The recent announcement by the Maharashtra RERA to institute a grading mechanism for real estate projects and developers has evinced a keen interest among various stakeholders including home buyers, developers , financial institutions, marketing and branding professionals, besides industry bodies. MahaRERA has already set the ball rolling by inviting suggestions from the stakeholders for formulating a framework for grading projects. It is pertinent to mention that in 2020, UP RERA had also formulated a grading mechanism which is however yet to be implemented. Torbit Realty brings together the opinion of different stakeholders on this consumer-friendly development. …..Vinod Behl
Boman Irani, President CREDAI
The recent decision of MahaRERA to set up grading systems for all real estate projects in Maharashtra is another step in the right direction to sustain a conducive buying environment for home buyers. MahaRERA continues to set a high benchmark for all states, encouraging enhanced transparency and streamlining flow of information . This will not only help home buyers make an informed decision but also enable developers to provide a facilitating eco-system for consumers. Additionally, this new system will rightfully add more merit to credible developers and projects, enhancing their value as a direct consequence.
Anand Gupta, Chairperson, Housing & RERA Committee of BAI
MahaRERA has taken one more step in the form of grading of projects/developers to protect the interests of consumers. As a first step, they have invited suggestions from all stakeholders to formulate final rules to decide parameters for grading . Ever since RERA Act came into force, leading from the front, MahaRERA has taken many pro-consumer steps like compulsory regular compliances through chartered accountants, architects and RCC consultants of the projects. Because of strict regulation, compulsory disclosure of every information and time bound regular update compliances, the image of the industry in the eyes of consumers and financial institutes has gone up.
Rajive Kumar, Chairman, Uttar Pradesh RERA
It was the Uttar Pradesh Real Estate Regulatory Authority which had first taken this consumer-friendly initiative in 2020. in line with the provisions of RERA to ensure efficient and transparent sale of property, safeguarding the interests of home buyers. Our grading framework was based on various parameters – project construction quality ( including structural quality, timely delivery and any project cost overrun), project legal quality (including sales agreement clauses and clear marketable land title), project financial quality and compliance with UP RERA ( including escrow account and timely updates of mandatory reports). Since under RERA clause such a grading mechanism is of advisory nature, we are waiting for the nod from the Uttar Pradesh government for setting up the grading mechanism.
Pradeep Aggarwal, Founder & Chairman Signature Global Group
This is a positive step towards ensuring transparency and empowering home buyers to make well-informed choices. Based on the evaluation of key factors, MahaRERA’s grading system will provide a comprehensive assessment of projects. This will enable home buyers to assess the credibility and reliability of developers, giving them confidence in their investment decisions
The requirement of regular updates on the MahaRERA portal will further enhance transparency. This will go a long way in establishing trust between developers and home buyers.
Shalin Raina, Managing Director, Residential , Cushman & Wakefield
MahaRERA’s grading system for developers and real estate projects is a positive step towards ensuring transparency and accountability in the real estate sector. This will enable buyers to make informed decisions based on the credibility and performance of developers. It will also put pressure on developers to improve their standards and quality of projects. It will encourage them to adopt best practices and maintain elevated levels of transparency in their dealings with buyers. Overall, MahaRERA’s grading system is a significant leap towards ensuring a fair and transparent real estate market.
Sudhir Pai, CEO, Magicbricks
The recent initiative of MahaRERA to introduce a grading mechanism for real estate projects is commendable, considering that the main challenge faced by customers today while investing in real estate is the lack of clarity regarding timely delivery and consequently buyers preferring ready-to-move projects over under-construction projects. The grading mechanism will have twin benefits. It will condense the complexity of project documentation into simpler language that buyers can comprehend and also aid in comparing suitable options. Developers are also encouraged to simplify documentation and comply with regulations to receive higher grades, attracting more buyers and boosting cash flows.
Prashant Thakur, Senior Director & Head Research, Anarock Group
Once the criteria and process for establishing the ratings are finalised, with inputs from stakeholders, , the grading system will be implemented in phases.Home buyers will benefit from more clarity and information which will make it simpler for them to choose the ideal project. Buyers will be informed of potential dangers if thorough project information is made available , including legal specifics and any active litigation or complaints against the project. Buyers will have clear information on the project’s specifics-location, amenities, developer track record and financial sustainability. This will go a long way in drawing the interest not only from end-users but also investors, including institutional investors.
Kunal Banerji, Marketing & Brand Expert.
Any form of grading and standardisation of projects and developers will be welcomed by investors and buyers. But the criteria for deciding the grades has to be made by an impartial and professional body of industry experts. The grading has to be based on track record, financial prudence and customer satisfaction index regarding the developer and the project in question. If it is done in the right spirit,the market will put its faith in it. Once the grading gets established and proven, it will be a boon for marketing and branding. Customers and investors will lean towards high grade projects and developers and such projects will fetch a premium. In fact grading will be an integral part of the brand and added value for sure.