A comprehensive analysis of global real estate markets by the Global Real Estate Transparency Index (GRETI), published by JLL and LaSalle, highlights the impact of ongoing digitisation, the increased use of Artificial Intelligence (AI), and targeted government reforms. These factors have significantly contributed to heightened transparency and growth in investment turnover. The study, which is published biennially, assesses market transparency in 88 countries and 146 cities worldwide using 260 individual indicators.
Europe confirms its position as the most transparent region globally. The UK and France occupy the top two spots, while the Netherlands ranks fifth. Germany is placed tenth, matching its position in the previous survey. The top ten are completed by Australia (rank three), the USA (rank four), Canada (rank six), New Zealand (rank seven), Ireland (rank eight), and Sweden (rank nine). Countries classified as “highly transparent” continue to include Japan, Belgium, and Singapore.
Germany was able to consolidate its position through advancements in reporting on the debt capital market and the implementation of the Corporate Sustainability Reporting Directive (CSRD). The legal framework and transaction processes domestically are positively assessed. However, Konstantin Kortmann, CEO and Head of Capital Markets JLL Germany, points out that there is still potential for improvement, particularly regarding the availability of market data for alternative real estate segments. He emphasised that Germany attracts international real estate capital and that, to further increase its attractiveness, consistent digitisation of public data sets and the creation of central, publicly accessible data platforms are necessary to catch up with the absolute top tier.
Impacts of AI and Investment Flows
The current study proves that two-thirds of the countries surveyed have been able to improve their transparency over the past two years. The main drivers of global transparency gains are countries in the Asia-Pacific region and the MENA region, including four Gulf states. The 13 countries classified as “highly transparent” attracted 81 per cent of global real estate investments in the last two years. The transaction volume in this group increased by 64 per cent, outperforming the rest of the world by 20 percentage points.
A crucial driver of transparency improvements is the rapid proliferation of Artificial Intelligence in the real estate industry. Over 90 per cent of users and investors are already using AI tools to analyse large data sets, evaluate market fundamentals, and forecast capital market opportunities. Governments are increasingly digitising their services and integrating AI to boost efficiency and attract investment.
Challenges and Future Developments
Despite the progress, the industry and users face new challenges. Three of the four biggest challenges for corporate real estate portfolios are technology-related: cybersecurity and data protection, AI disruption, and uncertainty regarding the impact of AI on space requirements. This uncertainty highlights the increased importance of transparency to track influences on demand, market fundamentals, and pricing across various markets.
Richard Bloxam, CEO JLL Capital Markets, explained that the focus on transparency is crucial for investors in global real estate markets given external challenges such as geopolitical tensions. He added that factors such as Artificial Intelligence, higher standards for sustainability obligations and reporting, and the growing relevance of alternative real estate sectors prompt investors to increasingly demand and seek transparency.
