India ranks 34th on the real estate transparency index, with higher levels of transparency due to regulatory reforms, enhanced market data and sustainability initiatives.

The improvement is led by the progress in the country’s Real Estate Investment Trust (REIT) framework attracting greater interest from institutional investors, according to JLL and LaSalle’s biennial Global Real Estate Transparency Index (GRETI).

In 2018, the country was ranked 35th. India has also edged into the top 20 for ‘sustainability transparency’ through the active role of organisations such as the Indian Green Building Council and Green Rating for Integrated Habitat Assessment.

“India has seen a steady improvement in the Global Transparency Index over the years. In fact, along with Indonesia, the Philippines and Vietnam, we are among the handful of countries that have seen the highest improvement owing to positive governmental support and an enhanced ecosystem of transparency,” said Ramesh Nair, CEO and Country Head (India) JLL.

“In particular, the national REIT framework has been a major contributor to transparency in India, and with ongoing progress and governance, will continue to attract more interest from institutional investors,” he added.

Real estate transparency

According to JLL, pressure exists from investors, businesses and consumers to further improve real estate transparency to compete with other asset classes and meet heightened expectations about the industry’s role in providing a sustainable and resilient built environment in the age of Covid-19. Furthermore, new property technology (proptech) is changing how real estate data is gathered and analysed and influencing industry transparency at a regulatory level.

“While investment into commercial real estate has inevitably paused during the pandemic, the overarching trend toward rising allocations to this asset class will continue. As investors look to allocate more capital into Asia Pacific real estate, transparency becomes fundamentally more important, as will the enforcement of robust regulatory frameworks,” said Samantak Das, Chief Economist and Head–Research, India, JLL.

Emerging markets have, once again, shown the greatest advancement in the Index, with six Asia Pacific markets – Mainland China (32), Thailand (33), India (34), Indonesia (40), the Philippines (44) and Vietnam (56) – among the top-10 biggest improvers globally. Mature markets such as Australia (3) and New Zealand (6) have maintained their positions near the top of the global ranking.