Final Report

Angola Real Estate Market Overview - 2023

Oct 2023
 TABLE O F CO NTENTS

Section Name Page No.

1 Macroeconomic Indicators 03

2 Real Estate Market Overview 06

3 Sales Prices Overview 12

4 Recommendations 17

5 Summary & Conclusions 23

6 Other Key Market Insights 27

7 Project Site – Pictures 31

8 Appendix 35
MACROECONOMIC INDICATORS

C1256 – Al Rostamani Real Estate C O LLC, Office & Retail Market Research Study 6
Macroeconomic Indicators – Key Highlights
Macroeconomic Indicators – Key Highlights
• Real Estate - In 2017, before the recession, Angola's capital Luanda ranked as the world's most
expensive city for expats, ahead of cities like: Tokyo, Zurich, Singapore, and the capital's real
estate prices ranked highest in Africa and among the top worldwide. Meanwhile, in recent
years property prices have plummeted and now offers immense real estate investments
opportunities.

• Gross Domestic Product (GDP) - Angola's GDP is heavily influenced by the oil production. The
improvement in dollar liquidity is likely to be sustained if oil prices remain elevated. It is
expected that the current account to reach a surplus of 11.9% of GDP in 2022 (after 11.2% in
2021) and remain in surplus, averaging 6.8% of GDP between 2023-2025 reinforced by the
government's import substitution initiatives.

• Inflation Rate - Angola had faced relatively high inflation rates in recent years. In 2020,
inflation was elevated, primarily due to the depreciation of the national currency and
economic challenges. However as per the recent findings, Inflation is also expected to decline
to 14% by end of 2023 and move towards single digits by 2025 from an estimated 17% in
2022 and 27% in 2020.

• Unemployment Rate - During the recent years, Angola has experienced issues with
unemployment and underemployment, particularly among the youth population.

• Exchange Rate - The exchange rate for the Angolan kwanza (AOA) against major currencies,
including the US dollar, has been subject to fluctuations. The government had been
implementing policies to stabilize the currency.

• Foreign Exchange Reserves - Angola's foreign exchange reserves were influenced by oil exports
and government policies.

• Public Debt - Angola's public debt levels had been a concern, partly due to the reliance on oil
revenues. Efforts were made to manage and reduce the country's debt burden.
ANGOLA REAL ESTATE MAKET OVERVIEW

6
ANGOLA REAL ESTATE MAKET OVERVIEW
Market Snapshot – Real Estate Cycle Insights (1/2)

Early 2000s Development: International Standard Increase:

• Political stability and national reconstruction led to real estate growth in • High constitutive levels increased international standard & high-end
Luanda. residential supply.

Urbanistic Pressure & Talatona Development:

Residential Demand Surge:
• High construction levels created urbanistic pressure in Luanda city center.
• Scarcity of residential properties & economic growth fuelled high demand.
• Talatona emerged as a residential alternative with luxury villas, driven by Oil
• Strong demand from large companies, particularly in the Oil & Gas sector.
& Gas sector needs.

Drivers for Talatona’s Development:

Commercialization Challenges:
• Urgency to address specific housing requirements of the Oil & Gas sector.
• Low residential availability raised commercialization values significantly.
• Shaped property design & contributed to Talatona’s rapid development.

Optimism & New Projects (Until 2014):

• General optimism due to economic growth until 2014.
• New projects aimed at overcoming supply limitations in type & quality.
ANGOLA REAL ESTATE MAKET OVERVIEW
Market Snapshot – Real Estate Cycle Insights (2/2)

Project Delays & Postponements:

Oil Price Fall Impact (2014):
• Construction pipeline projects were postponed, leading to increased
• Oil Price decline in 2014 led to a real estate sector slowdown globally.
availability.

Company-Oriented Project Development:

Residential Demand Decline:
• Recent projects tailored to meet company demand for expatriate staff.
• Post-2014, residential demand decreased while available stock increased.
• Focus on city center and Talatona, resulting in slower construction pace.

Reduced Demand Indicators:

Commercialization Values Impact:
• Transactions characterized by large-scale demand from a single entity
• Decrease in demand impacted commercialization values, which have been
became episodic or residual.
declining.
• Reduction in demand indicators affected the overall market dynamics.

