In the 2014 Global Real Estate Transparency Index released by Jones Lang LaSalle, Dubai was placed 49th with a composite score of 3.11, continuing its run as the most transparent property market in the region for global investors. The score placed Dubai in the category of countries rated as ‘semi-transparent’. Abu Dhabi was also in the same category, ranked 53 with a composite score of 3.20.
The composite score, which is calculated from five sub-indices, including performance measurement, regulatory and legal framework, transaction process, government-listed vehicles and market fundamentals, ranked the UK, US and Australia as the top three countries that were placed in the High Transparency category. In the index, transparency determines the ease with which an investor with large amounts of funds at his disposal can enter and exit a particular market.
Dubai’s sustained efforts since 2008 towards creating a real estate regulatory environment have paid off. The various measures taken by the emirate to facilitate ease and transparency of real estate transactions include improving the status of the Dubai Land Department’s rental dispute redress regime, which protects the interests of both investors and tenants.
With market confidence building up due to the strong fundamentals, investors are moving on from investing in residential and office property and are also looking at making investments in social infrastructure such as schools, hospitals, logistics and retail, which bring stable and rewarding returns in addition to holding prospects for capital value appreciation.