Dubai has registered the greatest improvement in real estate transparency globally over the last two years and is also the region’s most transparent market, according to a study.

The ’Real Estate Transparency Report 2008’ for the Mena region was released by Jones Lang LaSalle, a leading real estate investment and advisory firm on Monday.

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.

Other factors such as the accessibility of listed vehicles are also assessed.

Jones Lang LaSalle’s Transparency report appears every two years and has been produced since 1999. It is the only such report specifically focussing on real estate markets and covers 82 markets around the world.

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 is at the top end of ‘Tier 3’, classifying the emirate as ‘Semi Transparent’. Bahrain and Abu Dhabi closely follow, also classified in the third tier.

Dubai’s position as the most transparent of the MENA markets puts it ahead of other emerging economies such as those of the BRIC Markets (Brazil, Russia, India and China). Better than China, India and most of Russia, Dubai’s transparency index score exceeds the other BRIC markets.

“Transparency in real estate markets matter,” says Blair Hagkull, managing director of Jones Lang LaSalle Mena.

“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.”

Typically, more transparent markets are characterised as being less risky, having more sales activity and occupier demand, greater foreign investment and less volatility.

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 amongst the top ten most improved markets globally.

However, Mena, despite the greatest improvement as a region, remains the least transparent of the regions covered by the report indicating significant scope for further improvement.

“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. Saudi Arabia is the sixth most improved market globally,’ he added.

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.

Jones Lang LaSalle is the pre-eminent investment advisor in the global real estate industry with 180 offices worldwide and has worked in 25 countries in the Mena region on projects worth $200 billion and on transactions in excess of $1.2 billion.-TradeArabia News Service