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In the mIddle east for 28 yearsDUBAI | ABU DHABI | AL AIN | SHARJAH | QATAR | JORDAN In the mIddle east for 28 years

© Asteco Property Management, 2013 asteco.com | astecoreports.com For additional information: 600 54 7773

ASSET MANAGEMENT SALES LEASING

VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

DUBAI REPORT - Q3 2013•

the Uae, and dubai in particular, have experienced a resurgence in transactional activity across all sectors of the property market over the past 12 months.

the significant appreciation in values, both leasing and sales, has resulted in a number of new project launches and increased interest in off-plan properties. outlined in this Cityscape edition is a pricing analysis of the Uae property market, tracking its performance from the peak in 2008, to the trough in 2010/2011 to its current levels in Q3 2013.

Key highlights and performance indicators underpinning this exceptional progress in the Uae are as follows:

•Strategiclocationandestablishedtradelinks

•Politicalstability

•Buoyantanddiversifiedeconomy

•Soundregulatoryenvironment

•Qualityofinfrastructure

•Easeandtransparencyofdoingbusiness

•Corporateandprivatetaxstructures

EDITION

200

400

600

800

1,000

1,200

1,400

0

500

1,000

1,500

2,000

2,500

3,00

0

1,25

0

3,75

0

2,20

0

1,80

0

1,90

0

1,50

0

3,50

0

1,60

0

550

1,30

0

1,00

0

1,00

0

1,05

0

850

1,60

0

1,50

0

500

1,30

0

1,05

0

850

925

750

1,17

5

1,30

0

450

1,10

0

925

775

925

650

1,10

0

1,30

0

400

1,20

0

1,00

0

825

950

650

1,30

0

1,60

0

700

1,70

0

1,40

0

1,20

0

1,30

0

950

1,65

0

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

DIFC Discovery Gardens Downtown Dubai Dubai Marina Greens Jumeirah Beach Residence Jumeirah Lakes Towers Palm Jumeirah

2008 2009 2010 2011 2012 2013 Percentage Change (Q3 2008-Q3 2013) Percentage Change (Q3 2012-Q3 2013)






2008 2009 2010 2011 2012 2013 Percentage Change (Q3 2008-Q3 2013) Percentage Change (Q3 2012-Q3 2013) 2008 2009 2010 2011 2012 2013 Percentage Change (Q3 2008-Q3 2013) Percentage Change (Q3 2012-Q3 2013)

AED/

ft2

23%

-47%

75%

-44%

42%

-55%

40%

-36%

45%

-33%

37%

-32%

46%

-37%

27%

-53%

AED/

ft2

19%

-39%

18%

-38%

21%

-39%

30%

-50%

50%

-29%

21%

-48%

25%

-53%

25%

-44%

1,80

0

1,60

0

1,40

0

2,60

0

1,05

0

2,20

0

4,25

0

1,80

0

850

850

650

950

600

1,00

0

1,80

0

800

750

750

700

950

550

850

1,55

0

675

750

750

650

900

475

850

1,50

0

650

925

850

700

1,00

0

500

950

1,60

0

800

1,10

0

1,00

0

850

1,30

0

750

1,15

0

2,00

0

1,00

0

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Arabian Ranches Dubai Sports City(Victory Heights)

Green Community Jumeirah Islands Jumeirah Village Meadows Palm Jumeirah Springs

AED/

ft2

14%

-68%

6%

-58%

-18%

-63%

0%

-62%

36%

-63%

7%

-68%

2,50

0

4,25

0

1,20

0

1,30

0

2,00

0

2,50

0

1,25

0

1,90

0

650

700

900

1,10

0

1,00

0

1,90

0

650

600

750

900

750

1,80

0

550

525

550

750

700

1,70

0

550

500

550

750

800

1,80

0

450

500

750

800

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Business Bay DIFC Dubai Investment Park Dubai Silicon Oasis Jumeirah Lakes Towers Tecom C

