Qatar and Bahrain Report  Q3  2008

July-September

Contracting Property Services Development

Qatar Report

Financial Slowdown
The Middle East real estate market continues to show strength despite the global slowdown and credit crunch, but investors will have to dig
deeper into resources to avoid the liquidity crunch impacting the market in the near future. The key decision for investors will be the opportunity
cost, but with options drying up elsewhere, the Middle East will continue to provide the best opportunities in the short to medium term.
With the UAE setting the tone in the region, strategies put in place by various government entities (such as RERA licensing for all brokerage,
escrow accounts, developer rules on payments and construction, freehold title guarantees and real estate mortgage law) are positive steps
in the development of the market as sharing of market information and transparency from big developers will be the key. If the markets are
controlled and speculators are filtered out, then the Middle East is well placed to emerge as one of the top wealth creating destinations.

Strong Demand for High-End

HIGHLIGHTS IN THIS ISSUE
Residential in Qatar ƒƒ Strong Demand for High-End
Three of the major developments in Qatar, The Pearl (which comprises Porto Arabia, Viva Residential in Qatar p .1
Bahriya and Qanat Quartier), Lusail and West Bay command the highest sales prices for ƒƒ West Bay Leads Office Space
apartments. This is due to the strong investment interest in Qatar’s high-end residential Demand p.2
properties from GCC nationals and expatriates originating from Europe, North America and
Asia. Apartment sales prices have risen in the first three quarters of 2008 between 15 and 25 ƒƒ Strong Demand for New
percent on some units on the Pearl. It is expected to continue rising in 2009 as the completion Business Districts Office Space p.3
of residential projects is unlikely to keep pace with the strong demand. Demand for residential
apartments comes from a rapidly growing expatriate population attracted to employment and
business opportunities in Qatar’s economy.
Asteco is the largest property services
Average Apartment Sales Prices
35,000
company in the UAE. Asteco also has
30,000 offices in Qatar, Bahrain and Jordan.
25,000
QR/m2

20,000
ASTECO’S SERVICES
15,000
10,000 ƒƒ Sales and Leasing
5,000
0 ƒƒ Property Management
Porto Arabia Viva Bahriya West Bay Qanat Lusail West Bay
Lagoon Quartier ƒƒ Investment Agency
2 BR 3 BR ƒƒ Valuation

The popularity of West Bay among expatriates has resulted in fully furnished apartments in ƒƒ Market Research
this area to command the highest monthly rental rates, ranging on average from QR 16,000 ƒƒ Property Consultancy
for a two-bedroom apartment to QR 24,000 for a three-bedroom apartment. Al Sadd is
ƒƒ Furnishing and Design
another popular location with fully furnished apartments. The area has several established
commercial streets where many retail shops and restaurants are located. Monthly rental rates
for apartments in Al Sadd range, on average, from QR 9,000 for a two-bedroom apartment
to QR 11,000 for a three-bedroom apartment.
FOR ADDITIONAL INFORMATION,
PLEASE CONTACT:
Average Fully Furnished Apartment Monthly Rental Rates
David Oayda
25,000 General Manager
20,000 Email: Davido@asteco.com
QR/pm

15,000 Doreen Chew

10,000 Senior Researcher
Email: Doreenc@asteco.com
5,000

0
West Bay Al Sadd Bin Mahmoud Al Muntazah Tel: +974 411 3818
2 BR 3 BR Fax: +974 411 3823

Customer Service Centre: +974 411 3818  www.asteco.com

 Qatar Report

Villas in High Demand at West Bay and West Bay Lagoon

The highest villa rental rates are recorded at West Bay and West Bay chart below, are also popular with average rental rates ranging from
Lagoon due to their popularity with expatriates. These locations QR 12,000 to QR 18,000 per month. Al Hilal and Al Rawdah are
offer high-end villas, with an average rental rate of approximately becoming new areas for villa development due to land availability and
QR 37,000 per month. The remaining locations, as shown in the proximity to the New Doha International Airport.

Average Villa Monthly Rental Rates

50,000
40,000
QR/pm

30,000
20,000
10,000
0
Abu Hamour/ Al Hilal Al Khraitiyat Al Rawdah Al Waab/ Dafna Gharaffa Maamoura New Salata West Bay West Bay
Ain Khaled Aziziyah Lagoon
3 BR 4 BR 5 BR

West Bay Leads Office Space Demand

As a result of strong demand for office space from multinational Average Monthly Office Rental Rates
300
companies, particularly those in the oil and gas industries, the average 250
QR/m2/pm

200
monthly office rental rate in Doha has currently reached QR 260 per 150
square metre. West Bay recorded the highest average monthly rental 100
50
rate due to its significance as Doha’s new Central Business District with 0
C Ring Road D Ring Road West Bay
grade A quality commercial space and concentration of government Lowest Rate Highest Rate
offices that have relocated from Doha’s old business districts. Other
popular office locations for private companies are C and D Ring Roads which recorded an average monthly office rental rate of QR 230 per
square metre. Qatar’s office supply is expected to increase after the completion of more commercial towers in West Bay. However, this is
unlikely to lead to a fall in office rents as the strong market demand is expected to continue to exceed supply.

