Dubai needs performance index for real estate market: JLL

In its recent biennial Global Real Estate Transparency Index report an influential agency JLL raised the overall Dubai’s transparency rating among other global real estate markets.

Dubai’s climbed one step in this table of ranks and took yet a modest 48^th place between 109 other world real estate markets. First place in this global ranking belongs to the UK, followed by the United States (2^nd place), Singapore (11^th place) and Hong Kong (15^th place). However, in the Middle East the Emirate is consistently ranked the first in terms of real estate market transparency.

Since JLL Transparency Index was last published in 2014, Dubai has significantly increased the transparency of real estate transactions. A number of measures has been taken by the emirate’s government, including the passing of an open data law allowing for more government data to be shared, and enhancing rental calculator through adding new criteria and new areas to it.

However, Head of JLL MENA Craig Plumb considers some actions taken by Dubai Land Department (DLD) to be regressive, including a return to the rental index publication once a year, and not quarterly as it used to be before. Besides, Plumb also said that Dubai has an urgent need for implementing another index, a performance index for all types of real estate units in all areas of the city. This would help investors weigh the potential for capital growth on their real estate investment assets and both predict potential rental income. Of the 50 countries occupying the first 50 places in the global transparency ranking, 43 countries have already introduced real estate performance index.

For its part, the head of the DLD, Sultan Butti Bin Medjren noted that Dubai authorities had made significant additions and improvements for 15 out of the 28 Dubai areas that make up the index, while active work is being made to create real estate performance index.

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