Real Estate now earning for India

By agencies   |   Monday, 24 July 2006, 07:00 Hrs
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BANGALORE: In a new and refreshing light, India has managed to rank itself among other countries in terms of transparency. According to the latest edition of the Jones Lang LaSalle’s Real Estate Transparency Index (RETI), the only index tracking transparency in commercial real estate across 56 markets across the world rated India’s real estate industry making impressive strides in becoming more transparent sector.

Attributing it to heightened cross-border investment interests and better business environment; this could spur potential multi-billion dollar investments in the coming months.

JLL’s index slots the world markets into five tiers: opaque, low-transparency, semi-transparent, transparent and high-transparency.

“Many domestic real estate companies now understand transparency as they need to scale up in a growing market,” said Manisha Grover, head, strategic consulting & research, JLL India.

India, along with others like Brazil and Japan, reported significant improvements on a few standardized parameters to move up from the low transparency markets (’04) to a semi-transparent markets list in ’06.
India figured among the top 10 improved markets jumping one full tier, and is currently placed ahead of China. To put the investment possibilities in perspective, cross border real estate investments in Asia-Pacific region in last year was pegged at $65billion, with India hardly figuring in the action.

With investments estimated at around $4billion at present waiting to pour into the domestic real estate business, India is far better at 9/11 percent compared to 4/6 percent from stable and high transparency markets like Hong Kong or the U.S.

“We expect India to do even better in our next edition two years later as it will then have more listed companies,” added Grover.

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