Real Estate Regulations Highlights

Cabinet Resolution No. 6 of 2006 Concerning the Grant of Property Ownership to Expatriates
The resolution addresses the conditions pertaining to the ownership of real estate in Qatar by expatriates who are allowed to own properties
on a 99 year leasehold basis in 18 designated areas in Qatar.
These areas include: Musheireb (Zone 13); Fariq Abdul Aziz (Zone 14); Doha Al Jadeed (Zone 15); Old Al Ghanim (Zone 16); Al Rufaa/Al Hitmi
(Zone 17); Salata (Zone 18); Bin Mahmoud (Zone 22 & 23); Rawdat Al Khail (Zone 24); Mansoura/Bin Dirham (Zone 25); Najma (Zone 26); Umm
Ghuwailina (Zone 27); Al Khulaifat (Zone 28); Al Sadd (Zone 38); New Mirqab/Al Nasser (Zone 39); areas around the Doha International airport
(Zone 48); Al Dafna/Onaiza/Al Qasser (Zone 60, 61 & 63); and Lusail (Zone 69 & 70).

Riviera Lifestyle Living at The Pearl

Located off the eastern coast of Qatar and near West Bay Lagoon, Ruby Tower situated in Viva Bahriya has a total of 154 residential
The Pearl is Qatar’s most luxurious mixed-use development project units comprising one, two, three and four-bedroom apartments and
on reclaimed land with 40 kilometres of coastline. The Riviera duplexes, and is expected to be completed by July 2010.
themed development has 66 high-rise residential towers with 12,000
residential units consisting of one, two, three and four-bedroom
apartments and townhouses; three, four, five and six-bedroom villas;
and residential plots available for sale to all nationalities on a freehold
basis. The Pearl will have three luxurious five-star hotels, two million
square feet of retail space, leisure and entertainment facilities, and
community facilities such as schools, clinics and parks.
The Pearl is developed in phases, including ten themed residential
districts and accommodation for 40,000 residents on a total land area
of four million square metres. The three main phases are Porto Arabia
(Phase I), Viva Bahriya (Phase II) and Qanat Quartier (Phase III). Porto
Arabia is expected to be fully developed by 2009 and the remaining
phases by 2012. Asteco Qatar is the exclusive sales agent for two
residential towers on The Pearl, namely danat Qatar and Ruby Tower.
Danat Qatar is located in Porto Arabia and has a total of 230 residential
units comprising one, two, and three-bedroom apartments and is The Pearl
expected to be completed by April 2009.

02 For additional information call +971 4 403 77 00 or email enquiries@asteco.com

 Bahrain Report

Freehold Property Laws Drive Residential Market Growth

The implementation of freehold property laws in 2003 for foreign nationals has driven the sales of residential projects in various locations.
Bin Fageeh City and Era Tower in Seef recorded the highest sales rates of BD 1,600 and BD 1,370 per square metre respectively. This was due
to strong demand for residential properties with convenient access to retail facilities from a growing population. Among the mega residential
projects, Villamar and Porta Reef recorded the highest sales rates of BD 1,600 and BD 1,400 per square metre, respectively, as they offer high
quality, semi-furnished apartments with sea views and are located in prime areas near Seef and Bahrain Financial Harbour.

Average Apartment Sales Prices

2,000

1,500
BD/m2

1,000

500

0
360 Tower Sukoon Amwaj Bin Fageeh Era Tower Marina Al-Areen Porta Reef Villamar Zawya Land Mark
Tower Gateway City West Downtown Mansion City View

Seef and Amwaj Island recorded the highest monthly rents ranging, on average, from BD 710 for a one-bedroom apartment to BD 1,200 for
a three-bedroom apartment. This is a clear indication of the popularity of these locations as new and upcoming residential areas that provide
residents with convenient access to a wide range of retail facilities. Although developments such as Dilmunia, Raffles City, One Bahrain, Nomas
Tower, City Centre Towers and Gateway Towers are additional projects scheduled to launch in the last quarter of 2008, residential sales
prices and rents, especially in Seef and Bahrain Bay, are expected to increase over the same period, due to strong demand and limited supply.

As a result of the King Fahad causeway connecting Saudi Arabia and Bahrain, expatriates working in the Eastern Province of Saudi Arabia have
shown more interest in residing in Bahrain. Connectivity between the two countries via the causeway also generated Saudi nationals’ interest
in purchasing residential properties in Bahrain for investment or as second homes.

