India improves in transparency

Real estate markets of European countries, the Australian region and the American region are the most transparent...

Real estate markets of European countries, the Australian region and the American region are the most transparent real estate markets in the world. Canada8217;s market now ranks as the world8217;s most transparent commercial real estate market in the world. Transparency is at its lowest in the Middle East and North Africa MENA countries.

This is reported in a recently released Global Real Estate Transparency Index from Jones Lang LaSalle, a professional services firm specialising in real estate, and LaSalle Investment Management, its global real estate investment management subsidiary.

In 2008, the biggest improvers in Asia Pacific are India, the People8217;s Republic of China PRC, and Vietnam over a period of two years since 2006. These have attracted more and more investors and corporate occupiers in recent years. Conversely, Indonesia, Malaysia, and South Korea posted negligible improvements in transparency over the same period in this region.

The Index provides a rigorous framework for comparing the level of real estate transparency in 82 markets around the world. Sixteen countries in the Asia Pacific region have been included in the 2008 Transparency Index.

The survey further shows that nearly half of the countries surveyed in 2006 demonstrated a significant improvement in their transparency score two years later. Transparency levels globally are improving as governments seek to streamline regulatory and legal hurdles to aid cross-border movement of capital and corporate facilities. Only Venezuela posted a lower transparency score this year compared with 2006, principally due to changes in government regulations and new taxation policies targeting foreign investors.

According to the report, transparency trend around the world in real estate continues to improve. The report further says, 8220;Nearly one-half 27 out of 56 of the markets surveyed in 2006 demonstrated an improvement in their composite transparency scores between 2006 and 2008.8221;

Anuj Puri, chairman and country head India, Jones Lang LaSalle Meghraj says, 8220;This can be a good news for corporations and investors who are looking for total occupancy and but are analysing the transaction costs in the emerging markets before striking the deal. The details of the transactions can be obtained even in markets with low transparency rates.8221;

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He adds, 8220;But high transparency does not prevent market volatility. The most transparent commercial real estate investment markets-listed real estate securities-are also most volatile.8221;

The report further says, 8220;Delhi retains its position as India8217;s most transparent market. Some other transparent markets are in Tier 3 cities, such as Chandigarh and Kochi, which equally have the similar growth potential as Mumbai and Bangalore. In India, the variance in transparency levels between Tier 1, Tier 2, and Tier 3 cities is lower than those in the PRC and Russia.8221;

Commenting on the Indian scenario, Puri of JLLM says, 8220;Growth in the Indian real estate is organic and it is not as organised as in the Western countries. And Asia Pacific region is still emerging like a corridor. Anything which is developed is saturated. It has less improvement potential.8221;