India set to become key player in global real estate landscape

MUMBAI:  India’s commercial real estate market has made significant strides on the global stage, driven by increasing institutional participation and regulatory reforms.

The country’s top real estate markets have entered the ‘transparent’ zone for the first time, marking a pivotal moment in JLL’s Global Real Estate Transparency Index 2024.

This achievement highlights India as the top global improver in real estate transparency, thanks to enhanced data coverage and quality across both core and niche property sectors, including industrial assets and data centers.

Key regulatory development

The country’s ascent is underpinned by key regulatory developments and a stronger institutional framework, which are fostering investor confidence and aligning India more closely with global best practices.

Samantak Das, Chief Economist and Head of Research, India at JLL, attributed this progress to the institutionalisation of commercial assets and the adoption of best industry practices.

 “The rise of listed REITs has been instrumental in stabilising commercial assets, while standardised valuation processes and stringent REIT regulations have anchored market-based approaches,” Das explained.

Among top 22

The 2024 index places India among 22 countries in the ‘transparent’ tier, a category led by Finland. India shares this space with major economies such as Hong Kong SAR, Denmark, and Spain, as it continues to climb the ranks in global real estate transparency.

Karan Singh Sodi, Senior Managing Director (Mumbai MMR & Gujarat) and Head – Alternatives, India, JLL, noted that India’s leap to the transparent tier is not only a testament to the industry’s cohesive efforts but also a reflection of the government’s proactive role in reforming the sector.

 “This milestone is expected to attract substantial capital inflows and elevate India’s standing among global investors,” Sodi said. He pointed out that markets with high transparency ratings typically secure 80 per cent of global capital flows.

Despite these advancements, Sodi highlighted areas that require further improvement, particularly in establishing efficient dispute-resolution mechanisms.

RERA and IBC

 “While regulatory enhancements like RERA and the Insolvency and Bankruptcy Code (IBC) have bolstered investor protection, continued efforts are needed to democratise data access, enhance institutional participation in public markets, and commit to sustainability goals,” he added.

The Global Real Estate Transparency Index 2024, led by the United Kingdom (UK), with France and the United States following closely, underscores the importance of transparency in attracting global capital. With its recent improvements, India is well on its way to becoming a key player in the global real estate landscape.