Business is set to boom for real estate consultants and property investment advisors in India as the country’s global real estate transparency ranking improves to 35th, one spot ahead from last year.
JLL’s Global Real Estate Transparency Index (GRETI) ranked India one spot higher as various regulatory measures were put into effect, which in turn led to an improvement in the ranking. These include improvement in market fundamentals, policy reforms, and liberalisation of FDI. Digitisation of property records and industry status accorded to affordable housing has also helped.
India has also shown incredible improvement in the latest survey and emerged as one of the top 10 countries to register maximum improvement in transparency in real estate over the past two years. The country has moved up five places over last two cycles of JLL’s GRETI.
“India’s remarkable improvement in the transparency scores across all markets has started to benefit the nation in the form of increased volumes of international capital being deployed into the country. Improved market fundamentals, policy reforms and liberalisation of FDI into realty sector and retail and strengthening of information in public domain were main influencers, along with digitisation of property records and assigning “industry status” to affordable housing. Tools like “PropTech” and “BlockChain” are becoming an integral part of realty sector and use of technology is only going to add transparency into the sector,” says Ramesh Nair, CEO and Country Head, JLL India.
“The country’s rankings is likely to improve further in GRETI 2020 mainly on the back of the comprehensive implementation of the Real Estate (Regulation and Development) Act in all states of India, introduction of insurance policies for Land Title Insurance, pseudo-ownership of properties weeded out through Benami Transactions Act and the sector aligning itself well with Goods and Service Tax (GST) regime,” he says.
With improved rankings, it is likely that the luxury real estate market as well mid-range real estate market will see a boost. Real estate consultants are also going to see their demand increase as local home buyers take advantage of a more transparent and regulated market.
This improved ranking is beneficial not just domestically, it has given a dose of confidence to international investors too. International real estate agents who help foreign & domestic investors find not just commercial space for lease but also provide property investment advice and help deal in luxury real estate will find an increased market demand for themselves.
All in all, an increase in ranking of real estate transparency as well as a more regulated market are very likely to bring good tidings for the real estate sector, both for developers & investors.