India tops BRIC nations in real estate index
India as an investment destination has steadily moved up the value chain over the last six years with increasing transparency in the real estate sector, according to the Jones Lang LaSalle 2008 Real Estate Transparency Index.
India scored highest among BRIC (Brazil, Russia, India and China) nations with a large number of listed real estate players that adhere to the stringent guidelines by Securities and Exchange Board of India (SEBI).
The current consolidation has accelerated a welcome transparency into the Indian real estate market. The index can help the investor to assess the risk that can be associated against the expected returns across developing nations.
The index not only details the reasons between the historic improvement in transparency from 3.9 in 2004 to 3.34 in 2008, but also looks into the future to showcase further improvement.
This could be reassuring for investors looking at India as a long-term investment destination compared to other countries.
The study attributed the steady improvement in India’s performance to the exponential growth in the number of real estate funds (investors) seeking to invest in India in search of higher risk-adjusted returns and the increasing number of international occupiers and developers eager to tap into India’s fast growing economy led by cost effective, skilled labour and higher returns on investment.