With regulatory reforms, enhanced market data, and sustainability initiatives, the real estate sector in India have pushed its ranking to 34th position in the Global Real Estate Transparency Index (GRETI),
In 2014, India had ranked 39 on the index, and Since then, the government has implemented effective measures to improve transparency. Now India's rank has improved by five notches from 39 to 34 since the last six years from 2014 until 2020.
Key Points Led to Improvement of India's Ranking
India has also fringed into the top 20 for Sustainability Transparency through the role of organizations like Indian Green Building Council and Green Rating for Integrated Habitat Assessment. The key reforms for steady improvement in Indian real estate include
- The government aims to provide 'Housing for All' by 2022 through regulatory and fiscal incentives.
- Providing tax advantages to sovereign wealth funds for investments in affordable housing.
- Real Estate Regulation & Development Act 2016 (RERA)
- Goods and Services Tax (GST)
- Benami Transaction Prohibition (Amendment) Act 2016.
- Insolvency and Bankruptcy Code
- Digitization of land records
Over the years, India has seen a steady improvement in the Global Transparency Index. Accompanying Indonesia, Philippines and Vietnam, India is among the handful of countries that have seen the maximum growth owing to positive governmental support and an enhanced ecosystem of transparency.
In particular, the National REIT framework has been a major contributor to transparency in India. Also, the ongoing progress and governance will continue to attract more interest from institutional investors.
With the government measures for steady improvements for transparency in recent years, India has shown promising developments. It is now at the right track of being 'Transparent' within the GRETI 2020 rankings.
By: Shailaja K