According to a study titled ‘Global Real Estate Transparency Index (GRETI) 2016’, by property consultant Jones Lang LaSalle, India has improved in overall transparency scores across all markets and has achieved higher ranks for its tier-1 and tier-2 cities.
Tier-1 cities in India ranked 36th, vis-à-vis transparency levels, followed by tier-2 and tier-3 cities at 39th and 52nd positions, respectively.
The index measures transparency by looking at factors including data availability, governance, transaction processes and the regulatory and legal environment.
Reason for improved ranking
“India has made improvements in overall transparency scores across all markets. Its key cities are benefiting from proactive measures, to increase transparency in the real estate sector,” JLL India’s chairman and country head Anuj Puri, said in a statement. Land records have started to be digitised and made available through an online database, while the Land Acquisition, Rehabilitation and Resettlement Act (passed in 2014) has simplified procedures for acquiring land and determining fair compensation for sellers, he said.
“Improved market fundamentals, policy reforms and liberalisation of FDI into the realty sector, and strengthening of information in the public domain, were the main influencers, along with digitisation of land records and opening up of REITs,” Puri said.
According to him, the country’s rankings is likely to improve further in the GRETI 2018 index, owing to the implementation of the Real Estate (Regulation and Development) Act, 2016, which is likely to be fully functional in all states by then.
“India’s low score in transaction process will improve during the 2016-18 assessment period of our next transparency index, on account of enactment of the act and the establishing of the real estate regulator,” Puri added.