The UAE has seen remarkable improvements in global real estate market transparency, with Dubai and Abu Dhabi both ranking among the top five most improved cities worldwide, according to JLL’s 2024 Global Real Estate Transparency Index (GRETI). Dubai secured the 3rd spot, while Abu Dhabi claimed the 5th position for the advancements made between 2022 and 2024. These cities have been recognised for scaling up digital capabilities, strengthening anti-money laundering (AML) and beneficial ownership (BO) regulations, and enhancing market data accessibility for both established players and start-ups.
Dubai’s rise to the 28th position in the 2024 GRETI emphasises its position as the only real estate market in the Middle East and North Africa (MENA) region classified in the ‘Transparent’ tier. This achievement reflects the effectiveness of governmental efforts aimed at increasing transparency and fostering a more competitive and reliable real estate market.
Key technological initiatives, such as the Real Estate Innovation Incubator and Dubai PropTech Group, have been instrumental in boosting Dubai’s standing. These initiatives have empowered the local real estate sector by instilling confidence and creating a favourable investment environment. The introduction of digital platforms like Dubai REST, which streamlines real estate services and provides easy access to land and urban planning information, highlights Dubai’s ongoing commitment to advancing real estate practices.
Commenting on the achievement, His Excellency Eng. Marwan Ahmed bin Ghalita, Director General of Dubai Land Department, said that Dubai’s progress in the 2024 Global Real Estate Transparency Index is a testament to its dedication to creating an innovative and transparent real estate ecosystem. Transparent practices attract global investments, build trust in the market, and support sustainable development, aligning with Dubai’s vision to become a leading global real estate destination. They are pushing forward digital transformation and setting high standards in line with Dubai’s Economic Agenda D33 to remain a leader in global real estate.
Meanwhile, Abu Dhabi, now ranked 41st, has also made significant progress, advancing four positions since 2022 in the ‘Semi-transparent’ category. By leveraging PropTech and artificial intelligence (AI), the Emirate has expanded its digital services through platforms like DARI, which facilitates sales and lease management, as well as the handling of development and transaction data.
James Allan, CEO of JLL Middle East and Africa (MEA), said that Dubai’s continued advancement in the 2024 GRETI, along with Abu Dhabi’s notable improvements, signals a broader trend toward greater transparency and efficiency in the UAE’s real estate markets. The latest report highlights the essential role of technology in driving sector transformation and enhancing transparency. The UAE has positioned itself as a tech and innovation hub in the MENA region, and its commitment to sustainability is creating a thriving investment environment.
As MENA nations move toward urban growth and development, transparency remains crucial for stakeholders in making informed decisions that yield better results. While the most transparent markets are poised to lead the next growth phase, those like the UAE and Saudi Arabia, which are making significant progress, present strong long-term potential.
JLL’s 2024 report also underscores the impact of AI in improving productivity and transparency in real estate markets. However, there are concerns that AI tools, such as pricing optimisation algorithms, could inadvertently foster anti-competitive practices, including price-fixing.
Sustainability is becoming increasingly central as countries and cities adopt stricter decarbonisation measures in alignment with the Paris Agreement. With governments pushing for greater transparency in building-level energy use and emissions, more stringent standards are driving progress toward sustainable real estate practices.
Globally, tightened financial sanctions and geopolitical risks are pushing for stronger AML and BO regulations, making compliance a priority for investors and corporations. As a result, markets with strict regulatory systems and lower risk profiles are becoming more attractive.
Original article reference: Zawya.
