The government’s focus on improving market transparency has helped Dubai and Abu Dhabi’s real estate markets rise to the top of the global rankings for 2021 and 2022.
When it comes to real estate, Dubai has risen three places in JLL’s latest Global Real Estate Transparency Index, which ranks the world’s real estate markets based on transparency. As a result, Dubai is now ranked 31st out of the world’s markets. In addition, it has solidified its position as the region’s most open real estate market.
New legislation and regulations regarding lending practices in the real estate sector, the tracking of beneficiaries and sustainability reports, and the improvement of digital services and data availability, like management of service fees and automated assessments, helped Dubai advance in the rankings of the index.
While Dubai’s ranking has risen due to new government-private sector initiatives like transaction-based sales indicators and building safety quality certificates, the emirate’s progress has been slow.
According to the Director-General of the Dubai Land Department, Sultan Butti bin Mejren, such a classification encourages international investments and enables companies to make the best decisions.
On the other hand, despite moving up one spot in the global rankings, Abu Dhabi is still classified as having “Partial Transparency” in its governmental practices. The real estate sector must accelerate progress to meet the increasing demands of companies, consumers, investors, the public, and their aspiration for greater levels of transparency, according to Terry Delvaux, CEO of JLL Middle East and Africa.
It was not a surprise when Dubai and Abu Dhabi ranked first and second in this year’s global rankings for most improved real estate markets. The government’s increased efforts and emphasis on enhancing transparency in the sector were no doubt a factor.
Saudi Arabia in top 50
Real estate markets in the Kingdom of Saudi Arabia have maintained their position in the top 50 worldwide and confirmed their place at the regional level.
Transparency in Corporate Governance in Listed Instruments was an area where the Kingdom excelled and was recognized. REIT regulatory frameworks (launched in 2016) were combined with listed instruments backed by high-quality financial reports, disclosures, and corporate governance practices.
As the Kingdom owns the Tadawul index for real estate development and several real estate investments traded funds, which are significant components of the European Real Estate Association and the National Association of Real Estate Investment Funds, in addition to the global REIT index, it has performed well in the transparency of the investment performance of listed markets.
Global real estate market changes are being driven by a need for greater coordination and alignment between sustainability initiatives, regulatory environments, technologies, and data frameworks.
The report predicts that more regulations and standards will emerge to support and direct the sector’s overall environmental, social, and governance goals, as many companies already do.
Privacy risks are increasing as businesses and governments collect more and more data about the performance of their buildings and employees, and the need for clearer and stricter data management and security regulations is growing.