Canada ranks as one of the top countries for openness, integrity and credibility in its real estate markets, according to a new index compiled by brokerage JLL.
The nation is the fifth most-transparent country in the world, according to the new JLL Global Real Estate Transparency Index 2024.
Higher levels of transparency in real estate tend to create more trust among buyers and sellers and ensure fairness during the transaction or entitlement process. The index is based on "a combination of quantitative market data and information gathered through a survey of the global business network of JLL and LaSalle across 89 countries and 151 city markets," the global brokerage said.
With the best possible score being 1, Canada received an overall score of 1.49, based on an analysis of data relating to market performance, fundamentals, transactions and environmental, social and governance, or ESG.
The United Kingdom topped the list with a score of 1.24, and France ranked second at 1.26. The United States came in third at 1.34 on the index and Australia fourth with a score of 1.37, according to JLL.
JLL has published its Transparency Index report since 1999 and said it designed the index “to give cross-border stakeholders a way to be prepared for differences in information flows, investment and leasing processes, and regulatory regimes."
JLL said the goal of the index is not to discourage clients from operating in countries with low transparency scores, but rather to emphasize "the importance of managing transparency risk by gaining local knowledge and experience through local advisers."
Canada tied with the Netherlands for the ’s fifth-place ranking at 1.49. Seven other countries were also designated as highly transparent, including New Zealand, Ireland, Sweden, Germany, Japan, Belgium and Singapore.
JLL ranked Canada high in a number of other categories, placing the country second in a tie with Australia in the market fundamentals category, as both received a score of 1.64, only behind the USA’s 1.41. Canada came in fifth in the subcategory of regulatory and legal, behind the United Kingdom, France, Sweden and Ireland.
Canada ranked in 10th in the transaction process category and tied the Netherlands again in the sustainability subcategory, as both came in sixth.
The report authors gave credit to legislation passed in Canada since the last report two years ago, in which Canada also ranked fifth. The legislation includes new rules on disclosure of beneficial ownership, as well as upcoming rules on climate-related disclosures and other environmental rules to take effect in Montreal and Vancouver concerning greenhouse gas emissions disclosures.