India’s real estate sector has marked a significant milestone by being classified as a ‘transparent’ market for the first time, according to the latest Global Real Estate Transparency Index (GRETI) compiled by property advisory firm JLL. This prestigious classification, which is part of the biannual index, highlights India’s substantial advancements in regulatory reforms, data accessibility, and overall market openness.
The GRETI evaluates global real estate markets on their transparency and openness, categorising them into levels ranging from ‘Highly Transparent’ to ‘Opaque’. India’s new ‘Transparent’ status reflects its strides in enhancing market integrity and investor confidence. Central to this transformation has been the implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA), which mandates rigorous project disclosures, ensures timely project delivery, and establishes a robust grievance redressal mechanism, thereby significantly improving transparency in the sector.
Further contributing to this achievement is the enhanced accessibility of real estate data. Initiatives such as the National Housing Bank’s RESIDEX and various state-level platforms have made critical information, including property price indices and transaction volumes, more readily available to investors and stakeholders. Additionally, institutional reforms such as the establishment of the National Asset Reconstruction Company and measures to address non-performing assets have bolstered market stability and transparency. The increased openness of the Indian real estate market to foreign investments, facilitated by clearer regulatory guidelines under the Foreign Direct Investment (FDI) policy, has also played a crucial role. Stricter corporate governance norms and greater accountability among real estate developers further underscore the sector’s improved transparency.
This new status has several implications for the Indian real estate market. It is expected to boost investor confidence by reducing investment risks and fostering a more predictable market environment. Improved transparency will facilitate better decision-making through accurate and timely information, thus enhancing overall market efficiency. Furthermore, a more transparent market structure encourages broader participation from various stakeholders, including individual investors and institutional players. Despite these advancements, maintaining and building upon this transparent status will require continuous efforts. Ongoing reforms, technological innovations, and adherence to global best practices will be essential in sustaining and further improving the market’s transparency. The GRETI’s recognition of India as a ‘Transparent’ market underscores the country’s growing prominence in the global real estate arena and sets a positive precedent for future developments in the sector.
