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Transparency in the real estate market in India happens to be among the top ten most improved markets internationally. The Global Real Estate Transparency Index (GRETI) in July 2022 has demonstrated this, stating that the transparency score of India rose between 2020 and 2022 from 2.82 to 2.73. The transparency level is even higher than in some of the most transparent markets in the world, including Spain, Belgium, and Canada.
This improvement largely took place due to the availability of data and digitization in transactions. Besides, JLL also pointed to an improvement in the market fundamentals. The transparency in India was evident from better institutional investments. Besides, there has been an increasing number of REITs that have been broadening the market data. The real estate sector has gained significant professionalism, with a number of norms introduced into the sector.
The inventor investment, according to experts, will improve as a result of this better transparency. This would also strengthen the confidence of the occupier. Therefore, there would be more capital investment in the country since it shows the efforts of the authorities so that accurate data is available. Besides, the process would involve the enforcement of legal protections for the ownership of properties. There should be a good regulatory environment that would facilitate property transactions.
At the local and national levels, there are several initiatives taking place. This includes the National Guidelines on Responsible Business Conduct from 2021. From 2022-23, it would be compulsory for the top 1000 companies as per the market cap to report the details. Moreover, there are some local plans coming up like 2022’s Mumbai’s Climate Action Plan. With these plans, there would be a system established to carry out energy performance regularly to benchmark the buildings by 2025. This would make a building energy management system mandatory in new structures.
Therefore, more and more cities and countries are establishing standards for emissions and energy efficiency. It is expected that there would be a more extensive adoption of healthy and green building certifications. However, the measures of sustainability continue to the less transparent internationally. There are different standards within the featured regulatory structure at the country, region, state, and municipal levels. This wide array of standards is making it challenging for companies and investors to understand their responsibilities properly.
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