The implementation of various reforms like Real Estate [Regulation & Development] Act, 2016 [RERA], land title insurance, the Benami Transactions [Prohibition] Amendment Act, incorporation of property sector in the Goods & Services Tax, demonetization and the introduction of Real Estate Investment Trusts [REITs] brought in transparency and this has reflected in the global ranking of the Indian real estate sector. These policy initiatives and reforms prove beneficial for improvement in the real estate sector and thus the position of the same sector on an international level has improved as India now stands at 35th number in a recently concluded survey.
India has been showing constant sign of improvement in the real estate and has registered itself as one of the top 10 countries in the world to have transparency in the same sector. India’s performance has been remarkably improved as the country moved five positions up in comparison to the survey that took place in the year 2014.
The increase in transparency level boosted the Indian economy as the international investment witnessed a rise by manifolds which is beneficial for the country at large. Apart from transparency, the improved market fundamentals, policy reforms, soft take on FDI in the real estate and digitization of property records play a pivotal role in the improvement of ranking. Also, the affordable housing scheme played a significant role to improve ranking.
The transparency in the Indian real estate sector helped customers to gain the trust back and thus the Private equity investments in the property sector increased. Until now, the Private equity investment in the Indian property market grew from $2.2 billion in 2014 to $4.7 billion in 2015, to $6.9 billion in 2016 and $6.3 billion in 2017.
India performed best among its BRICs counterparts Countries as both China and South Africa maintained their previous position and stand 33rd and 21st positions as they were in 2016 assessment although Brazil slipped at 37th rank and Russia retained its 38th rank.
The measurement index of this survey included factors like availability of authentic data, governance of public agencies as well as stakeholders of the realty sector; transaction processes and costs, regulatory and legal environment.