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New Zealand

New Zealand ranks fourth in world index of transparent countries



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​​The results of JLL’s bi-annual Global Real Estate Transparency report (GRETI) confirm that New Zealand has once again placed in the ‘highly transparent’ category, ranking fourth in the world.

As with prior surveys, teams of researchers from JLL and LaSalle Investment Management worked together to assess the transparency of 102 markets worldwide, producing the 8th edition of the series. Justin Kean, JLL’s National Director of Research and Consulting says, “Since joining the ‘highly transparent’ category in 2004, New Zealand has managed to remain in the top ranks for its complex level of legal and regulatory enforcement, financial disclosure, fairness of transaction processes, access to high-quality market data and performance benchmarks.”

First published in 1999, the GRETI is the only index to address the transparency of commercial real estate globally. Through producing this index, JLL are able to help their investors, corporate occupiers and retailers anticipate challenges of transacting, owning or operating in a foreign market. It also provides a gauge for governments and industry organisations to improve transparency in home markets.

Nick Hargreaves, Managing Director of JLL says, “We are receiving a lot of interest from foreign investors located in countries with a more opaque level of transparency. These investors are actively looking to engage in the New Zealand market because of its high level of commercial real estate transparency and professional standard of agents.”

The world’s most transparent markets continue to be dominated by highly liquid Anglophone markets. In top position was the United Kingdom who just inched past the United States pushing them to second place, while Australia, New Zealand and Canada sit in third, fourth and sixth place respectively.

France has moved into fifth position as its government embraces a policy of ‘open data’. This is France’s best ever performance, overtaking the Netherlands (7th) as the most transparent market in Continental Europe. Ireland’s position (8th) has been boosted by a new REIT regime. Finland (9th) completes the ‘Highly Transparent’ category, a country that has been at the global forefront of ‘open data’ policies.

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

Rounding off the bottom 5 is Ethiopia, Mongolia, Myanmar, Senegal and Libya.

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.