Global property consultants set up shop in Gujarat

AHMEDABAD: Global property consultants are making an official footprint in Gujarat. International real estate services firms are setting up offices in the state considering its progressive business environment. Ray White, one of Australia's largest real estate groups for residential, commercial and rural property, is all set to make its foray in Gujarat next month. The company plans to set up 25 offices across the state at the end of 2012. Gulshan Nayyar, master franchisor, Ray White India, said: "Looking at the need for making available market information, we are opening three offices in Gujarat in February. As real estate is a booming market in Gujarat, we aim to open 25 franchise offices at the end of 2012." Los Angeles-based real estate services firm CB Richard Ellis has also opened its office in Ahmedabad last week. A report - Indian Real Estate Transparency Index 2011 - released by Jones Lang LaSalle (JLL) India rates Gujarat fourth among the top states in terms of transparency in real estate and fifth in terms of a progressive business environment. The report says that markets with higher levels of transparency benefit from reduced information asymmetry, attract foreign investment and provide adequate property rights to owners. The report further says that although international property consultants have low presence in Gujarat, they have started opening their offices counting on the promise of a brighter economic future. This should increase availability of market information in the state. Manan Choksi, regional owner of RE/MAX Gujarat and Maharashtra, said, "At present, market information is not readily available in Gujarat due to lack of reported transactions. In other cities like Bangalore and Mumbai, the deals are reported in an organized manner due to involvement of multinational companies. The Gujarat government had introduced jantri rates to remove this discrepancy but that too had to be rolled back. RE/MAX Gujarat, which set up its first office in Gujarat two years ago, is part of US-based RE/MAX. International property consultants also help multinationals use them as the entry points into states like Gujarat. Nirav Kothary, regional director (Gujarat) of Jones Lang LaSalle India, which set up shop in Gujarat in 2009, said, "Property markets across the country are thriving on lack of transparency. A lot of transactions take place in cash which contribute to lack of transparency. The presence of global consultants in the state will help bring in more multinational companies, which are their usual clientele." BOX: As per the JLL report, Gujarat is leading in efficiency in city planning and approvals process, administrative and structural reforms and urban reforms for inclusive and sustainable development. However, the state is lagging behind in availability of market information and environmental sustainability. Source: http://timesofindia.indiatimes.com/city/ahmedabad/Global-property-consultants-set-up-shop-in-Gujarat/articleshow/11656374.cms