Indian Real Estate Transparency Index
by Mr. Ashutosh Limaye
Inefficiency in the property markets of developing nations is largely attributed to the dismal levels of transparency in their real estate eco system. Markets with higher levels of transparency benefit from reduced information asymmetry, attract foreign investment and provide adequate property rights to owners.
Jones Lang LaSalle’s research report ‘Indian Real Estate Transparency Index 2011′ benchmarks 20 leading states of India on 5 broad parameters:
# Availability of market information
# Reforms in urban local bodies
#Progressive business environment
# Protection of property rights
# Inclusive and sustainable development
The study aims to assist investors, developers, the government & buyers to gauge the advancement in transparency levels achieved by these 20 states, and to apprise themselves of the areas that require further reforms.
Main Findings
# Andhra Pradesh, Tamil Nadu, Maharashtra, Gujarat, NCR-Delhi and Karnataka are the top 6 states in terms of transparency
# 97% of the developers are willing to provide actual measurements for calculating saleable and carpet area, to improve transparency to buyers
# 24-36 months are added to the pre-construction process in acquiring statutory approvals Delay in statutory approvals and high cost of finance have highly impacted construction timelines over the last two years
# A majority of developers want single window clearance for projects with regulators at state level than at the center.
About Author..!Mr. Ashutosh Limaye is Head – Research & Real Estate Intelligence Service in Jones Lang LaSalle India
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| Ashutosh. Limaye |
Inefficiency in the property markets of developing nations is largely attributed to the dismal levels of transparency in their real estate eco system. Markets with higher levels of transparency benefit from reduced information asymmetry, attract foreign investment and provide adequate property rights to owners.
Jones Lang LaSalle’s research report ‘Indian Real Estate Transparency Index 2011′ benchmarks 20 leading states of India on 5 broad parameters:
# Availability of market information
# Reforms in urban local bodies
#Progressive business environment
# Protection of property rights
# Inclusive and sustainable development
The study aims to assist investors, developers, the government & buyers to gauge the advancement in transparency levels achieved by these 20 states, and to apprise themselves of the areas that require further reforms.
Main Findings
# Andhra Pradesh, Tamil Nadu, Maharashtra, Gujarat, NCR-Delhi and Karnataka are the top 6 states in terms of transparency
# 97% of the developers are willing to provide actual measurements for calculating saleable and carpet area, to improve transparency to buyers
# 24-36 months are added to the pre-construction process in acquiring statutory approvals Delay in statutory approvals and high cost of finance have highly impacted construction timelines over the last two years
# A majority of developers want single window clearance for projects with regulators at state level than at the center.
About Author..!Mr. Ashutosh Limaye is Head – Research & Real Estate Intelligence Service in Jones Lang LaSalle India
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