Published : 28 Jul 2008 , Source : Arabian Business
Dubai is the most transparent market in the Middle East when it comes to real estate transactions, a report revealed on Monday.
Jones Lang LaSalle released the Real Estate Transparency Report 2008 for the Middle East and North Africa region (MENA) which showed that the city registered the greatest improvement in real estate transparency globally over the last two years.
The report defines ‘transparent markets’ as those that are open and easier to do business with the components of transparency encompassing transaction processes, the regulatory and legal environment, market fundamentals and performance measurements.
Each market is classified as being in one of five tiers ranging from ‘Tier 1’ for highly transparent markets, down to ‘Tier 5’ for markets defined by the report as ‘opaque’.
Dubai was rated at the top end of ‘Tier 3’, classifying the emirate as ‘Semi Transparent’.
Bahrain and Abu Dhabi closely followed while the market in Saudi Arabia was ranked the sixth most improved for transparency.
Blair Hagkull, managing director of Jones Lang LaSalle MENA, said: “Transparency in real estate markets matter. It matters to investors as it provides the basis for their investment strategies and it then informs decision making.
“It matters to occupiers and tenants because it provides certainty and reduces risk. It is no coincidence that the most valuable real estate assets in the world are located in some of the world’s most transparent markets such as the UK, the USA, Canada, Australia and France.”
The report also highlighted the growing trend towards greater transparency throughout the MENA region.
Saudi Arabia and Egypt both saw improvements since 2006 and are among the top ten most improved markets globally.
“Key factors such as the establishment of RERA by the Dubai Government and new laws such as the Strata Law and the Landlord and Tenant Law have catapulted Dubai to the position as the most transparent of the MENA markets,” said Craig Plumb, Head of Research, Jones Lang LaSalle MENA.
“These trends have been emulated in other states of the Gulf, most notably Bahrain and Abu Dhabi, the second and third most transparent markets of the region respectively.”
The Jones Lang LaSalle Transparency Index covers 82 markets, rated against five transparency tiers. Thirty Three questions designed to measure transparency objectively are put to each market.