - - 165 185 185 260 240 260 0% 0%
Al Reef 72 75 90 100 125 135 135 145 1% 1%
Hydra Village 52 57 62 70 - - - - 0% -5%
INVESTMENT AREA
Saadiyat Beach Villas - - 270 310 340 420 400 670 5% 10%
Hidd Al Saadiyat - - - - 320 340 370 710 4% 7%
West Yas - - - - 230 240 250 260 4% 16%
Al Raha Gardens - - 130 145 140 160 180 205 0% 0%
Golf Gardens - - 190 200 210 230 235 260 0% 7%
OFF ISLAND
Khalifa City - - 105 115 105 130 125 155 0% 0%
Mohamed Bin Zayed - - 100 105 105 130 110 145 0% 0%

Q-o-Q Y-o-Y Since peak Since market low

* Excludes West Yas Villas % Change*
Since Q1 2021 Since Q2 2020 Q4 2015 Q4 2012

0%* 0% -22% 0%
7 Abu Dhabi Real Estate Report - Q2 2021
 ABU DHABI
VILLA SALES PRICES

% CHANGE
(All figures in AED Million) 0 1 2 3 4 5 6 7 8 9 Q1 2021 - Q2 2021 Q2 2020 - Q2 2021

2 BR 1.15
3 BR 1.50
AL REEF VILLAS 2% 8%
4 BR 1.95
5 BR 2.30
-
3 BR 3.05
GOLF GARDENS 0% 0%
4 BR 3.75
5 BR 4.88
-
-
HIDD AL SAADIYAT 0% 0%
4 BR 6.25
5 BR 8.00
2 BR 0.92
3 BR 1.20
HYDRA VILLAGE 0% 0%
-
-
-
3 BR 2.20
RAHA GARDENS 6% 6%
4 BR 2.48
5 BR 3.63
2 BR
SAADIYAT BEACH VILLAS 3 BR 5.00
0% -3%
(STANDARD) 4 BR 5.58
5 BR 7.75
-
-
WEST YAS 0% 24%
4 BR 5.08
5 BR 5.75

1% 2% 18%**
Q-o-Q Y-o-Y Since peak Since market low
* Excludes West Yas Villas % Change*
Since Q1 2021 Since Q2 2020 Q4 2015 Q4 2012
** Includes Raha Gardens, Golf Gardens & Al Reef Villas only. Later averages
are reflective of an increase in new developments of higher quality.
-14%
8 Abu Dhabi Real Estate Report - Q2 2021
 ABU DHABI
OFFICE RENTAL RATES
(All figures in AED per sq.m. p.a.)

AVERAGE RENTAL RATES % CHANGE

FROM TO Q1 2021 - Q2 2021 Q2 2020 - Q2 2021
PRIME STOCK
FITTED* 1,300 2,150 0% -6%
QUALITY STOCK
FITTED 725 1,100 0% -4%
SHELL AND CORE 600 825 0% -5%
OLDER STOCK
GOOD 550 700 0% -6%
TYPICAL BUILDING 500 625 0% -2%
LOW QUALITY BUILDING 400 480 0% -7%

Q-o-Q Y-o-Y Since peak Since market low

* Includes developments such as Al Maryah Island, Aldar HQ, International Tower, Nation Towers, Ittihad Towers, etc. % Change**
** The average percentage change calculation excludes Prime Stock Since Q1 2021 Since Q2 2020 Q4 2015 Q4 2012

0% -4% -28% -25%

9 Abu Dhabi Real Estate Report - Q2 2021
ABU DHABI
PROPERTY MAP

1 Al Bandar – Raha Beach

2 Al Bateen Wharf
11
3 Al Gurm
4 Al Maqtaa
5 Al Muneera – Al Raha Beach
37
6 Al Nahyan Camp 21
7 Al Raha Gardens
8 Al Rayyana
9 Al Reef
10 Al Zeina – Al Raha Beach 27
25 34
33
YAS
11 Baniyas
12 Bateen Airport Area 31
35 ISLAND
16
13 Bateen Area 32
17
14 Bawabat Al Sharq 22
6
15 Capital District (ADNEC) 10
1
16 CBD / Tourist Club Area 2 9
13 5
17 Corniche 19
28
18 Danet Abu Dhabi 18 7
12
19 Eastern Mangroves
15
20 Golf Gardens 3
30
20
23 33

21 Hydra Village 36 8
4
22 Khalidia / Al Hosn / Al Manhal 38

23 Khalifa City A 29

24 Khalifa City B
25 Maryah Island
26 MBZ City 24

27 Mina 26
22
11

28 Mushrif / Karama / Manaseer / Muroor

29 Officer’s City
30 Rawdhat Abu Dhabi
31 Reem Island - Marina Square
32 Reem Island – Najmat Abu Dhabi 14
33 Reem Island – rest of Shams Abu Dhabi 11
34 Reem Island – City of Lights
35 Reem Island – The Gate District
36 Rihan Heights
37 Saadiyat Beach District
38 The Hills

