Meanings and interpretations of the information flow transparency in the real estate field

Transparency has become the new paradigm of economic activities in the aftermath of the most recent economic and financial crisis, a downturn that was significantly compounded by the inherent features of the real estate sector associated with the information asymmetry. Studies indicate that there are massive communication flaws among the participants involved in different phases of the property life cycle. The aim of this paper is to study the nature and transparency of the information across the real estate development, use and recovery phases, reviewing critically the relevant published literature. The research outcomes indicate that in the development stage, it is necessary to objectively assess the economic, social and environmental impact of a building from the perspective of its life cycle and in correspondence with the highest and best use of the land. In the real estate use phase, there emerges the necessity to efficiently manage the building that has made the object of a transaction based on market data. The recovery phase of a construction supposes a solid assessment of the future land productivity in the light of the principles of sustainable development. The research findings warn the need of engagement of all stakeholders interested by real estate activities in the process of improving real estate transparency.