Realtors Make A Beeline To Get Projects Rated

Rating of real estate projects, and not just of the developers, seems to be the new mantra on Realty Street.

Leading rating agencies, Crisil and Icra, are rating both builders and projects. The focus has been on the strength of the developer and his ability to complete the project in time and pass on a clean title to the end consumer.

A new company -- Liases Foras -- is exclusively into the rating of nuts and bolts, the amenities and surroundings, all of which that make a house a home.

Icra has been working with the National Real Estate Development Council (Naredco), the apex national body of real estate developers.

 

The latter has been identified to be the nodal agency for the development of grading projects and developers.

A string of real estate players led by K Raheja Developers, Shapoorji Pallonji & Co, Evershine Builders, Hiranandani Construction, Akruti Nirman, Oberoi Builders, Godrej Properties and Investment, the REMI group, the Runwal group, Bombay Dyeing, Gesco, Samartha Development Corporation, the Nirmal group and Wadhwa Construction are getting their projects rated by Liases Foras, an agency that specialises solely in rating real estate projects.

Crisil and Icra rate projects in terms of the past track record of the builder in executing projects, as well as his financial risk profile. However, with supply outstripping demand, the scenario has changed. Rating projects has added value for the builder, especially when a rating demonstrates to the buyer whether or not he is getting value for money.

"When a consumer chooses to buy a house, he does not just want to know the track record of the builder. He would be more concerned with the nuts and bolts in terms of the location, land price, traffic condition, road condition, noise pollution, dust pollution, development plans in the area, and even the altitude of the project," said Pankaj Kapoor, who heads Liases Foras.

Maximum importance in the rating is given to the sustainability of the complex in terms of the availability of water, electricity supply, communication, and transportation.

Amenities such as swimming pool, jacuzzi, sauna, gym, or a clubhouse do enhance the value of the project. However, with inadequate water supply, all these amenities become redundant and non-functional. A project's sustainability from the point of view of availability of water supply, power, communications, transport, health services, and security are of key importance and carry more weight in the rating of a project. The impact of these additional frills (amenities) on the monthly outlay of the purchaser is also significant and has to be ascertained as well.

"If I can get a better rating by providing water purifier, I'll supply it in my next project. I may not be able to change the location, but there are certain aspects that can be modified to offer more value to the customer," said Wadhwa Construction managing director Manoj V Wadhwa.

Wadhwa's 'Vasukamal' project at Saki Vihar, Andheri, is among the highest rated projects with a AAA certification. Raheja Vihar has been rated AA, just as Tata Housing's Symphony at Chandivli, Andheri. The number of fans in a room, an exclusive garden, the type of flooring and fittings in the home, emergency lighting, sprinkler system and installation of aqua guard also add points in the rating.

Some projects of Lok Housing and RNS Builders have been considered failures as they have taken years for the builder to sell the flats, stated Kapoor of Liases Foras.