Mumbai: Owing to policy measures taken by the government, India has improved in global rankings in terms of transparency in real estate sector in Asia Pacific, says a report. As per a study titled Global Real Estate Transparency Index (GRETI) 2016 by property consultant, Jones Lang LaSalle, the country has improved in overall transparency scores across all markets, and has achieved higher ranks for tier-I and II markets.
Tier-I cities in India ranked 36th in transparency levels, followed by tier II and III (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. "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 Chairman and Country Head Anuj Puri said in a statement issued here.
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 realty sector and strengthening of information in public domain were 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 GRETI 2018 index mainly on the back of 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 establishing of the real estate regulator," Puri added.