The 2024 edition of the Global Real Estate Transparency Index (GRETI), published by JLL, underscores the critical role of transparency in the evolving real estate landscape. As the world grapples with significant socioeconomic, technological, and geopolitical changes, this report serves as a vital resource for real estate investors, corporate occupiers, and lenders seeking to navigate an increasingly complex market.

Key Findings and Market Trends

In a comprehensive analysis of 89 countries, GRETI reveals a notable advancement in transparency across numerous markets. The top tier of “Highly Transparent” markets, comprising the United Kingdom, United States, Canada, and Australia, has maintained its leading positions through strong regulatory frameworks and enhanced technology integration. For instance, the United Kingdom continues to rank first, while the United States and Canada have demonstrated significant improvements, further solidifying their attractiveness to global investors.

A striking development is Singapore’s entry into the "Highly Transparent" category for the first time, motivated by its strategic focus on sustainability and digital services. This shift indicates a growing recognition of the need for transparency in achieving sustainable urban development, especially as the global real estate investment landscape adapts to new realities.

According to JLL, over 80 percent of global real estate investment is directed towards these highly transparent markets, which account for more than 50 percent of total income-producing real estate worldwide. This trend is critical as it indicates that transparency is becoming an essential criterion for capital allocation in real estate investments.

Regional Analysis

The report highlights varied progress across regions. Asia Pacific recorded the strongest average transparency improvements, with India emerging as the top global improver due to enhanced data coverage and regulatory reforms. India’s leading cities are transitioning towards a more transparent tier, aided by a proactive financial regulator and digitised land records. Conversely, Sub-Saharan Africa has seen stagnation, underscoring the region’s challenges related to governance and infrastructure, which have hindered institutional investment.

Europe remains at the top of transparency, primarily due to the EU’s comprehensive sustainability regulations. The revised Energy Performance of Buildings Directive (EPBD) mandates global warming potential reporting and sets new minimum energy performance standards, reflecting a paradigm shift towards accountability in sustainability practices.

The Role of Technology and AI

The integration of artificial intelligence (AI) in real estate is transforming transparency dynamics. The report highlights how generative AI capabilities are improving the analysis of vast data volumes, aiding in legal document review, and automating building management. Notably, JLL’s AI platform identifies approximately 20 percent of capital market opportunities globally, demonstrating the technology’s potential to streamline investment decision-making.

However, the report also cautions that the rapid adoption of AI raises new regulatory and compliance risks. Stakeholders must invest in robust governance frameworks to manage these challenges effectively. As companies adjust to the changing environment, a comprehensive understanding of AI’s implications for data security and privacy will be crucial.

Sustainability and Regulatory Evolution

Sustainability transparency has emerged as a significant driver of transparency improvements, particularly as the deadline to halve global emissions by 2030 looms. With new sustainability reporting requirements set to roll out across major economies, including the United States, EU, UK, and Australia, the urgency for accurate emissions tracking and climate risk disclosure is higher than ever. The EU’s Corporate Sustainability Reporting Directive (CSRD) is expected to cover approximately 50,000 companies, significantly broadening the scope of accountability in the sector.

Despite these advancements, the report highlights that sustainability metrics remain among the least transparent globally. Many companies are still at an early stage in tracking their portfolio emissions, highlighting the need for standardised reporting processes to mitigate concerns related to data quality and potential greenwashing.

The 2024 Global Real Estate Transparency Index highlights the complex relationship between transparency, sustainability, and technology in shaping the future of real estate. As markets globally adapt to new demands and regulatory frameworks, the focus on transparency will be paramount. Investors and stakeholders who prioritise transparency in their strategies are better positioned to capitalise on emerging opportunities in an increasingly competitive landscape.

This year’s findings underscore a balanced yet optimistic outlook for the real estate sector, where enhanced transparency can encourage healthier markets and stronger communities. As the industry evolves, the GRETI remains an essential tool for stakeholders managing the challenges of global real estate investment.