According to JLL’s most recent Global Real Estate Transparency Index, the real estate markets in Dubai and Abu Dhabi have been recognized as the top global improvers in 2022. (GRETI).
Dubai also made its debut appearance in the “Transparent” tier, highlighting its status as the Middle East and North Africa region’s most transparent real estate market.
The emirate gained three spots in the index to take over the 31st spot overall. It is the only real estate market in Mena that is included in the “Transparent” tier.
New rules governing market lending practices, beneficial ownership tracking, and sustainability reporting, as well as improved digital services and data provision, like service charge management, automated valuations, and transactions databases through the Dubai REST platform, are the main drivers of Dubai’s improvements in the transparency ranking. The improvement in ranking also relies on recent initiatives, such as transaction-based sales indices and a building wellbeing certification, that the Dubai Government has launched with private businesses.
Sultan Butti bin Mejren, Director General of Dubai Land Department, said: “With the global recovery of the economy, we recognized the need to focus on improving market transparency to make better decisions that will support both developers and investors alike. Today, investors from around the world are increasingly looking at Dubai’s real estate to invest, and we, at Dubai Land Department, are committed to enhancing transparency within the sector.”
Bin Mejren added: “The government’s ongoing efforts that are driving digital services and data provisions, new regulations, and sustainability reporting have helped advance Dubai’s ranking in this year’s Global Real Estate Transparency Index, which is an important guide used for cross-border investment and corporate occupiers to inform their decision making.”
The 45th-ranked country in the world, Abu Dhabi, moved up one spot and kept its spot in the “Semi-Transparent” tier. The upgrades are a result of the Dari platform’s expansion of digital services, including transaction and development databases as well as management of sales and leases. According to the research, the property market has benefited from expanded data provision by private suppliers in new areas, as well as the publication by the Department of Municipalities and Transport (DMT) of its first code of conduct for real estate professions.
Thierry Delvaux, Chief Executive Officer at JLL, Middle East, Africa, and Turkey said: “Faster progress and greater global alignment across industry initiatives and standards are needed to meet growing pressure from companies, consumers, investors, and the public for higher levels of transparency. This year, Dubai and Abu Dhabi have been recognized as top global improvers, benefitting from a concerted government focus on improving market transparency.”
Saudi Arabia strengthened its position at a regional level by maintaining its ranking in the top 50 of the global rankings. The transparency of corporate governance for listed vehicles was one area where the kingdom performed especially well. This is attributable to the well-established (launched in 2016) REIT regulatory framework as well as the listed vehicles’ sound corporate governance, data disclosure, and financial reporting procedures.
KSA received high marks for the transparency of its investment performance; it has the Tadawul Real Estate Development Index for its public market, and some of its REITs are included in the FTSE EPRA NAREIT Global REITs Index.
The paper finds that the need for increased standardization and consistency in sustainability initiatives, regulatory environments, technologies, and data frameworks is a common feature of the changes occurring throughout global real estate markets.
Numerous businesses are concentrating on the environmental, social, and governmental aspects of their operations, and additional rules and metrics to support and offer standards for these objectives across the industry are probably on the horizon.
The amount of information that businesses and governments are gathering about their facilities, workforces, and communities is expanding quickly, which raises privacy threats and the need for more precise, stringent policies around data management and security.