As the demand for homes
boomed in the last few years, Pune has become a hub for new residential
projects. The increasing number of projects and countless options leave buyers
confused. So, as buyer how can you identify the right project with
uncompromising quality?
To find the right
answer, CRISIL Star Ratings can be a good option. CRISIL, a global analytical
company, provides Star Ratings for Real Estate Projects across India.
Let’s find out more
about its rating parameters and how it can help you buy a right property!
What is Star Rating?
The Star Rating
provided by CRISIL is based on all round assessment of a particular real estate
project.They compare these projects with other projects in the specific city.
Then in detail assessment made available by CRISIL can be a guiding path for
the buyers to qualify projects in their
city.
Scale of Rating
Even the scale of
rating is city specific. It has eight point scale and the rating is given
between one to seven Stars.Seven Star being highest and One Star is for the
second lowest. Lowest rating for the project is ‘non-deliverable.
The rating is given to
proposed, ongoing and recently completed residential and commercial projects.
The project is constantly monitored after the first assessment of rating till
its completion. But the interesting point is that the CRISIL rating is a
continuous process. As the project
progresses, the ratings may change!
Rating Parameters
The rating parameters
of CRISIL cover the entire project from all the possible aspects. Starting with
legal terms like examination of land titles, sale agreement, other
approvals and clearances of the project are also properly examined. The quality
of sponsor, their legal and construction track record, their financial
strength and ability to construct the project is also checked for the
rating.
The quality of structure,
amenities, after sales services and time-cost equation is a critical
parameter for the rating. Viability, financial flexibility and
accounting qualities along with innovation in the project are also
analyzed by CRISIL for providing appropriate rating.
Rating Criteria
Every parameter of
rating is based on a certain criteria. The Project Sponsor Quality depends upon
strength of organization, its functioning system, legal track record and
financial strength of developers. While
Legal Quality rating is done by evaluating clarity of Title, sale agreement,
restrictive covenants, encumbrances and development agreement.
To rate the project on
the innovation parameter, CRISIL considers range of aspects such as Technology,
design, funding, land acquisition process etc.
Listed projects under
CRISIL rating
There are very few
projects in the city of Pune that have a moderate CRISIL rating. Megapolis by
ABIL and Kumar Properties was given a SIX Star Rating at an early stage in the
project, in year 2010.The quality of the project has indeed proved its class by
earning second highest CRISIL rating. Before the CRISIL rating, the project had
also earned a Platinum Rating under IGBC rating system in April 2009. Megapolis
has been listed in Top 100 Residential Projects in India and best Integrated
Township in Pune by Realty Plus in 2014.