10 Abu Dhabi Real Estate Report - Q2 2021

DUBAI
MARKET OVERVIEW
SUPPLY*
Although new supply slowed as a result of
recurring COVID-19 linked restrictions and
delays, it still presents a significant volume,
particularly given the limited number of
newcomers to the market.
Q2 2021 recorded the completion of
approximately 6,650 apartments, 1,500 villas
and over 1 million sq.ft. of office space. A
number of projects earmarked for delivery
this year are now expected to be ready for
handover in 2022.
There has been an increase in the number of
new project launches (off-plan, under
construction and completed developments),
which were by and large well received by
investors and end-users alike.
*It is important to note that whilst a number of projects may have received completion certificates, Asteco does not consider a project delivered until the handover process has been initiated and the units are available for Lease in the open market.
11
RENTAL RATES
The vast majority of communities recorded rental rate growth in Q2 2021,
resulting in an average increase of 3% and 8% for apartments and villas,
respectively. Whilst average apartment rental rates remained in contraction
at 3% compared with the same period last year, villa rental rates grew by a
marked 10%.
The main focus of demand has been on the villa market and despite
positive market sentiment, apartment rental rate growth appears to be
inflated, particularly as new supply outperforms population growth.
Office rental rates continued their downward trajectory with quarterly and
annual drops of 4% and 16% in line with stunted employment/business
growth. In fact, several landlords are looking at repurposing
existing/upcoming office buildings.
Prolonged bearish economic headwinds will curtail a sustained real estate
market revival and make a recovery in rental rates more likely to be short
lived rather than a medium to long term outcome.
Having said that, the upcoming Expo (October 2021) is expected to lift real
estate demand for the short term (predominantly from exhibition/site
employees), although visitor numbers in general are presumed to be lower
than initially forecasted due to renewed travel restrictions and lockdowns
globally.
SALES PRICES
Sales prices recorded a significant surge, particularly pertaining to villa units
with an average quarterly and annual increase of 16% and 23%. Apartment
sales price growth was less pronounced at 6% over Q2 2021 as well as over the
year.
Market sentiment has always played a pivotal role in Dubai’s real estate market.
However, the momentum of growth experienced in the first quarter of the year
appears to be slowing as pent-up demand resulting from the COVID-19
lockdown/restrictions is absorbed.
Although market sentiment has been relatively bullish over the last few months,
a trend that is expected to continue in the lead up to the Expo, tepid
employment and business growth eventually point towards a slowdown in
activity.
However, the continued successful rollout of the vaccines and strategic
containment measures put in place by local and federal governments are
expected to aid a swifter recovery.
Dubai Real Estate Report - Q2 2021
DUBAI
SUPPLY

COMPLETED IN COMPLETED IN PROJECTED

Q1 2021 Q2 2021 H2 2021

APARTMENTS
1,925 6,650 22,500
NO. OF UNITS

VILLAS
0 1,500 2,000
NO. OF UNITS

OFFICES
0.07 1.1 0.8
MILLION SQ.FT.

12 Dubai Real Estate Report - Q2 2021

 DUBAI
APARTMENT RENTAL RATES
(All figures in AED 000’s p.a.)

STUDIO 1 BEDROOM 2 BEDROOMS 3 BEDROOMS % CHANGE

FROM TO FROM TO FROM TO FROM TO Q1 2021 - Q2 2021 Q2 2020 - Q2 2021
HIGH TO LUXURY END
DIFC 40 60 55 95 70 140 120 190 3% -1%
DOWNTOWN DUBAI 32.5 52.5 45 90 60 125 110 190 4% 0%
PALM JUMEIRAH 50 70 70 115 90 190 115 200 6% 1%
SHEIKH ZAYED ROAD 45 55 40 95 60 140 70 165 4% -2%
MID TO HIGH END
BUSINESS BAY 30 50 40 75 57.5 110 90 140 6% 4%
DUBAI MARINA 30 60 35 95 55 135 75 185 7% 4%
GREENS 32.5 45 40 85 75 115 95 155 6% 6%
JUMEIRAH BEACH RESIDENCE 47.5 55 55 90 80 115 95 155 7% 2%
JUMEIRAH LAKES TOWERS 27.5 40 35 75 47.5 100 75 120 5% 3%
AFFORDABLE
DEIRA 15 35 25 50 35 75 60 95 1% -3%
DISCOVERY GARDENS 17.5 27.5 27.5 45 50 60 - - 0% -11%
DUBAI SPORTS CITY 17.5 30 27.5 42.5 37.5 62.5 60 70 3% -5%
INTERNATIONAL CITY 14 24 20 35 35 45 45 65 -1% -12%
JUMEIRAH VILLAGE 20 40 27.5 60 40 80 75 105 7% 0%

3%
Q-o-Q Y-o-Y Since peak Since market low
% Change
Since Q1 2021 Since Q2 2020 Q2 2014 Q3 2011

