Qatar Report

Q1

2012

Property Market Summary

Rental Rates (QAR/pm) Min Studio 1 BR Apartment 2 BR 3 BR 3 BR Villa 4 BR 5 BR Ofce Per m
2

Highlights
Sales Prices 2 (QAR/m ) Min Max

Rental rates in both the residential and ofce markets remained stable with little change from Q4 2011. Residential leasing transactions increased signicantly over the previous quarter with strong demand for one and two-bedroom apartments at the Pearl-Qatar. The Pearl-Qatar remains the development of choice for many expatriates. Similar to Q4 2011, investor enquiries for residential property were at improved levels with the majority of enquiries coming from local investors to purchase from distressed sellers.

Max 7,000 10,500

2,500 3,000 4,000 6,000 7,000 8,500 10,000 90

9,000 14,000 17,500 19,000 24,000 30,000 240 14,000 -

16,000

Asteco Qatar launches new branch and International Property Service

Real Estate Monitor

1% 25% 20% 15%
Q-o-Q Percentage Change
The line graph below demonstrates the average percentage sales and rental trend on a quarterly basis.

0% -1% Dec 2011 Mar 2012

10% 5% 0% -5% -10% -15% -20% -25%

Jun Sep Dec 2009 Apartment Sales Mar Jun 2010 Ofce Sales Apartment Rentals Sep Dec Mar Jun 2011 Villa Rentals Sep Dec Ofce Rentals Mar 2012

250

Average Ofce Rental Rates (Q1 2012)

With over 25 years experience in the Middle East, Astecos Professional Services team brings together a group of the Gulfs leading real estate experts.195
200

Astecos network of ofces in Abu Dhabi, Al Ain, Dubai, Northern Emirates, Qatar, Bahrain and Jordan not only provides a deep understanding of local markets but also enables us to undertake large instructions where we can quickly apply resources to meet the clients requirements. 140 150
130

145 105

QAR/m2/pa

Customer Management: +974 4411 3818 | www.astecoreports.com

100

110

1% 25% 20% 15%

Q-o-Q Percentage Change

0% -1% Dec 2011 Mar 2012

Ofce Leasing Market

5% 0%

10%

Rental levels remained static during the rst quarter of the year, -5% further demonstrating stability in the market.
-10%

The majority of enquiries continued to be for ofces ranging -15% between 100 and 500 square metres on a fully tted basis at -20% secondary-prime rental levels. This segment of the market is Asteco does not anticipate material rental growth in this sector relatively under supplied. Modern, good quality, functional ofce until the beginning of 2013 at the earliest; however, in a regional -25% Jun Sep Dec Mar Jun Sep Mar Jun Sep Dec Mar space available on a2009 or partially tted basis in this size range fully and Dec global context the continued static rental levels should be 2010 2011 2012 is comparatively scarce compared to prime, shell and core ofces Apartment Rentals positive. viewed as Apartment Sales Ofce Sales Villa Rentals Ofce Rentals
250

of 650 to 800 square metres. Landlords who are under pressure to generate income could consider offering exible leasing terms including sub-division of oor plates and tted space to meet this area of tenant demand.

Average Ofce Rental Rates (Q1 2012)

200 25% 150 20% 15% 100 10% 5% 50 0% -5% -10% -15% -20% -25% 0

195

1%
140 110 145 130

0% -1%

QAR/m2/pa

Dec 2011

105

Mar 2012

Q-o-Q Percentage Change

West Bay

A Ring Road

C Ring Road

D Ring Road

Old Doha

Airport Road

Residential Leasing Market

Jun Sep Dec Mar Jun

Average Villa Rental Rates (Q1 2012)

Sep Dec Apartment Rentals Mar Jun 2011 Villa Rentals Sep Dec Ofce Rentals Mar 2012

2009 2010 Our research indicates average rental levels across all areas of Doha Apartment Sales Ofce Sales were unchanged against the previous quarter.