AED/

ft2

14%

-43%

19%

-20%

26%

-31%

22%

-33%

20% 18%

-50%

AED/

ft2

5%

3%

4%

-2%

13%

18%

1,8

40

1,6

35

1,6

35

1,6

35

2,4

50

1,2

00

1,3

50

1,2

00

1,2

00

1,3

90

1,1

00

1,3

50

980

1,0

20

1,3

65

1,0

00

1,2

25

980

1,0

20

500

1,1

15

925

1,0

90

890

900

550

1,0

40

1,0

50

1,3

00

1,1

25

1,1

00

660

1,2

25

0

500

1,000

1,500

2,000

2,500

3,000

Marina Square Raha Beach / Al Bandar Raha Beach / Al Muneera Raha Beach / Al Zeina Reef Downtown Sun & Sky Towers

Raha Gardens Golf Gardens Al Reef Villas

AED

/ft2

Dubai Average Sales priceand Percentage Change(with 2008 peak as the base)

AED/

ft2

-17%

0%

-13%

-11%

-19%

-0%

-17%

-38%

AED/

ft2

-3%

-66%

13%

-65%

11%

-60%

5%

-60%

-4%

-68%

0%

-64%

-11%

-68%

-1%

-58%

148

175

125

125

135

125

125

125

75

75

55

55

55

55

55

55

60

60

45

45

45

45

45

45

52

55

47

47

45

45

45

52

52

55

45

47

45

45

45

52

51

62

50

50

43

45

40

52

0

20

40

60

80

100

120

140

160

180

200

Al Taawun Road Corniche Area Al Wahdah Mina Road Al Qasemeh Clock R/A Al Yarmouk Industrial Area

0

500

1,000

1,500

2,000

2,500

3,000

-62%3%

24%

-56%

-61%

27%

2008 2010/11 2013Office Villa Apartment

850

950

850

800

1,05

0

1,00

0

950

800

1,15

0

1,12

5

1,15

0

950

1,10

0

1,07

5

1,10

0

900

1,02

5

975

1,05

0

600

850

850

850

500

0

Khalifa Street Aud Al Touba Street Main Street Senaya Street

AED/

ft2

0%

97%

0%

70%

0%

50%

0%

78%

925

1,07

5

1,00

0

1,25

0

1,50

0

1,35

0

1,20

0

1,55

0

1,70

0

1,70

0

1,35

0

2,25

0

1,65

0

1,65

0

1,30

0

2,22

5

1,82

5

1,82

5

1,50

0

2,22

5

1,82

5

1,82

5

1,50

0

2,22

5

Khalifa Street Main Street Senaya Street Major Al Ain Malls

1,1

90

1,1

60

985

950

930

600

855

860

590

800

845

505

775

770

550

880

840

695

0

200

400

600

800

1,000

1,200

1,400




EDITION

200

400

600

800

1,000

1,200

1,400

0

500

1,000

1,500

2,000

2,500

3,00

0

1,25

0

3,75

0

2,20

0

1,80

0

1,90

0

1,50

0

3,50

0

1,60

0

550

1,30

0

1,00

0

1,00

0

1,05

0

850

1,60

0

1,50

0

500

1,30

0

1,05

0

850

925

750

1,17

5

1,30

0

450

1,10

0

925

775

925

650

1,10

0

1,30

0

400

1,20

0

1,00

0

825

950

650

1,30

0

1,60

0

700

1,70

0

1,40

0

1,20

0

1,30

0

950

1,65

0

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

DIFC Discovery Gardens Downtown Dubai Dubai Marina Greens Jumeirah Beach Residence Jumeirah Lakes Towers Palm Jumeirah







2008 2009 2010 2011 2012 2013 Percentage Change (Q3 2008-Q3 2013) Percentage Change (Q3 2012-Q3 2013) 2008 2009 2010 2011 2012 2013 Percentage Change (Q3 2008-Q3 2013) Percentage Change (Q3 2012-Q3 2013)

AED/

ft2

23%

-47%

75%

-44%

42%

-55%

40%

-36%

45%

-33%

37%

-32%

46%

-37%

27%

-53%

AED/

ft2

19%

-39%

18%

-38%

21%

-39%

30%

-50%

50%

-29%

21%

-48%

25%

-53%

25%

-44%

1,80

0

1,60

0

1,40

0

2,60

0

1,05

0

2,20

0

4,25

0

1,80

0

850

850

650

950

600

1,00

0

1,80

0

800

750

750

700

950

550

850

1,55

0

675

750

750

650

900

475

850

1,50

0

650

925

850

700

1,00

0

500

950

1,60

0

800

1,10

0

1,00

0

850

1,30

0

750

1,15

0

2,00

0

1,00

0

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Arabian Ranches Dubai Sports City(Victory Heights)

