India’s commercial real estate sector has reached a pivotal milestone, securing its position in the transparent tier of the Global Real Estate Transparency Index (GRETI) 2024, compiled by JLL. This significant advancement reflects a transformative shift in the country’s real estate landscape, spurred by increased institutional participation and a robust commitment to transparency. Rising from 36th place in the semi-transparent tier in 2022 to 31st in the transparent category, India has achieved a composite score of 2.44. In comparison, leading nations such as the United Kingdom and France hold scores of 1.24 and 1.26, respectively, showcasing the competitive nature of global real estate markets.
This elevation in ranking is attributed to several pivotal factors, including enhanced access to comprehensive real estate datasets, proactive financial regulations, and the introduction of climate risk disclosure requirements. The GRETI 2024 underscores the correlation between high transparency levels and capital attraction, noting that transparent markets draw approximately 80% of global real estate investments. India’s performance in the ‘Transaction Process’ parameter, where it ranks among the top ten globally, reflects the effectiveness of regulatory changes such as the Real Estate (Regulation and Development) Act (RERA), which has streamlined asset ownership processes.
Moreover, the report highlights India’s advancements in market fundamentals, positioning it 12th globally in this area. While the regulatory landscape has seen significant evolution, it acknowledges the need for further enhancements in dispute resolution mechanisms and data democratisation. The burgeoning Real Estate Investment Trust (REIT) market and a concerted focus on sustainability underscore India’s commitment to enhancing transparency. With 12% of Grade A office stock represented by office REITs, there lies immense potential for expansion and improved market dynamics.
