Improvements reflect a post-pandemic focus on sustainability,
increased adoption of real estate technology, investment in
alternative sectors and better data availability
CHICAGO, June 30,
2022 /PRNewswire/ -- While many of the world's
leading commercial real estate markets in North America, Western Europe and Australasia are becoming
more transparent, most other countries struggle to maintain the
pace of transparency improvement. These findings are according to
the biennial, proprietary Global Real Estate Transparency Index
(GRETI) from JLL and LaSalle
(NYSE: JLL) which provides a unique benchmark of market
transparency for property investors, developers and corporate
occupiers.
"The influence of external events including geopolitical
conflict, economic volatility and lingering effects of COVID-19
that has permeated the last two years has had widespread effects on
the global real estate market," said Richard Bloxam, CEO, Capital Markets, JLL.
"Transparency is the foundation which allows corporate occupiers,
as well as investors and lenders to the world's largest asset
class, to operate and make decisions with confidence. While we are
encouraged to see increased transparency in many of the world's
leading markets, limited improvements in many other global markets
have resulted in one of the slowest rates of progress in the
index's history and highlights growing disparity in transparency
around the world."
Net zero becomes new marker of
transparency
"Sustainability is the leading driver of transparency
improvements in this year's survey, a continuing trend since 2018,"
said Jacques Gordon, Head of Global
Strategy and Research for LaSalle Investment Management. "Net zero
emissions are the current focus for many investors, companies and
governments in the most transparent countries around the world,
with an increasing number of countries and cities following up on
previously announced climate commitments by establishing mandatory
energy efficiency and emissions standards for buildings. The
research also found more widespread adoption of green and healthy
building certifications, which we expect will continue to
accelerate in the years ahead."
European markets have made the most progress in sustainability
through the implementation of the EU's updated Energy Performance
of Buildings Directive (EPBD) and other regulations including the
European Green Deal. Paris,
New York City and London topped the sustainability sub-index as
the world's leading cities to set the pace in adopting measures to
raise or track progress toward sustainability goals. In particular,
New York City has been active in
implementing clear, long-term building energy standards through
measures that include Local Laws 84 and 97, the Construction Codes
Revision Bill and mandating the tracking of energy consumption at
the building level.
For the first time in the Index's history, Japan has been included in the list of 'Highly
Transparent' markets, as it pushes forward net zero carbon goals
through higher building standards and transparency around climate
risk reporting. Meanwhile, the UAE markets of Abu Dhabi and Dubai are the top global improvers in 2022
benefiting from a concerted government focus on increasing real
estate transparency. As a result, Dubai makes its first appearance in the
'Transparent' tier.
Digitization driving
innovation
During the COVID-19 pandemic, the pace of technological
innovation increased to adapt to the drastic changes affecting the
way people live and work. Real estate is no different, as
technology platforms expanded data availability, enabling an
in-depth understanding of buildings and markets. Available data
ranges from pricing information for niche sectors to real-time
occupancy tracking and digital simulations of cities and buildings.
Advanced data techniques that can scrape information from listings
sites, 'big data' platforms and geographic information systems
(GIS) are all enabling investors and occupiers to compile better
information. To this end, adoption of real estate technology is
growing rapidly, with venture capital funding for real estate
technology companies reaching a record high of $18.2 billion in 2021 and nearly 8,000 companies
providing real estate technology solutions globally, an increase of
over 300% from 10 years ago.
Many of the countries with the highest rates of transparency
also have the highest levels of technology adoption including the
UK, U.S., France, Netherlands, Belgium, Ireland, Canada and Germany. Real estate technology adoption is
also prevalent in some territories lower down the transparency
ranking including Dubai and
China.
Alternative property investment on
the rise
Investments in alternative property sectors such as lab space,
senior living facilities, student housing and data centers continue
to grow as diversification becomes increasingly important for
investors. Global investment in alternative real estate sectors
increased by 69% between 2019 and 2021 and every country in the
2022 survey reported having inventory of historically niche
property types, with 65% of countries reporting some institutional
investment in alternatives. Data centers represented the broadest
global reach. The U.S. leads on data for these alternative sectors
but they are now becoming much easier to track across Europe and in major Asia Pacific markets like Japan and China.
Historically, reliable market data on alternative properties was
often scarce, or non-existent, even in otherwise highly transparent
real estate markets, The tremendous global growth in alternative
property investment indicates that this will be a critical space to
watch in coming years as advanced data technologies create an ideal
environment for greater transparency in this space.
Global Real Estate Transparency
Index (GRETI)
JLL and LaSalle's Global Real
Estate Transparency Index (GRETI), which is published every two
years, is a unique benchmark of market transparency for property
investors, developers and corporate occupiers. The index evaluates
the legal and regulatory environment, enforcement mechanisms and
data availability and provides a global comparison of operating
conditions across a wide range of geographies. This year's 12th
edition includes 254 individual indicators to assess market
transparency across 94 countries and territories and 156 cities
globally.
About JLL
JLL (NYSE: JLL) is a leading professional services firm that
specializes in real estate and investment management. JLL shapes
the future of real estate for a better world by using the most
advanced technology to create rewarding opportunities, amazing
spaces and sustainable real estate solutions for our clients, our
people and our communities. JLL is a Fortune 500 company with
annual revenue of $19.4 billion,
operations in over 80 countries and a global workforce of more than
100,000 as of March 31, 2022. JLL is
the brand name, and a registered trademark, of Jones Lang LaSalle
Incorporated. For further information, visit jll.com.
Connect with us:
https://www.linkedin.com/company/jll
https://www.facebook.com/jll
https://twitter.com/jll
Contact: Gayle Kantro
Phone: (312) 228-2795
Email: Gayle.Kantro@am.jll.com
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SOURCE JLL-IR