The UAE has made significant strides in global real estate market transparency, with Dubai and Abu Dhabi securing a place among the top five improvers in the transparency score globally, according to JLL’s 2024 Global Real Estate Transparency Index (GRETI).
Dubai earned the third spot and Abu Dhabi secured the fifth position for improvements made from 2022-24 for scaling digital capabilities, implementing strong anti-money laundering (AML) and beneficial ownership (BO) regulations, and increasing the availability of market data for established and start-up market providers.
Dubai climbed one spot to reach the 28th position on the index in the 2024 edition, where it has retained its position as the only property market in the Middle East and North Africa (MENA) to feature in the ‘Transparent’ tier. The emirate’s gains in its ranking highlight government initiatives to enhance market transparency and more robust real estate.
The launch of technology-focused initiatives such as the Real Estate Innovation Incubator and Dubai PropTech Group have boosted Dubai’s rise on the index. These initiatives have empowered the real estate community in Dubai, creating confidence in the sector and building investment environment. Enhancements made to digital services through the Dubai REST interface, platform for real estate services, and providing access to land information or urban planning systems.
Marwan Ahmed bin Ghalita, Director General of Dubai Land Department said, “Dubai’s progress in the 2024 Global Real Estate Transparency Index demonstrates our commitment to building an innovative and reliable real estate ecosystem. Clear, open practices attract global investments, enhance market trust, and support sustainable development, aligning with Dubai’s vision as a leading global destination for real estate. Following Dubai’s Economic Agenda D33, we are advancing digital transformation and setting high standards to keep Dubai at the forefront of global real estate markets.”
James Allan, CEO of JLL Middle East and Africa (MEA) added, “Dubai’s continued advancement in the 2024 edition of the Global Real Estate Transparency Index and the significant improvements made by Abu Dhabi reflect a broader trend towards greater transparency and efficiency in real estate markets across the UAE. Our 13th Global Real Estate Transparency Index has also spotlighted the importance of embracing technology to drive the sector’s transformation and enhance transparency. The UAE has positioned itself as a tech and innovation leader in the MENA region, and by ramping up commitments to sustainability, it is creating a conducive investment environment that supports transformative urban development projects.”
JLL’s 2024 GRETI report reveals the competitive advantages AI brings to real estate markets and its potential for advancing productivity and transparency. Despite its impact on the economy, concerns have been raised on the potential risks of AI tools leading to anti-competitive behaviour, for example, through pricing optimisation algorithms.
Sustainability transparency too is becoming increasingly critical as a growing number of countries and cities set out mandatory long-term decarbonisation pathways in line with the goals of the Paris Agreement. With governments also mandating building-level energy and emissions disclosure, progressively more stringent standards and improved building management will drive faster progress.
Globally, financial sanctions have maintained momentum for improving anti-money laundering (AML) and beneficial ownership (BO) regulations. As tighter standards are introduced in more jurisdictions owing to geopolitical tensions and risk rise, investors and corporations will need to devote more resources to ensuring compliance and will increasingly gravitate towards markets with robust regulatory systems and lower reputational and financial risk.