India tops BRIC nations in real estate transparency
There has been a steady rise in transparency levels in the Indian real estate sector. The improvement has been led by a range of factors including introduction of REITs (real estate investment trusts) and REMFs (real estate mutual funds), greater availability of market information, increased foreign investment, improved accounting standards and financial disclosure, the possible introduction of a real estate regulator and advances in the legal and regulatory environment, said global real estate consultancy firm Jones Lang LaSalle in its latest Real Estate Transparency Index report.
India ranks highest among BRIC (Brazil, Russia, India and China) nations in the 'Listed Vehicles' parameter due to large numbers of listed real estate players that adhere to stringent guidelines laid down by Sebi. As per the firm's findings, differences in transparency levels between major metros and secondary and tertiary cities in India are remarkably narrow, particularly when measured against differences within China. The main differences among tier I, II and III cities are in the availability of market information and transparency of the transaction process.
It is expected that over the next decade, transparency in India will increase via introduction of sector regulators, professionalism and international best practices in real estate, the findings predicted. However, the report also pointed out that the greatest challenges for the sector include limited provision of high quality market information and investment performance indicators.
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