JLL has unveiled its ‘Global Real Estate Transparency Index, 2024,’ revealing a significant milestone for India’s tier-I markets, which have now entered the ‘transparent’ category for the first time, achieving a composite score of 2.44. India now holds the 31st position out of 89 countries surveyed.
According to the report, India’s advancement in transparency is attributed to the institutionalization of the commercial real estate market and enhanced access to a wide range of real estate data. JLL emphasized that India has made substantial progress, becoming the top global improver in the 2024 index, particularly in transaction processes and market fundamentals. The country has emerged as a global leader in increasing transparency, thanks to expanded data coverage and improved data quality across various property sectors.
The report also highlights that 13 countries have reached the high-transparency zone, with the United Kingdom leading the global list with a score of 1.24, followed by France, the United States, Australia, Canada, and others. Finland heads the list of 22 countries in the ‘transparent’ zone, with India joining this category alongside other nations like Hong Kong SAR, Denmark, and Switzerland.
India’s leap into the transparent zone is driven by factors such as a more proactive financial regulator, new climate risk disclosure guidelines, streamlined building regulations, and the digitization of land records. These advancements have bolstered transparency across core and niche property sectors, from industrial spaces to data centers.
Samantak Das, Chief Economist and Head of Research at JLL India, noted that the increasing institutional participation, coupled with a push for transparency, has led to the adoption of best industry practices in India’s commercial real estate market. He also highlighted the role of listed REITs in driving growth in stabilised commercial assets and fostering market-based approaches through standardised valuation processes and REIT regulations.
Karan Singh Sodi, Senior Managing Director and Head of Alternatives at JLL India, remarked that India’s rise to the transparent tier underscores the collective efforts of the industry and the support from the government. This achievement is expected to attract significant capital inflows and elevate India’s position among global investors, especially since markets with high transparency ratings capture 80% of global capital flows. However, he acknowledged that further improvements are needed, particularly in establishing efficient dispute-resolution mechanisms.
Despite the robust regulatory developments, the report suggests that further enhancing transparency will require collective action to democratise data access, increase institutional participation in public markets, and commit to sustainability goals. India’s progress towards greater transparency is commendable, with its tier-I markets entering the transparent tier for the first time, driven by a combination of institutionalisation, better data accessibility, and forward-thinking regulatory measures. The report also notes that India ranks among the top ten global destinations for transaction processes and holds the 12th position for market fundamentals.
