DLD Plans For An Index For Dubai Real Estate Market

Dubai is planning to project a real estate performance index that will allow global lender to track and bench market performance, according to the (DLD) Dubai Land Development Chief.

While we have certainty made positive progress over the past two years, we know that  further initiatives are required if Dubai is to accomplish its goal of delivering a more clear market, Sultan Buti Bin MerjenDirector-General wrote in JLL’S global Real Estate Transparency Index, 2016.

The DLD is actively considering creating such an index. We are confident that such an index will be in place by the time of JLL’S 2018 analyses, supporting a further improvement in Dubai’s transparency, he added.

The index will possibly be created in association with specialist index provider.

Dubai retrained its place as the most transparent real estate in the Middle East and North Africa area according to the consultancy’s GRETI analyses, recording a 10% improvement in its score over the past two years.

The emirate reported an improvement in 15 of the 28 regions covered in the global transparency analyses, and saw the greatest advancement in the region of market data, where the DLD can have the most explicit impact on transparency.

As a result, Dubai has moved closer to the top of the See through  category where it sits on a par with Tier 1 and its cities in the BRIC countries (Brazil, Russia, India and China)and all four of the fast-growing MIST economies ( Mexico, Indonesia, South Korea and Turkey).

The Dubai Government has recognised the importance of improving transparency in achieving its objective of increasing the level of inward investment into emirates real estate market.

Citing an example of this, Bin Merjen said the new Dubai Data Law (Law 26 of 2015 seeks to promote the sharing of data both between agencies and with the individual zone).

More open sharing data is seen as a key fundamental in the implementation of Dubai’s smart city strategy, he stated.

Besides, in keeping with the overall strategy plan of increasing transparency, the DLD has introduced raft of new initiatives over the past few years, which include.

DLD FINANICAL MAP

The ingress was launched by the Real Estate Investment Promotion and Management Centre, the investment arm of DLD to attract major investors for off-plan available plans. It carries aunified set of activity on best practise and gives investors a business access to many investment opportunities through their smart cities devices, easing the decision-making process and allowing online transactions through the secure government portal.

TARIFF INCREASE PLAN

This service increases the transparency of the tariff market by providing data to both habitants and property-owners. The tariff calculator is based on data from all leases registered in the DLD’S Eljari System plus field newspapers and websites, as well as recurrent meetings with real estate companies. The tariff index handles to both commercial and residential unit’s and is currently restore on a 12 months basis.

BROKERAGE RANKING

(RERA) Real Estate Regulatory Agency, The governing arm of the DLD, is applying a new system of categories: Bronze, Silver and Gold and general. The new system encourages competition betweenbrokerage firms and promotes more adequate and transparent services in the real estate zone.

SERVICE CHARGE INDEX    

RERA launched a service charge and maintenance index for freehold regions in October 2014. The index provided details of 300 projects in 22 mastersplanned and gives a break-up of the charges approved.