Dubai and Abu Dhabi have emerged as two of the top five cities globally that have shown the most progress in real estate transparency, as reported by the latest Global Real Estate Transparency Index (GRETI).
Record Growth in Dubai’s Real Estate Market
Dubai real estate sector continues to attract substantial investments, both locally and internationally. According to recent data from the Dubai Land Department, the city saw sales worth Dh37.3 billion in August 2024, reflecting a 33% growth compared to the same period in the previous year. Moreover, the total number of transactions reached 14,922, marking a 36% year-on-year increase.
The Transparency Index and Dubai’s Global Standing
The GRETI ranks cities on a scale of transparency, dividing them into five categories: highly transparent, transparent, semi-transparent, low transparency, and opaque. Dubai holds the 28th position globally, placing it in the transparent market category.
India and Saudi Arabia were the leading nations in transparency improvements during 2022-2024, followed by the UAE, specifically Dubai and Abu Dhabi, alongside other key global players like the US, France, and Canada. Abu Dhabi, ranked 41st, has also made significant strides due to initiatives such as the launch of the Abu Dhabi Real Estate Centre (ADREC) and the adoption of an AI-driven building information modelling (BIM) system for improved planning and regulatory oversight.
Government Initiatives Strengthen Market Efficiency
Dubai real estate sector has benefitted immensely from proactive government measures aimed at enhancing market effectiveness. One such initiative is the Dubai REST platform, which has improved data accessibility and service delivery. Additionally, stronger anti-money laundering regulations and increased transparency in sales and rental transactions have contributed to retaining Dubai’s position as a transparent real estate market.
The adoption of various tech-based solutions and improvements in governance processes have played a pivotal role in attracting a steady flow of investments to the city.
The Future of Sustainability Transparency
Looking ahead, transparency in sustainability reporting is expected to grow significantly over the next two years. Many of the world’s largest economies are introducing stricter requirements for companies to disclose their emissions and climate-related risks. As sustainability becomes a key criterion for investment, this shift is likely to further enhance the transparency rankings of local markets.
This trend is reflected in the GRETI’s sustainability sub-component, which has expanded the factors it monitors from 7 in 2018 to 14 in 2024, indicating a growing focus on environmental considerations.
Saudi Arabia’s Rise in Real Estate Transparency
In addition to Dubai and Abu Dhabi, Saudi Arabia has also been recognized as one of the top global improvers in real estate transparency. The country’s increased score is attributed to the formalization of its land registration system through the Real Estate Registry and the provision of digitized data on sales and leases. These efforts, along with enhanced online services and broader market coverage by data providers, have positioned Saudi Arabia to better support its large-scale urban development projects currently underway.
Published on: 15 Sep 2024
Source: https://www.khaleejtimes.com/business/realty/dubai-abu-dhabi-among-top-5-global-improvers-in-real-estate-transparency-index