-3% -43% -2%

13 Dubai Real Estate Report - Q2 2021
 DUBAI
APARTMENT SALES PRICES

% CHANGE
(All figures in AED per sq.ft.) 0 500 1,000 1,500 2,000 2,500 Q1 2021 - Q2 2021 Q2 2020 - Q2 2021
HIGH TO LUXURY END

DIFC 900 1,800 6% 6%

DOWNTOWN DUBAI 800 2,000 6% 6%

PALM JUMEIRAH 750 2,200 13% 13%

MID TO HIGH END

BUSINESS BAY 675 1,600 12% 12%

DUBAI MARINA 550 1,850 8% 8%

THE GREENS AND THE VIEWS 675 1,100 6% 6%

JUMEIRAH BEACH RESIDENCE 650 1,400 9% 6%

JUMEIRAH LAKES TOWERS 575 1,150 10% 6%

AFFORDABLE

DISCOVERY GARDENS 400 600 5% 5%

DUBAI SPORTS CITY 425 900 5% 5%

INTERNATIONAL CITY 350 525 6% 6%

JUMEIRAH VILLAGE 400 875 5% 5%

6% 6% 20%
Q-o-Q Y-o-Y Since peak Since market low
% Change
Since Q1 2021 Since Q2 2020 Q2 2014 Q3 2011

-34%
14 Dubai Real Estate Report - Q2 2021
 DUBAI
VILLA RENTAL RATES
(All figures in AED 000’s p.a.)

2 BEDROOMS 3 BEDROOMS 4 BEDROOMS 5 BEDROOMS % CHANGE

FROM TO FROM TO FROM TO FROM TO Q1 2021 - Q2 2021 Q2 2020 - Q2 2021

AKOYA OXYGEN 45 75 70 85 75 90 5% -1%

ARABIAN RANCHES 100 125 125 200 135 285 250 325 19% 24%
DUBAI HILLS ESTATE 120 225 135 300 160 325 13% 20%
DUBAI SILICON OASIS (CEDRE VILLAS) - - 135 145 135 160 165 190 8% 10%
DUBAI SPORTS CITY (VICTORY HEIGHTS) - - 115 130 145 200 180 285 14% 11%
JUMEIRAH/UMM SUQEIM 110 190 115 250 140 300 5% 8%
JUMEIRAH PARK - - 180 225 180 275 260 310 8% 9%
JUMEIRAH VILLAGE 85 120 100 130 100 135 120 150 9% 8%
MEADOWS - - 150 200 190 275 225 285 10% 15%
MIRDIF 50 80 70 110 80 145 85 170 9% 15%
PALM JUMEIRAH - - 175 275 280 450 450 800 6% 10%
SPRINGS 77.5 110 120 160 - - - - 4% 2%
THE LAKES - - 155 190 200 245 250 300 5% 2%

8% 10% 9%
Q-o-Q Y-o-Y Since peak Since market low
% Change
Since Q1 2021 Since Q2 2020 Q2 2014 Q2 2012

-29%
15 Dubai Real Estate Report - Q2 2021
 DUBAI
VILLA SALES PRICES

% CHANGE
(All figures in AED per sq.ft.) 0 1,000 2,000 3,000 4,000 Q1 2021 - Q2 2021 Q2 2020 - Q2 2021

AKOYA OXYGEN 450 725 12% 21%

ARABIAN RANCHES 750 1,250 14% 29%

DUBAI HILLS ESTATE 950 1,600 19% 39%

JUMEIRAH PARK 800 1,250 27% 52%

JUMEIRAH VILLAGE 400 900 14% 14%

MEADOWS 925 1,350 14% 27%

PALM JUMEIRAH 1,300 3,500 12% 24%

SPRINGS 875 1,250 24% 46%

16% 23% 15%

Q-o-Q Y-o-Y Since peak Since market low
% Change
Since Q1 2021 Since Q2 2020 Q2 2014 Q3 2011

-31%
16 Dubai Real Estate Report - Q2 2021
 DUBAI
OFFICE RENTAL RATES
(All figures in AED per sq.ft. p.a.)

AVERAGE RENTAL RATES % CHANGE

FROM TO Q1 2021 - Q2 2021 Q2 2020 - Q2 2021

BARSHA HEIGHTS (FORMER TECOM) 37.5 60 -5% -25%

BUR DUBAI 37.5 75 -4% -21%
BUSINESS BAY 30 65 -5% -17%
DIFC 60 220 -3% -18%
JUMEIRAH LAKES TOWERS 30 55 -5% -18%
SHEIKH ZAYED ROAD 40 100 -7% -22%

0%
Q-o-Q Y-o-Y Since peak Since market low
% Change
Since Q1 2021 Since Q2 2020 Q3 2015 Q4 2012

