The ranks have been allotted to 19 states and Delhi NCR region based on 5 factors.
1. Availability of market information
2. Reforms in urban local bodies
3. Progressive business environment
4. Protection of property rights
5. Inclusive and sustainable development.
Highlights of IRETI
# Tamilnadu rates highly on market information, urban reforms and property rights. But services related to records and water supply are corrupt, according to Transparency International. Registration of property is also a cumbersome task. Increasing demographic pressure on the environment can severely affect things in the long-term.
# There are many factors that make AP the best player in the lot. However, almost everywhere, services related to land records and registration are perceived to be corrupt, and AP is no exception.
# Starting a business takes less time, costs less and has fewer procedures in AP. However, real estate services related to land records and registration are highly corrupt. Moreover, the state is yet to repeal the "Rent Control Act", which keeps rents artificially low in old buildings due to which landlords refuse to renovate
# Maharashtra has put an impressive show on some fronts like availability of market information, providing a progressive business environment and initiating reforms in urban local bodies where it has fared best among the 20 states. However, it falls way behind in ensuring inclusive development (10th) and protection of property rights (16th). Enforcement of contracts is difficult. Air pollution continues to be a concern.
# Gujarat, which occupies the 4th position in the list, offers the best protection of property rights and provides a better business environment than its neighbour, has performed badly in providing inclusive development (14th).
# Property markets in developing nations are largely inefficient compared with those in developed nations, primarily due to the dismal levels of transparency in the real estate ecosystem. The prime reasons for higher costs in non-transparent markets are lack of information, corruption, multiplicity or ambiguity in taxation and lengthy procedures.
# Indian cities, both tier I & tier II fall into the semi-transparent category according to the Jones Lang LaSalle Global Real Estate Transparency Index (GRETI) 2010. However, JLL considers that setting up of a realty regulator and facilitating single window clearance will considerably improve India’s situation.
# After land acquisition it takes 24-32 months to get all necessary clearances before construction starts. While getting statutory approvals cause maximum delay, other factors like getting finance and skilled labour too add to it.
# Most developers have expressed their willingness to adhere to proper carpet area/saleable area guidelines and to display details about approvals, pricing and sales proceeds to their buyers, they have been more reluctant to disclose details of funding their projects, especially for land acquisition.
# Globally, India & China have shown significant improvement and in case of India, it has been mainly due to increased data and property records availability and ongoing regulatory changes.
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