VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION
DUBAI | ABU DHABI | AL AIN | SHARJAH | QATAR | JORDAN IN THE MIDDLE EAST FOR 28 YEARS Apartment Sales Office Sales Apartment Rentals Villa Rentals Office Rentals Q - o - Q
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C h a n g e Al Dafna Al Waab Al Hilal Abu Hamour Ain Khaled West Bay West Bay Lagoon Al Gharrafa Al Khraytiyat Q A R / p m Q A R / m 2 Porto Arabia-Pearl Direct Sale Porto Arabia-Pearl Resale Viva Bahriya-Pearl Direct Sale Viva Bahriya-Pearl Resale Lagoon Plaza Direct Sale Lagoon Plaza Resale Q A R / m 2/ p a West Bay A Ring Road C Ring Road D Ring Road Old Doha Airport Road 3 BR 4 BR 5 BR Percentage Change (Q3 2012-Q3 2013) Percentage Change (Q2-Q3 2013) From To Percentage Change (Q3 2012-Q3 2013) Percentage Change (Q2-Q3 2013) Percentage Change (Q3 2012-Q3 2013) Percentage Change (Q2-Q3 2013) 7% 7% 9% 9% 6% 6% 3% 3% 4% 4% 8% 8% 9% -5% -12% 0% 4% 0% 4% -8% 5% 5% 4% 0% 5% 15% 6% 6% 4% 5% 4% 13% 13% 18% 5% 5% 6% 6% 3% 3% 10% 16% -25% -15% -5% 5% 15% 25% Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep 2009 2010 2011 2012 2013
0 20 40 60 80 100 120 140 160 180 200 Average Apartment Sales Prices and Percentage Change Average Office Rental Rates and Percentage Change With 28 years of Middle East experience, Astecos Valuation & Advisory Services team brings together a group of the Gulfs leading real estate experts. Astecos network of ofces in Abu Dhabi, Al Ain, Dubai, Northern Emirates, Qatar and Jordan not only 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. Asteco Qatar LLC, 2013 asteco.com | astecoreports.com For additional information: +974 4411 3818 QATAR FOCUS Q3 2013 HIGHLIGHTS PROPERTY MARKET SUMMARY REAL ESTATE MONITOR Undersupply in the residential market due to expatriate inow has led to a continuous increase in rents. Rents have most notably increased in The Pearl-Qatar, where availability will continue to be scarce until the completion of a number of new towers, currently under construction. Availability of good quality villas is limited, with rental increases evident in most locations throughout Doha. Occupancy levels for serviced apartments have increased with continued demand from long-stay guests. According to Ministry of Justice (MOJ) gures, the number of transactions fell from Q3 2012, however the overall value of transactions increased, pointing to rise in average property values. A number of signicant deals have been agreed for ofce buildings in West Bay, which will lead to a decrease in availability of prime ofce space in the area, potentially driving rents in remaining space up. Although evidence shows that most demand for ofce space is for smaller sized ofce suites in West Bay, in light of increasing occupancy levels, many landlords are reluctant to enter into negotiations with potential tenants unless these are considering taking up an entire or at least half a building. The line graph below demonstrates the average percentage change on a quarterly basis. Rental Rate (QAR/pm) Sales Prices (QAR/m 2 ) Min Max Min Max Apartment Studio 3,000 11,000 9,500 17,500 1 BR 3,500 12,500 2 BR 4,500 16,500 3 BR 6,250 19,000 Villa 3 BR 7,500 20,000 - - 4 BR 9,000 32,000 5 BR 10,500 42,000 Ofce Per m 2 90 270 - ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION Asteco Property Management, 2013 asteco.com | astecoreports.com For additional information: 600 54 7773 Page 2 Apartment Sales Office Sales Apartment Rentals Villa Rentals Office Rentals Q - o - Q
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C h a n g e Al Dafna Al Waab Al Hilal Abu Hamour Ain Khaled West Bay West Bay Lagoon Al Gharrafa Al Khraytiyat Q A R / p m Q A R / m 2 Porto Arabia-Pearl Direct Sale Porto Arabia-Pearl Resale Viva Bahriya-Pearl Direct Sale Viva Bahriya-Pearl Resale Lagoon Plaza Direct Sale Lagoon Plaza Resale Q A R / m 2/ p a West Bay A Ring Road C Ring Road D Ring Road Old Doha Airport Road 3 BR 4 BR 5 BR Percentage Change (Q3 2012-Q3 2013) Percentage Change (Q2-Q3 2013) From To Percentage Change (Q3 2012-Q3 2013) Percentage Change (Q2-Q3 2013) Percentage Change (Q3 2012-Q3 2013) Percentage Change (Q2-Q3 2013) 7% 7% 9% 9% 6% 6% 3% 3% 4% 4% 8% 8% 9% -5% -12% 0% 4% 0% 4% -8% 5% 5% 4% 0% 5% 15% 6% 6% 4% 5% 4% 13% 13% 18% 5% 5% 6% 6% 3% 3% 10% 16% -25% -15% -5% 5% 15% 25% Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep 2009 2010 2011 2012 2013
