Amwal Al Ghad English - 2016-08-03 13:54:11
Real estate market transparency is increasing across the globe and 75% of investment now takes place in highly transparent markets, new research shows.Globally, transparency scores have increase by an average of 2.4% from 2014 to 2016, down slightly from the 2.9% recorded in 2010 to 2012 and the 3.4% from 2012 to 2014, according to the latest global real estate transparency index from international property advisors JLL.
The firm says that these ‘encouraging results’ highlight a real estate industry that is making steady progress through initiatives to deepen the availability and quality of market data and performance benchmarking.
This is being done through new legislation to reduce roadblocks to progress, by setting higher ethical standards and by taking steps to make transaction processes more fair and transparent.
The Anglosphere countries continue to dominate the upper echelons of the transparency hierarchy accounting for six of the world’s 10 highly transparent markets with the United Kingdom, Australia, Canada and the United States in the top positions.
The report says that these traditional standard bearers are taking transparency to a new level, making improvements that go beyond other highly transparent markets, particularly in areas of performance measurement, market fundamentals data and valuation practices.
‘In these markets, property data is increasingly available at the city sub-market level and by property type and further improvements in performance measurement and market data are on the horizon, especially in tracking niche property sectors,’ the report says.
‘They are setting a high bar for transparency and are showing the way for other markets to follow. The world is looking to these highly transparent markets to take the lead in introducing greater transparency on beneficial ownership disclosure and on tightening up anti-money laundering legislation and procedures in the wake of the revelations from the Panama Papers,’ it explains.
When it comes to improvements Central and Eastern Europe feature strongly. Slovenia and Serbia are the top improvers globally since 2014, followed by Bulgaria. These three Balkan countries have moved up into the semi-transparent category due to improving market fundamentals data and better valuation practices, but they remain well below most of the rest of Europe. More»