-4% -16% -42% -15%

17 Dubai Real Estate Report - Q2 2021
 DUBAI
OFFICE SALES PRICES

% CHANGE
(All figures in AED per sq.ft.) 0 500 1,000 1,500 2,000 Q1 2021 - Q2 2021 Q2 2020 - Q2 2021

BARSHA HEIGHTS
450 775 3% -5%
(FORMER TECOM)

BUSINESS BAY 550 1,100 4% -7%

DIFC 1,100 1,750 6% 0%

JUMEIRAH LAKES TOWERS 350 875 2% -4%

3%
Q-o-Q Y-o-Y Since peak Since market low
% Change
Since Q1 2021 Since Q2 2020 Q1 2015 Q2 2012

-4% -38% -5%

18 Dubai Real Estate Report - Q2 2021
 1 Veneto 45 Jumeirah Village

DUBAI 2 Badrah
3 Bluewater Island
Triangle
46 Jumeirah Village Circle

PROPERTY MAP 4 JBR 47 Dubai Science Park

5 Dubai Marina 48 Arjan
6 Dubai Internet City, 49 Dubai Hills Estate
Dubai Media City 50 Living Legends
& Knowledge Village 51 Al Barari
7 Palm Jumeirah 52 MBR City
8 Umm Suqeim 53 Meydan
9 Jumeirah 54 Dubai Creek Harbour
10 Jumeirah Bay Island 55 Commercial District
11 City Walk 56 Golf District
12 Al Satwa 57 Logistic District
13 Sheikh Zayed Road 58 Aviation District
14 La Mer 59 Expo 2020
Arabian Gulf
15 Pearl Jumeirah 60 Residential District
16 Bur Dubai 61 Dubai Investment
17 Dubai Maritime City Park
18 Port Rashid 62 Green Community
17
7
15 18 19
19 Deira Island 63 Dubai Production
10 City (IMPZ)
3
14 20 Deira
1
21 Downtown Jebel Ali 64 Jumeirah Golf Estates
4 9
8 16 22 Wasl Gate 65 Victory Heights
5 6 11 12
13 20 66 Dubai Sports City
22 27 31 23 Al Furjan
36
2 32 11
24 Discovery Gardens 67 MotorCity
11 30 35
34 42
24
25 26
29 25 Jumeirah Park 68 Dubai Studio City
33
21 23
26 Jumeirah Islands 69 Damac Hills
28 39 40
37 38
44
43
27 Jumeirah Lakes 70 Remraam
53
To Abu Dhabi 45
49 44 Towers 71 Mudon
46
62 63
41 28 Springs / Meadows 72 Arabian Ranches
47 52 54 To Sharjah 29 Emirates Hills 73 Dubailand
311
59 64 48
65 44
66 30 The Lakes 74 Falcon City of
61 67
31 The Greens Wonders
55
57 68 311
84 32 Barsha Heights 75 The Villa
72 50 51
(Tecom C) 76 Liwan
69 311 83
82 33 Al Barsha 77 Dubai Residence
70 73
71 74 Complex
60
611 81 34 Business Bay
76
75 78 80 35 Downtown Dubai 78 Dubai Silicon Oasis
56 85
58 86 36 DIFC 79 Dubai Academic
77
International City
79
37 Dubai Design District
611
80 International
38 Dubai Healthcare
City Phase 2 & 3
611 City Phase 2
81 International City
39 Al Jadaf
82 Al Warqaa
40 Jaddaf Waterfront
(Culture Village) 83 Mirdif
41 Dubai Festival City 84 Uptown Mirdiff
87
42 Al Nahda 85 Town Square
43 Al Qusais 86 Mira
44 Muhaisnah 87 Akoya Oxygen

19 Dubai Real Estate Report - Q2 2021

NORTHERN EMIRATES
MARKET OVERVIEW

Apartment rental rates across the Northern Emirates softened marginally with average declines of The Northern Emirates continued their efforts to enhance the tourism sector by announcing a
1% to 2% over Q2 2021 and 6% annually. number of hospitality projects across the region including:

Net effective office rental rates in Sharjah remained more or less unchanged over the second SHARJAH
quarter of the year, with annual declines averaging 16%.
- AED 110 million Al Luluyah Beach project by Sharjah Investment and Development Authority
According to the Sharjah Real Estate Registration Directorate (SRERD), 40,364 transactions valued (Shurooq) located in Khorfakkan; and
at AED 12.2 billion were recorded in H1 2021, a surge of over 40% compared to the same period - AED 87 million Al Hira Beach project in Sharjah.
last year. The majority of those transactions concerned the residential sector (49.6%), followed by
commercial (37.1%), industrial (11.1%) and agricultural (2.2%).
RAS AL KHAIMAH
Apartment sales prices in Sharjah’s master plan communities recorded a marginal increase of 2%
on average, whilst the more mature GCC freehold areas showed signs of stabilising. - AED 500 million on 20 sustainable tourism projects within the Emirate over the next 24 months;
- Intercontinental Resort and Hotel in Mina Al Arab will start operating during the last quarter of
New residential supply in Sharjah included the recently launched waterfront development ‘The 2021; and
Shams Residences’ on Maryam Island, as well as ‘Al Mamsha Seerah’, which is located within the - Anantara Mina Hotel and Resort is earmarked to open in 2022.
mixed-use development Al Mamsha by Alef Group and comprises approximately 1,700 units
spread over 11 buildings.

