With changing scenario in real estate, UP RERA is all set to introduce star rating and grading parameter for projects and developers.
In first of its kind step, state regulator is keen to bring star rating for projects and developers just like any other gadget, show, movie, item etc. To protect interest of home buyers and promote real estate in state, UP RERA is bringing rating and grading model for developers and projects. Soon home buyers will be able to choose project and developer having good rating.
Till date, home buyers don’t have any system to identify credible developer and project to invest and get assured delivery. When large no of developers are delaying project including mega names then it becomes need of the hour to identify the worthy players and raise transparency.
Working on ratings of real estate developers, Ravi Sinha- CEO, Track2Media says, “We inspects about brands while shopping and ordering things but look at the irony, in real estate where investment is too high, we don’t have any parameter to select worthy brand. We expect buyers to do due diligence and check all factors but how a buyer will do this. Either by checking approvals or financial status or construction status but how to check their past records, quality and delivery!”
Project delay, violation of BBA and non delivery are very common complaints of home buyers in UP RERA. Dues towards banks and non-payment at authority are major issues of developers in real estate that hurt them while occupancy and completion certificate. Incomplete projects and court cases of developers are daily activity.
End of the day this affects home buyers in the form of unnecessary delay in possession and home buyers must know about these facts related to developers. After facing such extreme scenario, it is important to evaluate all developers and prepare a model rating to identify that who is very poor, poor, good, very good and excellent. Such kind of initiatives will act as safe guard of investors.
Bhanu Pratap Singh, Member- UP RERA says, “based on various criteria we can assign different rating to developer and project based on their performance. But parameters will be reliable, open and home buyers can verify too. Above all, being a trustworthy govt body, we want to create a safe and sound rating model to protect home buyers from fly by night developers.”
CRISIL, IGBC and some other agency provide rating but is based on financial portfolio, investor and green aspects of developer not on the front of all projects, overall quality, proposed commitment, satisfaction, delivery etc. Nobody really has idea about debts, outstanding, ratio of under construction and delivered projects, verticals, locations, buyer’s view etc.
Saurav Paruthi- MD, Param Homes says, “Ratings of UP RERA will help brokers also to present clear credentials of developers and project to convince home buyers. UP RERA has already refined the market and there is only A and B grade developers active. RERA has shut doors for any C and D class developers. Hence only reputed developers are launching projects with focus on construction and timely delivery. UP RERA is analyzing all aspects of project and developer before approving it and it is not so easy, only reputed builder can fulfill the commitments.”
Many developers in sector are debt free but nobody knows this fact. Neither they own a single penny of authority nor they have borrowed any loan from banks for construction but home buyers are not informed about this. Such developers are self tailored, constructing projects and delivering a landmark address in the region. In fact having such track record, banks are open to lend them easily too.
Hariom Dixit- Director, Gayatri Group says, “A true performer has all rights to shine among big names. Many developers are honest in their work and delivering their projects silently. Such developers need recognition and I am happy that star rating from UP RERA will serve this purpose. This is a big leap towards regulating the sector and promoting credible developers in the state. I hope this will support home buyers to figure out the most reliable developer and best project for them out of many.”
Mr Sinha added further, “Developers having good track records also failed and social media is very strong tool to manage a good image among people even after having no credibility in market. So we studied Dubai and China model to select projects and developers for rating and conceptualized Brand X report.” (Excerpts from Zee Business)