Investment Dynamics during Economic Crisis: Current Economic Recovery Scenario:

• Economic crisis led to increasing real estate acquisitions as an investment • Signs of economic recovery prompt real estate developers to resume
strategy. suspended projects.
• Challenges in accessing foreign exchange & currency risks were driving factors. • Previous demand contraction & price reduction driving the industry’s shift.
ANGOLA REAL ESTATE MAKET OVERVIEW
Market Snapshot – Supply

Optimistic Growth until 2014: Impact of 2014 Oil Price Fall:

• Economic growth until 2014 led to widespread optimism. • 2014 oil price fall led to a widespread slowdown in the real estate sector.
• High levels of development aimed to address supply shortfalls. • Subsequent reduction in stock growth index and take-up rates.

Construction-Driven Supply Growth: Company Departures & Operational Reduction:

• Active demand resulted in high construction levels & increased supply. • Departure of companies from the market & operational reduction in Angola.
• Focus on providing quality products to meet the needs of predominantly • Resulted in an increased availability of residential products, particularly
expatriates, especially in the Oil & Gas sector. apartments.

Residential Market Expansion in Luanda: Demand Reduction during Economic Crisis:

• Growth in the residential market led to the development of new buildings in • Economic crisis led to a significant reduction in demand for both lease &
Luanda. acquisition.
• Emphasis on apartment buildings to accommodate demand. • Uncertainty & exchange rate devaluation contributed to decreased demand.

Talatona’s Emergence & Consolidation: Effect on Liquidity & Investment Motivation:

• Economic uncertainty led to loss of liquidity & reduced motivation for
• Talatona planned as a residential extension of Luanda city center.
investment.
• Rapid growth due to limited space & speculative prices in the city center.
• Delayed completion of projects & postponements of new construction starts

Talatona’s Real Estate Diversity: Luanda Residential Stock Evolution:

• Talatona characterized by various luxury residential condominiums. • Depiction of the evolution of residential stock in Luanda, focusing on
• Diverse real estate offerings, including apartment buildings & villa apartments & villas.
compounds. • Indicates the impact of economic events on the housing market.

Infrastructure & Characteristics of Talatona:

• Talatona characterized by a high level of infrastructure.
• Various luxury residential condominiums contribute to its distinct features.
ANGOLA REAL ESTATE MAKET OVERVIEW
Market Snapshot – Demand

Post-Civil War Demand Surge (2002-2008):

Demand Increase in 2022:
• Massive demand for quality housing in Luanda after the Civil War (2022-
• 2022 witnessed an increase in demand linked to a more favourable economic
2008).
scenario.
• Angolan upper class & oil sector companies, requiring housing for expatriate
• Greater dynamism among established entities & an increase in new
staff, drove demand.
companies operating in the local market.
• Talatona emerged with residential buildings to meet the scarcity of products.

Economic Crisis Impact & Expatriate Departures:

Future Outlook:
• Economic crisis led to expatriate departures & reduced company activity.
• Anticipated continues demand growth in the coming years.
• Significant reduction in operations associated with expatriate demand.
• Positive economic outlook expected to maintain current dynamism among
• Initial investment crisis years saw dynamism in real estate acquisitions as an
entities & the emergence of new companies, both national & international.
investment strategy.

Shifts in Upper Class & Company Demand:

• Upper class reduced demand levels for investment & self-use.
• Companies limited demand, responding to sporadic needs, with employees
taking a more active role.
• Companies increasingly choose leasing over purchasing, with specific sectors
remaining more active.
ANGOLA REAL ESTATE MAKET OVERVIEW
Market Snapshot – Present Outlook

The overall real estate & urban development is unstable & outdated in
Huge demand due the middle class looking for reasonably priced
the country due to different crisis some related to the economy & others
apartments & townhouses.
related to politics.

No new development happening out there since 2018 when it comes to The current communities or buildings has a minimal amenities such as
gated community or high-end residential compounds. pool, gym or basic clubhouse.

The secondary market is at its peak due to high demand for residential Prices are high on the secondary market due to less supply, it is between
sector. 4K USD to 5K USD / Sqm.

There is a trust issue between the market & the developers due to Mortgage or housing loans are not very active out there due to the lack
previous projects that took place with no handover, this applies for local of documentation related issues with authorities plus interest rates
& foreign developers. might reach 20%.