Green Community Jumeirah Islands Jumeirah Village Meadows Palm Jumeirah Springs

AED/

ft2

14%

-68%

6%

-58%

-18%

-63%

0%

-62%

36%

-63%

7%

-68%

2,50

0

4,25

0

1,20

0

1,30

0

2,00

0

2,50

0

1,25

0

1,90

0

650

700

900

1,10

0

1,00

0

1,90

0

650

600

750

900

750

1,80

0

550

525

550

750

700

1,70

0

550

500

550

750

800

1,80

0

450

500

750

800

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Business Bay DIFC Dubai Investment Park Dubai Silicon Oasis Jumeirah Lakes Towers Tecom C

AED/

ft2

14%

-43%

19%

-20%

26%

-31%

22%

-33%

20% 18%

-50%

AED/

ft2

5%

3%

4%

-2%

13%

18%

1,8

40

1,6

35

1,6

35

1,6

35

2,4

50

1,2

00

1,3

50

1,2

00

1,2

00

1,3

90

1,1

00

1,3

50

980

1,0

20

1,3

65

1,0

00

1,2

25

980

1,0

20

500

1,1

15

925

1,0

90

890

900

550

1,0

40

1,0

50

1,3

00

1,1

25

1,1

00

660

1,2

25

0

500

1,000

1,500

2,000

2,500

3,000

Marina Square Raha Beach / Al Bandar Raha Beach / Al Muneera Raha Beach / Al Zeina Reef Downtown Sun & Sky Towers

Raha Gardens Golf Gardens Al Reef Villas

AED

/ft2

Dubai Average Sales priceand Percentage Change(with 2008 peak as the base)

AED/

ft2

-17%

0%

-13%

-11%

-19%

-0%

-17%

-38%

AED/

ft2

-3%

-66%

13%

-65%

11%

-60%

5%

-60%

-4%

-68%

0%

-64%

-11%

-68%

-1%

-58%

148

175

125

125

135

125

125

125

75

75

55

55

55

55

55

55

60

60

45

45

45

45

45

45

52

55

47

47

45

45

45

52

52

55

45

47

45

45

45

52

51

62

50

50

43

45

40

52

0

20

40

60

80

100

120

140

160

180

200

Al Taawun Road Corniche Area Al Wahdah Mina Road Al Qasemeh Clock R/A Al Yarmouk Industrial Area

0

500

1,000

1,500

2,000

2,500

3,000

-62%3%

24%

-56%

-61%

27%

2008 2010/11 2013Office Villa Apartment

850

950

850

800

1,05

0

1,00

0

950

800

1,15

0

1,12

5

1,15

0

950

1,10

0

1,07

5

1,10

0

900

1,02

5

975

1,05

0

600

850

850

850

500

0

Khalifa Street Aud Al Touba Street Main Street Senaya Street

AED/

ft2

0%

97%

0%

70%

0%

50%

0%

78%

925

1,07

5

1,00

0

1,25

0

1,50

0

1,35

0

1,20

0

1,55

0

1,70

0

1,70

0

1,35

0

2,25

0

1,65

0

1,65

0

1,30

0

2,22

5

1,82

5

1,82

5

1,50

0

2,22

5

1,82

5

1,82

5

1,50

0

2,22

5

Khalifa Street Main Street Senaya Street Major Al Ain Malls

1,1

90

1,1

60

985

950

930

600

855

860

590

800

845

505

775

770

550

880

840

695

0

200

400

600

800

1,000

1,200

1,400

DUBAI SALES ApArtment SALeS prICeS And perCentAge ChAnge

VILLA SALeS prICeS And perCentAge ChAnge

OffICe SALeS prICeS And perCentAge ChAnge

•dubai apartment and villa sales prices have yet to reach the peak levels as seen in 2008 and are still -42% lower than in Q3 2008 while year on year growth amounted to 42% and 26% respectively.

•asteco believes that although prices will increase further, they are unlikely to go back to the levels experienced during boom times in the short/medium term.

