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Dubai rated 'most improved real estate market'
Dubai is the most transparent market in the Middle East when it comes to real estate transactions, a report revealed on Monday.
Jones Lang LaSalle released the Real Estate Transparency Report 2008 for the Middle East and North Africa region (MENA) which showed that the city registered the greatest improvement in real estate transparency globally over the last two years.
The report defines ‘transparent markets’ as those that are open and easier to do business with the components of transparency encompassing transaction processes, the regulatory and legal environment, market fundamentals and performance measurements.
Each market is classified as being in one of five tiers ranging from ‘Tier 1’ for highly transparent markets, down to ‘Tier 5’ for markets defined by the report as ‘opaque’.
Dubai was rated at the top end of ‘Tier 3’, classifying the emirate as ‘Semi Transparent’.
Bahrain and Abu Dhabi closely followed while the market in Saudi Arabia was ranked the sixth most improved for transparency.
Blair Hagkull, managing director of Jones Lang LaSalle MENA, said: "Transparency in real estate markets matter. It matters to investors as it provides the basis for their investment strategies and it then informs decision making.
"It matters to occupiers and tenants because it provides certainty and reduces risk. It is no coincidence that the most valuable real estate assets in the world are located in some of the world’s most transparent markets such as the UK, the USA, Canada, Australia and France.”
The report also highlighted the growing trend towards greater transparency throughout the MENA region.
Saudi Arabia and Egypt both saw improvements since 2006 and are among the top ten most improved markets globally.
“Key factors such as the establishment of RERA by the Dubai Government and new laws such as the Strata Law and the Landlord and Tenant Law have catapulted Dubai to the position as the most transparent of the MENA markets,” said Craig Plumb, Head of Research, Jones Lang LaSalle MENA.
“These trends have been emulated in other states of the Gulf, most notably Bahrain and Abu Dhabi, the second and third most transparent markets of the region respectively."
The Jones Lang LaSalle Transparency Index covers 82 markets, rated against five transparency tiers. Thirty Three questions designed to measure transparency objectively are put to each market.
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Comments 1-5 of 5
Posted by paresh, dubai, dubai on 30 July 2008 at 12:07 UAE time
Trevor, I totally agree with you.
Posted by paul., Dubai, uae. on 30 July 2008 at 11:44 UAE time
The whole property market is a joke here, i have just been speaking to a company who are selling their new project at the moment in Maritime city, please tell me were they get an asking price of Aed7m as a starting price for a two bedroom apartment. What a joke this market is.
Posted by Trevor on 30 July 2008 at 09:00 UAE time
Paresh, these reports rely heavily on the official line. Those of us on the ground know full well that what really matters here is form over substance.
Posted by paresh, dubai, dubai on 29 July 2008 at 20:24 UAE time
It is interesting that the research shows transparency in the property market due to the property laws being in place and yet i am personally involved in a matter where lawyers acting on behalf of a developer are unwilling to redraft their contract especially because it does not incorporate the strata law for the following reasons:-
1.All developers have thesame standard contract and DLD is accepting them in the present form.
2.The strata law is not in place and no contract can at this moment stipulate such requirements or add a clause which allows for any future laws to be incoporated.
3.All investors or buyers are accepting them in the present form because they are making alot of money flipping on the market.
I am a professional consultant and i am actually trying to fight against the current market practices and thus this report based on research is very surprising.
Posted by Sanjay, Dubai, United Arab Emirates on 28 July 2008 at 23:03 UAE time
"Dubai is the most transparent market in the Middle East when it comes to real estate transactions" ... let me ask the writer a question. Say the broker concludes a deal between Buyer and Seller and on completion of transfer the Buyer refuses to pay the Broker his due commission - whom does the Broker take this grievance to? Give me a workable solution (not theory or textbook) and i will accept your article. Else it is just PR.