Realty Check: UAE real estate sector becomes more transparent

The UAE's real estate sector became more transparent as both Dubai and Abu Dhabi introduced fresh measures, improving their global ranking as well as maintaining their top regional position in the Mena region.

According to JLL's Global Real Estate Transparency Index 2020, Dubai, which was ranked 36th, further strengthened its position as Mena's most transparent real estate market, climbing three places up the global ranking. Abu Dhabi - ranked 48th, recorded substantial improvement in transparency, becoming one of the top performers globally on the back of its robust sustainability initiatives.

After UAE, Saudi Arabia is the most transparent market followed by Egypt, Morocco, Jordan, Bahrain, Kuwait, Qatar, Oman, Tunisia and Lebanon. In addition, the UAE (Abu Dhabi) is the largest improver in transparency index across South, Southeast Asia, Western Europe and Mena in the last two years.

However, overall, however, the Mena region has seen transparency levels decline from 2018.

JLL said the most significant initiative launched by Dubai in 2019 was the creation of an official transaction-based index, Mo'asher, by the Dubai Land Department in partnership with Property Finder.

"While the new index may lack the robustness of the valuation-based indices available in more mature markets, Mo'asher constitutes a potentially important step forward for Dubai, as it means the establishment of a single index that is widely used by all market participants," the consultancy said.

It said the UAE is taking the lead in the Middle East on green buildings with its increasing adoption of Abu Dhabi's Estidama Pearl Rating System and the Dubai Green Building Regulations.

Globally, the UK, US, Australia, France, Canada, New Zealand, Netherlands, Ireland, Sweden, and Germany are the most transparent real estate markets in the world.