India’s commercial real estate market has marked a significant milestone with its entry into the transparent tier of JLL’s Global Real Estate Transparency Index (GRETI) for the first time. The country’s ranking has improved to 31st position with a composite score of 2.44 in the GRETI 2024, signaling the growing institutionalization and governance improvements within the sector. The rise in India’s transparency rating is expected to attract significant capital inflows, as markets with higher transparency often receive around 80% of global capital flows, according to the Transparency Index.
The GRETI ranks countries based on factors such as the legal and regulatory environment, data availability, and market fundamentals. This year, India has moved up the ladder from its previous rank of 36th, which was under the semi-transparent tier in 2022. This shift has placed India among the “transparent” markets, along with countries like the United Kingdom and France, which hold the top positions with scores of 1.24 and 1.26, respectively. Notably, Singapore has entered the “Highly Transparent” category for the first time, marking a significant achievement in global real estate transparency.
The factors contributing to India’s advancement include a more proactive financial regulatory system, the introduction of new climate risk disclosure guidelines, streamlined building regulations, and the digitization of land records. These changes have strengthened the governance framework, improving the overall transparency of the real estate market. Additionally, India’s remarkable progress in the ‘Transaction Process’ parameter, where it ranks in the top 10 globally, highlights the institutionalization of commercial assets and improved access to real estate data, which are key components driving transparency in the market.
The Real Estate (Regulation and Development) Act (RERA) and the Insolvency and Bankruptcy Code (IBC) have played vital roles in boosting investor confidence by providing a clearer and more reliable framework for real estate transactions. India’s high scores in the transaction process are attributed to the growing share of single ownership assets in office leasing and the introduction of regulatory changes that streamline the transaction process.
India has seen an increase in institutional participation, which has been instrumental in enhancing market transparency. The country’s Real Estate Investment Trusts (REITs) market has grown significantly, contributing to improved governance and transparency, especially in the office leasing segment. With REITs now comprising 12% of Grade A office stock, there is considerable potential for further expansion of the listed vehicle market.
The transparency improvements are also supported by India’s growing focus on sustainable real estate. The implementation of green-certified office spaces and an increase in climate risk disclosures as part of the Energy Conservation Building Code (ECBC) are essential components of this shift. In 2023, India saw a 40% increase in WELL certification, with over 70 million square feet of office space certified, reflecting the country’s commitment to sustainability and climate risk mitigation.
The 2024 GRETI highlights India as one of the top global improvers in terms of market transparency, a position driven by consistent regulatory reforms, the rise of institutional investments, and the broader adoption of best industry practices. The country’s improvement is further underscored by its ranking as the most improved in the Asia-Pacific region in the 2022 report. These advancements position India as an increasingly attractive market for global real estate investors.
Samantak Das, Chief Economist and Head of Research & REIS at JLL India, emphasized that India’s sustained efforts in enhancing transparency have significantly contributed to its rise in the rankings. The robust regulatory landscape, which includes tighter monitoring by the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI), further strengthens India’s real estate market. As the country continues to prioritize sustainability and institutional participation, the future outlook for its commercial real estate market remains promising.
With continued improvements in transparency, governance, and sustainability, India is set to attract more global investments, further solidifying its position as a major player in the global real estate market.
