According to the latest Indian Real Estate Transparency Index 2011, developing markets with more transparency levels will benefit from reduced information asymmetry. This will in the process attract more foreign investment as well as provide adequate property rights to owners.
The index is being published by Jones Lang LaSalle.
A top representative of Jones Lang LaSalle says that at a time when the global investment markets having a tough time, the flight of capital flows towards quality is most likely.
It is found that more the levels of transparency, more the flow of Foreign Direct Investment (FDI). A country with a transparent legal and regulatory framework can easily facilitate cross-border mergers and acquisitions and provide stronger protection for property rights, which is a key requisite for foreign investment.
A more transparent legal and regulatory system is also a key to more domestic investment. In order to woo more and more investment in the real estate sector from the prospective investors, the system needs to be streamlined and adequately liberalised. A single clearance window system is also crucial in this respect. Such a transparent system build up more confidence among the investors as well as the prospective buyers.
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