• Skip to content
  • Skip to navigation
  • español
  • Insights
  • Our People
  • Contact
  • English
  • español
Global site
  • Global site
  • Africa
  • Americas
  • Asia Pacific
  • Europe
  • Middle East
    Services
    Assurance
    Audit services of the firm have been designed to support you to meet the challenges involved in managing risks, resources and information.
    See Overview
    • Audit
      In our firm we respond to the demands of our customers. We have modern methodologies and audit techniques operating in the best interests of your organization.
    • Statutory Audit
      Audit services of the firm have been designed to support you to meet the challenges involved in managing risks, resources and information.
    • External Audit
      The external audit service aims to express an independent opinion regarding the fairness of the financia!statements of the companies or certain business areas in which we use previously agreed procedures.
    • Managerial and Result External Audit
      Our work consists of the execution of the defined procedures to review the accounting information and issue reports and documents.
    Tax and Legal services
    Our specialized multidisciplinary team adjust the advice to the customer needs, analyzing the legal alternatives to optimize the use of existing regulations...
    See Overview
    • Taxes
      We work with our clients during all their processes to achieve an excellent statutory clase year, in order to optimize the taxes payment and ease the tax burden.
    • Transfer Pricing
      The laws surrounding transfer pricing are becoming ever more complex, as tax affairs of multinational companies are facing scrutiny from media, regulators and the public.
    • Legal Services
      Our legal advice involves professional lawyers, specialized in different fields.
    IFRS Consulting and Advisory
    We have developed a methodology for IFRS process to convert figures and implementation, which has been successfully applied in implemented projects.
    See Overview
    • Diagnosis and implementation of Full and SME IFRS
      Servicio de Diagnóstico e implementación de NIIF plenas y NIIF para las PYMES.
    • Training and updating in IFRS
      Services of Training and updating in IFRS
    • Calculation of accounting estimates under IFRS
      Services of Calculation of accounting estimates under IFRS
    • Valuation of financial instruments
      Services of Valuation of financial instruments
    • Advice on specialized topics
      Services of Advice on specialized topics
    • IFRS advice for public sector entities
      Services of IFRS advice for public sector entities
    • Preparation of financial statements and disclosures
      Services of Preparation of financial statements and disclosures
    Outsourcing
    Companies often decide to focus on core business activities, an important reason to choose the outsourcing for other labors. Thereby, the outsourcing improves...
    See Overview
    • Financial accounting
      Only those who have clearly structured numbers and a good view of their business, can identify weaknesses and opportunities early enough to react on time to events in their environment.
    • Tax and legal compliance
      The tax authorities constantly keep entrepreneurs and freelancers on alert, with tax issues taking part as a crucial role in almost all business decisions.
    Advisory Transaction Services
    The Advisory line extends to support companies, in their integration and expansion efforts, with independent services developed by experts, to establish the...
    See Overview
    • Due diligence
      Due Diligence is a term, usually used in the field of business acquisitions, to refer to the process of finding information about an organization.
    • Valuations
      The valuation of a company is not an exact science and can vary depending on the type of business and the reason.
    • English
    • español
    1. Home
    2. Lack of governance could hamper growth

    Lack of governance could hamper growth

    11 Mar 2014

    Lack of governance could hamper growth

    Real estate and construction business optimism tempered by weak governance foundations

    The majority of businesses in the real estate and construction sector are still not properly insulated against fraud and corruption according to the latest research from the Grant Thornton International Business Report (IBR). This comes despite warnings suggesting that such practices could account for as much as 10% of global sector revenues or around US$1 trillion, rising to US$1.5 trillion by 2025.

    Globally, just 41% of sector businesses have measures in place to accommodate potential whistleblowers, although this ranges from 70% in North America to just 23% in Europe, with Asia Pacific (31%) and Latin America (28%) also lagging behind. A majority of businesses globally do have a compliance and ethics programme in place (57%) but again while this is common in North America (76%), it is much less so in many other parts of the world, including Asia Pacific (51%), Europe (45%) and Latin America (43%).

    Clare Hartnell, global leader for real estate and construction at Grant Thornton, said: "The lack of focus on governance is understandable, if still a concern. Real estate & construction businesses have been in ‘wait and see’ mode for a long time, focusing on staying afloat rather than expansion. But now that the market is moving in the right direction, businesses need to make sure that the correct controls are in place so that governance issues do not stifle their next phase of growth."

    The IBR reveals that net 42% of businesses are optimistic for the sector in 2014, led by southeast Asia (78%), Latin America (60%) and North America (56%). Europe (33%) is somewhat polarised between persistent pessimism in southern Europe but growing optimism across northern and eastern parts of the region.

    This optimism is feeding into business growth prospects for the year ahead, with  an increasing proportion expecting to raise revenue (+8pp) and profitability (+5pp) in 2014, compared with this time last year. Businesses in southeast Asia (54%) and North America (50%) are the most bullish in terms of profitability in 2014. Sector leaders in Europe (33%) and Latin America (31%) remain slightly more subdued.

    Clare Hartnell added: "Developers, property companies, investors and homeowners suffered disproportionately during the financial crisis, but now, finally, expectations for profitability, jobs and orders are all on the rise. House prices are climbing in key markets such as the UK and the US, contributing to the so-called 'wealth effect' which boosts the consumption patterns of homeowners.

    "But these improvements are far from uniform. Instead we find pockets of opportunity; where money seems to be channelled into cities and regions, rather than countries. Even certain areas in economies that suffered badly in the recession, such as Spain and Ireland, are becoming attractive again.

    " Increasing activity in the sector is a strong indicator that the global recovery is gaining momentum, although it would not take much to destabilise these improvements. As cities rather than countries seem to be the focus for investors and businesses alike, this can also mean distorted values in a small area, with the risk of some potential future realignment."

    Download 'Microclimates of opportunity'

    – ends –

    John Vita, Director, public relations and external affairs, +1 312 602 8955

    Share this page
    • Facebook
    • Twitter
    • LinkedIn
    • WhatsApp

    Contact Information Contact Information

    • Contact us
    • Offices
    • Global reach
    • Alerts and newsletters

    About us About us

    • About Us
    • Services
    • Why Grant Thornton?
    • Links

    Legal Legal

    • Personal data policy
    • Privacy policy
    • Política de Cookies
    • Disclaimer

    Social MediaSocial Media

    © Grant Thornton - All rights reserved. “Grant Thornton” refers to the brand under which the Grant Thornton member firms in Colombia provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. The Member firms in Colombia are member of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions.