According to JLL’s 2024 Global Real Estate Transparency Index (GRETI), the UAE has made notable progress toward greater transparency in the global real estate market, with Dubai and Abu Dhabi ranking among the top 5 improvers worldwide in terms of transparency score.
According to the report, for improvements made between 2022 and 2024, Dubai came in third, and Abu Dhabi came in fifth. These cities were recognized as among the top global improvers for their efforts to scale digital capabilities, implement robust anti-money laundering (AML) and beneficial ownership (BO) regulations, and increase market data availability for both established and start-up market providers.
In the 2024 edition, Dubai moved up one spot to claim the 28th spot on the index, maintaining its standing as the only Middle East and North Africa (MENA) real estate market to be included in the “Transparent” tier. The improvements in the emirate’s ranking, according to the report, demonstrate the success of government programs aimed at improving market transparency and promoting a more thriving real estate climate in the area.
Dubai’s ascent on the index has been aided by the introduction of technology-focused projects like the Real Estate Innovation Incubator and Dubai PropTech Group. These programs have given the Dubai real estate community more power, boosting industry confidence and establishing an elite investment climate. The Emirate’s dedication to ongoing real estate practice improvement is further demonstrated by the improvements made to digital services via the Dubai REST interface, the smart real estate platform for real estate services, and the provision of access to land information or urban planning systems.
Eng Marwan Ahmed bin Ghalita, Director General of Dubai Land Department, said: “Dubai’s progress in the 2024 Global Real Estate Transparency Index demonstrates our commitment to building an innovative and reliable real estate ecosystem. Clear, open practices attract global investments, enhance market trust, and support sustainable development, aligning with Dubai’s vision as a leading global destination for real estate. Following Dubai’s Economic Agenda D33, we are advancing digital transformation and setting high standards to keep Dubai at the forefront of global real estate markets.”
Abu Dhabi moved up four spots from 2022 to rank 41st in the index at the “Semi-transparent” level. The emirate’s DARI platform, which includes development and transaction databases as well as sales and lease management, has allowed it to optimize real estate operations and grow its digital services by utilizing PropTech and AI.
James Allan, CEO of JLL Middle East and Africa (MEA), said: “Dubai’s continued advancement in the 2024 edition of the Global Real Estate Transparency Index and the significant improvements made by Abu Dhabi reflect a broader trend towards greater transparency and efficiency in real estate markets across the UAE. Our 13th Global Real Estate Transparency Index has also spotlighted the importance of embracing technology to drive the sector’s transformation and enhance transparency. The UAE has positioned itself as a tech and innovation leader in the MENA region, and by ramping up commitments to sustainability, it is creating a conducive investment environment that supports transformative urban development projects.”
Transparency is more crucial than ever in the dynamic real estate market as MENA nations move to the next phase of urban growth and help industry stakeholders make better decisions and achieve better results. Although major markets that have made progress and are focused on enabling higher levels of institutionalization, like the UAE and Saudi Arabia in the MENA region, offer strong long-term prospects, the most transparent markets are pulling ahead and positioned to lead into the next cycle.
The substantial competitive advantages AI offers to the real estate industry, as well as its potential to increase productivity and transparency, are highlighted in JLL’s 2024 GRETI report. Notwithstanding its significant economic impact, worries have been expressed about the possibility that AI tools could unintentionally encourage price-fixing or other anti-competitive behavior, such as through pricing optimization algorithms.
Sustainability transparency is also becoming more and more important as more nations and cities mandate long-term decarbonization pathways by the objectives of the Paris Agreement. The report stated that more rapid progress will be attained through increasingly stricter regulations and better building management, as governments will also be requiring building-level energy and emissions disclosure.
Expanding financial sanctions regimes around the world have kept the momentum going for bettering beneficial ownership (BO) and anti-money laundering (AML) laws. Investors and corporations will need to dedicate more resources to ensuring compliance as more jurisdictions introduce stricter standards due to geopolitical tensions and rising risks. They will also increasingly seek out markets with strong regulatory systems and lower reputational and financial risk.
Since 1999, GRETI, a joint production of JLL and LaSalle Investment Management, has been tracking the global development of real estate transparency. The 13th edition, which is updated every two years, is based on an extensive survey that covers 89 countries and territories worldwide and examines the availability and quality of governance structures, transaction processes, regulatory and legal environments, performance benchmarks and market data, and sustainability instruments.
