The Hindu Business Line : `Real estate transparency in India better'

Real estate markets around the world have become increasingly transparent over the past two years, driven by the rise of cross-border investment opportunities and multinational occupiers. And India together with Japan has emerged as a significant mover in transparency, Jones Lang LaSalle points out in its 2006 Real Estate Transparency Index, a study of real estate market transparency in 56 countries and territories worldwide.

India's improvement from low transparency to semi-transparent on the index was helped by the availability of market information, improved general accounting and reporting processes, and substantial improvement among market participants about the legal process that relate to contract enforcement and legal relief.

Upward trend

"The upward trend displayed by India in the transparency index augurs well for cross-border investments waiting to enter the domestic real estate markets as yields from emerging markets like India are far better when compared to stable and high transparency markets like Hong Kong or the US. India's legal regulatory framework, professional standards and transaction processes continue to evolve and set the pace for an even greater improvement in overall transparency in the immediate term," said Ms Manisha Grover, Head, Strategic Consulting & Research, Jones Lang LaSalle, India.

In fact, there have been marked improvements in the entire Asia Pacific region, with more than half of the countries studied in the region moving up the real estate transparency index. "The global focus on accounting standards has impacted many countries, including those in Asia Pacific. The opening up of many Asian markets to international competition has accelerated both the adoption of global practices and publication of market information in English," notes Dr Jane Murray, Head of Research, Asia Pacific at Jones Lang LaSalle.

Top spot

Australia and New Zealand retained their top positions on the real estate transparency index. Together with the US, the three countries take the top spots as the most transparent countries, followed closely by Canada and the UK.

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