Prominent projects handovers in the Emirate involved ‘Al Lilac’ in Al Zahia, which features 290 three
to 5 bedroom villas/townhouses. Eagle Hills also announced the completion of Maryam Beach
Residences on Maryam Island. The first four Areej apartments buildings in Aljada by Arada,
comprising 255 residential units, were also delivered in Q2 2021.

In addition, the new extension of the Sahara Centre, a 350+ retail store in Sharjah, is scheduled to
open in early Q3 2021.

20 Northern Emirates Real Estate Report - Q2 2021

 NORTHERN EMIRATES
APARTMENT RENTAL RATES
(All figures in AED 000's p.a.)

STUDIO 1 BEDROOM 2 BEDROOMS 3 BEDROOMS % CHANGE

FROM TO FROM TO FROM TO FROM TO Q1 2021 - Q2 2021 Q2 2020 - Q2 2021

Typical 8.5 14 12 17.5 15 22 28 31 0% -9%

SHARJAH
High End 15 20 18 34 21 50 32 65 -1% -7%
Typical 10 12 12 14 14 20 20 28 -1% -5%
AJMAN
High End 12 17 15 25 20 35 30 40 -2% -5%
UMM AL QUWAIN 10 13 15 20 20 28 27 30 -1% -3%
Typical 11.5 15 16 20 17 29 32 41 -1% -6%
RAS AL KHAIMAH
High End 16 23 22 37 34 49 52 72 -2% -5%
Typical 13 16.5 16 22 20 26.5 32 38 -1% -9%
FUJAIRAH
High End 18 22 27 34 32 47 50 62 -1% -5%

Q-o-Q Y-o-Y Since peak Since market low

% Change
Since Q1 2021 Since Q2 2020 Q1 2015 Q4 2012

-1% -6% -40% -17%

21 Northern Emirates Real Estate Report - Q2 2021
 SHARJAH
APARTMENT RENTAL RATES
(All figures in AED 000’s p.a.)

STUDIO 1 BEDROOM 2 BEDROOMS 3 BEDROOMS % CHANGE

FROM TO FROM TO FROM TO FROM TO Q1 2021 - Q2 2021 Q2 2020 - Q2 2021

AL MAJAZ 13 17.5 18 30 22 42 29 65 -2% -9%

AL QASIMIAH 11 16 13.5 26 16 34 30 43 -2% -7%
AL NAHDA 12 20 15 32 18 45 32 65 -1% -3%
AL KHAN (AL MAMZAR) 14 18 19 30 25 47 36 60 -1% -4%
ABU SHAGARA 12 17 15 24 20 32 30 40 -1% -4%
AL BUTINA 09 13 12 21 15 24 28 36 -1% -8%
AL YARMOOK 10 13 14 16 15 20 28 38 0% -9%
ROLLA 10 12 13 18 16 23 28 35 -1% -9%
AL WAHDA 13 18 16 23 22 33 28 42 -1% -8%
CORNICHE 13 20 22 28 25 40 35 65 -2% -8%

Q-o-Q Y-o-Y Since peak Since market low

% Change
Since Q1 2021 Since Q2 2020 Q1 2015 Q4 2011

-1% -6% -42% -8%

22 Northern Emirates Real Estate Report - Q2 2021
 SHARJAH
APARTMENT SALES PRICES

% CHANGE
(All figures in AED per sq.ft.) 0 100 200 300 400 500 600 700 800 900 Q1 2021 - Q2 2021 Q2 2020 - Q2 2021

AL KHAN
280 400 0% -21%
(MID-END)

AL KHAN
425 600 0% -19%
(HIGH END)

AL TAAWUN 300 450 0% -9%

AL NAHDA 275 425 0% -22%

AL MAJAZ
325 400 0% -19%
(MID-END)

AL MAJAZ
400 525 0% -17%
(HIGH END)

AL MAMSHA* 575 750 4% -10%

AL ZAHIA* 675 825 3% -6%

ALJADA* 675 825 3% -6%

2%
Q-o-Q Y-o-Y
* Leasehold ownership (up to 100 years) for all nationalities % Change
Since Q1 2021 Since Q2 2020

-13%
23 Northern Emirates Real Estate Report - Q2 2021
 SHARJAH
OFFICE RENTAL RATES
(All figures in AED per sq.ft. p.a.)

