Global Real Estate Transparency, 2014 | 102 markets Worldwide
JLL’s eighth Global Real Estate Transparency Index , covering 102 markets worldwide, shows continued progress in the transparency of commercial real estate around the world. Over 80% of markets have registered improvement since 2012. The top improvers in each survey generally correlate with a surge in foreign direct investment and corporate occupier activity, as investors help to accelerate transparency reforms and governments realise that poor transparency will affect continued inward investment, long-term growth prospects and the quality of life of citizens.
World’s Most Transparent Markets 2014
| Highly Transparent |
1 | United Kingdom |
| 2 | United States | |
| 3 | Australia | |
| 4 | New Zealand | |
| 5 | France | |
| 6 | Canada | |
| 7 | Netherlands | |
| 8 | Ireland | |
| 9 | Finland | |
| Transparent | 10 | Switzerland |
| 11 | Sweden | |
| 12 | Germany | |
| 13 | Singapore | |
| 14 | Hong Kong |
Top improvers in 2014
- Kenya
- Qatar
- Ghana
- Nigeria
- Romania
- Zambia
- Mauritius
- Algeria
- Colombia
- Ireland
- Kazakhstan
- Serbia
- Peru
- Hungary
The key drivers of enhanced transparency are:
- A rising trend among governments and business to encourage a culture of ‘open data’, supported by technological advancement.
- An increasing acknowledgement by governments that poor transparency not only hampers investment flows, but it also affects the quality of life of its citizens and their relationship with local authorities responsible for taxing and regulating real estate.
- A media spotlight on transparency. The occurrence of several high-profile corruption scandals and building accidents that have put the international spotlight firmly on real estate transparency and led to a series of reforms in a diverse group of countries.
- The further rise in cross-border investment, with MNCs and international real estate advisors both extending their global footprints, which is accelerating the pace of change.
- The return of stronger economic growth and improving market fundamentals which is enabling governments and the real estate industry to refocus on transparency issues that were put on the back-burner during the Global Financial Crisis (GFC).
- The rising expectations from the ‘Millennial’ generation for more transparency and accountability of governments and commercial organisations, strengthened by the power of social media.
- The wider adoption of sustainability tools, such as minimum energy standards, green building rating systems and financial performance measurement of sustainable buildings.
The world’s most transparent markets are still dominated by Anglophone markets – the UK, U.S., Australia and New Zealand. However, France and Finland, which are at the forefront of ‘open data’ initiatives, have consolidated their positions in the top ranks. Ireland has moved into the top tier of transparency as a result of a new REIT-enabling legislation.
The top improvers in 2014 are dominated by Sub-Saharan African countries, as transparency pushes into the frontiers of global real estate. Five of the Global Top 10 improvers are in the sub-region – Kenya, Ghana, Nigeria, Zambia and Mauritius. However, while progress is being made across the continent, much still needs to be achieved.
Central and Eastern Europe continues to feature among the top improvers – notably Romania, Serbia and Hungary. However, Ukraine has regressed, highlighting how political uncertainty and geo-political strife can quickly compromise transparency levels.
Colombia and Peru are the biggest movers in the Americas underpinned by strong economic growth, high FDI and rising real estate investment. Despite these improvements, no South American country appears in the Global Top 20 of the overall index or any of the five sub-indices – the only continent to fail to achieve a top-scoring position.
MENA has struggled to maintain momentum – the notable exception is Qatar which is making concerted efforts to create a more open and transparent market. The country also illustrates the power of the international spotlight in forcing more stringent building controls and safety standards.
Improvements in Asia Pacific have been steady but unspectacular, and for the first time there are no Asia Pacific markets in the Global Top 10. The competition for the most transparent market in Asia has intensified, as Singapore moves ahead of Hong Kong, where cooling measures have compromised transparency levels.
Clarus Real Estate News 