Due to the weak activities by any local or foreign developer, the market There is a niche market & segment who are looking for luxury properties
lacks marketing activities related to real estate except for some agents & & they can afford high prices & most of them are into investment,
brokers. government, telecom, oil & banks.
SALES PRICES OVERVIEW

6
 ANGOLA REAL ESTATE MARKET – SALES PRICES
Sales Prices – Apartments & Villas (USD/Sqm)

Apartments Sale Values (USD / Sq. m):

2013 2016 2019 2022

Min Maximum Min Min Maximum Min Maximum Min Maximum
Luanda City Center 8,000 12,500 7,000 12,000 5,275 8,500 3,450 5,500
Talatona 7,200 8,000 6,000 7,500 2,400 5,800 2,300 4,000

Villas Sale Values (USD / Sq. m):

2013 2016 2019 2022

Min Maximum Min Maximum Min Maximum Min Maximum
Luanda City Center 5,500 8,000 4,000 7,500 3,200 4,800 2,500 3,800
Talatona 8,500 10,000 7,000 9,000 5,000 8,000 4,000 7,000

Source – Zenki Real Estate

 ANGOLA REAL ESTATE MARKET – SALES PRICES
Sales Prices – Villas

Sr. No Development Name Project Status Completion Year Location Height No of Units Sizes Ticket Price (USD) Price / Sqm (USD) Data Type (Primary / Secondary
1 Sodimo Ready 2017 Talatona 2 25 + Units N/A N/A 5,000 - 6,000 Primary Prices

4 Bed - Plot Area - N/A

4 Bed - GCA Area - 340 4 Bed - 1,140,000
2 Riviera Ready 2010 Talatona 2 40 + Units 3,000 - 3,500 Secondary Prices
5 Bed - Plot Area - N/A 5 Bed - 1,400,000
5 Bed - GCA Area - 400
4 Bed - Plot Area - 542
Condominio Morro 4 Bed - GCA Area - 267 4 Bed - 1,765,000
3 Ready 2012 Talatona 2 20 + Units 5,000 - 6,000 Secondary Prices
Bento 5 Bed - Plot Area - N/A 5 Bed - 2,610,000
5 Bed - GCA Area - N/A
4 Bed - Plot Area - 880 - 1,000
4 Bed - GCA Area - 207 - 460 4 Bed - 920,000
4 Atlântico Sul Ready 2006 Talatona 1 40 + Units 4,000 - 4,500 Secondary Prices
5 Bed - Plot Area - 1,000 - 2,000 5 Bed - 2,000,000
5 Bed - GCA Area - 400 - 600
Plot Area - 600 - 960
5 Imoluanda Ready 2012 / 2014 Talatona 2 30 + Units 5 Bed - 2,200,000 5,000 - 6,000 Secondary Prices
GCA Area -298 - 353
Plot Area - 720 sqm
6 Malunga Ready 2019 Talatona 2 30 + Units 4 Bed - 2,720,000 6,000 - 7,500 Secondary Prices
GCA Area - 430 Sqm

GCA Area - including complementary areas (garage, covered exterior areas, etc.)

Source – Zenki Real Estate / Site Visit / Brokers Network

 ANGOLA REAL ESTATE MARKET – SALES PRICES
Sales Prices – Townhouses

Sr. No Development Name Project Status Completion Year Location Height No of Units Sizes Ticket Price (USD) Price / Sqm (USD) Data Type (Primary / Secondary)
5 Bed - Plot Area - 560 - 571
1 V Gardens Ready 2021 Talatona 3 20 Units 5 Bed - 3,600,000 4,000 - 5,000 Primary Prices
5 Bed - GCA Area - 850 - 890
4 Bed - Plot Area - 220 - 480
2 Adelaide Ready 2012 Talatona 2 30 + Units 4 Bed - 795,000 3,000 - 4,000 Secondary Prices
4 Bed - GCA Area - 294 - 400

3 Talatona Boulevard Ready 2014 / 2016 Talatona 2 35 + Units N/A N/A 2,000 - 3,000 Secondary Prices
4 Bed - Plot Area - 220 - 400
4 Blue Talatona Ready 2014 Talatona 2 30 + Units 4 Bed - 368,000 1,500 - 2,200 Secondary Prices
4 Bed - GCA Area - 219 - 246
GCA Area - including complementary areas (garage, covered exterior areas, etc.)

