Key Points:
Canada’s High Transparency Ranking: Canada is recognized as the fifth most-transparent real estate market globally, according to JLL’s latest index.
Index Overview: The JLL Global Real Estate Transparency Index 2024 highlights the UK’s top position, with France and the US also ranking high.
Canadian Legislation and Transparency: Recent legislative changes in Canada contribute to its high ranking in transparency and integrity.
Canada Achieves Fifth Place in Global Real Estate Transparency
Canada has secured a prominent position in the realm of real estate transparency, ranking fifth globally in the JLL Global Real Estate Transparency Index 2024. This index assesses transparency based on factors such as market performance, regulatory processes, and environmental, social, and governance (ESG) criteria.
The JLL index, which has been published annually since 1999, provides a comprehensive view of how different countries fare in terms of openness, integrity, and credibility in real estate markets. The index combines quantitative market data with information from a survey conducted across 89 countries and 151 city markets.
Canada achieved a score of 1.49 on the index, with the United Kingdom leading the list with a score of 1.24, followed by France at 1.26. The United States and Australia placed third and fourth, respectively, with scores of 1.34 and 1.37.
Canada’s Performance Across Categories
In addition to its overall fifth-place ranking, Canada excels in several specific categories. It tied with the Netherlands for fifth place in transparency, scoring equally in this category. In market fundamentals, Canada shared second place with Australia, each scoring 1.64, just behind the US, which scored 1.41. For regulatory and legal transparency, Canada ranked fifth, trailing the UK, France, Sweden, and Ireland.
Canada also demonstrated significant progress in regulatory and legal frameworks, attributed to recent legislative reforms. These include new disclosure rules for beneficial ownership and forthcoming climate-related disclosures aimed at reducing greenhouse gas emissions in Montreal and Vancouver. The advancements in legislation since the last index report, where Canada also ranked fifth, are credited with enhancing its transparency standing.
The report underscores JLL’s goal of not discouraging investment in countries with lower transparency scores but rather highlighting the importance of understanding and managing transparency risks through local expertise and advisors.
Other Notable Transparent Markets
In addition to Canada, the index lists seven other countries with high transparency ratings: New Zealand, Ireland, Sweden, Germany, Japan, Belgium, and Singapore. These nations are recognized for their robust frameworks that support fairness and openness in real estate transactions.
JLL’s ongoing analysis aims to prepare cross-border stakeholders for differences in information flow, investment, and regulatory processes, emphasizing the value of local knowledge in navigating various real estate markets.
