Poland has risen four places to 13th in the Global Real Estate Transparency Index, now ranked higher than Switzerland, Denmark and Japan. The top ten highly transparent real estate markets attract 75 percent of global investment.
Two-thirds of real estate markets globally have shown progress in levels of transparency over the past two years, according to JLL and LaSalle Investment Management’s 2016 Global Real Estate Transparency Index (GRETI).
The most transparent markets in the world are United Kingdom, Australia, Canada, United States, France, New Zealand, the Netherlands, Ireland, Germany and Finland. The ten countries identified as “Highly Transparent” by GRETI account for 75 percent of global investments into commercial real estate, highlighting the extent to which market transparency drives real estate investment decisions.
“In the latest GRETI ranking, Poland has gone up from 17th to 13th position and is ahead of countries such as Switzerland, Belgium, Denmark and Norway,” Anna Bartoszewicz-Wnuk, Head of Research and Consulting, JLL Poland, said.
“This improvement in Poland’s position is the result of numerous factors, including wider access to consistent market data about a broader group of Polish cities, progress in development of zoning plans as well as advanced preparations to create Polish REIT funds which will be listed on the Warsaw Stock Exchange. Poland is also the highest ranked country of the CEE region. The Czech Republic occupies 20th position, Hungary 26th, Slovakia 29th, followed by Romania – 30th. In addition, it is worth pointing out that Slovakia and Romania have both moved into the group of ‘Transparent’ markets,” Bartoszewicz-Wnuk added.
Two-thirds of markets have shown improvement in levels of transparency since 2014. Improvement is generally correlated with higher foreign direct investment and corporate occupier activity, as investors and corporations help to accelerate transparency reforms and governments recognize that poor transparency will affect continued inward investment, long-term economic growth prospects and the quality of life of citizens.
“The development of the real estate market in Poland can be considered in both quantitative and qualitative terms. It includes growth of supply, better access to detailed, professional analyses and expertise, transaction data and support from experienced business partners such as advisory and legal firms. Companies listed on the Warsaw Stock Exchange also allow for a greater transparency of market operations. The high activity among developers, investors and tenants is also visible – not only in Warsaw but also in all major agglomerations and, especially in the case of the retail market, smaller Polish cities as well. Today, Poland is a key, stable and recognized location for numerous international players and offers interesting opportunities for portfolio development and access to different investment products. Poland’s high position in GRETI is another reason why Poland is attracting international capital,” said Tomasz Trzósło, Managing Director, JLL Poland.
“These results are encouraging as they highlight the steady advances the global real estate industry is making. Improvements are down to a number of factors: initiatives to deepen the availability and quality of market data and performance benchmarking, the enactment of new legislation in several countries, the introduction of higher ethical standards, and the wider adoption of ‘green building’ regulations and tools,” Jeremy Kelly, Director, Global Research Programmes at JLL and main author of the report, said.