JLL and LaSalle Investment Management have released the 2024 edition of the Global Real Estate Transparency Index. Published biennially (every two years), the report evaluates transparency across global real estate markets, now in its 13th iteration.
Image taken from full report, linked at the end of the article.
For 2024, the analysis spans 89 countries and 151 cities, assessing 256 metrics across six sub-indices.
Top Transparency Rankings
Countries are classified into five transparency categories: "High," "Upper Mid," "Mid," "Lower Mid," and "Low."
The United Kingdom retained the top spot for transparency with a score of 1.24, followed by France (1.26) and the United States (1.34).
These nations were categorized as "High" transparency markets, with the UK maintaining its leadership from the 2022 report.
Highest ranked countries according to the report. Access full report via link at end of the article.
Asia-Pacific markets also showed remarkable progress, particularly India, which moved into the "Upper Mid" transparency category.
This shift was driven by new regulations, including climate risk disclosure guidelines and the digitization of land registration systems, resulting in a score of 2.44.
Singapore advanced into the "High" category due to enhanced sustainability initiatives and improvements in digital services.
Japan’s Rising Real Estate Transparency
The report highlighted that over 80% of global direct commercial real estate investment—amounting to more than USD 1.2 trillion—was funneled into markets with "High" transparency over the last two years, underscoring how improved transparency can drive increased investment activity.
Japan maintained its place in the "High" transparency category, ranking 11th overall—an improvement from 16th in 2020 and 12th in 2022.
Notably, Japan earned 2nd place in "Sustainability" with a score of 1.91, second only to France.
The nation also ranked 7th in "Performance Measurement" (1.59) and 12th in "Regulatory and Legal Framework" (1.47).
However, Japan fell outside the top 20 in areas such as "Market Fundamentals," "Listed Corporate Governance," and "Transaction Processes."
How Japan can Move Ahead in Global Rankings
To enhance Japan's transparency further, the report recommended several key actions.
These include better disclosure of real estate transaction data, improved corporate governance and accountability by listed companies, and clearer information on lease agreements and common area charges, which are unique to Japan.
Yuto Daito, Senior Director of Research at JLL Japan, noted, “In Japan, it’s common for rent to include common area charges without a detailed breakdown, which is seen as opaque by global standards." He added that addressing these practices could boost transparency and attract more investment.
Source:
R.E. Port News (Japanese only)
