Experts: IPMS to build a sustainable Dubai market
Dubai is the first government worldwide to commit to IPMS adoption
Real estate professionals from around the world gathered in Dubai last week for the International Property Show conference to hear how frontier and emerging markets can attract sustainable real estate investment, how these markets can compete with more mature markets, and what an attractive real estate market looks like through the eyes of a range of stakeholders.
The conference, which had the Royal Institution of Chartered Surveyors (RICS) as its Knowledge Partner, provided an expert insight into the key elements that create a thriving and sustainable real estate market that successfully competes in the global investment arena.
In particular, there was a focus on the level of standards and regulation needed to boost market transparency and investor confidence. The new international property measurement standard (IPMS), for instance, due to be introduced in Dubai in June 2014, will for the first time standardise the way buildings are measured across the world.
Speaking at the conference, Mohamad Khodr Al-Dah, director of technical affairs for Dubai Land Department, said: “Dubai is the first government worldwide to commit to the adoption of the new International Property Measurement Standard.”
“This is one of a number of initiatives Dubai Land Department are working on to secure a sustainable real estate market through transparency, accountability and the introduction of a robust regulatory system,” Al-Dah said. “Our commitment to the adoption of the new standard will not only improve accuracy in property valuation and financial reporting; it will confirm Dubai as an attractive and stable investment market for all property transactions.”
The conference also discussed how governments can create opportunities for institutional investment, which not only demonstrates a longer term interest in the market, increasing stability in real estate markets, but also promotes occupier commitment.
According to research conducted by JLL in recent years, there is a clear correlation between market transparency and the level of institutional investment activity. Dubai, while still seen as a semi-transparent market on the global scale, is the front-runner in terms of transparency within the MENA region.
Rob Jackson, RICS regional director for the MENA region, said: “Last week’s conference, which covered topics from standards and regulation through to new technologies, adoption of alternative dispute resolution approaches and community management best practices, culminated with an expert panel of real estate stakeholders debating their viewpoints on what a sustainable and attractive real estate market looks like.”
“Many comparisons were made to Dubai, where significant steps are being taken to attract longer-term investment in the real estate market,” Jackson said. “The consensus from the panel of experts was that the adoption of international standards and imposing stricter regulations to promote transparency and professionalism in the sector were key.”
“‘Transparency’, ‘professionalism’ and ‘standards’, were the recurring themes throughout the day’s discussions and are fundamental to sustained and steady growth and helping markets earn their place as top competitors on the global stage,” he concluded.