TN ranks second in real estate index

C Shivakumar

Chennai:

Tamil Nadu is ranked second in Indian Real Estate Transparency Index 2011 among the 20 states in the country, according to a report by Jones Lang LaSalle.


The state also ranks second in inclusive and sustainable development, reforms in urban local bodies and availability of market information. However, it ranks third in protection of property rights and ninth in progressive business environment.

Neighbouring Andhra Pradesh, which is ranked first in the Real Estate Transparency Index, is way ahead of Tamil Nadu in protection of property rights and progressive business environment, according to the Indian Real Estate Transparency Index (IRETI 2011).

 The ranking was based on availability of market information, reforms in urban local bodies (ULBs), progressive business environment, protection of property rights and inclusive and sustainable development.

 "Tamil Nadu rates highly on market information, urban reforms and property rights. In the report, Economic Freedom of States of  India published by Academic Foundation, the state ranked high on legal structure and security as well as regulation of labour and business, due to its good governance,” the study said.


Real estate services related to land records and registration and water supply services are perceived as being corrupt in Tamil Nadu, as per the India Corruption Study 2008 by Transparency International India. However, these problems are likely to be alleviated in the long run as all the reforms related to computerisation of land records have been initiated and are in progress, the study said.

Although Tamil Nadu has maintained its environmental conditions so far despite high intensity of economic activity, it continues to face demographic pressure on environment which if no addressed can severely affect quality of life in the long run, the study warned..

Quoting India Labour Report 2009 by Teamlease, the report said much of India’s demographic dividend (productive part of the population) will occur in states with backward labour market ecosystems.  “Between 2010 and 2020, the states of Uttar Pradesh, Bihar and Madhya Pradesh will account for 40 per cent increase in 15-59 year olds but only 10 per cent of the increase in income. During the same period, Maharashtra, Gujarat, Tamil Nadu and Andhra Pradesh will account for 45 per cent increase in GDP but less than 20 per cent addition to the total workforce,” the report added.