Source – Zenki Real Estate / Site Visit / Brokers Network

 ANGOLA REAL ESTATE MARKET – SALES PRICES
Sales Prices – Apartments

Sr. No Development Name Project Status Completion Year Location Height No of Units Sizes Ticket Price ( Mn'USD) Price / Sqm (USD) Data Type (Primary / Secondary)

1 TORRE X (Mixed - Use) Ready 2022 Luanda 25 + Storey 8 Units N/A 3 & 4 Bed - 3.0 Mn - 4.0 Mn 8,000 - 10,000 Primary Prices

2 Alvalade Premium Ready 2023 Luanda 18 Storey 56 Units N/A 500,000 - 3.0 Mn 5,000 - 6,500 Primary Prices

4 Bed - 2.5 Mn - 2.8 Mn 6,000 - 7,000

3 V TOWER Off Plan 2024 Luanda 10 Storey 13 Units N/A Primary Prices
Penthouse - 15 Mn PH - 10,000
4 Bed - 2.0 - 2.5 Mn
4 Kiiniga Tower Off Plan 2025 / 2026 Luanda 27 Storey 50 Units N/A 5,500 - 6,000 Primary Prices
PH - 4.6 Mn

5 Luanda Bay Off Plan 2025 Luanda 15 + Storey 66 Units N/A 3 Bed - 906,000 Mn - 1.2 Mn 6,000 - 8,000 Primary Prices

2 Bed - GCA - 145, Balcony - N/A 2 Bed - 360,000

250 + Units
6 Terraços do Atlântico Ready 2012 / 2014 Talatona 9 Storey 3 Bed - GCA - 172, Balcony - 12,06 3 Bed - 480,000 2,000 - 3,000 Secondary Prices
(3 Buildings)
4 Bed - GCA - 200-377, Balcony - N/A 4 Bed - 920,000
1 Bed - GCA - 74-78, Balcony - 26-27 1 Bed - N/A
300+ Units 2 Bed - GCA - 104-121, Balcony - 25-37 2 Bed - 430,000
7 Imoluanda Ready 2012 / 2014 Talatona 6 Storey 2,000 - 3,000 Secondary Prices
(5 Buildings) 3 Bed - GCA - 130-132, Balcony - 38-45 3 Bed - N/A
4 Bed - GCA - 200-245, Balcony - 65-74 4 Bed - 990,000

250 + Units 2 Bed - GCA - 109,2, Balcony - N/A 2 Bed - 500,000

8 Palms Residence Ready 2019 / 2022 Talatona 12 Storey 4,000 - 5,000 Secondary Prices
(4 Buildings) 3 Bed - GCA - 147,85, Balcony - N/A 3 Bed - N/A

1 Bed - GCA - 61, Balcony - 19 1 Bed - 200,000

150 + Units
9 Dolce Vita Ready 2012 / 2014 Talatona 8 Storey 2 Bed - GCA - 141, Balcony - 16 2 Bed - 330,000 2,000 - 3,500 Secondary Prices
(2 Buildings)
3 Bed - GCA - 178, Balcony - 29 3 Bed - N/A

1 Bed - GCA - 65, Balcony - 22 1 Bed - 250,000

10 Rosalinda Ready 2014 / 2016 Futungo 11 Storey 400 + Units 2 Bed - GCA - 95-98, Balcony - 19-23 2 Bed - N/A 2,000 - 3,500 Secondary Prices
3 Bed - GCA - 138-184, Balcony - 32-46 3 Bed - N/A

Source – Zenki Real Estate / Site Visit / Brokers Network

RECOMMENDATIONS

6

DAMAC HILLS, LUANDA - VALUE PROPOSITION
Considering the private investors within the Angolan upper
social class that prioritize investing in new and unique
products distinct from the market, DAMAC Hills, Luanda, will
feature a product with the opportunity to present a
competitive value proposition. This includes potential
achievable rents and corresponding yields for potential
investors.
Investment
Performance
Proposed pricing remains competitive within the
wider sub-market and in comparison, to key
benchmarks studied for this project.
By offering a range of different positioning (Upper Pricing
Mid-end to Luxury product positioning), DAMAC is
also able to command premiums when compared to
Strategy
competitive supply in the surrounding area, while
leveraging on the DAMAC brand, quality and
reputation within the real estate sector across the
globe.
Final Report
The DAMAC brand and reputation are central elements of the DAMAC
Hills, Luanda, value proposition. In comparison to the surrounding
offerings within the micro-market, DAMAC stands out by developing a
high-quality, self-sustained master-community in the heart of Angola.
DAMAC The quality and finishing will play a crucial role for DAMAC, making the
Brand & products well-regarded in the market and seen by end-users and
investors as a key differentiator.
Quality
The delivery of diverse living options
within a broader, cohesive masterplan
sets the DAMAC Hills, Luanda
residential product apart, serving as a
key value-add.
C ommunity Access to community facilities is a key
Living driver for the target market, and living
within a community environment,
developed by DAMAC is expected to
differentiate the proposed residential
development from existing and
upcoming competitive supply.
Residential unit sizing proposed for DAMAC Project
is in line with wider market trends and benchmarks,
signifying an understanding of consumer
Residential requirements and preferences.
Offering Furthermore, our recommendations have allowed
for a mix of different typologies and positionings
to cater to a wider base of potential end-users and
investors, while allowing households to grow and
move throughout DAMAC Project, as their family
size and affordability changes.
 Final Report

