Nigeria Ranked 83rd In Global Real Estate Transparency Index

A newly released biannual Global Real
Estate Transparency Index (GRETI)
2016 by property consultancy firm
Jones Lang LaSalle (JLL), Nigeria ranks
83rd out of 109 markets
covered.Nigeria’s real estate transparency score was 3.8 in 2016, a
marked improvement in transparency.
The scores in the Index range
between one and five, with one
representing the highest level of
transparency and five being the least transparent.
The index reveals, which countries
provide the most favourable operating
environments for investors,
developers and corporate occupiers.
Covering 109 markets worldwide, it quantifies transparency based on 139
variables relating to transaction
processes, regulatory & legal
frameworks, and corporate
governance. Higher real estate
transparency is associated with stronger investor and corporate real
estate activity.
JLL’s 2016 index reveals that real
estate transparency has continued to
improve steadily at a sub-national,
national and international level. Globally, transparency scores have
advanced by an average of 2.4per
cent (2014-2016), matching broadly
the improvements made between
2010-2012 (at 2.9per cent) and
2012-2014 (at 3.4per cent). Two- thirds of markets have shown
progress over the past two years.
The Anglosphere countries continue
to dominate the upper echelons of the
transparency hierarchy – accounting
for six of the world’s ten ‘Highly Transparent’ markets. The United
Kingdom, Australia, Canada and the
United States hold the top positions.
Technology is also allowing some
emerging markets to leapfrog the
normal transparency evolution. Examples include the digitisation of
land registries in Kenya and Ecuador,
while Ghana is reportedly trialing a
system to record title deeds with
blockchain technology.
With growing interest in Sub-Saharan Africa (SSA) from corporates and
international real estate investors,
GRETI 2016 has further extended its
footprint across the region to provide
coverage of 15 countries, with
Rwanda, Tanzania and Ivory Coast joining the 12 countries surveyed in
GRETI 2014 (which itself was up from
eight SSA countries in GRETI 2012).
GRETI 2016 reveals that SSA has
continued to make advances in real
estate transparency over the last two years, although progress has been
more mixed than in 2014, when SSA
registered the largest improvement
among the global regions.
Out of the 12 markets from the region
included in the 2014 Index, six (Nigeria, Botswana, Zambia, Ethiopia,
Angola and Ghana) have recorded
reasonable progress in transparency.
Advances in the ‘market
fundamentals’, ‘performance
measurement’ and ‘governance of listed vehicles’ sub-indices have
supported the overall regional
improvement, as greater involvement
by international real estate
consultancies and local data providers
elevates the level of access to information about real estate markets.
Despite these advances, the region has
crucially also seen a slight
deterioration in the sub-indices scores
for the ‘regulatory and legal
environment’ and ‘transaction process’ sub-indices, as development
in improving the legislative and
operating environment appears to
have slowed in several markets, with
two countries – South Africa and
Mozambique – registering a noteworthy decline in overall score.
While tangible improvements in
transparency are being made, SSA is
still some distance from competing
equally with its regional counterparts
and sizeable efforts will be needed to close the gap with other global
regions.