A biennial index released today by Jones Lang LaSalle and LaSalle Investment Management reveals that recovering markets have prompted renewed impetus to transparency improvements following a slowdown in progress during the financial meltdown in 2008 and 2009. Nearly 90 % of markets have registered advances in real estate transparency during the past a couple of years, driven by improving market fundamentals data and performance measurement, combined with better governance of listed vehicles.
The 2012 Global Real estate property Transparency Index, a proprietary Jones Lang LaSalle survey that calculates transparency in 97 stock markets worldwide by weighting 83 different factors, provides investors and corporate occupiers with data and analysis critical to transacting, owning and operating in global markets. The Index also assists governments and other industry organizations interested in improving transparency. Among key findings through the report:
. The United States ranks because the world's most transparent real estate market in 2012, followed closely by the United Kingdom and Australia. Also inside the 'Highly Transparent' category: Netherlands, New Zealand, Canada, France, Finland, Sweden and Switzerland.
. The gap in transparency between The european union and some of the main Central European markets may be virtually eliminated as core CEE markets approach the mainstream. Ranked 19th globally Poland, as an example, has transparency levels just like Western Europe and is now considered by some investors as being a 'core' market.
. Environmental sustainability has emerged as an important transparency factor with all the United Kingdom, Australia and France one of the most transparent markets in terms of real estate property sustainability. The Czech Republic, CEE leader inside sustainable development, has occupied your fifth position in the world-wide ranking.
. The Index reaffirms the ascent from the MIST growth markets (Mexico, Indonesia, The philipines and Turkey), which all feature among the leading improvers. Turkey once again leads in transparency improvement, with Romania and Croatia rated 4th and 5th respectively.
. Regionally, Latin America has seen the best progress in transparency. Brazil's Tier 1 cities rank second globally in transparency improvement and after this sits in the 'Transparent' category. Mexico sits in third position globally (regarding progress).
While the world economy remains in recovery, the 2012 Index reveals that real estate investors and corporate occupiers are widening their activity across a broader selection of markets. This cross-border activity encourages faster rates of transparency improvement in growth and emerging economies because the markets open up further to international competition as well as their real estate sectors embrace global guidelines. John Duckworth, Managing Director, Central and Eastern Europe at Jones Lang LaSalle said: "Central and Eastern Europe is a clear beneficiary of the greater cross-border activity of investors. Strong market fundamentals encourage more capital flows along with the region is a leading outsourcing destination in Europe. Importantly, markets such as Poland, the Czech Republic, Hungary and Slovakia have observed transparency levels enhanced with the establishment of Research Forums inside major cities. These collaborative forums were founded by international property service firms such as Jones Lang LaSalle to provide a platform to share non-sensitive real estate market information. Forums happen to be set up for the Warsaw, Prague, Brno, Budapest, Bratislava, Bucharest, and major Polish office markets, and there are plans to extend into more CEE cities for example Zagreb and Belgrade. Industrial and Retail forums either exist in terms of example in Poland, or are increasingly being organised."
"Increased real estate market transparency in Central and Eastern Europe can also be demonstrated by a growing amount of research reports that international real estate property consultancy companies are publishing. Many of the appreciated by global and European investors without having representation in the region. I am pleased that the CEE countries of Poland, the Czech Republic and Hungary were rated within the "Transparent" group, ranked globally 19th, 24th, and 26th respectively." added Kevin Turpin, LEED Green Associate and Head of Research, Central and Eastern Europe at Jones Lang LaSalle. In recognition from the increasing relevance of environmental sustainability in actual estate decisions, the 2012 Index now includes a separate Real Estate Sustainability Transparency Index for the sub-set of 28 countries, covering issues including energy efficiency benchmarking and green building rating systems. The United Kingdom, Australia and France are located as the most transparent markets with regards to real estate sustainability.
''From the 28 countries surveyed, the Czech Republic has ranked very highly in the "Transparent" segment. Whilst the country remains quite some way behind markets like France and the UK in terms of legislation, it lets you do have its own certification system, SB Tool, who's info is publicly available. Sustainability in the property sector is rapidly increasingly important to a wide range of parties including, developers, investors and occupiers. Therefore, the data and information behind it also needs to become increasingly transparent as a way to benchmark our progress in lessening the damaging effects to our environment.'' added Turpin. The 2012 results also reaffirm the connection between real estate investment volumes and transparency. Rising degrees of transparency are associated with higher levels of foreign direct real estate investment, an effective incentive for encouraging the free flow of knowledge as well as the fair and consistent use of local property laws.
Tomasz Trz?slo, Head of Capital Markets, Central and Eastern Europe at Jones Lang LaSalle commented: "The gap in transparency between The european union and the main Central European markets has become clearly bridged, with Poland seen by increasing number of investors as a 'core' market. This can be being confirmed by the investment volumes. Within the first quarter of this year as an example, Poland had retail investment transactions volumes at 465 million Euros, only behind the UK and Germany. Also, two of the most transparent countries in the CEE in line with the Jones Lang LaSalle's Global Real Estate Transparency Index, namely Poland as well as the Czech Republic, had by far the highest investment volumes in the region. This of course goes along with the macroeconomic picture of these two countries, but we presume the improved transparency picture increasingly enhances this investment trend, and definately will continue to have an impact in the future."
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