Emerging markets have significantly improved their levels of real estate transparency according to the latest Global Real Estate Transparency Index from Jones Lang LaSalle. The survey reveals that in 2008, eight countries moved up a full transparency tier since the last index in 2006. Dubai, Romania, Ukraine and Russia showed the biggest improvements in transparency over the last two years.

The Index, which provides a rigorous framework for comparing the level of real estate transparency in 82 markets around the world, shows that nearly half of the countries surveyed in 2006 demonstrated a significant improvement in their transparency score two years later. Transparency levels globally are improving as governments seek to streamline regulatory and legal hurdles to aid cross-border movement of capital and corporate facilities. Only Venezuela posted a lower transparency score this year compared with 2006, principally due to changes in government regulations and new taxation policies targeting foreign investors.

In keeping with historical results, the Australian and U.S. real estate markets remain among the most transparent in the world. With the addition of new variables relating to the quality and frequency of valuations, service charge transparency and financing transparency, Canada now ranks as the world's most transparent commercial real estate market.

Jacques Gordon, Global Strategist at LaSalle Investment Management, said: "The steady improvement in transparency, particularly over the last four years, is closely linked to the forces of globalization that drive investors to move across borders in search of higher risk-adjusted returns. This movement of both capital and corporations around the world has created an even greater need for information about markets. It has also created an incentive for governments to streamline bureaucratic practices which prevent the free flow of capital into and out of global markets."

"Many cross-border investors focus on more mature, open and transparent real estate markets such as the UK, Canada, Netherlands and Hong Kong. However, opportunistic investors will consider the emerging, less mature, less open and semi-transparent markets, but will require higher returns to compensate for the higher risks associated with lower transparency. Only the most opportunistic investors will consider semi-transparent markets found in Eastern Europe, Latin America and Southeast Asia. Opaque markets, such as Algeria, Belarus and Cambodia, are still very problematic, from the perspective of both investors and corporate occupiers."

"Overall, increases in the free flow of capital, tenants, management and market information are closely coupled with the rising productivity of real estate in countries with improving transparency. This productivity can be measured by investment returns and in terms of corporations' ability to provide efficient workspaces, logistics facilities, retail environments, and business and leisure centers for travellers and domestic markets alike. While many emerging markets have made improvements to their real estate transparency, our index shows that not all governments and market
participants have embraced the necessary changes."