0 20 40 60 80 100 120 140 160 180 200 Average Apartment Sales Prices and Percentage Change Average Office Rental Rates and Percentage Change The availability of good quality residential property remains scarce. This is demonstrated by occupancy rates for Astecos residential portfolio remaining at 100% There has been a notable increase in residential enquiries in the past quarter, as the expatriate community continues to grow. New lettings and lease renewals have, in most cases seen growth in rents from between 5% and 10% compared to Q3 2012. Demand remains strongest for one and two bedroom apartments, with demand also high from families looking for villas within compounds. Rental levels in desired locations such as The Pearl-Qatar are likely to grow until supply levels increase. Whilst there are a number of towers nearing completion in Porto Arabia and Viva Bahriya, it is unlikely that these will come to the market before 2014. RESIDENTIAL LEASING MARKET Location Average Apartment Rental Rates Q3 2013 (QAR/pm) and Percentage Change (Q2-Q3 2013 and Q3 2012-Q3 2013) Studio 1 BR 2 BR 3 BR % Change From To From To From To From To Q-o-Q Y-o-Y Al Sadd 4,000 4,500 4,500 6,500 5,500 8,000 6,750 9,000 4 4 Bin Mahmoud 3,300 4,200 4,000 5,000 5,500 7,500 7,000 9,000 7 7 Al Muntazah - - 3,500 4,500 4,500 6,750 6,500 8,000 8 8 Najma 3,000 3,700 3,500 4,500 5,000 6,000 6,250 7,500 8 8 West Bay / Dafna 7,000 7,500 7,000 9,000 9,000 12,000 12,000 16,000 6 6 Al Maamoura - - 5,000 5,500 5,000 6,500 6,750 8,000 9 9 Bin Omran - - 4,750 5,500 5,000 6,500 6,500 7,500 6 6 Old Airport - - 5,000 6,000 6,500 6,500 7,000 8,500 9 9 Pearl Qatar 9,000 11,000 9,500 12,500 14,000 16,500 15,000 19,000 9 16 VILLA RENTAL RATES AND PERCENTAGE CHANGE ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION Asteco Property Management, 2013 asteco.com | astecoreports.com For additional information: 600 54 7773 Page 3 The sales market performed strongly in July, however transactional levels overall for Q3 were similar to those witnessed in the previous quarter. Asteco has witnessed a signicant increase in applications for mortgage valuations, largely from expatriate purchasers, in freehold areas. Recent sales prices this quarter are reecting an increase in values in The Pearl-Qatar. New apartments in Viva Bahriya are attracting higher prices than apartments in Porto Arabia. Increasing rents in the freehold zones has led to an increase in expatriate tenants looking to purchase, and resurgence in investor appetite. Recent activity in the ofce market has seen a number of newly constructed towers being pre-leased by new tenants, decreasing the options for occupiers with large requirements. Of the remaining available ofce buildings, most are tted to shell and core standard, with landlords looking to attract government occupiers. Although demand for smaller ofce oor plates from occupiers who require less than 500m 2 is still strong, there are only a limited number of ofce towers in West Bay where ofce accommodation is available in small suites or on a oor by oor basis. These ofces are usually fully tted (raised oors, suspended ceilings and air conditioning) and are attracting premium rents. Vacancy levels in secondary locations are high, however much of this accommodation is below the standards required by most tenants. According to gures released by the MOJ, the market for land sales in Qatar remained strong despite a small decrease in the number of transactions from the previous two quarters a likely impact of Ramadan and Eid. Land transactions reached in excess of 1,100 for the past 3 months with a total value of approximately QAR 1.7 billion. The average land values per square metre in the Doha municipality showed a signicant increase during Q3 2013, however this gure has been inuenced by two signicant transactions for tower sites in the Al-Dafna area. RESIDENTIAL SALES OFFICE LEASING LAND MARKET Apartment Sales Office Sales Apartment Rentals Villa Rentals Office Rentals Q - o - Q
