Welcome!

News Feed Item

African Real Estate Markets Push Through Transparency Reforms

Sub-Saharan Africa Tops Global Index in CRE Transparency Improvement

CHICAGO, IL and LONDON, UNITED KINGDOM and SINGAPORE -- (Marketwired) -- 06/19/14 -- Where transparency broadens, real estate capital flows and market change follows. This trend has finally made its way to one of the "final frontiers" of commercial real estate: Sub-Saharan Africa (SSA), which has claimed five of the global top 10 spots for greatest improvements in real estate market transparency: Kenya, Ghana, Nigeria, Zambia and Mauritius. With an influx of corporate occupiers, the region's top-rising economies are moving to encourage more global real estate interest.

Across the globe, key drivers of transparency improvement include:

  • Governments' recognition that poor transparency affects investment and quality of life
  • Media spotlight on corruption, scandals and building accidents
  • A rise in cross-border investments fuelled by more robust real estate markets
  • Millennials' expectations, pushing "Open Data" and sustainability practices up the agenda

According to the 2014 release of JLL and LaSalle Investment Management's bi-annual Global Real Estate Transparency report, SSA countries are in the very early stages of building and reforming their commercial real estate industry infrastructure; their responses to outside interest, however, mirrors top improvers from previous surveys, such as the MIST (Mexico, Indonesia, South Korea and Turkey) countries, which dominated the 2012 Global Top 10, and BRICs (Brazil, Russia, India and China) in 2010.

"The top improvers in each cycle generally correlate with a surge in foreign direct investment, as investors push through transparency reforms and because governments quickly realize that poor transparency will deter continued inward investment," said Jeremy Kelly, Director, JLL Global Research. "Kenya is a great example. It saw a spike in FDI projects in the last year, and not coincidentally, it made the greatest leap in real estate industry transparency this year."

Kenya has initiated a number of real estate industry infrastructure improvements, including land record digitization, enhanced property market research and analysis, and the introduction of a REIT framework for the country. These measures propelled Kenya to 55th place in the Transparency Index from 67th in 2012.

The cross-border catalyst

Whether in Africa or elsewhere, cross-border activity is a key driver of improvement in market transparency. In Latin America for example, strongest gains have been achieved in Colombia and Peru, which are key targets of international real estate capital. Progress is generally moving at a slow -- though still forward -- pace in other parts of the world. In Asia Pacific, none of the regional players made the Top 10 improvers list this year as compared to three in 2012, largely due to limited improvement in market data availability and slow progress in policy reforms. "The same applies to other top improvers in previous cycles, like Turkey, South Africa, Dubai and Poland, though the reasons for this vary considerably," said Craig Plumb, Head of MENA Research, JLL. "In Poland, the sluggish pace of transparency change could be attributed to the fact that many cross-border investors have demonstrated overall satisfaction with its current level of transparency, whereas in the MENA region, promising signs of reform leading up to the global financial crisis have not been maintained at the same pace, with the notable exception of Qatar."

Only in a handful of markets has transparency actually worsened. These include Ukraine, highlighting how political uncertainty can quickly undermine transparency levels.

Pushing innovation

Nowhere is the relationship between market sophistication and incremental change more apparent, however, than the top tier of the Transparency Index. Highly Transparent markets have had the types of reforms that may propel other countries from the Low to Semi-Transparent rung for many years. As a result, progress at the highly transparent end of the scale, which remains dominated by Anglophone markets, largely comes down to innovation and technological developments such as open-data initiatives.

"These kinds of innovations will be critical catalysts of change in real estate transparency moving forward. We can count on that, since the digital information revolution is being fuelled by a young, hyper-connected, information hungry, highly transient workforce generation," Jacques Gordon, Global Strategist, LaSalle Investment Management, concluded.

About JLL's Global Real Estate Transparency Index

The Global Real Estate Transparency Index, first published in 1999, is based on a combination of quantitative market data and information gathered through a survey of the global business network of JLL and LaSalle Investment Management. For each market a total of 115 separate factors have been assessed, through data collection and survey questions, answered by local research teams in collaboration with business leaders. These 115 factors are grouped into 13 topic areas and further grouped into five sub-index categories -- a) performance measurement, b) market fundamentals, c) governance and financial disclosure of listed and unlisted vehicles, d) regulatory and legal and e) transaction process. A Composite Index for each market is created from the weighted scores of the 115 factors. The scores range on a scale from 1.0 to 5.0. A country or market with a perfect 1.0 score has total real estate transparency; a country with a 5.0 score has total real estate opacity. Countries/markets are assigned to a one of five transparency levels ranging from Highly Transparent, Transparent and Semi-Transparent to Low Transparency and Opaque.

For investors, the Index provides a risk management tool by offering comparative information across multiple geographies, facilitating informed global/regional investment strategies and country target allocations. The Index enables corporate occupiers to more efficiently assess different real estate operating environments across the globe. Transparent markets allow for easier comparison of occupancy costs; provide more options for strategic action (e.g. the execution of sale and leasebacks); and raise the efficiency of transactions and facilities management.

About JLL

JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4 billion, JLL has more than 200 corporate offices and operates in 75 countries worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3 billion square feet and completed $99 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $48.0 billion of real estate assets under management. JLL is the brand name of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.

Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2622083
Image Available: http://www2.marketwire.com/mw/frame_mw?attachid=2622089

Contact:
Heather Filkins
Phone: +1 312 228 2139
Email: [email protected]

Megan Dolan
Phone: +1 312 228 3154
Email: [email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
DXWorldEXPO LLC announced today that All in Mobile, a mobile app development company from Poland, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. All In Mobile is a mobile app development company from Poland. Since 2014, they maintain passion for developing mobile applications for enterprises and startups worldwide.
Both SaaS vendors and SaaS buyers are going “all-in” to hyperscale IaaS platforms such as AWS, which is disrupting the SaaS value proposition. Why should the enterprise SaaS consumer pay for the SaaS service if their data is resident in adjacent AWS S3 buckets? If both SaaS sellers and buyers are using the same cloud tools, automation and pay-per-transaction model offered by IaaS platforms, then why not host the “shrink-wrapped” software in the customers’ cloud? Further, serverless computing, cl...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors!
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
DXWorldEXPO LLC announced today that the upcoming DXWorldEXPO | CloudEXPO New York event will feature 10 companies from Poland to participate at the "Poland Digital Transformation Pavilion" on November 12-13, 2018.
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
"DivvyCloud as a company set out to help customers automate solutions to the most common cloud problems," noted Jeremy Snyder, VP of Business Development at DivvyCloud, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
"We were founded in 2003 and the way we were founded was about good backup and good disaster recovery for our clients, and for the last 20 years we've been pretty consistent with that," noted Marc Malafronte, Territory Manager at StorageCraft, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
We all know that end users experience the internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices - not doing so will be a path to eventual ...
We all know that end users experience the internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices - not doing so will be a path to eventual ...