Qatar Q3 2013 Property Report by Asteco (1)

8/11/2019 Qatar Q3 2013 Property Report by Asteco (1)

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ASSET MANAGEMENT SALES LEASING

VALUATION & ADVISORY SALES MANAGEMENT OWNER ASSOCIATION

DUBAI | ABU DHABI | AL AIN | SHARJAH | QATAR | JORDAN IN THE MIDDLE EAST FOR28YEARS

Apartment Sales Office Sales Apartment Rentals Villa Rentals Office Rentals

Q-o-QP

ercentageChange

-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

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 offices 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 FOCUSQ3 2013

HIGHLIGHTSPROPERTY MARKET SUMMARY

REAL ESTATE MONITOR

Undersupply in the residential market due to expatriate inflow has led

to a continuous increase in rents. Rents have most notably increased

in The Pearl-Qatar, where availability will continue to be scarceuntil 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) figures, 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 significant deals have been agreed for office buildings in

West Bay, which will lead to a decrease in availability of prime office

space in the area, potentially driving rents in remaining space up. Although evidence shows that most demand for office space is for

smaller sized office 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 averagepercentage change on a quarterly basis.

Rental Rate

(QAR/pm)

Sales Prices

(QAR/m2

)Min Max Min Max

Apartment

Studio 3,000 11,000

9,500 17,5001 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

Office Per m2 90 270 -


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Asteco Property Management, 2013 asteco.com | astecoreports.com For additional information:600 54 7773Page 2

l i l l ill l i l

Al Dafna Al Waab Al Hilal Abu Hamour Ain Khaled West Bay West Bay Lagoon Al Gharrafa Al Khraytiyat

QAR/pm

3 BR 4 BR 5 BR Percentage Change (Q3 2012-Q3 2013)Percentage Change (Q2-Q3 2013)

5%

15%

6%

6%

4%

5%

4%

13%

13%

18%

5%

5%

6%

6%

3%

3%

10%

16%

15,5

00

13,5

00

10,8

75

11,2

50

11,2

50

19,5

00

10,0

00

8,

500

19,7

50

14,2

50

11,2

50

12,0

00

14,0

00

22,5

00

27,0

00

11,5

00

10,0

00

21,7

50

16,5

00

14,7

50

15,0

00

15,5

00

26,0

00

34,0

00

14,0

00

11,7

50

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

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 8West 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


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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 significant increase in applications for

mortgage valuations, largely from expatriate purchasers, in freehold

areas.

Recent sales prices this quarter are reflecting 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 office 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 office buildings, most are fitted to shell

and core standard, with landlords looking to attract government

occupiers.

Although demand for smaller office floor plates from occupiers who

require less than 500m2is still strong, there are only a limited number

of office towers in West Bay where office accommodation is available

in small suites or on a floor by floor basis. These offices are usually

fully fitted (raised floors, 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 figures 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 significant increase during Q3 2013, however this figure

has been influenced by two significant transactions for tower sites in

the Al-Dafna area.

RESIDENTIAL SALES

OFFICE LEASING

LAND MARKET

l l l il l i l l l i

QAR/m

2

Porto Arabia-PearlDirect Sale

Porto Arabia-PearlResale

Viva Bahriya-PearlDirect Sale

Viva Bahriya-PearlResale

Lagoon PlazaDirect Sale

Lagoon PlazaResale

i i i l i

From To Percentage Change (Q3 2012-Q3 2013)Percentage Change (Q2-Q3 2013)

7%

7%

9%

9%

6%

6%

3%

3%

4%

4%

8%

8%

13,

000

11,

000

15,

500

14,

000

12,

000

9,

500

16,

000

13,

000

17,

500

16,

000

14,

000

11,

000

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Average Apartment Sales Prices and Percentage Change

l l l il l i l l l i

i li l

i ll

i i li l

i i ll

li l

ll

QAR/m2

/pa

West Bay A Ring Road C Ring Road D Ring Road Old Doha Airport Road

Percentage Change (Q3 2012-Q3 2013)Percentage Change (Q2-Q3 2013)

9%

-5%

-12%

0%

4%

0%

4%

-8%

5%

5%

4%

0%

185

110

140

120

110

145

0

20

40

60

80

100

120

140

160

180

200

Average Office Rental Rates and Percentage Change


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DUBAI | ABU DHABI | AL AIN | SHARJAH | QATAR | JORDAN IN THE MIDDLE EAST FOR28YEARS

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 completenessof 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 heldresponsible for any third-party contributi ons. All opinions and estimates included in this rep ort constitute Asteco Proper ty Managements judgment, as of the date of this re port and are subject to change with out notice. Figures contained in this report are d erived 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 materiallypositive 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 PropertyManagements research team. Asteco Qatar (LLC). Commercial Licence No. 38137. Paid-up Capital QAR5,000,000.

Jed WolfeBSc MRICS

Johnny ArcherMRICS

Colin Jones

Managing Director - Asteco QatarAssociate 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

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

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 Institu-tion of Chartered Surveyors (RICS) and International Valuation

Standards (IVS) and are undertaken by appropriately qualified

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-profile

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 hasthe 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 offices in Abu Dhabi, Al Ain, Dubai, Northern Emir-

ates, Qatar and Jordan not only provides a deep understanding of thelocal 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.

Qatar Q3 2013 Property Report by Asteco (1)

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