Transparency is the foundation of a functioning property market. A study by JLL clearly shows that transparent markets attract significantly more capital. Most property investments flow into the most transparent markets, such as the UK, Australia, France and the USA. Germany ranks 10th and is, therefore, also one of the more transparent markets, but lags in the areas of ESG data and market data availability.

Transparency is good for property markets– for investors, occupiers and the general public. Anyone looking to buy or rent a property in Germany often does not have easy access to crucial information such as ownership structure, energy consumption or emissions. In countries like France, this data is easily accessible. This openness promotes greater market liquidity and attractiveness. London and Paris have long recognised that data transparency is a competitive advantage.

Germany, on the other hand, remains hesitant. There is a lack of guidelines that require comprehensive disclosure of sustainability data, for example. The most transparent markets have attracted more than 1.2 trillion dollars in investments in the last two years, but Germany might be losing out.

Transparent property markets offer reliable information, which boosts investor confidence, but Germany appears to be remaining static in this area. Despite a solid legal situation and stable transaction processes, there is a lack of uniform standards for recording and publishing market data.

A transparent property market would not only be beneficial for investors, but also for companies, planners and consumers. Secrecy harms market liquidity and leads to fragmentation. A standardised approach that prescribes openness and access to data would undoubtedly be a step forward. Markets such as the Netherlands and Sweden have already shown that this is possible.

Germany is at a turning point: Either it adapts to international standards, or it could fall behind. More transparency would not only attract capital, but also improve the efficiency and sustainability of the market. Property locations such as Frankfurt, Munich and Berlin could thus strengthen their competitive position.