India's Tier-1 Real Estate Market Achieves Transparency Milestone
India's tier-1 real estate market has become transparent for the first time, according to JLL's Global Real Estate Transparency Index (GRETI) 2024. The market has also emerged as the top global improver, driven by advancements in transaction processes and
India Real EstateTransparencyJllGretiReitsReal Estate MumbaiAug 27, 2024
The market's ranking has improved significantly, with India now standing at 31 in the index, which features 89 countries. The index has four categories highly transparent, transparent, semi-transparent, low transparency, and opaque. In the sub-index for governance of listed vehicles, India's rank stood at 36.
Samantak Das, Chief Economist and Research Head, REIS, India, JLL, emphasized the need to expand the REITs market. 'Small and medium REITs are the talk of the day. The expansion will enhance India's ranking,' he added.
Karan Singh Sodi, Senior Managing Director, Mumbai Metropolitan Region and Gujarat, and Head - Alternatives, India, JLL, stated, 'This achievement is poised to attract capital inflows and boost India's standing among global investors. Markets with high transparency ratings garner 80 per cent of global capital flows.'
According to the research, in sub-indices pertaining to performance measurement, regulatory and legal, and sustainability, India's rank is 40, 43, and 29, respectively.
The research does not feature data for India's tier-2 and tier-3 markets. 'The tier-2 and tier-3 Indian real estate markets see attraction, not for office spaces but for warehouses and logistics, as they are more consumer-driven,' Sodi told Business Standard.
The Indian real estate sector has reported private equity (PE) investments of $4.8 billion in the first six months of 2024. Das estimated the PE investments to grow further to $6 to $8 billion by the end of this year. 'However, globally, it is less than 2 per cent. To improve, we have to increase the proportion of institutional participation,' he added.
The investments are primarily directed towards office spaces (54 to 56 per cent), unlike earlier when the investments were more focused on the residential real estate sector.
JLL is a leading professional services firm that specializes in real estate and investment management. The company has been operating in India for over 20 years and has a team of experts who provide a range of services, including advisory, transactional, and management services.
JLL is a Fortune 500 company with annual revenue of $7.9 billion, operations in over 80 countries, and a global workforce of over 93,000. The company is headquartered in Chicago, Illinois, and has been recognized as one of the 'World's Most Ethical Companies' by the Ethisphere Institute.
Frequently Asked Questions
What is the current ranking of India's tier-1 real estate market in the Global Real Estate Transparency Index (GRETI) 2024?
India's tier-1 real estate market is ranked 31 in the index.
What is the significance of India's tier-1 real estate market becoming transparent?
The market's transparency is expected to attract capital inflows and boost India's standing among global investors.
What is the estimated private equity (PE) investment in the Indian real estate sector by the end of 2024?
$6 to $8 billion
What is the primary focus of investments in the Indian real estate sector?
Office spaces (54 to 56 per cent)
What is the significance of expanding the REITs market in India?
The expansion will enhance India's ranking in the Global Real Estate Transparency Index (GRETI).
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