Real estate professionals from around the globe gathered in Dubai last week 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 Royal Institution of Chartered Surveyors (RICS), in their capacity as Knowledge Partner for the International Property Show conference, gained support from a number of high profile local, regional and global speakers. The conference was officially supported by Dubai Land Department and included an opening address from HE Sultan Butti bin Mejren. The agenda was followed by other keynote speakers, including senior heads of the International Valuation Standards Council, the International Property Measurement Standards Coalition, and the Global President of RICS.
The conference 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 example, due to be introduced in Dubai in June 2014, will for the first time standardise the way buildings are measured across the world.
At present, the way property assets – such as residential, office buildings or shopping centres – are measured varies dramatically from one market to the next. With so many different methods of measurement in use, it is difficult for global investors, occupiers and tenants to accurately compare space. Research by global property firm Jones Lang LaSalle suggests that, depending on the method used, a property’s reported floor area measurement can deviate by as much as 24%. Dubai government’s commitment to the adoption of IPMS was further confirmed by Mohamad Khodr Al-Dah, Director or Technical Affairs for DLD, who is proactively contributing to the evolution of the standards and bringing regional knowledge and expertise to the global coalition parties.
Speaking at the conference, Mohamad Khodr Al-Dah, said, “Dubai is the first government worldwide to commit to the adoption of the new International Property Measurement Standards (IPMS). 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. 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.”
Also under discussion was 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, whilst still seen as a semi-transparent market on the global scale, is the front-runner in terms of transparency within the MENA region.
One reason for this is RERA’s comparative strength as a real estate regulator, yet despite the positive steps taken to date, it was agreed that there are still many areas for future improvement in transparency and data availability such as public access to transaction data. Together with the introduction and enforcement of international standards, there is a resounding commitment to the creation of a professional, ethical and transparent real estate market that can compete with the likes of London and New York as a mid to long term attractive institutional investment market proposition.
Rob Jackson, RICS Regional Director for the MENA region, commented, “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. 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.”
For more information please contact:
For more information:
Marketing and Communications
Wednesday, April 16- 2014 @ 9:41 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.