JLL presents a report detailing why greater openness is essential for a sustainable future

Dubai and Abu Dhabi were the world's strongest improvers on JLL's 2018 Global Real Estate Transparency Index (GRETI), with Dubai entering the 'Transparent' tier for the first time this year. Industry professionals and influential thinkers were invited to the briefing to talk about Dubai's standing, the steps that may be taken to move to the GRETI's "Highly Transparent" tier, and the importance of sustainability in reaching that goal.

Thierry Delvaux, CEO, of the Middle East, Africa, and Turkey at JLL stated, “Higher real estate market transparency encourages higher investment levels. Therefore, inevitably, some of the highly transparent cities are considered to be preferred destinations for real estate investors, Dubai being an ideal example of this phenomenon. With the Dubai Land Department continually striving to enhance transparency within the sector coupled with the country’s strong economic growth, and initiatives such as visa reforms, we see a buoyant, vibrant market in Dubai and the UAE.“It is time that we are holding this event before Egypt hosts the COP27 climate talks. It has become acutely apparent that if cities and nations are going to progress up the scale of transparency in the real estate sector, there needs to be tangible sustainability action,” he added.

The real estate sector is under increasing pressure to rise to the challenge of decarbonization, and sustainable, low-carbon, and resilient buildings are emerging as a new barometer of a "Highly Transparent" market. If Dubai wants to go ahead to "Highly Transparent," it should prioritise sustainability projects. While Dubai has made great strides toward becoming a part of the "Transparent Tier" for the first time, the Emirate will need to double down on initiatives and regulations to create low-carbon and resilient buildings, as businesses drawn to the market and with ambitious ESG commitments are increasingly seeking rigorous sustainability standards in the buildings they occupy.

The real estate sector is under increasing pressure to rise to the challenge of decarbonization, and sustainable, low-carbon, and resilient buildings are emerging as a new barometer of a "Highly Transparent" market. If Dubai wants to go ahead to "Highly Transparent," it should prioritise sustainability projects. While Dubai has made great strides toward becoming a part of the "Transparent Tier" for the first time, the Emirate will need to double down on initiatives and regulations to create low-carbon and resilient buildings, as businesses drawn to the market and with ambitious ESG commitments are increasingly seeking rigorous sustainability standards in the buildings they occupy.

Jeremy Kelly, Global Research Director, City Futures at JLL, said: “Real estate transparency now goes hand-in-hand with sustainability. Decarbonizing our cities is imperative, and we can bring our global expertise to the table here, from discussing building regulations and certifications to retrofitting, smart buildings, utilizing technology to the full, and how best to take advantage of complex data points.” “GRETI highlights new markers of sustainability – net zero carbon frameworks, climate risk disclosure and efficiency, and emissions tracking – all of which deliver a high transparency score. Dubai has rapidly improved to reach the ‘transparent’ tier and is focused on doing more work on the sustainability front. With the UAE hosting next year’s COP28 climate talks, it is the perfect time for the local real estate sector to bootstrap itself into greater sustainable activity.”

JLL's Head of Project & Development Services in the UAE and Head of Engineering & Energy in the MEA, Louise Collins, recently spoke at a conference about the industry's decarbonization efforts. The world's preexisting building stock is going to be very important to the process of decarbonization. The real estate business, responsible for about 40% of global carbon emissions, will play a pivotal role in the battle against climate change. Assuming that 80% of existing buildings would still be standing in 2050, there is an urgent need to adapt buildings in order to decarbonize assets and conform with global obligations. When compared to other countries, the United Arab Emirates uses the fifth-least greenhouse gases per person. The United Arab Emirates (UAE) has purportedly lowered world emissions per capita by 8% in 2020 as a result of decarbonization of the grid, despite having a population of 9 million and experiencing mid-summer temperatures of 52°C. In the United Arab Emirates, the green premium for renting is over 20%. By 2025, it is predicted that over $53 trillion in assets would be invested in products that take ESG into account. This investment and the know-how to leverage financing have a significant edge and function in the decarbonization of the real estate business, with the return on green real estate in the region estimated at between 7% and 30%. Concrete and steel account for half of the embodied carbon in a building. Presently, embodied carbon in greenhouse gas emissions accounts for 28% of the total. JLL estimates that 50% of all embodied carbon comes from just concrete and steel, based on their current on-site monitoring. To reduce this use, it is essential to prioritise the use of low-carbon, recycled, and regionally sourced products. Green concrete and other goods are entering the market and becoming more cost-effective, which will further ensure a reduction in these carbon footprints.