By: Sachin Sandhir, Managing Director, RICS South Asia
In India, considerable improvement has definitely taken place over the years with respect to the legal framework which encourages inflow of foreign capital. But, despite significant progress, issues such as liquidity and title ownership continue to act as constraints to cross-border investor activity, along with high transaction costs which have resulted in keeping direct investments at bay.
To this end, it is imperative that we realize that a shift from an excessively detailed and binding approval process to one that encourages the creation and diffusion of new knowledge based on international best practices and technology is essential for the on-going success of the real estate and construction sector.
Thus, the benefits of reforms such as that of a ‘single window clearance’ will need to be substantiated by the overall policy environment within which these are initiated and advocated in order for all stakeholders to benefit.
Also in order to improve transparency, the quality of information shared by stakeholders involved throughout the property lifecycle will need to be relevant. This will further need to be supported by a system of compliance, where non-adherence to listed guidelines and practice standards would need to be subject to penalties being imposed.
