Dubai property market region's most transparent - study

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Dubai was ranked 47 out of 97 countries globally based on a range of performance measures including market fundamentals, regulation and transaction progress.

Dubai was ranked 47 out of 97 countries globally based on a range of performance measures including market fundamentals, regulation and transaction progress.

Dubai has been ranked the Middle East and North Africa’s most transparent real estate market, but the region continues to lag behind others globally, according to a new report by Jones Lang LaSalle.

Transparency levels have increased in 80 percent of the region over the last two years, with the Lebanese real estate market showing the greatest improvement, the consultant said in its 2012 global real estate transparency index.

“More needs to be done to increase the level of transparency of the market both in Dubai and across the broader region, particularly in respect of investment performance indicators and data on market fundamentals,” Craig Plumb, head of research for Jones Lang LaSalle MENA, said.

“The lack of progress on these areas in recent years has contributed to the low level of investment activity and the oversupply that is currently being experienced in some sectors of the market.”

Transparency levels are expected to improve in the next few years as policy makers recognise the importance to both foreign and regional investors, added Plumb.

Dubai, hit hard by the global economic downturn, which saw real estate prices decline by over 60 percent, has introduced several measures aimed at better protecting investors.

Investors in theory will be able to seek full refunds if a developer fails to provide a unit or service within a specified time frame, according to a proposed investor protection law announced in April.

Dubai was ranked 47 out of 97 countries globally based on a range of performance measures including market fundamentals, regulation and transaction progress. The emirate was closely followed by Abu Dhabi at 52.

Neighbouring Gulf states Bahrain (63), Saudi Arabia (64), Kuwait (67), Qatar (72) and Oman (74) continue to trail the UAE.

Egypt was the only market globally to experience a decline in transparency, Jones Lang LaSalle said.

“Progress following the revolution of 2011 has been extremely slow and the vacuum created by the lack of a constitution is adding to the present sense of uncertainty and lack of transparency,” noted the report.

“The deterioration in transparency has been manifest in areas such as financial reporting, property taxation, uncertainty of planning regulations and lack of clarity of land title,” it added.

The US topped the global survey while Sudan was ranked least transparent, according to the research.

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Please post responsibly. Commenter Rules

Posted by: Olivia Davies

I've found this to be a really interesting article. With the Dubai property market now recovering, I will definitely be considering investing.

Posted by: Red Snappa

I would say that this report only undermines the credibility of the authors, claiming transparency calls into question the opinions and honesty of every wronged investor who has added his or her despairing voice to the prolifia of property articles published on AB. The volume of noise made on the subject of no property, no refund no hope is simple deafening.

In return one could also call into question the quality of the observational skills of the analysts who were prepared to put their names to such a preposterous claim, time to pursue an alternative career path methinks. It would be far more revealing to produce a study of the true number of buyers that have been cheated and how much money cash they have been deprived of potentially pending through the courts, which would transmit a more valid impression of transparency.

Posted by: Dunhill

To all those complained about Dubai & transparency: if you are unhappy and courageous enough, just leave Dubai to your own country! You keep enjoying the luxury live in Dubai that missing in your own homeland but complaining. Keep quite, smiling or leave!

Posted by: Bugle

Thanks for the advice. I expect that you will pay off our mortgages on non existent properties?

Posted by: small sister

@Dunhill This is an Islamic country and whether you like it or not justice will come at the end and people either locals or expats have their rights to speak out what they think, so instead of swimming opposite of the wave, try to swim along with it, this will get you to the coast... this was a small advice from a litter sister...

Posted by: Lionheart

@downhill, the Dubai I want is about honesty, responsibility, creativity,hard work and ethics. The majority of Emirates dont want to be associated with what is going in the property market and the negative image UAE got out of it. I praise Mr Habtoor for his courageous public stand on this topic. Those i Nakheel, Dubai Properties, Taziz, Idama and other companies showing little or no ethics do not represent the Emirati culture or the Arab nation. This country needs better people in order to build a sustainable economy for future generations. Today the information travels faster and remains available via internet. Don't hide your head in the sand and wake up.

Posted by: GoldLeaf

To DunHill

Its really very amusing to see Dunhill's comments. This person has a western alias (why!), must be using 90% of stuff including cars, phones, electronics, drinks which originate from west.
If you are so patriot then why don't you use everything made in the UAE.
Don't close your mind, try to learn good things whether from east or west. One can not always be the fault-free. Closing your eyes from your own shortcomings will not get you anywhere.

Posted by: john

Dear Dunhill,
If you want to keep telling expats to leave if they are complaining then you will end up with nobody in Dubai. Who will then be able to run your banks and companies and bring qualified people who without them nothing would have been built.
Can't we complain about transparency? Why not? We have lost millions in the real estate just because the developers failed to deliver and took our money and no one can ask them why.
Put up transparent rules so you can get back investments to your country and leave people express themselves freely.

Posted by: Fed up of Dubai

People have lost hundreds of thousands of dirhams due to delays. I have no unit to shown for my money, no developers are EVER penalised, no regulatory authority wants to hear about it, or ever responds, no court will hear the case unless I spend more money I dont have for an expensive and lengthy fight and the developers walk away.

The proposed law does little for thousands who are suffering as it is unlikely to be retrospective. I will not be entitled to get a full refund despite my project already being 3 yrs past my contracted handover date, I would settle for compensation of sorts on the delays but the authorities dont care and wont regulate the developers. I believe the new law will do little to improve transparency, penalising developers for CURRENT delays in the only thing that will increase transparency to an acceptable level.

Posted by: Khan

Can we have the basis and source of database for this report on which this report published.

RAV

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