Grading Of Promoters under Real Estate (Regulation & Development) Act 2016
Requirement and Need –
Real estate is a industry with wide range of variations based on regional and economic dynamics, which often confuses the consumers on what basis they have to prioritize and invest. On the other end Promoters/developers at times also will not be able to justify their quality of construction, genuinity of legal documents. There are no specific standardized benchmarks set to measure the various aspects of a real estate project and they by decide its worth to invest. Real estate rating provides a state/city/region-specific assessment of the quality of real estate projects. Based on defined criteria and benchmarks your real estate project against other projects in the state, city and down to specific locality, and thus helps buyers identify best projects in the region.
This type of rating addresses two major needs in the real estate sector – enhanced transparency and specific benchmarking of projects
Advantages to developers –
1. Elevates the positive points of the project when compared to other projects in the same city and in a way strengthens corporate branding.
2. Helps in incurring finance from banks and financial institutions by building credibility
3. Helps in knowing the potential pricing of the particular project
4. Building Trust among buyers
Advantages to buyers
1. Helps in decision making through comparison of various projects in a region
2. Get more details regarding the project in which the buyer is going to invest
3. Progressive information on the project
Approach by RERA Authorities
RERA will collect the information and documents submitted by promoters for registration of their project, quarterly updates, audit certificates, professional certifications and analyze them based on the set parameters. The primary focus is to determine the quality of the particular real estate project. After analyzing the set parameters, a rating will be assigned and the project would be under surveillance throughout its tenure.
Various Parameters may be considered by authorities while grading the projects and promoters –
Grading of projects may lead to providing quality, committeemen, safety to the ultimate customer/ Allottees (it may act like an ISI / ISO etc for product and services)