London is the world’s most transparent rea estate market according to the 10th edition of the Global Real Estate Transparency Rankings (GRETI). The fact testifies to its position as the destination of choice for a good chunk of global capital.
The global index which assesses market transparency every two years also found Los Angeles, Sydney, San Francisco and New York suitable to rank among the top 5 highly transparent real estate markets on the globe.
In the index, most African real estate markets were found lacking in transparency with South Africa ranked the most transparent real estate market in Africa and 21st globally, more than Portugal, Malaysia, South Korea and several other countries.
The remaining African countries were ranked as either semi-transparent, low transparency or opaque. Botswana (45), Mauritius (51), Kenya (53), Zambia (56) and Egypt (57), were ranked as semi-transparent while the remaining majority of African countries were either ranked low or opaque.
Libya and Venezuela tied the bottom end of the transparency index rankings
The transparency index revealed that transparency is continuing to gradually improve over time as countries put measures in place and tech savvy investors continue to find ways of using technology to improve the state of the market. In 2018, the average transparency score has improved by 2.4% compared with the previous indices.
Sub-Saharan Africa has seen limited progress in transparency advancements over the past two years, with Kenya and Nigeria leading the little progress witnessed in the region. Kenya and Rwanda have recently made progress in the digitization of their land registries.
Generally, most countries have made headway in moving their markets towards greater transparency with 85% of countries registering an improvement. Going forward, technology is going to play a major role in opening up markets to investors for far greater analysis.
This follows the recent interest and trends in the Prop-tech sector where US$6 billion funding has been raised by Prop-tech start-ups during the past two years. With increased adoption in technologies such as machine learning, AI and block chains, market transparency is set to accelerate much faster than before.