KOCHI: Several real estate developers are showing interest in partnering with Crisil Ratings to obtain certification prior to showcasing their projects before customers, Sachin Nigam, Senior Director – SME Ratings, Crisil Ltd, has said.
Opening themselves for third-party evaluation is a positive sign indicating dedication to customer centricity and professionalism, he said.
Nigam was here to confer 5-star ratings to IRIS, a residential project owned by PVS Apartments of the KTC Group in Desom near the Cochin International Airport Ltd.
He told Business Line that real estate developers seeking star ratings are on the rise nationwide and Crisil Ratings are associated with various projects in 45 cities in the country.
In Kerala, the agency has conferred ratings to 15-odd projects. There is a need for enhanced transparency in the real estate sector, which can be achieved through self-regulation by developers, he added.
He pointed out that Crisil Real Estate Star Ratings (CREST) provides city-specific, all-round assessment of real estate projects and help buyers benchmark and identify quality projects within their city. The ratings address the two critical needs in the real estate sector, which is improved transparency and objective of benchmarking of projects, he said.
The other key factors evaluated in the star rating process are quality of legal documentation, construction related risks, financial flexibility/viability of the project and also the track record of the project sponsor, he added.
Answering a question, he said the revival of the sector is closely related to economic development. However, the sector is witnessing some matured business. The resurgence of the sector is linked to positive sentiments which a stable government can provide. Moreover, the sector’s development is connected with some of the key reforms such as the passage of real estate and land reforms Bill, he added.