Average Apartment Rental Rates (QAR/pm) 1 BR 4,750 4,000 3,500 3,500

22,000 23,000 18,500 22,000 26,500

Transactions improved signicantly during Q1 2012 in comparison Average Ofce Rental Rates (Q1 2012) Al Sadd to 250 2011. This increase can be partly attributed to a number Q4 of established Qatari companies changing their housing policies Bin Mahmoud by 200 allowing employees to take direct leases with landlords, rather 195 Al Muntazah than employer-owned accommodation. In Q1 2012, the location most in demand was the Pearl-Qatar, which 140 150 continues to be Dohas prime development. As new amenities are 110 delivered and rental levels remain competitive in comparison to 100 other locations, the Pearl-Qatar is preferred by many expatriates.
18,000 20,000 11,000 12,500 13,500 10,250 10,500 13,000 10,250 10,250 12,000 9,750

Location

2 BR 6,250 5,500 5,000 5,000

10,000 13,000 9,000

3 BR 7,375 7,125 6,250

145 8,000

QAR/pm

Najma
11,000 13,000

6,500
10,500 10,500 9,250

QAR/m2/pa

West Bay/Dafna 130 Al Maamoura

7,000

9,750

13,250 6,375

4,250 4,250 4,750 9,500

105

5,500

Bin Demand for one Al Waabtwo-bedroom apartments Hamour especially Khaled Omran and Al Dafna Al Hilal Abu was Ain 3 BR 4 BR Old Airport 5 BR 50 strong in this location.

West Bay

West Bay Lagoon

Al Gharrafa

5,500 6,250

Al Khraytiyat

6,250

6,500 16,250

If demand continues at this level and, assuming no new towers or phases are delivered, rental levels for the best congured 0 A Ring Road apartments mayWest Bay a small increase during Q2 2012. C Ring Road witness

Pearl-Qatar
D Ring Road

13,000

Old Doha Airport Road Average Apartment Sales Prices (Q1 2012)

18,000

Average Villa Rental16,000 (Q1 2012) Rates

14,000 12,000
QAR/m2
13,500

15,500 14,500 12,500 10,750 9,500

10,000 8,000 6,000 4,000 2,000

QAR/pm

18,000

20,000

11,000

12,500

13,500

10,250

10,500

13,000

10,250

10,250

12,000

11,000

13,000

22,000

23,000

18,500

22,000

26,500

10,000

13,000

9,750

9,000

8,000

Porto Arabia-Pearl West Bay 5 BR

Viva Bahriya-Pearl

Lagoon Plaza

Al Dafna

Al Waab

Al Hilal

Abu Hamour 3 BR

Ain Khaled 4 BR

Primary Market West Bay Lagoon

Secondary Market Al Gharrafa

Al Khraytiyat

9,250

For additional information call +974 4411 3818 or email customermanagement@asteco.com

www.astecoreports.com
Average Apartment Sales Prices (Q1 2012)

02

QA

18,000

20,000

11,000

12,500

13,500

10,250

10,500

13,000

10,250

10,250

12,000

11,000

13,000

22,000

23,000

18,500

22,000

26,500

10,000

13,000

Qatar Report - Q1 2012

Al Gharrafa Al Khraytiyat

Al Dafna

Al Waab

Al Hilal

Abu Hamour 3 BR

Ain Khaled 4 BR 5 BR

West Bay

West Bay Lagoon

Residential Sales Market

Similar to Q4 2011, improved levels of enquiries were witnessed in the freehold residential market during Q1 2012. Investors are seeking alternative investment opportunities to cash reserves and the outlook for property as an asset class in Qatar is positive, particularly with the continued stabilisation of prices in both the rental and sales markets. With prices having remained relatively at for 12 months, and at a signicant discount to pricing levels at the height of the market in 2008, serious investors are now considering re-investing in residential property. Although yields are likely to remain static in the short-term, the medium-long term capital appreciation prospects are promising. The majority of enquiries were from local investors seeking to purchase from distressed sellers. This quarter also saw an increase in the volume of land sales at the Pearl-Qatar in the freehold secondary market.
Average Apartment Sales Prices (Q1 2012)
18,000 16,000 14,000 12,000
QAR/m2
13,500 12,500 10,750 9,500 15,500 14,500

