Harried property buyers can now look forward to rated real estate projects, which will help them choose higher quality properties while buying or leasing them.
Leading rating firm Crisil today launched ‘Real Estate Star Ratings’, which will assign city-specific rating to a particular project on a eight-point scale, depending on the quality parameters set by the agency.While one star is the lowest, seven stars will be the highest rating and eight stars will be ‘non-deliverable project’ in the eight-point scale.
The ratings are decided on project-specific parameters such as developer quality, construction quality, legal documentation, financial planning and innovation.
While a project is given a particular rating initially, the rating may go up or down as the project progresses, said Akash Deep Jyoti, head corporate and infrastructure sector ratings, Crisil.
“While these ratings will help buyers identify quality projects in their city, developers can differentiate their projects from others, as a lot of them are worried about fly-by-night operators,” Jyoti said. As an initial step, Crisil announced ratings for 21 real estate projects in nine cities, including Bangalore, Chennai, Hyderabad and Mumbai.
Subsequently, it plans to cover north Indian cities also. “It is more important from the consumer point of view than the developers’ who rate their debt. It also depends on thoroughness and how exactly they execute it,” said Abhisheck Lod-ha, managing director of Lodha Developers, when asked about his opinion on such ratings.
The ratings were launched after Crisil conducted a survey with 3,000 home buyers, wherein 70 per cent of respondents expressed preference for rated projects and 50 per cent expressed willingness to pay higher price for rated ones.
“This product will change the way realty projects are sold across the country,” Jyoti said. The ratings are decided through site visits, peer benchmarking, project compliance, interaction with management, project team and others, he said. “While the same developer can have different ratings in different projects within a city, similar projects can have different ratings in two different cities,” he said.
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