Bahrain’s real estate ‘semi-transparent’

Manama : Bahrain’s real estate sector is ‘semi-transparent,’ according to a new research. A study conducted by global financial and professional services firm JLL revealed that Bahrain’s transparency level in the real estate sector was ‘average’. The study covered 109 markets worldwide. 

The UK, Australia, Canada and the US hold the top positions in the ranking. Countries such as Qatar, Kuwait, Morocco, Jordan and Iran were categorised as ‘low transparency markets’.

The index shows countries provide the most favourable operating environments for investors, developers and corporate occupiers. The Global Real Estate Transparency Index quantifies transparency based on 139 variables relating to transaction processes, regulatory and  legal frameworks, corporate governance, performance measurement and data availability. 

Higher real estate transparency is associated with stronger investor and corporate real estate activity. Along with Bahrain, Saudi Arabia, Egypt and UAE were also categorised as semi-transparent markets. 

The world’s 10 most transparent markets account for 75pc of global direct investment into commercial real estate and are home to nearly half of the world’s 2,000 largest public
companies.

“The most rapid progress in real estate transparency is found in the 37 markets that make up the ‘Semi-Transparent’ category. This group offers the substantive opportunity to tap into dynamic markets undergoing major structural change. 

“Regulatory reforms are essential for further progress and many governments appear to be taking steps forward, with recent examples including Dubai and India. However, our survey reveals that among the ‘Semi-Transparent’ group, there is a notable disconnect between the existence of regulations and actual enforcement – particularly in land use planning, contracts and building codes,” JLL stated.