Improvements have been noted in the transparency of worldwide property markets in the past two years. In Jones Lang LaSalle's biennial Global Real Estate Transparency Index, almost 90 per cent of the countries surveyed recorded greater transparency in the property industry, with the organisation stating this has been driven by "improving market fundamentals data and performance measurement, combined with better governance of listed vehicles". The US was named as the most transparent property market, with the UK, Australia, the Netherlands and New Zealand rounding out the top five.
Canada, France, Finland, Switzerland and Sweden were also ranked as "highly transparent", while Turkey was the country to take the greatest strides towards improving the performance of its real estate sector over the past two years. Brazil and Mexico were also highlighted as locations that have made significant progress in this regard. However, national director of global research at Jones Lang LaSalle Jeremy Kelly pointed out more still needs to be done within the real estate investment industry in Middle Eastern, African and Latin American countries. "The pace of regulatory and legal reform has been slow and we have seen limited improvement on the transparency of transaction processes, despite recognition by government and industry bodies that transparent real estate markets are necessary," he asserted.
Craig Plumb, head of Jones Lang LaSalle Middle East and North Africa, is confident positive changes will be made in the region over the coming years though. He explained policymakers will react because they understand greater transparency will result in more overseas investment and a higher number of international corporate occupiers moving into their market. Jacques Gordon, global head of strategy at LaSalle Investment Management, is also confident expansion of the property investment sector into emerging and developing markets will help reforms move forward. He explained cross-border activity means "the markets open up further to international competition and their real estate sectors embrace best global practices".
- Tuesday 03 July 2012