Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Money / Calculators/  Transparency in Indian realty up marginally
BackBack

Transparency in Indian realty up marginally

But transactions continue to be opaque, says JLL index

Aniruddha Chowdhury/MintPremium
Aniruddha Chowdhury/Mint

Where transparency broadens, real estate capital flows and market change follows. Jones Lang LaSalle’s (JLL) eighth Global Real Estate Transparency Index, covering 102 markets worldwide, shows continued progress in the transparency of commercial real estate around the world. Over 80% markets have registered improvement since 2012. The top improvers in each survey generally correlate with a surge in foreign direct investment and corporate occupier activity, as investors help to accelerate transparency reforms and governments realize that poor transparency will affect continued inward investment, long-term growth prospects and the quality of life of citizens.

Nowhere is the relationship between market sophistication and incremental change more apparent than the top tier of the Transparency Index. Highly transparent markets—the UK, the US, Australia, New Zealand and France being the top five—have had the types of reforms that may propel other countries from the low to semi-transparent rung for many years.

The ranking for BRICS countries were: 20 for South Africa, the highest, followed by Brazil at 28, China at 35, Russia at 37 and India the lowest at 40.

In the index, India showed moderate improvements in overall transparency scores for its tier I and II cities (mainly in market fundamentals) and limited gains for tier III cities. Despite these advances, India still scores among the lowest countries in the Asia-Pacific region for transparency in transaction processes such as high costs of investment transactions, weak professional standards for local agents, among others.

Jeremy Kelly, director, global research, JLL, said, “The primary cities in India have shown modest improvements in transparency over the past two years, mainly due to advancement in market data availability. Progress has nonetheless been the strongest in the Asia-Pacific region, with Indian cities starting to make up for lost ground against other BRIC markets, where progress has been weaker. We expect momentum in transparency improvements to build over the next two years."

All countries in emerging Southeast Asia have seen some advances (but less significant than 2012 when these countries accounted for 3 out of the top 10 global improvers). Southeast Asia has generally seen progress in the regulatory/legal sector and the transaction process.

The region should see further progress in transparency improvements stemming from both private and public sector operators. Demand from international investors and corporate occupiers should continue to lead to better information on market fundamentals.

Another area that is moving in a positive direction is the regulatory and legal environment. China, for example, plans to introduce a national property registry before 2018, which will probably precede the expansion of a property tax nationally.

Later this year, India may enact the Real Estate (Regulation and Development) Bill, which seeks to improve regulation over real estate agents and the quality of land registry records.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 25 Jun 2014, 07:34 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App