India Advances to Transparent Tier in Global Real Estate Index

India's real estate sector has improved its ranking to the transparent tier in the Global Real Estate Transparency Index, making significant progress due to institutionalisation and data accessibility. This advancement is expected to attract capital inflows and enhance India's appeal to global investors.

India's real estate sector has ascended to the transparent tier in the Global Real Estate Transparency Index (GRETI), an evaluation of global real estate markets based on multiple parameters. The index, published by JLL, serves as a benchmark for assessing market transparency, scrutinising the legal and regulatory environment, enforcement mechanisms, and data availability across various geographies.

India has achieved a noteworthy advancement in this year's index, joining the transparent tier for the first time. This leap in ranking is credited to the institutionalisation of the commercial market and enhanced access to diverse real estate datasets. Now ranked 31st with a composite score of 2.44, India surpasses countries such as Thailand, Malaysia, and Saudi Arabia. The United Kingdom and France top the High Tier with scores of 1.24 and 1.26, respectively. In the 2022 index, India was positioned at 36th under the semi-transparent tier.

The improvement in India's ranking is expected to draw capital inflows and improve its reputation among global investors. JLL's report notes that markets with high transparency ratings attract 80 per cent of global capital flows. Karan Singh Sodi, Senior Managing Director at JLL, stated that India's ascent underscores the industry's collective efforts and government support. However, there is room for improvement, particularly in establishing effective dispute resolution mechanisms. Despite significant regulatory progress, further enhancement of transparency requires collective actions to democratise data access and strengthen institutional participation in public markets.

(With inputs from agencies.)