Spain ranks in the European top 10 for real estate transparency
The real estate sector in Spain continues to gain ground on the global stage in terms of transparency. According to the Global Real Estate Transparency Index (GRETI) 2024, prepared by JLL and LaSalle, Spain ranks 18th worldwide and is within the top 10 in the European Union, clearly indicating the country’s advancements in adopting best practices, technological innovation, and sustainability in the real estate sector.
This index, published biannually, is one of the key references for evaluating transparency in real estate markets worldwide. In this 13th edition, 89 countries and territories and 151 cities were assessed, with over 256 individual indicators covering everything from market performance measurement to sustainability and transaction processes. Spain has maintained its position since the previous 2022 edition, solidifying itself as one of the countries with the most transparent real estate markets within the European context.
Spain: a rising market
Within the European Union, Spain ranks 10th, behind Switzerland and ahead of Italy. Globally, while it belongs to the group of “transparent” markets, there is still work to be done to catch up with world leaders such as France, the Netherlands, or Ireland. Nonetheless, its ranking in the index demonstrates that the country is making progress in key areas, such as data availability, technology adoption, and sustainability regulations.
In particular, the JLL and LaSalle report highlights Spain’s strong performance in indicators such as the real estate transaction process, where it ranks ninth globally. This section includes elements like the clarity of pre-sale information, bidding processes, and regulations related to anti-money laundering. Improvements in these areas reflect a more open and efficient market for investors.
Additionally, Spain has shown significant progress in the governance of listed vehicles and in measuring the performance of real estate assets, ranking 16th and 17th globally, respectively. These indicators are essential for building trust among investors and lenders, as they allow for greater predictability and control over the risks associated with the market.
Transparency in times of uncertainty
The global context in 2024 is marked by political, economic, and climate uncertainty, which reinforces the importance of transparency in real estate markets. According to the GRETI report, the most transparent markets in the world, such as the United States, France, or Australia, are better positioned to lead the next phase of the real estate cycle, thanks to their ability to integrate technology, provide more detailed data, and advance sustainability reporting.
In Spain, these changes are also reflected in the use of emerging technologies such as artificial intelligence (AI) to enhance transparency. AI is enabling the automation of building management, improving the speed and accuracy of valuations, and generally providing faster and more granular access to information. Although these technologies are still in exploratory phases in many cases, their potential to transform real estate transparency is enormous.
Sustainability: an emerging priority
One of the most important aspects of the 2024 index is the increasing emphasis on sustainability as a new standard of transparency. As countries work toward emission reduction goals in line with the Paris Agreement, transparency in sustainability becomes essential for investors, occupants, and governments. In Spain, while progress has already been made in this area, there is still room for improvement, especially in the collection and standardization of data regarding the energy performance of buildings and climate impact.
The GRETI report indicates that sustainability metrics remain among the least transparent globally, highlighting the need for greater effort in this area. However, the most transparent markets in sustainability, such as France and Japan, offer a more predictable environment for investors and occupants, allowing for more informed decisions regarding location and space usage.
Conclusion: Spain, ready for the future
Spain has established itself as one of the most transparent real estate markets in Europe, reflecting the country’s efforts to improve its regulatory framework, adopt new technologies, and advance sustainability. Although it still faces significant challenges, especially compared to global leaders, its position in the European top 10 indicates that the country is on the right path.
Transparency is key for investors to make confident decisions, and in an increasingly uncertain world, Spain’s advances in this area position it as an attractive destination for global capital. With a continued focus on improving regulations, adopting technology, and promoting sustainability, the Spanish real estate sector has a promising future.