KEY RECOMMENDATIONS FOR DAMAC PROJECT (1/4)

Project Pricing

➢ After analysing the current market asking prices (USD/sqm) for projects under construction or recently delivered in the Luanda City Centre market,
the following are the recommendations for all segments in DAMAC Hills, Luanda –

▪ Due to the substantial number of units being launched in the first phase, we recommend pricing to be 10% lower compared to recent projects
delivered in the market;
- Villas – Market Avg USD 6,125 / sqm / Recommendation – USD 5,512 / sqm
- Townhouses – Market Avg USD 5,560 / sqm / Recommendation – USD 5,000 / sqm
- Apartments – Market Avg USD 6,800 / sqm / Recommendation – USD 6,120 / sqm

▪ We should introduce a limited-time discount (5%) during the launch event to activate the masterplan and attract private investors, high net worth
individuals (HNWI), and expats.

Unit Typologies / Sizes

➢ Incorporating unit typologies / sizes for investors as well as end-users within apartments, townhouse and villa segment;

▪ The unit mix within the apartment segment should accommodate the current market demand (predominately 2 and 3-bedroom apartments) as well
as small percentage of 1-bedroom apartments (private investor product / companies renting or purchasing apartments for their staff mainly mid to
senior management) as well as 4-bedroom apartments with garden space on the top levels within the residential buildings catering to Angolan upper
social class with mid-household size that prefer large living space;

▪ Considering the current market demand and dynamics, there is a requirement for smaller villa typology to cater to the mid-size household population
group with plot area ranging from 300 – 350 sqm;

▪ Larger unit typologies are required, especially the ones that are facing the waterfront (plot area ranging 900 to 1,000 sqm) as well as combine plot
that will around c. 1,800 sqm and above) catering to the ambassadors or senior diplomatic representatives, with a requirement of high-specs.
 Final Report

KEY RECOMMENDATIONS FOR DAMAC PROJECT (2/4)

Commission Structure

➢ Based on the market practice, we recommend the following;

▪ The brokers and agencies should be entitled to a broker commission of 5%;

▪ In the scenario of exclusivity, a commission of 3.5% is allocated to the sub-broker responsible for closing the deal with the customer, while the
remaining 1.5% is retained by the exclusive agent;

▪ Furthermore, bonus commissions based on timelines can be introduced to enhance sales absorption;

▪ Developer Employees receive a commission for referrals upto 3.5%.

Brokers Engagement

➢ Based on on-ground research, the following agencies are active in the market. Therefore, we recommend providing exclusivity to 2 agencies, and other
active brokers in the market can collaborate with them;

▪ The top agencies (that have advisory arm as well) which are engaged with various developers are Abacus (A part of JLL) and Zenki Real Estate (A part
of CBRE);

▪ As well as SUUT Real Estate Consultants (Currently working with couple of developers in the market and are assigned as exclusive agency responsible
for sales and marketing for V Tower and Torre X , located in Luanda);

▪ The brokers which are very much active within the secondary market and has a mass reach to various HNWI are REMAX and PROIMOVEIS.
 Final Report

KEY RECOMMENDATIONS FOR DAMAC PROJECT (3/4)

Community Facilities

➢ Leveraging on the community facilities within the self-sustained masterplan is a key driver for the target market, other than the basic facilities and
amenities which are highlighted in the report (under the benchmarks section);

▪ Hence, it is recommended to incorporate differencing facilities and amenities like DAMAC Hills 1, Dubai, that includes - Dedicated cycling/jogging
paths (already existing, however refurbishment is required), Co-working areas, Indoor Multipurpose Sports (Tennis court, Scorer court, Foosball,
Billiards, Chess, Table Tennis), Cinema Hall, Multi-purpose Room, Clubhouse, Trampoline Park, Paddle Tennis, Yoga/Dance Room, Skate Park, Spa &
Jacuzzi amenities, Indoor & Outdoor Gardens, Barbecue areas and Kids playground, Community Centers and International School and much more
(Further, elaborated in the next page).
 Final Report