•While we have seen numerous project launches and increased interest in buying off-plan properties, projects with favourable payment plans in good locations saw the bulk of demand.

•office sales prices, on the other hand, have seen little improvement over the last five years and are still -63% lower than in Q3 2008 while the last 12 months only saw minimal increases of 8% on average.



VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATIONEDITION

DUBAI LEASINGApArtment rentAL rAteS And perCentAge ChAnge

VILLA rentAL rAteS And perCentAge ChAnge

OffICe rentAL rAteS And perCentAge ChAnge

Average Rental Rates (AED’000/pa) % Change

DEvElopmEnt2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 Q3 2012-

Q3 2013 Q3 2008-Q3 20131 BR 2 BR 3 BR

Discovery Gardens 100 57.5 47.5 38 40 50 135 85 75 53 65 75 n/a n/a n/a n/a n/a n/a 26 -47

Downtown Dubai 132.5 87.5 75 68 80 90 185 117.5 100 100 120 140 275 145 150 150 180 200 14 -25

Dubai marina 130 82.5 62.5 62.5 70 80 180 110 92.5 80 90 112.5 245 147.5 125 115 125 150 25 -36

International City 70 40 32 24 23 32.5 92.5 62.5 41 38 38 50 n/a n/a n/a n/a n/a n/a 35 -52

Jumeirah Beach Residence 115 90 75 70 75 85 167.5 125 100 90 95 115 202.5 147.5 125 110 120 145 19 -28

Jumeirah lakes towers 110 60 50 45 50 62.5 160 80 65 65 70 85 210 102.5 95 85 95 120 28 -41

palm Jumeirah 200 120 90 90 90 110 227.5 150 120 120 130 160 300 215 170 170 180 200 19 -36

Sheikh Zayed Road 160 82.5 70 67.5 80 85 202.5 130 105 100 105 130 290 175 120 120 130 150 16 -40

Average Rental Rates (AED’000/pa) % Change

DEvElopmEnt2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 Q3 2012-

Q3 2013 Q3 2008-Q3 20133 BR 4 BR 5 BR

Arabian Ranches 275 140 125 125 145 175 335 185 160 160 210 250 425 265 250 250 275 290 17 -28

Green Community 310 190 170 170 190 220 385 210 190 190 210 230 392.5 240 220 210 235 265 13 -34

Jumeirah 325 160 140 140 155 180 400 190 165 160 185 220 450 225 210 200 220 260 15 -44

Jumeirah Islands n/a n/a n/a n/a n/a n/a 425 285 270 270 300 330 600 315 300 300 350 375 9 -30

meadows 325 180 185 180 200 240 350 230 200 200 220 270 425 255 225 225 260 290 18 -27

mirdif 240 100 85 80 90 120 260 120 110 105 115 145 275 165 125 125 140 170 31 -40

palm Jumeirah 375 250 275 275 325 350 500 325 315 315 365 440 675 500 450 450 500 600 16 -10

Springs 250 125 110 105 125 165 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 34 -36

Average Rental Rates (AED/ft2/pa) % Change

DEvElopmEnt 2008 2009 2010 2011 2012 2013 Q3 2012-Q3 2013 Q3 2008-Q3 2013Bur Dubai 375 150 115 90 80 95 19 -75

Business Bay n/a n/a n/a 75 70 95 36 n/a

DIFC 525 370 295 220 220 225 2 -57

Dubai Internet City 360 170 135 125 115 160 39 -56

Dubai Investment park 205 95 50 40 40 60 50 -71

Jumeirah lakes towers 280 100 75 50 50 105 110 -63

Sheikh Zayed Road 450 215 160 140 140 150 7 -67

tecom C 360 105 85 60 55 100 82 -72

• similar to the sales market, apartment and villa rents are below Q3 2008 levels by -38 and -31% respectively.

•however, recovery is well under way with a year on year growth of 23% for apartments and 19% for villas.

•asteco expects rental growth to continue as economic improvements fuel internal demand as well as result in new arrivals.

• revival in the office market is slower compared to residential and rates are still -66% lower than in Q3 2008 but rose 43% over the previous year.



