Market maturity and property market behaviour: A European comparison of mature and emergent markets

Maturity of Real Estate Markets in Sub-Saharan Africa

“…In addition, they state that sophisticated or mature markets possess standardised property rights and market practice, sophisticated institutions of property professionals, flexible market adjustments, and wide ranging investment possibilities (see Keogh/D'Arcy 1994). But these traditional market characteristics differ from emerging or even nascent markets which may suffer a deficit in transparency, a lack of actively traded commercial real estate investments as well as a low level of quality commercial stock and only small representative offices of multinational corporations (see JLL 2010a).…”

“…Different researchers notably Walker and Flanagan (1991) and Seek (1993) employed the concept of market maturity in several market studies. The benchmark instrument 'Market Maturity' on the basis of Keogh and D'Arcy (1994) proposed paradigm of property market performance to be utilised in order to understand market behaviour and trends for real estate investments. The latter comparative study provides a definitive framework for measuring market performance and it has been applied to property markets in South East Asia as well as in Central and Eastern Europe (see Dugeri 2008).…”

“…The benchmark instrument 'Market maturity' on the basis of Keogh and D'Arcy (1994) proposed paradigm of property market performance and the emerging market study by Jones Lang LaSalle are useful tools to understand market behaviour and trends for SubSaharan African real estate markets. For ascertaining the diversity of the real estate market characteristics in the region, major cities of Tanzania and South Africa are used as property market representatives.…”

“…A simple property market shows poorly developed real estate sectors and lacks in separate markets for user and investor interests. In contrast, the traditional form stands for a sophisticated property market with an active network of real estate professionals (see Keogh/D'Arcy 1994).…”

“…Whereas in sophisticated economies the concept of maturity may provide a simple explanation of comparative property market activity, emerging economies differ in terms of market dynamics, market evolution, and mentality of market participants. Therefore, the efficiency analysis of a real estate market should include the individualities of local real estate culture, the use and misuse of information, and the role of property professionals within a given market (see Keogh/D'Arcy 1994). Even though, it is important to reveal the coherency of property market efficiency, the conventional concept of exploring the property markets efficiency is criticised as it fails to capture the essential characteristics of real estate as a physical and legal entity (see Keogh/D'Arcy 1999).…”