KEY RECOMMENDATIONS FOR DAMAC PROJECT (4/4)

Below mentioned is the list of recommended characteristics for DAMAC’s project to take into consideration when defining the finishings and amenities for different
typologies within the master-community -
APARTMENT PRODUCT CHARACTERISTICS VILLAS PRODUCT CHARACTERISTICS TOWNHOUSES PRODUCT CHARACTERISTICS

· Gated condos · Gated Condos · Gated condos

MAIN
CHARACTERISTICS · Exclusively residential condominium · Exclusively residential condominium · Exclusively residential condominium
· # Floors: 9 · # Floors: 1 to 2 · # Floors: 2
· Privacy/staff areas and maid quarters · Privacy/staff areas and maid quarters
· Private pool · Private pool
· Central AC system · Central AC System
· Kitchens and laundry fully equipped (washing machines, stoves, · Kitchens and laundry fully equipped (washing machines, stoves,
· Wooden floor and/ or ceramic pavement
dishwasher, fridge, etc.) dishwasher, fridge, etc.)
· Bedrooms with wardrobes and preference for walking closets in · Bedrooms with wardrobes and preference for waking closets in
· kitchens and laundry fully equipped
the master suite the master suite
FINISHINGS AND
· Bedrooms with wardrobes · En-suite bedrooms predominance instead of shared bathrooms · En-suite bedrooms predominance instead of shared bathrooms
AMENITIES · En-suite bedrooms predominance instead · Available area for small office (teleworking) or kids play space, · Available area for small office (teleworking) or kids play space,
of shared bathrooms next to or in the living room next to or in the living room
· Embedded lighting · Wooden pavement · Wooden pavement
· Hallway chandeliers · Barbecue · Barbecue
· Types of showers · Embedded lighting · Embedded lighting
· Kitchens with or without islands · Hallway chandeliers · Hallway chandeliers
· Types of showers · Types of showers
· Kitchens with or without islands · Kitchens with or without islands
· Jacuzzi · Jacuzzi
· Swimming pool · Swimming pool · Swimming pool
· High quality multi-use sports court (tennis,
· High quality multi-use sports court *tennis, football…) · High quality multi-use sports court (tennis, football…)
football…)
· Playground · Playground · Playground
· Green areas and gardens · Green areas and gardens · Green areas and gardens
COMMUNITY SETUP · Indoor gym · Indoor gym · Indoor gym
AND AMENITIES
· Sauna · Sauna · Sauna
· Exterior parking spaces for visitors · Exterior parking spaces for visitors · Exterior parking spaces for visitors
· Events room · Events room · Events room
· Gamehall · Gamehall · Gamehall
· Wellness facilities · Wellness facilities · Wellness facilities
· Cinema · Cinema · Cinema
SUMMARY & CONCLUSIONS
SUMMARY & CONCLUSIONS (1/3)
Market Conclusion
▪ Old and outdated current residential supply in the market
▪ Secondary market commanding higher prices within apartments,
villas and townhouses segment;
▪ Demand for affordable residential units continue within
Residential the market;
▪ Niche for luxury segments tailored to a specific demographic
profile.
▪ Significant competition within 3-star segment, with greater
opportunity of a 4 & 5-star branded properties;
▪ Downward pressure expected on performance driven by
new supply in near future.
Hospitality
▪ Limited opportunity for large-scale super regional /
regional malls given existing & future market supply;
▪ Demand for community / lifestyle retail developments
providing unique experiences and featuring innovative
Retail F&B, entertainment and leisure offering.
▪ Market dynamics reflect an increasing demand for quality
facilities and amenities and flexible workspace solutions;
▪ Office supply increasingly offered as part of mixed-use
Office projects to leverage on potential synergies.
M arket O pportunity High M edium Low
Implications for the Desired Project
▪ Deliver quality residential products within community living
environment catering for both upper mid to high income
households complemented by amenities & facilities to
differentiate project;
▪ Demand for large unit typologies for Ambassadors or
senior diplomatic representative.
▪ Opportunity for upscale/ lifestyle boutique hotel
development to differentiate from the market offering;
▪ Leverage on potential demand synergies with other project
components and integrate hotel to add vibrancy to the
wider development.
▪ Special consideration when delivering new retail to avoid
weak performances driven by large supply deliveries;
▪ Incorporating retail supported by leisure / entertainment
and modern F&B to complement wider masterplan and
project vision, while serving needs of project residents,
employees and visitors.
▪ Incorporating office quantum which is in line with market
realities and reasonable in terms scale to avoid weak
performance;
▪ Flexible office / co-working space to be a key component
in line with market trends.
SUMMARY & CONCLUSIONS (2/3)
In addition to providing unit mix, types,
sizing and pricing which are aligned to the
target market, proposed residential
development should be phased in order to
ensure healthy market absorption.
A successful phasing strategy will also allow
for flexibility in responding to market
changes and demand shifts as the
development is rolled out.
Furthermore, it is important to note that
recommendations are based on a
benchmarking analysis and market research
regarding comparable residential offering.
These recommendations are high-level and
indicative in nature.
The pricing strategy takes into consideration the
proposed unit sizes, in order to ensure that ticket
prices are in line with market demand, while
maximizing sales price per sq. ft.
Overall, the pricing should be on a premium when
compared to the benchmarked projects,
considering that the DAMAC brand and quality is
likely to command a premium vis-à-vis nearby
competitors.
Pricing across the various typologies has also
been considered in such a way as to minimize
potential competition across the development.
The overall residential unit mix for the project remains broadly in line with wider
offering witnessed within the submarket.
This recommendation is in line with the target market’s affordability. Furthermore, this
recommendations responds to the increasing focus on 2- and 3-bedroom apartment
typologies as well as adding a small percentage of 1-bedroom apartment catering to
Unit Mix young population and 4-bedroom apartments for mid-larger families' occupiers and
larger villa typologies mix for upper class Angolans within the market.
DAMAC should consider a variety of unit types within the
broader residential offering across apartments, villas and
townhouses, to provided unique typologies to stimulate
Project
Unit demand within the project for various kinds of investors and
Phasing & end-users.
Typologies
Feasibility
Furthermore, DAMAC should focus on providing niche
product offering within the market as compared to the
competition in the market.
In terms of unit sizing recommendations, which are in line with
proposed product positioning for each typology (upper mid-end vs.
Pricing high-end).
Unit Sizing
Strategy These unit sizes are also aligned with wider benchmark sizing.
However, where possible, we recommend smaller unit sizes in line
with demand trends and to bolster profitability for DAMAC.
SUMMARY & CONCLUSIONS (3/3)

