Cushman & Wakefield has evaluated the risks of acquiring office space in the most sought after emerging and frontier markets. The second edition of this report provides overviews of the office market and relevant property indicators for 42 countries and collates this data into a “Risk Index”. This year’s report does not include an overview of the BRIC economies (Brazil, Russia, India and China), as these countries are generally no longer considered “emerging” and many of the major BRIC cities have long been established in the global property market.
The index utilizes best-in-class published data regarding operating conditions – such as transparency and corruption – in addition to economic and political stability. Cushman & Wakefield also undertook a survey using ‘best in class’ property operators in each region. This survey posed pertinent questions to determine the operating environment and the ease and speed of acquiring office space in these markets. Each country has been scored against one another on a like-for-like basis, with the results from the survey and third-party data being appropriately weighted and indexed.
The top ten easiest and most transparent markets in which to acquire real estate are as follows:
As the results demonstrate, locations within Africa occupy the upper reaches of the index, with Botswana in first place followed by fellow Sub-Saharan countries, South Africa and Zambia in second and third place, respectively. Indonesia ranks fifth, and is the highest placed country from Asia Pacific, with Peru in eighth as the top representative from Latin America.
The leading country in the index, Botswana, scores well in a number of factors. Botswana is perceived as one of the more secure countries within Africa, and this is borne out via the results of the index, scoring well across the majority of parameters and is comfortably the leading country within the Index. Both South Africa and Zambia score well in terms of the ease of securing property and in comparison to the rest of the continent, these countries possess two of the more developed property markets in the region.