JLL: Saudi Arabia boosts real estate transparency
Dubai has retained its 48th position as the most transparent real estate market in the Middle East and North Africa (MENA)
Saudi Arabia has moved up the rankings to finish in the ‘Semi-Transparent’ category in the JLL and LaSalle Investment Management’s 2016 Global Real Estate Transparency Index (GRETI).
Strong advances over the past two years have seen Saudi Arabia (63rd) and Egypt (65th) move into the dynamic ‘Semi-Transparent’ group, which is largely dominated by large emerging markets, including the BRIC countries (Brazil, Russia, India and China) and all four of the fast-growing MIST economies (Mexico, Indonesia, South Korea and Turkey).
Dubai (48th) has retained its position as the most transparent real estate market in the Middle East and North Africa (MENA) region, with Abu Dhabi (59th) following closely behind, according to the report.
“This is very good news for Saudi Arabia,” said Jamil Ghaznawi, national director and country head of JLL Saudi Arabia. “Moving into this category for the first time shows the advances the Kingdom is making and is an indication of the focus the country has on strengthening corporate governance, transparency and market data.”
The 10 countries identified as ‘Highly Transparent’ by GRETI account for 75% of global investment into commercial real estate, highlighting the extent to which transparency drives real estate investment decisions.
The formation of real estate committees in the Kingdom’s Chambers of Commerce has highlighted the issue of low transparency in the market and encouraged more action towards addressing the issue.
As a result, there has been some mild improvement in ‘open data’ platforms such as registering property transactions with the Ministry of Justice which is then shared publicly on its website, stated the report.
“Saudi Arabia is now positioned in a very dynamic tier, which is considered the most improved transparency group, and a category which is seeing growing middle classes mobilising against corrupt practices,” added Ghaznawi.