Average Apartment Monthly Rents

1,500
1,200
BD/pm

900
600
300
0
Seef Juffair Mahooz/ Amwaj Island Al-Hoora &
Adliya Exhibition Road

1BR 2BR 3BR

Strong Demand for New Business Districts Office Space

The real estate market regulations were relaxed in 2007 to allow office space to accommodate their headquarters in Bahrain’s new
for the sale of commercial space to all nationalities on a freehold business districts. This is a positive trend that further strengthens
basis. The average sales values recorded at Millennium Tower and Bahrain’s reputation as the Middle East’s financial hub.
BFB Tower are the highest at BD 1,800 per square metre due to their
Monthly office rental rates in the older business districts of Diplomatic
prime locations in Seef.
Area and Government Avenue have stabilised at BD 8 per square metre
as demand preferences for office space shift to the new business
Average Office Sales Prices districts. The Diplomatic Area and Government Avenue remains an
2,000 established location for government departments and ministries as
1,500 well as private companies.
BD/m2

1,000
500
0
Platinum Tower Business Bay Capital Plus Tower Millennium Tower BFB Tower
Average Office Monthly Rental Rates
15
BD/m2/pm

12
Average office rental rates of BD 13 per square metre per month 9
6
are recorded at Seef, Bahrain Financial Harbour and World Trade 3
0
Centre. This is due to strong demand from multinational companies, Diplomatic Area Government Seef Bahrain Financial World Trade
particularly banks and insurance companies, looking for high quality Avenue Harbour Centre

For additional information call +973 1 738 8155 or email enquiries@asteco.com www.asteco.com 03
 Bahrain Report

Real Estate Regulations Highlights

Ministerial Resolution No. 74 of 2007 concerning the grant of residency permits for expatriates under personal sponsorship:
The resolution delineates requirements for granting a residency permit to a self-sponsored expatriate in Bahrain.
Articles 1 and 2 state that:
The applicant shall own a home (defined as a house or apartment fit for living) registered in his name with a value of no less than BD 50,000,
which can be mortgaged in favour of a licensed bank or a financial institution in Bahrain;
ƒƒ The applicant shall have a clean record;
ƒƒ The applicant shall have valid health insurance coverage for himself and his dependents (if any);
ƒƒ The applicant shall have a fixed deposit of not less than BD 15,000 or its equivalent in a licensed bank or financial institution in Bahrain,
which cannot be withdrawn for the duration of his residency. He shall also provide evidence to confirm the continued availability of the
fixed deposit every 6 months;
ƒƒ He shall have a legal source of income of not less than BD 5,000 to support himself and his dependents (if any); and
ƒƒ He shall not be employed in the public or private sector in Bahrain.
Article 4 states that a residency permit shall be granted for a period of two years, which is renewable.
Article 5 states that the spouse and minor dependents of a successful applicant may also be granted a residency permit.

Source: Ministry of Interior, Bahrain

Luxurious Waterfront Living at Marina West

Marina West is Bahrain’s first gated waterfront luxury residential development offering scenic views of the
Arabian Gulf. Located along the west coast of Bahrain, the development comprises 10 high-rise residential
towers with a total of 1,168 residential units consisting of one, two, three and four-bedroom apartments,
duplexes, and penthouses. The residential units range from 77 square metres for a one-bedroom apartment to
330 square metres for a four-bedroom duplex.
The development will also boast a five-star luxury, ancient Turkey themed hotel, Rixos Marina West Hotel.
The development also provides residents and guests with retail facilities as well as food and beverage outlets.
Marina West is set in a lush and tranquil landscape with palm trees, waterfalls, private beach and boardwalk
access to a fully equipped marina.
Located in the Budaiyah area on the west coast of Bahrain, Marina West is in demand among owner-occupiers
and investors looking for high-quality residential units that benefit from easy access to Bahrain’s city centre and
Saudi Arabia.
Bahrain is connected to Saudi’s Eastern Province via King Fahad Causeway and is a fifteen minute drive from Manama City. Marina West is
expected to accommodate 4,000 residents on an area of 75,000 square metres and total built up area of 350,000 square metres. It is available
for sale to all nationalities on a freehold basis and the entire development is expected to be ready by April 2010. The master developer for
Marina West is AAJ Holdings/ReeMoon and the development is currently valued at USD 700 million.

DISCLAIMER: This report contains information available to the public and has been relied upon by Asteco Property Management on the basis that it is accurate
and complete. Asteco Property Management accepts no responsibility if this should prove not to be the case. 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 will not be held responsible for
third-party contributions.

04 For additional information call +973 1 738 8155 or email enquiries@asteco.com