AVERAGE RENTAL RATES % CHANGE

FROM TO Q1 2021 - Q2 2021 Q2 2020 - Q2 2021

AL TAAWUN ROAD 25 32.5 0% -17%

CORNICHE AREA 28 42.5 0% -15%
AL WAHDA 25 32.5 0% -17%
AL QASEMEH 20 30 0% -14%
CLOCK R/A 25 32.5 0% -17%
AL YARMOOK 20 30 0% -13%
INDUSTRIAL AREA 20 30 0% -17%

Q-o-Q Y-o-Y
% Change
Since Q1 2021 Since Q2 2020

0% -16%
24 Northern Emirates Real Estate Report - Q2 2021
 NORTHERN EMIRATES Arabian Gulf
MAP SHARJAH

1 Abu Shagara
RAS AL KHAIMAH
2 Al Khan
UNITED ARAB EMIRATES UMM AL QUWAIN
3 Al Majaz
AJMAN 4 Al Nahda
SHARJAH 5 Al Qasimiyah
FUJAIRAH 6 Al Taawun
7 Al Wahda
DUBAI 11
8 Corniche / Buhaira
9 Khaledia
10 King Faisal and
King Abdul Aziz Streets 5
10

8
ABU DHABI 9
1

7
3

RAS AL KHAIMAH Mina Al Arab

1 Mina Al Arab 1

2 Marjan Island 2
3 Al Hamra 6

4
Al Hamra
Marjan Island

3
2

11

25 Northern Emirates Real Estate Report - Q2 2021

AL AIN
MARKET OVERVIEW

Similar to the first quarter of the year, apartment rental rates remained more or less unchanged
over Q2 2021, whilst annual drops were marginal at 3%.

Villa rental rates softened by 1% over the last three months, and by 2% compared with the same
period last year.

Whilst real estate market activity itself continued on a positive note as a result of active local tenant
movement in search for value-for-money properties, elevated vacancy rates necessitated landlords
to be flexible and offer discounts and incentives such as rent-free periods (up to 3 months) and
flexible payment terms (up to 12 cheques).

There was limited or no change in average office and retail rental rates as net effective rates were
somewhat offset by incentives.

Market activity, however, increased noticeably with small companies in retail/F&B and healthcare
sectors looking for commercial villas and/or small buildings.

26 Al Ain Real Estate Report - Q2 2021

 AL AIN
APARTMENT RENTAL RATES
(All figures in AED 000’s p.a.)

1 BEDROOM 2 BEDROOMS 3 BEDROOMS % CHANGE

FROM TO FROM TO FROM TO Q1 2021 - Q2 2021 Q2 2020 - Q2 2021

MATURE BUILDINGS 22 26 31 35 43 48 0% -1%

NEW BUILDINGS 27 29 34 37 52 62 0% -1%
PRIME COMPOUNDS 30 35 42 48 60 80 0% -6%

Q-o-Q Y-o-Y Since peak Since market low

% Change
Since Q1 2021 Since Q2 2020 Q4 2015 Q4 2012
AL AIN 0% -3% -22% -4%
VILLA RENTAL RATES
(All figures in AED 000’s p.a.)

3 BEDROOMS 4 BEDROOMS 5 BEDROOMS % CHANGE

FROM TO FROM TO FROM TO Q1 2021 - Q2 2021 Q2 2020 - Q2 2021

Al Jimi, Town Centre, Zaker, Other(*) 43 48 65 71 82 91 0% -3%

MATURE VILLAS Al Towaya 62 68 85 90 90 95 -1% -3%
Prime Compounds 77 82 95 103 115 120 -1% -1%
Al Jimi, Town Centre, Zaker, Other(*) 56 63 75 80 95 105 0% -2%
RECENT BUILD Al Towaya 72 75 85 90 105 110 -1% -1%
Prime Compounds 88 93 100 110 130 135 -1% -1%

8%
Q-o-Q Y-o-Y Since peak Since market low
* Includes Al Khabisi, Al Muwaiji, Al Manasir and Al Masoudi areas % Change
Since Q1 2021 Since Q2 2020 Q4 2015 Q4 2012

-1% -2% -24%

27 Al Ain Real Estate Report - Q2 2021
 AL AIN
OFFICE RENTAL RATES

% CHANGE
(All figures in AED per sq.m. p.a.) 0 100 200 300 400 500 600 700 800 900 1,000 Q1 2021 - Q2 2021 Q2 2020 - Q2 2021

KHALIFA STREET 550 840 -2% -2%

AUD AL TOUBA STREET 550 840 -2% -2%

MAIN STREET 550 840 -2% -2%

SENAYA STREET 340 530 -3% -3%

Q-o-Q Y-o-Y Since peak Since market low

% Change
AL AIN
Since Q1 2021 Since Q2 2020 Q4 2015 Q3 2012

0% -3% -13% -31%

RETAIL RENTAL RATES
% CHANGE
(All figures in AED per sq.m. p.a.) 0 500 1,000 1,500 2,000 2,500 3,000 Q1 2021 - Q2 2021 Q2 2020 - Q2 2021

