KOCHI: As the realty sector faces tough times, more developers from Kerala are going for Crisil 7 star rating. The 7 star rating is the topmost real estate project rating given by Crisil.
“Of the 250 applications we got in the country, we have given the 7 star rating only to less than 20 projects. Of this 4 are from Kerala,” said Anurag Jhanwar, director of real estate ratings of Crisil.
It is the players in the organized sector who are going for star ratings. Around 90 % of the real estate projects are in the unorganized sector and are often riddled with legal hurdles and construction delays. The star ratings differentiate the genuine builders from the others and help in gaining the trust of the customers, he said.
The awareness on the star ratings is more in South India as the literacy level is higher. The key factors evaluated in the star ratings process are quality of legal documentation, construction related risks, financial flexibility of the project, innovative attributes of the project besides the background and track record of the project sponsor.
Anurag Jhanwar, who was present to confer 7 star rating to Rs 30 crore luxury apartment complexes of Asset Homes in Kochi, said there a need for enhanced transparency in the real estate sector which can be achieved through self-regulation by developers.