Future Deliveries Should Be Aligned To Market Trends & Opportunities

Strategic deliveries – Increased launches to Future deliveries

Showcasing DAMAC enhance the capitalizing on
Project destination demand growth

▪ Limited new deliveries ▪ Begin to ramp-up deliveries ▪ Increase product launches as

▪ Focus on key products: in line with demand growth demand picks-up
o Limited Residential ▪ Introduce additional types: ▪ Build-out DAMAC Project
Apartments o Apartments with better destination & existing types
o Townhouses community views ▪ Introduce other components:
o Villas o Premium Townhouses o Retail
o Premium Villas o Commercial
o Hospitality
o Key Community
Facilities
OTHER KEY MARKET INSIGHTS
Other Key Market Insights (1/3)
• Commanding currencies
• The pries quoted by brokers and developers are in US Dollars, but the actual payment is made in the local currency, which is the Angolan Kwanza.

• Key developers in Angola

• Odebrecht, Prado Valadares, Imo Casais

• Latest developments
Recently, 2 to 3 new projects have been completed in the market, and some developers are also reviving off-plan projects.

• Apart from that there is a master development (non-prime area further in the outskirts of the main city and located 40 min away from our side),
The Orlando Residencial is an USD 400 million project being Luanda municipality of Kilamba. The Kilamba neighbourhood serves as the
administrative centre of Belas Municipality and a large housing development area 30 km from Luanda.

• Orlando Residencial is developed by H&S Group (Chinese Firm). The masterplan will comprise of other elements such as a Commercial Zone with
about 490 stores, offices, conference centre, hotel and leisure areas, and also an Automotive Technological Center.

• The target market for the project are civil servants and middle-class families located in Luanda, Angola

• Consumer behavior more into new development or secondary market?

• Based on on-the-ground market research and discussions with various brokers and consultants, it appears that owners are showing a preference
for newer developments. This preference stems from the market being saturated with new projects delivered within the last 4-5 years, coinciding
with financial crises and economic stability challenges due to significant exchange rate devaluations in recent years. These conditions have led to
a loss of liquidity and decreased motivation for investment.
Other Key Market Insights (2/3)
• Preferred property payment options ( Cash, transfer, digital currency, cheques….etc.)
• The preferred payment option is digital payments via bank transfers. Additionally, exploring new trends like crypto and diamonds is an option.
However, it's crucial to involve a local agency to assist with such deals, taking into consideration all legalities.

