Reforms and transparency have led to capital influx in the Real Estate sector

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India’s real estate sector has recorded one of the most considerable growth in terms of transparency globally and secured the 34th position on the JLL’s Global Real Estate Transparency Index 2020, leading to higher investments. This was pushed by the structural reforms, enhanced market data, and progress in the REIT framework.

Amid the enduring COVID-19 pandemic across the nation, a substantial improvement in terms of green buildings and wellness led by IGBC Health and Well-being Rating is noted and made its entry into the elite club of top 20 for Sustainability Transparency through the active role of organizations like IGBC and GRIHA in developing green building certifications.

India’s rank in the World Bank’s Ease of Doing Business Ranking has progressed from 142 in 2014 to 63 in 2019. Amongst the indicators to measure the ease of doing business, the country’s ranking for ease in obtaining construction permits witnessed the highest ascent from 182 to 27 during the same period. This notable rise is an affirmation to the result of the various reform measures offered by the government to eliminate red tape and increase efficiency in undertaking business. In the real estate sector, structural reforms such as the Real Estate Regulation and Development Act 2016 (RERA), GST, Benami Transaction Prohibition (Amendment) Act, 2016, Insolvency and Bankruptcy Code, digitization of land records, etc. have elevated transparency which was a largely an unregulated sector formerly, according to JLL.

Therefore, the government has introduced several reforms and policies for a holistic improvement in terms of the overall transparency of the business environment. These reforms and measures have supported to re-enforce the investor confidence and so played a vital role in attracting higher capital flows into the sector. The reforms and a balanced improvement in Indian real estate has influenced the global investors as well.

Institutional investments have set a new benchmark of $5 billion annually in the last three years. The government’s aim of offering ‘Housing for all’ by 2022 is being managed through regulatory and fiscal incentives as well as providing tax benefits to sovereign wealth funds for investments in affordable housing. According to the JLL Research, governments, businesses, and communities dealing with the impacts of COVID-19, the pandemic has brought the issues of transparency and trust into focus. In these times of such ambiguity, the necessity for transparent processes and accurate data becomes more important than ever.

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