In India, transparency in real estate plays an important role for homebuyers, builders, bankers, and other stakeholders who are a part of the sector. Although the government has taken a number of steps for Transparency in real estate transactions, there is still a long way to go.

Recently the Indian real estate market ranked 34, Regulatory reforms and sustainability initiatives have helped to accomplish this. Besides this, the country remains semi-transparent, but a one-rank change would make it a transparent sector.

Government Measure to Boost Indian Real Estate Transparency

For transparency in the real estate industry, Government has introduced many reforms include

• Real Estate Regulatory Act (RERA)
• Benami Transactions (Prohibition) Amendment Act
• Goods and Services Tax (GST) 
• Demonetisation sought 

Even though, after the implementation of these measures, some home buyers find their RERA orders are difficult to enforce. People still need to go to different legal forums to try to address real estate problems. Not every RERA website has data on resolutions and options for online complaint filing. Some real estate companies also have concerns about the GST value.

Real Estate Positive Growth

Over the years, the Global Transparency Index has steadily strengthened in India. Currently, it is at one of the handful of countries that have seen the biggest improvement with Indonesia, the Philippines and Vietnam due to strong support from the government and an enhanced ecosystem of accountability. The national REIT system was, in particular, a significant contributor to India's Transparency. This will continue to draw more interest from institutional investors with ongoing progress and governance.

India has seen the greatest improvement in the region, with improvements in many aspects. The first REIT in 2019 helped to draw greater investment interest, especially from foreign institutional investors. Also, it has been listed in the top 20 in Sustainability Transparency through the active role of organizations like IGBC (Indian Green Building Council ) and GRIHA (Green Rating for Integrated Habitat Assessment).

In addition to its improved transparency in real estate, India's grade in World Bank's 'Ease of Doing Business Ranking' has also increased significantly from 142 in 2014 to 63 in 2019.

Indian Real Estate One Move Ahead to Enhance Transparency 

Better Transparency is key to the creation of healthy real estate markets for all stakeholders, such as buyers, builders, bankers, etc. India could become a transparent property sector with a grade change. Transparency in Indian real estate is very important as it will give homebuyers confidence to buy residential properties without fear and also attract foreign investors to invest in India.

In India, real estate transparency would have to develop further to compete against other asset groups, as the demand of investors and consumers increases. A transparent real estate market in India should meet the standards regarding the role of the industry in providing everyone with a sustainable business environment.

The more transparency in Indian real estate would boost confidence in buyers and financial institutions to make more property investments.

By: Shailaja K