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C h a n g e Al Dafna Al Waab Al Hilal Abu Hamour Ain Khaled West Bay West Bay Lagoon Al Gharrafa Al Khraytiyat Q A R / p m Q A R / m 2 Porto Arabia-Pearl Direct Sale Porto Arabia-Pearl Resale Viva Bahriya-Pearl Direct Sale Viva Bahriya-Pearl Resale Lagoon Plaza Direct Sale Lagoon Plaza Resale Q A R / m 2/ p a West Bay A Ring Road C Ring Road D Ring Road Old Doha Airport Road 3 BR 4 BR 5 BR Percentage Change (Q3 2012-Q3 2013) Percentage Change (Q2-Q3 2013) From To Percentage Change (Q3 2012-Q3 2013) Percentage Change (Q2-Q3 2013) Percentage Change (Q3 2012-Q3 2013) Percentage Change (Q2-Q3 2013) 7% 7% 9% 9% 6% 6% 3% 3% 4% 4% 8% 8% 9% -5% -12% 0% 4% 0% 4% -8% 5% 5% 4% 0% 5% 15% 6% 6% 4% 5% 4% 13% 13% 18% 5% 5% 6% 6% 3% 3% 10% 16% -25% -15% -5% 5% 15% 25% Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep 2009 2010 2011 2012 2013
0 20 40 60 80 100 120 140 160 180 200 Average Apartment Sales Prices and Percentage Change Average Office Rental Rates and Percentage Change Apartment Sales Office Sales Apartment Rentals Villa Rentals Office Rentals Q - o - Q
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C h a n g e Al Dafna Al Waab Al Hilal Abu Hamour Ain Khaled West Bay West Bay Lagoon Al Gharrafa Al Khraytiyat Q A R / p m Q A R / m 2 Porto Arabia-Pearl Direct Sale Porto Arabia-Pearl Resale Viva Bahriya-Pearl Direct Sale Viva Bahriya-Pearl Resale Lagoon Plaza Direct Sale Lagoon Plaza Resale Q A R / m 2/ p a West Bay A Ring Road C Ring Road D Ring Road Old Doha Airport Road 3 BR 4 BR 5 BR Percentage Change (Q3 2012-Q3 2013) Percentage Change (Q2-Q3 2013) From To Percentage Change (Q3 2012-Q3 2013) Percentage Change (Q2-Q3 2013) Percentage Change (Q3 2012-Q3 2013) Percentage Change (Q2-Q3 2013) 7% 7% 9% 9% 6% 6% 3% 3% 4% 4% 8% 8% 9% -5% -12% 0% 4% 0% 4% -8% 5% 5% 4% 0% 5% 15% 6% 6% 4% 5% 4% 13% 13% 18% 5% 5% 6% 6% 3% 3% 10% 16% -25% -15% -5% 5% 15% 25% Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep 2009 2010 2011 2012 2013
0 20 40 60 80 100 120 140 160 180 200 Average Apartment Sales Prices and Percentage Change Average Office Rental Rates and Percentage Change ASSET MANAGEMENT SALES LEASING VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION DUBAI | ABU DHABI | AL AIN | SHARJAH | QATAR | JORDAN IN THE MIDDLE EAST FOR 28 YEARS Asteco Qatar LLC, 2013 asteco.com | astecoreports.com For additional information: +974 4411 3818 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 Managements 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 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, by their very nature, involve risk and uncertainty because they relate to future events and circumstances which are beyond Asteco Property Managements control. For a full in-depth study of the market, please contact Asteco Property Managements research team. Asteco Qatar (LLC). Commercial Licence No. 38137. Paid-up Capital QAR5,000,000. Jed Wolfe BSc MRICS Johnny Archer MRICS Colin Jones Managing Director - Asteco Qatar Associate Director, Regional - Saudi Arabia & Qatar Head of Research, Consultancy and Valuations Head of Sales and Leasing +974 4411 3818 +974 4411 3818 +974 4411 3818 JedW@asteco.com JohnnyA@asteco.com ColinJ@asteco.com VALUATION & ADVISORY Our professional advisory services are conducted by suitably qualied 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 Institu- tion of Chartered Surveyors (RICS) and International Valuation Standards (IVS) and are undertaken by appropriately qualied valuers with extensive local experience. The Professional Services Asteco conducts throughout the region include: 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-prole developments across the GCC. ASSET MANAGEMENT Asteco provides comprehensive asset management services to all property owners, whether a single unit (IPM) or a regional mixed use portfolio. Our focus is on maximising value for our Clients. OWNER ASSOCIATION Asteco has the experience, systems, procedures and manuals in place to provide streamlined comprehensive Association Manage- ment 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. With 28 years of Middle east experience, Astecos Valuation & Advisory Services team brings together a group of the Gulfs leading real estate experts. Astecos network of ofces in Abu Dhabi, Al Ain, Dubai, Northern Emir- ates, Qatar and Jordan not only 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 under- pinned by our sales, leasing and investment teams transacting in the market and a wealth of research that supports our decision making.