India has marked a significant milestone in its commercial real estate sector, securing a place in the transparent tier of JLL’s Global Real Estate Transparency Index (GRETI) 2024.
This advancement reflects a notable shift in the country’s real estate landscape, driven by enhanced institutional participation and a concerted push for greater transparency. According to the latest GRETI report, India has ascended to the 31st position under the transparent category, achieving a composite score of 2.44. This represents a substantial improvement from its previous rank of 36th in the semi-transparent tier in 2022. The United Kingdom and France lead the high transparency tier with scores of 1.24 and 1.26, respectively, while Singapore has also made its debut in the highly transparent category this year.
The report highlights that India’s progression is largely due to increased institutional investments, better access to diverse real estate datasets, and significant regulatory advancements. The GRETI 2024 underscores that markets with high transparency levels attract 80% of global capital flows, emphasising the importance of transparency in drawing international investment. India’s improved ranking is attributed to several key factors, including proactive financial regulation, new climate risk disclosure requirements, streamlined building regulations, and digitised land records.
The country’s performance in the ‘Transaction Process’ parameter is particularly noteworthy, placing it among the top ten globally due to efficient asset ownership and regulatory changes such as RERA. The Global Real Estate Transparency Index, published biennially by JLL and LaSalle, evaluates market transparency based on legal and regulatory environments, enforcement mechanisms, and data availability. The 2024 edition assesses 89 countries and territories, as well as 151 cities, using 256 individual indicators.
India’s upward trajectory is also supported by its notable performance in transaction processes and market fundamentals, ranking 10th and 12th, respectively. While the country’s regulatory landscape has evolved significantly, the report points out that further improvements are needed in dispute resolution mechanisms and data democratisation. The REIT market’s growth, regulatory enhancements, and sustainability efforts have collectively contributed to India’s enhanced transparency. The office REIT sector, comprising 12% of Grade A office stock, holds significant potential for expansion.
Furthermore, the implementation of digital land registries and increased focus on green certifications, with WELL certification reaching 70 million sq. ft in 2023, underscores India’s commitment to sustainable development. India’s entry into the transparent tier is expected to bolster its appeal to global investors, potentially driving substantial capital inflows, with $4.8 billion already recorded in the first half of 2024.
