India Ranks 31st in JLL's Global Real Estate Transparency Index

Global property consultant JLL on Tuesday said that India's top real estate markets have entered into a 'transparent' zone for the first time, driven by institutionalisation of commercial assets and improvement in data access.

JLL has released its 'Global Real Estate Transparency Index, 2024', which showed that India's tier-I markets have entered into the 'transparent' zone for the first time with a composite score of 2.44. India ranks 31st in the list of 89 countries.

The consultant noted that "India has made a remarkable leap forward in JLL's Global Real Estate Transparency Index 2024, reaching the transparent tier for the first time".

This progress is a result of institutionalisation in the commercial market and improved access to diverse real estate data sets, it said.

"India is the top global improver in the 2024 index, making significant strides in transaction processes and market fundamentals," JLL said, the country is leading the global front in enhancing transparency, with expanded data coverage and improved data quality across various property sectors.

There are 13 countries featured in the high-transparency zone.

The United Kingdom is at the top (with a score of 1.24) in the global list, followed by France, the United States, Australia, Canada, Netherlands, New Zealand, Ireland, Sweden, Germany, Japan, Belgium and Singapore.

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

The remaining countries are in 'semi-transparent', Low transparency and opaque zones.

"India is the top global improver, with greater data coverage and quality across both core and niche property sectors – ranging from industrial to data centres – as institutionalisation in the market increases.

"A more proactive financial regulator, new climate risk disclosure guidelines, streamlined building regulations and digitised land records have also contributed to its leading cities entering the 'Transparent' tier," the report mentioned.

Samantak Das, Chief Economist and Head– Research, India, JLL, said, "Increasing institutional participation, along with a push for transparency, has led to the adoption of best industry practices in India's commercial real estate market."

Notably, he said four existing listed REITs have driven growth in stabilised commercial assets, while standardised market valuation processes and REIT regulations have fostered market-based approaches.

"Regulatory enhancements such as RERA and the Insolvency and Bankruptcy Code have improved investor protection, while digital land registry records and strict monitoring by RBI and SEBI have created a robust regulatory landscape," Das said.

Karan Singh Sodi, Senior Managing Director (Mumbai MMR & Gujarat) and Head - Alternatives, India, JLL said, India's ascent to the transparent tier in JLL’s Global Real Estate Transparency Index underscores the industry's cohesive efforts and governmental backing.

"This achievement is poised to attract capital inflows and boost India's standing among global investors. Markets with high transparency ratings garner 80 per cent of global capital flows," Sodi said.

However, he said there is room for improvement, particularly in establishing efficient dispute-resolution mechanisms.

"Despite a robust regulatory evolution, the report suggests that enhancing transparency further requires collective action to democratise data access, bolster institutional participation in public markets, and commit to sustainability goals," Sodi said.

The consultant said that India's progress towards transparency is notable.

"Tier 1 markets in India have moved to the transparent tier for the first time, driven by institutionalisation, data accessibility improvements, initiative-taking financial regulation, climate risk disclosure guidelines, streamlined building regulations, and digitisation of land records," the report said.

India ranks among the top ten global destinations for transaction processes and 12th for market fundamentals.