KHALIFA STREET / MAIN STREET 900 2,100 0% 0%

PRIME MALL 1,350 2,800 0% 0%

SENAYA STREET 630 1,450 0% 0%

Q-o-Q Y-o-Y Since peak Since market low

% Change
Since Q1 2021 Since Q2 2020 Q4 2015 Q4 2011

0% 0% -10% -10%
28 Al Ain Real Estate Report - Q2 2021
AL AIN Al Foaa

PROPERTY MAP

St
ates
Emir
Hili

Ardh Jow St
East Airport District
Al Masoudi

St
Baniyas
Al Oattara
SULTANATE OF OMAN

St
Al Ain

in Khalifa
International
Airport Al Dahmaa Al Towaya Al Buraimi
Al Jimi

Mohd B
Al Yahar North
Al Khabisi
Al Mutaredh
Al Markhaniya dS
t. To
aye w
Bin
Z n
lifa Al Jahili
Ce
Kh
a nt
Al Yahar South Al Muwaiji Al
re
Al Bateen Mutawa’a

Asharej

t.
dS
Zaye Al Sarooj
Bin Falaj Hazza’a
Al Salamat District lifa
Kha Al Shuwaimah

Zay
Al Maqam

ed
Al Aqabiyya

B
in S
ult
Aflaj

an
S
t.
Zoo District

Gharebah
Al Shuaibah

Al Khrair
Defence
Zaker

29 Al Qisais Neima Al Ain Real Estate Report - Q2 2021

 Author: Khatija Haque, Chief Economist and Head of Research, Emirates NBD

The UAE’s post-Covid economic recovery has continued in Q2
2021 despite continued challenges on the tourism side. The PMI
index averaged 52.4 in the second quarter, indicating modest
growth in the UAE’s non-oil private sector, but this was still the
highest quarterly average since Q3 2019. External demand was
the weakest since Q2 2020 however, due to the extension of
travel restrictions in the UK, Eurozone and parts of Africa, and
the introduction of new restrictions on India and other Asian
countries at the end of April on the back of surging coronavirus
cases in those countries. Tourism accounted for around 25%
of Dubai’s nominal GDP pre-pandemic, and while we do expect
the sector to recover, the pace of the recovery is dependent to a
large extent on factors outside the UAE’s control, including the
speed with which other countries are able to secure and roll out
Covid-19 vaccines.
Nevertheless, the UAE’s early and relatively fast vaccine rollout
has allowed the economy to remain largely open, and there
are signs of strengthening domestic demand. Hotel occupancy
rates have recovered from last year’s pandemic lows (even as
international travel restrictions hamper the return of foreign
tourists), private school enrollments in Dubai have increased
3.9% since September 2020 and the number of active mobile
phone subscriptions in the UAE has also increased since the
lows last summer. While these indicators remain below pre-
pandemic levels, the trend is encouraging. Rents and residential
real estate prices have also rebounded since the start of the year,
particularly for larger units, while bank lending to individuals grew
on an annual basis in March and April after contracting for all of
2019 and 2020. All of this bodes well for a rebound in private
consumption expenditure this year, after it contracted -12.5% in
2020.
The UAE, a global trade hub, has likely also benefitted from the
sharp rebound in global merchandise trade in recent months.
The volume of merchandise trade has exceeded pre-pandemic
levels, as consumers in developed markets have bought more
goods, being unable to spend on travel, entertainment and other
services due to pandemic restrictions. We expect the transport
and logistics sector in the UAE will be one of the key drivers of the
economic recovery this year.
The UAE’s fiscal position remains one of the strongest in the
region, with only a fractional -0.2% of GDP budget deficit
recorded in 2020, despite sharply lower oil prices and cuts to oil
production. The recovery in oil prices this year should allow the
government to boost spending and investment modestly while
still keeping the budget close to balanced. The authorities have
continued to make progress on structural reforms too, in a bid
to attract greater private sector investment to support growth.
The UAE government aims to double GDP by 2030. Long-term
residency is being offered to a larger segment of the population,
and investors are now able to register onshore companies in
many sectors with no need for a local sponsor. A number of
initiatives to support the growth of family-owned businesses and
SMEs have been announced with financing being made available
as well.
At this stage, with no official estimates for Q1 2021 GDP, we retain
our forecast of 3.5% non-oil sector growth this year, slightly lower
than the UAE central bank’s forecast of 4.0%. However, with oil
production likely to rise only gradually in H2 2021, the oil sector is
likely to remain a headwind to overall GDP growth this year, which
we expect to reach 1.5%.