• Booking Process (Token Amount / Down-payment / Payment Plan)

• According to the developers, when booking a property, the owner is required to pay a token amount, typically ranging from $20,000 to $40,000.
This token amount serves as an expression of interest in the property. Following the initial booking, the owner is expected to make a down
payment, which usually falls within the range of 20% to 30% of the property's total price. After the down payment, developers typically provide a
structured payment plan that is linked to construction milestones.

• Need to know all the additional charges for any property purchase (tax structure Stamp duty, service changes, council fees… etc.)
• In accordance with local authorities, property owners are required to pay fees such as Property Registration & Notary Costs (which depend on
the property value). Additionally, there is a transaction tax fee of 2% and a Stamp Duty fee of 0.3% of the property's value that owners must pay.

• In case of leasing what is the rental yield per city/ area?

• The rental yield for residential apartments in Angola varies depending on the location, type of property, and condition of the property. However,
it is between 4% to 6%

• Brokers network in Angola (International Vs Local)

• The top agencies (that have advisory arm as well) which are engaged with various developers are Abacus (A part of JLL) and Zenki Real Estate (A
part of CBRE)

• As well as SUTT Real Estate Consultants (Currently working with couple of developers in the market and are assigned as exclusive agency
responsible for sales and marketing for V Tower and Torre X , located in Luanda)

• The brokers which are very much active within the secondary market and has a mass reach to various HNWI are REMAX and PROIMOVEIS.
Other Key Market Insights (3/3)

• Sales Channel and Commission scheme for real estate brokers & Developer Staff.

• Sales Channel
• As discussion with the local developer & broker agencies, the proportion is something like Dubai market, majority of the deals are via the broker
channels.
• Some major developers, have direct team (with the sales centre based at the project site), however the team size is small considering the
majority deals are via brokers.

Commission Scheme

➢ Real Estate Brokers / Individuals - The exclusive brokers and agencies are paid a broker commission of 5%. Additionally, there are very few
developers that are offering timeline-based bonus commissions as well.

• Further to the above there are few developers, work with one exclusive broker agency and they further work with other top and small brokers in
the market. Hence in that case the commissions are split with 3.5% goes to the brokers that closes the deal with the customer and 1.5% stays
with exclusive agent.
PROJECT SITE

6
APPENDIX

C1256 – Al Rostamani Real Estate C O LLC, Office & Retail Market Research Study 6
Masterplan – Views
Masterplan – Internal Roads
APPENDIX

6
Existing Developments – Villas & Townhouses
Malunga – Villas
Existing Developments – Villas & Townhouses
Malunga – Villas
Existing Developments – Villas & Townhouses
Malunga – Villas
New Developments – Villas & Townhouses
V Gardens – Townhouses
New Developments – Villas & Townhouses
V Gardens – Townhouses
Existing Developments – Villas & Townhouses
Blue Talatona – Townhouses
UPCOMING RESIDENTIAL DEVELOPMENT – APARTMENTS

Luanda Bay
UPCOMING RESIDENTIAL DEVELOPMENT – APARTMENTS

V TOWER
UPCOMING RESIDENTIAL DEVELOPMENT – APARTMENTS

KINANGA TOWER
NEW RESIDENTIAL DEVELOPMENT – APARTMENTS

TORRE X
NEW RESIDENTIAL DEVELOPMENT – APARTMENTS

Alvalade Premium
Alvalade Premium is in Alvalade, a historic neighborhood and prime area of the
city of Luanda, close to everything that is important: Public and private
institutions, Services, Commercial Spaces, Restaurants, Medical Care and Schools.

▪ Between the 1st and 6th floors, 9 offices were built with areas between 139
and 848 m2 to meet the most varied needs of professional space.

▪ 56 apartments, distributed between the 7th and 17th floors. The typologies
offered, between the T1 and the exclusive T5+1.

▪ Retail shops below the building – with an average size of 128 m2.

Apartments layouts and other details on the finishes, facilities and amenities can
be accessed via the below website –

Apartments | Alvalade Premium

NEW RESIDENTIAL DEVELOPMENT – APARTMENTS

Alvalade Premium
 Final Report

THANK YOU | OBRIGADO