Dubai remains the MENA region's most transparent real estate market , says JLL
JLL’s Global Real Estate Transparency Index names Dubai as one of the top three improvers globally
Dubai has retained its position as the MENA region's most transparent real estate market with a range of new government initiatives and an increasingly dynamic proptech industry pushing the Emirate up in the global rankings.
According to the JLL Global Real Estate Transparency Index, (GRETI) Dubai was among the top three improvers globally in the 'Semi-Transparent' category and moved up the rankings eight places to 40 out of 100 markets covered in 2018 (from 48 in 2016). The Emirate has recorded continuous progress and sits on a par with top tier cities in countries including China (33), Russia (38) and Mexico (39).
According to the 10th edition of the biennial report, governments worldwide have been gradually forging greater transparency in real estate markets, addressing growing demands from investors and the public to deliver significant change.
"JLL's research shows there is a clear relationship between the transparency of real estate markets and the level of investment they attract," said Craig Plumb, Head of Research, MENA at JLL.
"One of the key objectives of the Dubai Land Department is to attract more investment and the Government have therefore launched a number of initiatives to improve transparency and the quality of information available to real estate investors. If all these initiatives are implemented then we would expect Dubai to improve further in the global rankings over the next 2 years," he continued.
The Government continues to set the pace of change, "Dubai has passed beneficial regulations that impact its governmental initiatives, including those that pertain to a building classification project, improved regulatory procedures, new and enhanced online apps for managing contracts and broker information, and unified lease forms," commented HE Sultan Butti bin Mejran, Director General at the Dubai Land Department.
"Such measures are aligned with Dubai Land Department's mission to establish Dubai as the world's premier real estate destination in the world in terms of innovation, trust and happiness, and also reflect the Government's strategy to attract investments by nurturing a competitive climate.
"In pursuit of this vision, we are proactively involved in building an innovative and sustainable real estate environment supported by the development, promulgation and implementation of clear, transparent and integrated real estate laws that help to protect the rights of real estate investors, as well as those of all related parties," he continued.
Over the 20 years that JLL has been publishing its global transparency report, increased regulatory requirements and greater data availability have driven incremental improvements. Since 2016, 85 of the 100 countries surveyed recorded an improvement from 2016, and the growing impact of technology may propel this positive trend in the future.
Proptech tools that transcend national borders such as blockchain, brokerage apps and open data could help semi-transparent markets leapfrog the normal process of transparency.
The JLL Global Real Estate Transparency Index is based on a combination of quantitative market data and information gathered through a survey of the global business network of JLL and LaSalle Investment Management. For more details, please visit the GRETI website.