The pandemic has highlighted the importance of transparency in real estate in the urban environment. As real estate transparency continues to increase globally, the rate of growth in this transparency is not quick enough.
Why Transparency is Important in Real Estate?
Real estate transparency is an essential part of a well-functioning economy. And society as well as it covers multiple aspects of an individual’s life. A transparent real estate market is where stakeholders have ready access to high-quality market data and performance benchmarks (WEF, 2020). The market should also be characterized by certainty, consistency, and rigorously enforced rules and regulations. Transparency in real estate helps governments in making smarter decisions for urban infrastructure, but it also helps public bodies. And also for the private sector to enable sound and long-term urban planning. Attracting new investments to a city, boosting business efficiency, and raising employee well-being and productivity. Therefore, public policy must focus on introducing measures that facilitate transparency. And protect citizens property rights through the enforcement of rules and regulations.
The Global Status:
Improvements to real estate transparency are happening around the globe. But overall progress is not high enough as societies are continuously demanding higher ethical standards, and businesses are accountable for operating transparently and sustainably. More than 70 percent of countries have seen an improvement in transparency over the last couple of years, but many are struggling to maintain progress (UN, 2020). Those at the top of the transparency index are setting new benchmarks for other countries to follow. These countries have boosted Real estate transparency mainly by the use of proptech and new data, sustainability initiatives, and anti-money laundering regulations. The most significant progress is in components of sustainability, where an increased focus on corporate social responsibility has led to the introduction of green building certifications and energy-efficient standards widespread in higher-income countries. Several countries have also developed national frameworks for net-zero carbon emissions.
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