In the mIddle east for 28 yearsDUBAI | ABU DHABI | AL AIN | SHARJAH | QATAR | JORDAN In the mIddle east for 28 years


VALUATION & ADVISORY

our professional advisory services are conducted by suitably qualified personnel all of whom

have had extensive real estate experience within the middle east and internationally.

our valuations are carried out in accordance with the royal Institution of Chartered surveyors

(rICs) and International Valuation standards (IVs) and are undertaken by appropriately quali-

fied valuers with extensive local experience.

TheProfessionalServicesAstecoconductsthroughouttheregioninclude:

• Consultancy and Advisory Services •market research •Valuation Services

SALES

asteco has established a large regional property sales division with representatives based

in the Uae, Qatar and Jordan. our sales teams have extensive experience in the negotiation

and sale of a variety of assets.

LEASING

asteco has been instrumental in the leasing of many high-profile developments across the GCC.

ASSET MANAGEMENT

asteco provides comprehensive asset management services to all property owners, whether

asingleunit(IPM)oraregionalmixeduseportfolio.Ourfocusisonmaximisingvalueforour

Clients.

OWNER ASSOCIATION

Asteco has the experience, systems, procedures and manuals in place to provide streamlined

comprehensive association management and Consultancy services to residential, commercial

and mixed use communities throughout the GCC region.

SALES MANAGEMENT

our sales management services are comprehensive and encompass everything required for

the successful completion and handover of units to individual unit owners.

oman

United Arab emiratesQatar

Jordan

egypt

yemen

Iran

ras al Khaimah

United Arab emirates

ajmansharjah

dubai

Abu dhabi

al ain

fujairah

Um al Quwaim

dISCLAImer:TheinformationcontainedinthisreporthasbeenobtainedfromandisbaseduponsourcesthatAstecoPropertyManagementbelievestobereliable,however,nowarrantyorrepresentation,expressedorimplied,ismadetotheaccuracyorcompletenessoftheinformationcontainedherein,andsameissubmittedsubjecttoerrors,omissions,changeofprice,rentalorotherconditions,withdrawalwithoutnotice,andtoanyspeciallistingconditionsimposedbyourprincipals.AstecoPropertyManagementwillnotbeheldresponsibleforanythird-partycontributions.AllopinionsandestimatesincludedinthisreportconstituteAstecoPropertyManagement’sjudgment,asofthedateofthisreportandaresubjecttochange 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 dubai market. due care and attention has been used in the preparation of forecast information. however, actual results may vary from forecasts and any variation may be materially positive or negative. forecasts, bytheirverynature,involveriskanduncertaintybecausetheyrelatetofutureeventsandcircumstanceswhicharebeyondAstecoPropertyManagement’scontrol.Forafullin-depthstudyofthemarket,pleasecontactAstecoPropertyManagement’sresearchteam.AstecoPropertyManagementLLC.CommercialLicenceNo.218551.Paid-upCapitalAED4,000,000.

With28yearsofMiddleeastexperience,Asteco’sValuation&AdvisoryServicesteambringstogetheragroupoftheGulf’sleadingrealestateexperts.

Asteco’snetworkofofficesinAbuDhabi,AlAin,Dubai,NorthernEmirates,QatarandJordannotonly

provides a deep understanding of the local markets but also enables us to undertake large instructions

where we can quickly apply resources to meet clients requirements.

our breadth of experience across all the main property sectors is underpinned by our sales, leasing and

investment teams transacting in the market and a wealth of research that supports our decision making.

John Allen BSc MRICS

Jeremy oates BSc FRICS

Jenny WeildingBA (Hons)

Julia Knibbs MSc

Director, valuation & Advisory

General manager, Abu Dhabi

Research & Consultancy manager, Dubai

Research & Consultancy manager, Abu Dhabi

+971 600 54 7773 +971 2 626 2660 +971 600 54 7773 +971 2 626 2660

[email protected] [email protected] [email protected] [email protected]

John Stevens BSc MRICS

Sean mcCauley MBA BCom

vineet Kumar James Joughin BSc (Hons) MRICS

managing Director/Director, Asset Services

Director, Agency

Associate Director,Agency

Head of valuations, Abu Dhabi

+971 600 54 7773 +971 600 54 7773 +971 600 54 7773 +971 2 626 2660

[email protected] [email protected] [email protected] [email protected]

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