Nigeria has been scored low in the 2022 Global Real Estate Transparency Index (GRETI) released by JLL and LaSalle Investment Management. Out of 156 cities across 94 countries and territories covered globally, Nigeria was ranked 60.
GRETI has been charting the evolution of real estate transparency across the globe since 1999. Updated every two years, this edition, the 12th, is based on a comprehensive survey of availability and quality of performance benchmarks and market data, governance structures, regulatory and legal environments, transaction processes and sustainability instruments.
The report revealed a widening transparency gap, as leading countries pull further ahead and set higher standards, from new regulations covering energy efficiency and emissions standards for buildings and climate risk reporting; to raising the bar for Anti-Money Laundering (AML) and beneficial ownership reporting.
It also provides deeper data on everything from office utilisation rates to niche property types, supported by the rapid uptake of technology. Progress lower down the global rankings has been slow, as many jurisdictions plateau or even regress and they will need to move faster to meet heightened expectations.
Pressure has continued to grow for the real estate industry to meet the challenge of decarbonisation. Sustainability – and the race to net zero emissions – has become the new marker of transparency as investors, companies, governments and the public look for clear long-term targets, regulatory standards and metrics to measure their environmental impact and risk.
Sustainability has been the biggest driver of transparency improvements across markets in GRETI 2022, with increasing number of countries and cities setting mandatory energy efficiency and emissions standards for buildings and the more widespread adoption of green and healthy building certifications. The leading markets are now also beginning to mandate sustainability reporting from companies and are collecting public building-level information on energy efficiency and emissions.
However, sustainability measures remain among the least transparent globally and the fractured regulatory landscape – with different standards being set at the municipal, state, region and country levels, and a proliferating array of sustainability credentials, benchmarks and standards – is making it increasingly difficult for investors and companies to navigate and understand their responsibilities.
Alignment of regulatory initiatives, harmonisation of targets and more standardised data will be needed to help improve transparency and enable companies to achieve their decarbonisation targets.