Australia ranks 2nd most transparent real estate market

According to JLL’s 2016 Global Real Estate Transparency Index (GRETI), the real estate transparency has continued to improve steadily at a sub-national, national and international level. Between 2014 – 2016, the transparency scores globally have increased by an average of 2.4%, whilst two-thirds of markets have also shown progress in the past two years.

The JLL Global Real Estate Transparency Index, which is compiled every two years, highlights which countries provide the most favourable operating environments for investors, developers and corporate occupiers.

The report reveals that the Anglosphere countries continue to dominate the top positions and are setting the bar even higher. They now account for six of the world’s ten ‘Highly Transparent’ markets. The countries holding the top positions are the United Kingdom, Australia, Canada and the United States.

Australia has managed to edge its way up in the global ranking for real estate transparency to second position from its third place position in 2014. It now sits alongside the United Kingdom, Canada and the United States as the world’s most transparent countries. Performance data is now available at a more granular level as well as at a higher frequency.

The world is now looking to these ‘Highly Transparent’ markets to take the lead and introduce greater transparency on beneficial ownership disclosure as well as tightening up anti-money laundering legislation and procedures in wake of the revelations from the Panama Papers which has led to mounting pressures for greater real estate transparency.

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

This year’s index revealed that foreign investors accounted for a massive 42 per cent of investment into the Australian commercial property market during 2015 (roughly $31 billion), and this percentage is double the 10-year annual average.

According to Dr David Rees, JLL Head of Australasian research, “Transparency is very high in Australia for a number of reasons. In comparison with many markets in the region, Australia also has a strong legal framework to define and protect property rights and an open and established bidding process”.

Today, the transparency of real estate is under intense scrutiny, and it is becoming increasingly more recognised that transparency of the real estate sector is playing a very crucial role, not only as a facilitator of new investment, but also in community well-being and inclusiveness.

Investors are also starting to demand further improvements in transparency as capital allocations to real estate grow, even within the world’s most transparent real estate markets.

The JLL Global Real Estate Transparency Index analysed 109 markets, created from 139 factors. Some of the key factors it looks at include market data availability, governance, transaction processes, property rights as well as the regulatory and legal environment across all 109 countries.

Australia ranked in joint 1st position for transaction processes, alongside Ireland and New Zealand, whilst also ranked 3rd for Performance Measurement and for Regulatory and Legal.

The top 10 highly transparent markets are as follows for 2016 and 2014:

Top 10 Rankings for 2016

  1. United Kingdom
  2. Australia
  3. Canada
  4. United States
  5. France
  6. New Zealand
  7. Netherlands
  8. Ireland
  9. Germany
  10. Finland

Top 10 Rankings for 2014

  1. United Kingdom
  2. United States
  3. Australia
  4. New Zealand
  5. France
  6. Canada
  7. Netherlands
  8. Ireland
  9. Finland
  10. Switzerland
Published on 11th of July 2016 by Marty Stanowich
Marty Stanowich
Marty Stanowich


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