Property Review

Abu Dhabi Real Estate Report

Q2 2021
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.

2 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

3 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%

4 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%
5 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%
6 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%
7 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%

8 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

9 Abu Dhabi Real Estate Report - 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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