The real estate market in the countrys 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. In what would sound like music to the ears of buyers plagued by the prohibitive costs of the notional super built-up area,more than 90 per cent of the developers have expressed their willingness to provide actual measurements for calculating saleable and carpet area to buyers and also agreed on the need for a uniform carpet area and saleable area definition across the country. At the same time,almost half the developers are against making land acquisition prices public,a move that would have brought in greater transparency in pricing of houses. A majority are also not inclined to disclose source of funds or the shareholding pattern in their real estate projects. The report goes on to add that the proposed Real Estate Regulatory Authority will make the stakeholders more responsible towards their commitments and infuse confidence,currently lacking in the industry.