The volume of global merchandise trade has surged Dubai's hospitality sector is recovering from the pandemic
30 90 180
25 80 160
20 70 140
15
60 120
10
50 100
5
40 80
0
30 60
-5
-10 20 40
-15 10 20
-20 0 0
Nov Nov Nov Nov Nov Nov Nov Dec Apr Aug Dec Apr Aug Dec Apr
2014 2015 2016 2017 2018 2019 2020 2018 2019 2019 2019 2020 2020 2020 2021

% y/y Occupancy % lhs RevPAR USD rhs

Source: Bloomberg, Emirates NBD Research Source: STR Global, Emirates NBD Research

30 Emirates NBD - Q2 2021

About Asteco
Asteco is a major regional and international award-winning full-
service real estate services company that was formed in 1985
and has gained enormous respect for consistently delivering
high quality, professional, value-added real estate services in
a transparent manner. The company is also widely recognised
for its involvement with many of the projects that have defined
the landscape and physical infrastructure of the United Arab
Emirates.
The world-class company has a distinguished and important
combination of local knowledge and international expertise and
has been renowned for its application of the latest technological
tools and innovations, its commitment to transparency, winning
strategies and human expertise.
Undisputed Real Estate experts with a regional presence to serve
its customers, Asteco proudly represents a significant number of
the region’s top property Owners, Developers and Investors.
Asteco offers a wide range of services and solutions to its clients
from Sales & Leasing, Property Consultancy & Management,
Owners’ Association Consultancy & Management and Clubhouse
& Lifestyle Management to Building Consultancy, Retail
Management, Valuation and Advisory as well as Franchising
services. The company applies innovative solutions and cutting-
edge technology to add tangible value for its clients at every
stage of the property lifecycle and to continuously elevate
customer experience.
VALUATION & ADVISORY PROPERTY MANAGEMENT
Our professional advisory services are conducted by suitably Asteco provides comprehensive Property Management services
qualified personnel all of whom have had extensive Real Estate to all property Owners, whether a single unit (IPM) or a regional
experience within the Middle East and internationally. mixed-use portfolio. Our focus is on maximising value for our
Clients.
Our valuations are carried out in accordance with the Royal
Institution of Chartered Surveyors (RICS) and International OWNERS ASSOCIATION
Valuation Standards (IVS) and are undertaken by appropriately Asteco has the experience, systems, procedures and manuals
qualified valuers with extensive local experience. in place to provide streamlined comprehensive Association
Management and Consultancy services to residential, commercial
The Professional Services Asteco conducts throughout the region and mixed-use communities throughout the GCC Region
include:
BUILDING CONSULTANCY
• Consultancy & Advisory services The Building Consultancy Team at Asteco have a wealth of
• Market research experience supporting their Clients throughout all stages of the
built asset lifecycle. Each of the team’s highly trained surveyors
• Valuation services
have an in-depth knowledge of construction technology, building
pathology and effective project management methods which
SALES
enable us to provide our clients with a comprehensive building
Asteco has established a large regional property Sales division
consultancy service.
with representatives based in the UAE, Qatar and Jordan. Our
Sales teams have extensive experience in the negotiation and FRANCHISE
sale of a variety of assets. Our brand, network, system and procedures are now available
in territories across the MENA region. Our Licensing services
LEASING currently include Real Estate Brokerage Franchising and
Asteco has been instrumental in the Leasing of many high-profile associated support services with many of the key elements
developments across the GCC. designed specifically around the Franchisee, making it a truly
unique and bespoke franchise opportunity.

HP Aengaar John Allen James Joughin Jenny Weidling Ghada Amhaz Tamer Ibrahim Chaaban
BSc, MRICS BSc (Hons), MRICS BA (Hons) MSc, MRICS BE
Chief Executive Officer Executive Director - Senior Associate Manager - Research and Advisory, Manager - Research and Ad- Associate Director /
+971 2 408 0800 Valuation & Advisory Director - Head of Valuations Dubai visory, Abu Dhabi General Manager - Al Ain
h.aengaar@provis.ae +971 4 403 7777 +971 4 403 7777 +971 4 403 7777 +971 2 626 2660 +971 3 766 6097
JohnA@Asteco.com JamesJ@Asteco.com JennyW@Asteco.com GhadaA@asteco.com TamerI@asteco.com

DISCLAIMER: The information contained in this report has been obtained from and is based upon sources that Asteco Property Management believes to be reliable; however, no warranty or representation, expressed or implied, is
made to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions
imposed by our principals. Asteco Property Management will not be held responsible for any third-party contributions. All opinions and estimates included in this report constitute Asteco Property Management’s judgment, as of the
date of this report and are subject to change without notice. Figures contained in this report are derived from a basket of locations highlighted in this report and therefore represent a snapshot of the UAE market. Averages, however,
represent a wider range of areas. Particularly exclusive or unique projects have been excluded from the data to avoid distorting averages. Due care and attention has been used in the preparation of forecast information. However,
actual results may vary from forecasts and any variation may be materially positive or negative. Forecasts, by their very nature, involve risk and uncertainty because they relate to future events and circumstances which are beyond
Asteco Property Management’s control. For a full in-depth study of the market, please contact Asteco Property Management’s Research team. Asteco Property Management LLC. Commercial License No. 218551. Paid-up Capital
AED 4,000,000. | ORN 180

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