India has moved up just one spot in the global real estate transparency index from 36 in 2016 to 35 in 2018, despite the implementation of the Real Estate (Regulation And Development) Act or RERA, according to a report by real estate advisory firm Jones Lang LaSalle Inc. (JLL).
RERA – Real Estate (Regulation And Development) Act :-
- RERA was implemented in May 2016 to bring accountability and transparency into the sector. However, unlike a few states such as Maharashtra and Karnataka, several states have been slow in its implementation.
- India is thus yet to figure among the transparent markets, despite the regulatory changes and the possibility of a Real Estate Investment Trust (REIT) listing.
According to Report :-
- The countries in the top 30 ranks have been defined as transparent markets, while those in the top 10 are categorized as highly transparent, according to the report that comes out every two years.
- The UK, Australia, the US, France and Canada are the top five countries.
- India is one of the 10 countries that have registered maximum improvement in transparency in real estate over the last two years.
- Since 2014, India has moved up by five spots from 40th in the global real estate transparency index.
- The report also pointed out that a rise in private equity (PE) investments over the last four years is an indicator of the growing confidence large PE funds have in the Indian market. PE investment in Indian realty has grown every year from $2.2 billion in 2014 to $6.3 billion in 2017, according to the report.
Global Real Estate Transparency Index :- The index measures transparency based on factors such as :-
- Data availability, authenticity and accuracy
- Governance of public agencies as well as stakeholders of the realty sector
- Transaction processes and costs associated with those
- The regulatory and legal environment.