JLL, a real estate, investment management, and development consultancy, recently conveyed the need for greater real estate transparency to aid a sustainably driven future in the MENA region. This took place in a briefing at The Address Sky View in Downtown Dubai. JLL pledges to sharply decarbonise cities. But they also pledge to guarantee that real estate adapts and adjusts to aid real estate sustainability.
Dubai and Abu Dhabi improved the most globally in the JLL Global Real Estate Transparency Index (GRETI). For the first time, Dubai also moved into the 'Transparent' this year. This indicates that strong progress is being made to aid real estate transparency.
THE PUSH FOR GREATER REAL ESTATE TRANSPARENCY
In summary, the CEO of JLL’s Middle East, Africa, and Turkey division, Thierry Delvaux emphasised that higher levels of investment are encouraged by greater real estate market transparency. As a result, highly transparent cities are regarded as the top locations for real estate investors. Dubai serves as the perfect illustration of this. The highly active and demanded real estate market in Dubai and the UAE is thanks to the Dubai Land Department's ongoing efforts to enhance the real estate appeal. Greater transparency measures, and implementing robust and secure reporting regulations are key here. But also, strong economic growth and initiatives like the Golden Visa scheme are core illustrations too.
It has overall become clear that concrete sustainability action is required. This is necessary if cities and countries are to increase the level of transparency in the real estate market.
TOPICS DISCUSSED AT THE JLL BRIEFING
The discussion highlighted Dubai's impressive rise on the transparency scale. Equally, topics such as the need for greater real estate sustainability, and international sustainability regulations and initiatives being adopted were covered.
KEY TRANSPARENCY ASPECTS EMPHASIZED IN THE BRIEFING:
Economies thrive with highly transparent real estate markets
Governments are realising the important role of real estate transparency in luring investment. But they are also seeing the implications of real estate transparency for enhancing business efficiency, employee well-being, and productivity. Equally, real estate transparency has important implications for improving quality of life. Strong and effectively enforced legal and regulatory frameworks that safeguard citizens, and their property rights are core to this.
Sustainability is key to Dubai transitioning towards a ‘highly transparent' market
Although significant measures have already been implemented to help Dubai reach the GRETI ‘transparent’ tier, more can be done to reach the ‘highly transparent’ tier. This will include further enhancing regulations and initiatives that focus on decarbonising existing buildings. But it will also include developing low-carbon and sustainability-driven buildings.
Along with having positive implications for developing a sustainable and environmentally conscious economy, this will also further attract global businesses to Dubai. This is because businesses throughout the world are increasingly wanting to occupy buildings with strong sustainability standards to aid their ESG agendas.
DISCUSSION POINTS AROUND DECARBONISING MENA REAL ESTATE
JLL’s Head of Project & Development Services UAE and Head of Engineering & Energy MEA, Louise Collins, also gave some insightful information on decarbonising the real estate industry such as:
The vital role of decarbonising existing building stock
With the real estate industry accounting for nearly 40% of global carbon emissions, significant changes are needed to tackle climate change. If we assume that 80% of today's building stock will exist in 2050, modifying existing buildings to decarbonise them is essential in not just the MENA region, but on a global scale too.
UAE leases have a green premium of over 20%
By 2025, it is predicted that investment products catered to environmental, social, and governance concerns will surpass $53 trillion. Decarbonising real estate would benefit greatly from this investment. This is because the annual return on green real estate in the MENA region is predicted to be between 7% and 30%.
Steel and concrete account for 50% of building embodied carbon
JLL estimates that concrete and steel alone represent about 50% of embodied carbon usage as they continue to monitor it on-site. To guarantee that this usage is kept to a minimum, concentrating on low-carbon, recycled, and locally sourced products are needed. Green concrete and other goods are being introduced and are also becoming more affordable. These will help to further assure a reduction in real estate carbon footprints.
OVERALL BRIEFING TAKEAWAYS
Economic data supports predictions that Dubai and the UAE will continue to outperform the rest of the world in 2022. JLL highlighted a continued strong future for real estate in Dubai and the broader UAE as a result of this. These data points also indicate a healthy expansion of Dubai's private non-oil sector.
Equally, businesses are choosing office buildings with green credentials more frequently, especially as ESG responsibilities become more significant. Appealing to this rise in sustainably driven demand is one thing, so enhancing real estate transparency is a must. But it is another aspect to tackle the decarbonisation of existing real estate in the UAE and the MENA region. So, a push towards enhanced comprehensive measures that tackle a push for sustainability, eco-friendliness, and longevity is necessary as MENA real estate continues to thrive.
