Chennai/ Hyderabad, Dec16 (TruthDive): Andhra Pradesh ranks first, while Jharkhand is the worst in transparency in matters of real estate. Andhra Pradesh (AP) is closely followed by Tamil Nadu and Maharashtra, while Uttar Pradesh and Bihar are better than Jharkhand in the list prepared by the Confederation of Real Estate Association of India (CREDAI) and Jones Lang LaSalle’s Indian Real Estate Transparency Index (IRETI).
There are many factors that make Andhra the best player in the lot, says IRETI. However, almost everywhere, services related to land records and registration are perceived to be corrupt, and AP is no exception. “Starting a business takes less time, costs less and has fewer procedures in Andhra Pradesh. However, real estate services related to land records and registration are highly corrupt. Moreover, the state is yet to repeal the Rent Control Act, which keeps rents artificially low in old buildings due to which landlords refuse to renovate,” says the report.
Tamil Nadu rates highly on market information, urban reforms and property rights. But services related to records and water supplies are corrupt, according to Transparency International. Registration of property is also a cumbersome task. Increasing demographic pressure on the environment can severely affect things in the long-term.
Maharashtra has put an impressive show on some fronts like availability of market information, providing a progressive business environment and initiating reforms in urban local bodies—where it has fared best among the 20 states. However, it falls way behind in ensuring inclusive development (10th) and protection of property rights (16th). “Enforcement of contracts is difficult. Repealment of the Rent Control Act is still pending. Air pollution continues to be a concern,” says the IRETI report.
According to the CREDAI-JLL report, Gujarat, which occupies the 4th position in the list, offers the best protection of property rights and provides a better business environment than its neighbour, has performed badly in providing inclusive development (14th).
“Property markets in developing nations are largely inefficient compared with those in developed nations, primarily due to the dismal levels of transparency in the real estate ecosystem. The prime reasons for higher costs in non-transparent markets are lack of information, corruption, multiplicity or ambiguity in taxation and lengthy procedures,” the report says.
