Where real estate transparency is improving

Singapore for the first time has joined other global giants like Japan and the U.S. as a highly transparent real estate market, having received a boost from greater adherence to sustainability benchmarks, according to a new global survey.

India, meanwhile, emerged as the most improved country when it comes to transparency, according to JLL’s Global Real Estate Transparency Index.

“With new building energy performance standards, sustainability reporting requirements and corporate commitments ramping up, sustainability has been the largest driver of transparency improvements across Asia Pacific, particularly in Singapore and India,” says Kamya Miglani, Head of ESG Research, Asia Pacific at JLL.

Increased ESG regulations drives transparency for Singapore

In JLL’s biennial Transparency Index, Singapore inched up a place to the 13th spot out of 89 countries.

The city-state has shown a clear commitment to environmental, social and governance (ESG) considerations and transparency, according to Miglani.

For instance, its Green Mark Scheme has become the country’s benchmark by which building owners and developers strive to appeal to increasingly ESG-conscious occupiers and tenants. The initiative, which rates buildings based on their environmental performance and sustainability features, offers credibility and transparency in measuring building energy efficiency, water use, and overall environmental impact.

“Over the years, the Singapore government has been increasing its scoring thresholds for the Green Mark Scheme, consistently redefining what sustainable buildings mean to the country,” Miglani says.

Singapore also has been putting pressure on its private sector to enhance climate-risk reporting to meet its ambitious sustainability targets. To align its ESG disclosure requirements for the private sector with global standards, all Singapore-listed companies will be required to submit climate-related disclosures by 2025. From 2027, this requirement will be extended to all large companies including non-listed entities.

Meanwhile, Singapore’s Real Estate Industry Transformation Map 2025 outlines strategies to digitalize property transactions, promote technology adoption by property agencies, and enhance the skills of property agents.

Digitalization accelerates India’s transparency progress

A focus on digitalization propelled India up five places in the index to 31.

With greater data coverage and improved quality in data across both core and niche real estate sectors, India as emerged as the top global improver in transparency this year with its new “transparent” score.

For example, Digital India is an initiative to create a digital infrastructure to deliver government services online and provide citizens with access to digital resources. Besides greater convenience for citizens, the greater transparency can reduce corruption, fostering economic growth.

The nation’s focus on institutionalization also was also a key factor in its strides towards transparency.

A more proactive financial regulator, new climate risk disclosure guidelines, streamlined building regulations and digitized land records have also contributed to its leading cities entering the transparent tier, Miglani says. “With more advanced technical architecture, the Indian government is able to share accurate and higher-quality information, which will be helpful as they establish guidelines for climate-risk disclosures.”

Closing the gap on transparency

Miglani believes that ESG transparency in real estate will continue to grow in importance as markets around the world pushing for greater transparency.

“Corporate stakeholders will continue to prioritize net zero targets and seek regulatory standards to measure their environmental impact and risk," Miglani says.

“As companies strive to attract capital by demonstrating their sustainability efforts, markets that embrace greater ESG transparency can attract investment, enhance investor confidence, and contribute to a more sustainable and resilient future,” she adds.

Greater proptech adoption might be one trend to help markets achieve greater transparency.

“Technologies like artificial intelligence, blockchain and Internet of Things, will enhance data management and improve transparency in property transactions,” Miglani says.