The changing real estate market transparency in the European real estate markets

Publication Date04 July 2016
Date04 July 2016
DOIhttps://doi.org/10.1108/JPIF-07-2015-0053
Pages407-420
AuthorGraeme Newell
SubjectProperty management & built environment,Real estate & property,Property valuation & finance
The changing real estate market
transparency in the European
real estate markets
Graeme Newell
School of Business, University of Western Sydney, Penrith, Australia
Abstract
Purpose Real estate market transparency is an important factor in real estate investment and
occupier decision making. The purpose of this paper is to assess real estate transparency over
2004-2014 to determine whether the European real estate markets have become more transparent in a
regional and global context.
Design/methodology/approach Using the JLL real estate transparency index over 2004-2014,
changes in real estate market transparency are assessed for 102 real estate markets. This JLL real
estate market transparency index is also assessed against corruption levels and business
competitiveness in these markets.
Findings Improvements in real estate transparency are clearly evident in many European real estate
markets, with several of these European real estate markets seen to be the major improvers in
transparency from a global real estate markets perspective.
Practical implications Institutional investors and occupiers see real estate market transparency
as a key factor in their strategic real estate investment and occupancy decision making. By assessing
changes in real estate transparency across 102 real estate markets, investors and occupiers are able to
make more informed real estate investment decisions across the global real estate markets.
In particular, this relates to both investors and occupiers being able to more fully understand the risk
dimensions of their international real estate decisions.
Originality/value This paper is the first paper to assess the dynamics of real estate market
transparency over 2004-2014, with a particular focus on the 33 European real estate markets in a global
context to facilitate more informed real estate investment and occupancy decision making.
Keywords European markets, Global markets, Improved transparency, JLL,
Real estate market transparency
Paper type Research paper
Introduction
With an increased emphasis on international real estate investing, a fuller
understanding of the unique characteristics of these global markets is important.
Information such as real estate market performance information, market players, legal
system, planning system and the transaction process are key ingredients in defining
the transparency and sophistication of re al estate markets, with real estate
transparency being an important factor in strategic real estate decision making by
institutional investors and occupiers.
In this global context, the European real estate markets are important. In 2011,
investable real estate in Europe was estimated to be $9.4 trillion or 35.4 per cent of
global markets; by 2021, the European market share is expected to be $13.3 trillion or
27.3 per cent of global markets (Pramerica Real Estate Investors, 2012). This has seen
active involvement by a wide range of players in the European real estate investment
landscape including local, international, Real Estate Investment Trusts (REITs)/
Property Companies, unlisted real estate funds, private equity funds, pension funds,
sovereign wealth funds, insurance companies and high wealth individuals.
Journal of Property Investment &
Finance
Vol. 34 No. 4, 2016
pp. 407-420
©Emerald Group Publis hing Limited
1463-578X
DOI 10.1108/JPIF-07-2015-0053
Received 27 July 2015
Revised 22 April 2016
Accepted 26 April 2016
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1463-578X.htm
407
The changing
real estate
market
transparency

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