For any project, one of the major factors to be evaluated is sponsor risk. REALTY CENTRAL Star Rating evaluates the developer quality based on developer’s track record in the industry Which includes assessment of the capabilities of the developer in terms of geographic experience, Ability to mobilise funds and number & type of projects completed. Besides, the developer’s Ability to deliver the projects as per the promised standards in a timely manner is evaluated. Furthermore, organizational strength as well as systems and processes available with the Developer are examined to assess the organizational bandwidth of the developer to execute Committed ongoing projects.
Moreover, developer’s communication with the existing customers and feedback from past Customers are also evaluated. For instance periodic disclosure of project status with buyers, Detailed website guiding the potential buyers is viewed favourably.
The project quality refers to the construction quality, project location, amenities provided and the Innovative concepts used in the project. REALTY CENTRAL evaluates the construction quality through Analyses of the track record of various contractors deployed by the developer, such as structural Consultants, architects, civil contractor, and project management consultants. Apart from the adequate track record of the contractors in the industry and construction technology, REALTY CENTRAL Views positively, the consistency in the set of contractors which provides stability in the quality of construction. Besides, the time bound - fixed price nature of the contracts reduces the Likelihood of cost over runs.
The above parameters are juxtaposed with the past track record of completed properties of the Developers and current status of the project to be rated, so as to evaluate the conformity of the Project with various approvals and promised deliverables in stipulated timeframe. REALTY CENTRAL Evaluates the project throughout the construction period of the project with site visits at regular Interval.
One of the major reasons which would cause delay in the real estate project is the legal aspect Involved. REALTY CENTRAL assesses the adequacy of the title search carried out for land and clarity of land Title. Further, REALTY CENTRAL assesses various approvals required for the project, in line with the type and Magnitude of the project, and the status of the same. The approvals assessed are usage of land (use of forest, agriculture or industrial land for real estate development) environment clearance, Aviation clearance, CRZ clearance, high rise clearance and commencement certificate
The REALTY CENTRAL Team will also work on financial issues related to the land, apartment and commercial complexes. Timely completion of any project is always subject to adequacy of the funds. REALTY CENTRAL evaluates the various sources as well as adequacy of funds planned for the execution of the project. The First and the foremost funding source is sponsors equity, REALTY CENTRAL evaluates the proportion of funds Committed by the developer for the project depending upon the type of the project, and further, financial flexibility of the developer is evaluated to assess resourcefulness during stressed Conditions. As real estate projects are capital intensive, these are financially leveraged to enhance Returns.
The rating outcome is ultimately an assessment of the developer’s capability and the likelihood of the timely completion of the project. REALTY CENTRAL analyses each of the above factors and their Linkages to arrive at the overall opinion of the real estate project with respect to the timely Completion with promised performance standards