Who doesn’t aspire to have a place to call their own?
In the heart of every Indian lies a cherished dream – the dream of owning a home. It is a dream that transcends irrespective of financial limitations and stands as a beacon of hope for people from all walks of life.
As we all know, real estate contributes 6 to 7% to the country’s GDP. Amidst the vast landscape of India’s real estate sector, an undeniable truth exists that the bigger the industry grows, the greater the chaos it faces. With each passing day, this dynamic sector attracts more players, investors, and stakeholders, along with opportunities and challenges.
This whirlwind of chaos brought many responsibilities to shoulders, and that’s when the government came up with its ultimate googly.
RERA and MahaRera came into the picture
To regulate and promote the real estate sector in India, the government introduced RERA in 2016. As a result of this Act, the Government of Maharashtra established the Maharashtra Real Estate Regulatory Authority (MahaRERA) in 2017.
Before these authorities took over, complaints were registered against 23% of the projects. Following the execution of MahaRERA, it received complaints against only 3.5% of projects.
MahaRERA, the trailblazing authority at the forefront, is transforming the real estate sector, unveiling a game-changing step to redefine how we perceive and engage with real estate projects.
After introducing the Competency Certificate Exams for realtors, MahaRERA is now on the go to grade real estate projects on several development parameters. This will also include the grading of promoters in Maharashtra under Section 32(f) of the RERA.
MahaRera Grading System – an intelligent approach to enhance industry transparency, trust, and accountability
The implementation of a grading system for the real estate sector is an innovative move benefiting the stakeholders. This progressive step underscores the authority’s commitment to safeguarding the interests of homebuyers and promoting fair practices within the sector.
Under this new system, MahaRera will assess and grade real estate projects based on several key frameworks. These frameworks include the project overview, technical snapshot, financial details, legal aspects, developer’s track record, quality of construction, and adherence to various approvals and timelines. The grading system will objectively evaluate each project, offering potential homebuyers valuable insights into the development.
However, it’s not just homebuyers who stand to benefit from this transformative initiative. The grading system will also help developers to set new benchmarks. Armed with the ability to differentiate themselves through positive grades and competition, developers will strive for excellence in every aspect of their projects. This renewed focus on quality, timely delivery, and customer satisfaction will raise the bar for the entire industry, heralding a new era of reliability.
Proven international examples of grading systems in the real estate sector
Dubai: The Dubai Land Department implemented a star rating system for buildings, ranging from 1 to 4 stars, with an additional ‘4Plus’ rating specifically for sustainable features. Approximately 20% of existing buildings have gained 4-star ratings.
Australia: The Property Council of Australia (PCA) developed a classification system, including Premium, Grade A, Grade B, and Other, for Australian commercial buildings based on criteria that influence the perceived quality of facilities by occupants and investors.
Singapore: Under the Government of Singapore, the Building and Construction Authority (BCA) has introduced the Integrated Construction Quality Assurance Scheme (ICQA) to enhance quality, productivity, sustainability, and safety in the real estate sector.
Looking ahead
Gone are the days of uncertainty and ambiguity. MahaRera’s grading system is here to instill confidence, empower homebuyers, and elevate industry standards to unprecedented heights. Potential buyers will no longer have to navigate a maze of doubts and concerns. With the simple glance of a grade, they can unlock a wealth of information and have invaluable insights into the projects they are considering.
Undoubtedly, MahaRera has taken a giant leap forward in a groundbreaking move by introducing a comprehensive grading system for real estate projects. This initiative will bring about a seismic shift in how developers are evaluated, projects are assessed, and homebuyers make informed decisions.
(By Ashish Kukreja, Founder & CEO, Homesfy.in, India’s first listed real estate brokerage firm. Views are personal)