Maharashtra ranks third in real estate transparency

The real estate market in the country's financial capital may be overheated, but the state as a whole has been ranked third in terms of transparency in the realty sector.

The Real Estate Transparency Survey 2011 ranks Maharashtra behind Andhra Pradesh and Tamil Nadu on various factors determining transparency. The state is followed by Gujarat, NCR-Delhi and Karnataka on the transparency index of 20 leading Indian states. The study has been done by the Confederation of Real Estate Developers Association of India (CREDAI) and property consultants Jones Lang LaSalle.

Of the five factors that have been taken into consideration while arriving at the ratings, Maharashtra ranks first as far as availability of market information and reforms in urban local bodies is concerned. The report explains that there is easy flow of information about the sector through real estate portals, financial statements of listed developers and real estate indices, while several urban reforms have been carried out under the JNNURM.

“The study is the outcome of a survey where the respondents, mainly developers, who were asked about parameters such as experience with government machinery, legal aspects, time required for permissions and corruption. We have also studied government policies and their track record for deciding on factors such as inclusive and sustainable development,” said Ashutosh Limaye, head of research at JLL (India).

However, Maharashtra lags way behind most states in terms of protection of property rights and for having a development that is both inclusive and sustainable. The report states, “Land records and registration services in Maharashtra are perceived as being corrupt. Enforcement of contracts is difficult. Repeal of Rent Control Act is still pending. Poor air quality and air pollution continue to be a concern.”

source: http://www.indianexpress.com/news/maharashtra-ranks-third-in-real-estate-transparency/888347