The Global Real Estate Transparency Index (GRETI)
Measures the openness and clarity of real estate markets worldwide. It plays a crucial role in shaping investor confidence, especially in the transparency of regulatory frameworks, market fundamentals, and transaction processes.
It was developed by JLL and LaSalle Investment Management. This index ranks countries based on the clarity of regulations, ease of property transactions, access to market data, and legal frameworks. Transparency in real estate is crucial for attracting foreign investments, fostering market confidence, and enhancing sector governance.
How GRETI is Scaled
GRETI evaluates 99 markets globally based on over 200 factors, categorized under six main areas:
1. Market Fundamentals (e.g., availability of data on property transactions, lease terms, etc.)
2. Performance Measurement (e.g., consistency and reliability of real estate performance indicators)
3. Governance of Listed Vehicles (e.g., legal frameworks surrounding REITs and real estate funds)
4. Regulatory and Legal Framework (e.g., property registration processes, environmental regulations, etc.)
5. Transaction Process (e.g., ease of transactions, standardization of processes)
6. Sustainability (e.g., energy efficiency standards, green building certifications)
Each country or market is assessed against these criteria and classified in these five categories: highly transparent, transparent, semi-transparent, low transparency, and opaque. The index provides a roadmap for countries aiming to enhance transparency by identifying areas that need reform.
India’s Journey on the Transparency Index
India has consistently improved its ranking on the transparency index, currently positioned 31st globally in 2024. The country has moved from being semi-transparent to transparent in its Tier-1 cities (e.g., Mumbai, Delhi), thanks to major reforms like:
– RERA (Real Estate Regulation and Development Act, 2016)
Brought accountability and transparency by mandating developer registrations, timelines, and project disclosures.
– Digital Land Records
Improving ease of access to land information and reducing the risk of disputes.
– GST (Goods and Services Tax), which simplified taxation on property transactions.
India’s regulatory improvements, particularly in REITs (Real Estate Investment Trusts), have further boosted its transparency. India’s performance on sub-indices like sustainability (ranked 29th) and governance of listed vehicles (36th) also highlights significant advancements.
Deterrents to Transparency
Despite this progress, some challenges remain, particularly in Tier-2 and Tier-3 cities:
– Inconsistent data availability in these regions, especially in the warehousing and logistics sectors.
– Corruption and bureaucratic delays, slow down land registration and title clearances.
– Lack of widespread adoption of digital tools that can enhance transactional transparency.
Impact of Transparency
With greater transparency, India has attracted significant foreign investment, particularly in commercial real estate, which accounted for over 50% of investments in 2024. This shift from a residential-centric investment focus to commercial real estate reflects the growing trust of global investors in India’s property market.
Current Challenges
While Tier-1 cities like Mumbai and Delhi show transparency, Tier-2 and Tier-3 markets still lag, particularly in logistics and warehousing section. Further, institutional participation needs to grow beyond the current focus on office spaces, with investments still heavily concentrated in these areas.
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