10,000 8,000 6,000 4,000 2,000 0

Porto Arabia-Pearl Viva Bahriya-Pearl Secondary Market

Lagoon Plaza

Primary Market

News Round-Up
Qatar Railways Company (QRC) to issue rst set of contracts
Announced this quarter was a statement from Deputy Chief Executive Ofcer, Geoff Mee, that four tunnelling RFP (request for proposal) contracts, each worth USD 2-3 billion, will be issued in the rst week of April and work will be awarded in October. Asteco remains of the view that the nalisation of the rail network plans and the implementation of Phase 1 is a major factor that will fuel the full recovery of Qatars real estate market. The scheme will have a positive effect on values and best use will require a re-evaluation of land surrounding the rail hubs. Furthermore, the residential, retail and ofce sectors are likely to see increased demand as population growth is driven by the awarding of infrastructure contracts and subcontracts.

Lagoona Mall opening

Dohas luxury Lagoona Mall has opened and is already proving popular with shoppers and diners. Located in the West Bay district of Doha, the mall comprises around 51,000 square metres of leasable oor space for 18 restaurants and 160 retail stores, including the 13,000 square metre department store and anchor tenant, 51 East. The mall also includes brands such as Porsche Design, Mango, La Senza and Adidas. We understand around 70% of the malls retail space is leased with the balance expected to be lled by the end of this year.

Asteco Qatar launches new branch and International Property Service

Asteco Investor Desk

Asteco Qatar is pleased to announce the opening of a new Asteco Investor Desk located in the Investors Lounge of Commercialbanks new D-Ring Road branch. An Asteco representative is based full time at the new desk dedicated to assisting our clients with all real estate enquiries. Please come and visit us to see our available local and international properties for sale and lease; to enquire about our Property Management Services; or to discuss where our Professional Services consultants can assist with development strategies for your property portfolio.

International Property Service

In response to our clients needs, Asteco Qatar has launched a new International Property Service. Real estate remains the asset class of choice for many investors and our new International Property Service aims to deliver a select number of quality investment opportunities which are not available to the mass market. The products are tailored for individual private pension requirements as well as larger assets for larger investors.

For additional information call +974 4411 3818 or email customermanagement@asteco.com

www.astecoreports.com

10,500

9,750

9,000

8,000

9,250

03

Asteco Qatar LLC

Our breadth of experience across all the main property sectors is underpinned by our sales, leasing and property management teams transacting in the market, and a wealth of research that supports our decision making. Research Astecos Research Department provides investors and developers with essential real estate knowledge to ensure clients understand their competitors, target markets and their long-term strategies. Consultancy Astecos Consultancy Department provides comprehensive advice on market trends and solid solutions, from project concept to completion. Astecos consultancy reports stimulate initial investment to nancial institutions and other private equity providers. Valuations The team is fully independent in its approach and adheres to the Royal Institution of Chartered Surveyors (RICS) valuation standards. Sales Astecos internationally qualied team has enjoyed over two decades of experience within the highly dynamic Middle East property market.

Leasing Asteco is the leading leasing agent in the Qatar and is the sole agent for a number of key developments locally and throughout the region.

Property Management Asteco manages corporate portfolios as well as local and international funds throughout the UAE and region.

JORDAN

Regional Ofces and Operations

UNITED ARAB EMIRATES QATAR

Asteco Qatar Main Ofce

DOHA

KINGDOM OF SAUDI ARABIA

Asteco Qatar Investor Desk

Q1 reports available for

Qatar

Dubai

Abu Dhabi

Al Ain

Northern Emirates

Jordan

New Qatar Premium Report available at www.astecoreports.com

Jed Wolfe BSc MRICS Managing Director - Asteco Qatar Associate Director, Regional - Saudi Arabia, Qatar & Bahrain +974 4411 3818 JedW@asteco.com

Omar Kabbara Senior Sales and Leasing Manager +974 4411 3818 OmarK@asteco.com

Chris Murphy BSc FRICS Head of Research, Consultancy and Valuations +974 4411 3818 ChrisM@asteco.com

Judy Lam Regional Research Manager

+971 4 403 7777 JudyL@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 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.

Customer Management: +974 4411 3818

www.astecoreports.com