Since the collapse of Dubai real estate back in 2008, people have been presuming it a non-transparent market in the ‘Mena’ region. During 2011, several reports about the condition of Dubai realty market revealed property owners raising prices of property based on their ‘feel good factor’. Since the increases were not backed by the real demand and supply, experts believed the market heading towards non-transparency.
Improvement in Transparency!
According to latest Global Real Estate Transparency Index of JLL (Jones LaSalle’s), Dubai tops the list of real estate markets in the ‘Mena’ region. The index discloses that out of the total 15 markets of Middle East and North America which make up the Mena region, Dubai stands on number one with respect to transparency. Despite that, if we compare Dubai with the global real estate markets, we would come to know Dubai has been ranked in the semi transparent category.
The index shows that out of total global markets covered in the index, Dubai property market gets a rank of 47. On the other hand, Abu Dhabi is the second most transparent spot in the ‘Mena’ region and got a rank of 52 in the index. If we analyze the index, we come to know that around 80% of the markets in ‘Mena’ region have improved their transparency levels during the last 2 years. The reason why Abu Dhabi is on second position is merely because it lags behind by one or two years in property development cycle as compared to Dubai.
Reasons behind Transparency!
The two primary reasons behind the increase in transparency are:
- The better regulatory framework enforced by RERA and its widely recognized authority to deal with the realty matters is adding to the transparency of the sector.
- The accuracy and quality of data revealed about Dubai property market fundamentals is readily available. This is also enhancing transparency of the sector.
Benefits of more Transparency!
With respect to data fundamentals, transparency levels must be increased further. Experts are predicting transparency levels to increase further in the next few years, since better transparency brings in more customers in the market. Overseas investors also consider it safe to invest in highly transparent markets. The higher transparency to the date has helped Dubai to emerge out of the real estate crash and experience small spurts of recovery.
The better transparency somehow has helped Dubai to offer better value of money on real estate purchases and availability of quality real estate assets. The improved transparency has also added to the openness of market and experts are predicting better times ahead for the sector in the near future.