India's major real estate markets have reached a new milestone

India’s major real estate markets have reached a new milestone by entering the “transparent” zone for the first time, spurred by the institutionalisation of commercial assets and enhanced access to data. According to the ‘Global Real Estate Transparency Index by JLL, 2024’, India’s Tier-1 markets now have a composite score of 2.44, ranking the country 31st out of 89 nations.

India has made remarkable progress in transparency, leading globally in improving transaction processes and market fundamentals. This advancement is marked by better data coverage and quality across a wide range of property sectors.

The high-transparency zone includes 13 countries, with the United Kingdom at the top (with a score of 1.24), followed by France, the United States, Australia, Canada, the Netherlands, New Zealand, Ireland, Sweden, Germany, Japan, Belgium, and Singapore.

Finland leads 22 countries in the “transparent” zone, followed by Hong Kong SAR, Denmark, Switzerland, Spain, Italy, Poland, Norway, the Czech Republic, Luxembourg, Hungary, Portugal, Chinese Taipei, South Korea, UAE-Dubai, South Africa, China- Tier 1, India- Tier 1, Thailand, Malaysia, Romania, and Slovakia.

Other countries fall into the semi-transparent, low transparency, and opaque categories.

India has emerged as a top global improver, reflecting increased institutionalisation and better data coverage across various sectors like industrial and data centres. Key factors contributing to this improvement include proactive financial regulations, climate risk disclosure guidelines, digitised land records, and streamlined building regulations.

The country’s commercial real estate market has benefited from institutional participation and transparency, with the adoption of industry best practices. Listed REITs have fueled growth in stabilised commercial assets, and market valuation processes have improved through regulatory enhancements.

Notable regulatory frameworks such as RERA and the Insolvency and Bankruptcy Code have bolstered investor protection. Additionally, digitised land records and oversight from regulatory bodies like the RBI and SEBI have created a robust regulatory environment.

India’s progress toward transparency is significant, although there is room for improvement in areas like dispute resolution mechanisms. Collective action to enhance data access, encourage institutional participation in public markets, and strengthen sustainability initiatives is still needed for further advancements.

Source: JLL