India’s Commercial Real Estate Market Surges on Transparency Index

New Delhi / August 29, 2024: India’s commercial real estate sector is witnessing a surge in investor interest, buoyed by the country’s significant rise in the JLL Global Real Estate Transparency Index 2024. This development underscores India’s progress in regulatory frameworks, data transparency, and transaction processes, making it a more attractive destination for both domestic and international investors.

The report highlights that regions like Delhi-NCR are leading the way in adopting international standards in commercial real estate. The emergence of new commercial hubs, alongside the revitalization of existing ones, is reshaping the landscape. The rise of Shop-Cum-Office (SCO) spaces, particularly in areas like Gurgaon, has been a key trend, offering flexible, investor-friendly commercial spaces that cater to both retail and office needs.

Mohit Goel, Managing Director of Omaxe Group, stated, “The enhanced transparency in India’s real estate sector will draw more global investments, particularly in commercial spaces like shopping centers, malls, and office spaces. Our market is now seen as more reliable, structured, and conducive to long-term investment, which is vital for sustained growth.”

India’s advancement on the transparency index is particularly notable in key regions like Delhi-NCR, Mumbai, and Bengaluru, where commercial real estate has been expanding rapidly. This includes a variety of segments such as office spaces, shopping malls, high street retail, and Shop-Cum-Offices (SCOs). These regions have benefited from a combination of improved governance and increased data availability, leading to greater market efficiency.

Nayan Raheja of Raheja Developers added, “Higher transparency in India’s real estate markets has the portent to play a crucial role in boosting the confidence of every stakeholder, both domestically and internationally. This is true, especially at the time when India is exhibiting an unparalleled growth trajectory and the real estate sector is witnessing rising participation by global investors. Transparent markets reduce risks related to corruption and misinformation. It will make India a more appealing destination for commercial real estate investments. Enhanced transparency also improves access to financing, allowing developers to secure more competitive loan terms. Furthermore, a higher Global Real Estate Transparency Index (GRETI) ranking by JLL will enhance India’s global competitiveness, attracting multinational companies and institutional investors. It goes without saying that growing transparency has a direct impact on the inflow of capital. It will catalyse growth in India’s commercial real estate sector and create a more secure and efficient investment landscape.”

Harpreet Singh Hora, Group Director, Reach Group, points out, “The development of high-street retail in regions like Delhi-NCR is a testament to how transparency is transforming the market. With greater clarity and data availability, developers can design and execute projects that are not only profitable but also align with global standards of sustainability and customer experience.”

“The transparency improvements are also resonating with investors in tier-II and tier-III cities, where the commercial real estate market is beginning to pick up pace. The integration of technology and data-driven decision-making processes is helping developers in these regions create more efficient and transparent projects.”

Gaurav Gulati, Managing Director of CCPL, the owning company of EDM, shares his view, “The increasing transparency is helping us align better with international standards, making our commercial properties more appealing to foreign investors. This is particularly important in the retail sector, where consumer expectations are high, and there’s a growing demand for world-class shopping destinations.”

“As India continues to climb the Global Real Estate Transparency Index, the commercial real estate sector is expected to attract increased foreign direct investment (FDI). This influx of capital will further drive the development of innovative commercial spaces across the country, ensuring that India remains a key player in the global real estate market,” he added.