Have you ever wished you had a more reliable way to assess the transparency and trustworthiness of real estate projects in Maharashtra before making one of the most significant investments of your life? MahaRERA has introduced a groundbreaking grading system, that not only assesses and grades real estate projects but also empowers you to make informed investment decisions. In this blog, we’ll unveil the intrigue surrounding this innovative system, explore its functioning, and delve into the numerous benefits it brings to both homebuyers and the real estate industry as a whole.
In a move aimed at making the real estate sector in Maharashtra more transparent and accountable to homebuyers, MahaRERA has introduced a new system called the grading system, to assess and grade real estate projects. This makes MahaRERA the first authority in India to do so. The grading is based on various aspects like technical, legal, financial, and general project details, which builders must submit online every six months. This move aims to help potential homebuyers to evaluate different real estate projects for informed investment decisions.
The grading matrix will be updated every six months during the financial year, with the first assessment period spanning from October 2023 to March 2024. The process of the grading system will commence on April 20, 2024, after the deadline for submitting the previous quarter’s quarterly progress report (QPR) has passed.
MahaRERA understands the importance of providing support after the sale of a property. It has observed instances in various projects where there are no designated officers or coordinators available from the builder’s side to address people’s concerns post-purchase. To address this issue, the authority has now mandated that all project promoters establish a dedicated public grievance redressal cell, staffed by a full-time officer, whose name and contact information must be prominently displayed on websites and in advertisements, ensuring transparency in consumer relations.
MahaRERA’s commitment to transparency is further evident in its groundbreaking approach to evaluating projects using different criteria. The framework for this system has been thoughtfully developed after consulting and gathering input from various stakeholders.
The grading system has been applied to newly registered projects since January 2023. MahaRERA further aims to release its inaugural rating list by April 2024. Notably, since its inception in 2017, a staggering 40,000 projects have been registered with MahaRERA to date.
Ramesh Prabhu, chairman of the Maharashtra Society Welfare Association, highlighted that MahaRERA’s initiative to rate both projects and developers is a unique step, which he believes will motivate promoters to enhance their grading standards under the supervision of an independent agency approved by MahaRERA.
It will involve a team of independent experts conducting site visits, reviewing project documentation, and interviewing the promoters and project contractors.
The promoter must provide comprehensive project details to MahaRERA, including the project’s budget, legal adherence, and construction status, all of which will be made accessible to the public via MahaRERA’s website.
● Project details:
This includes the name of the project, its location, the developer, and other relevant information.
● Technical details:
This consists of the approval status, including the commencement certificate, adherence to promoters’ quarterly and annual requirements, booking rates, and more.
● Financial health:
This includes the project’s financial viability, the promoter’s track record, and the project’s funding.
● Legal compliance:
It includes the project’s compliance with all applicable laws and regulations.
● Construction progress:
This involves the project’s progress on construction, the quality of construction, and the adherence to timelines.
This consists of the quality and availability of amenities in the project, such as parking, security, and common areas.
● Promoter’s track record:
This includes the details regarding the promoter’s history of completing projects on time and within budget.
In this phase, MahaRERA evaluates the project by considering the information provided by the promoter. The evaluation is done using a scoring system where specific factors are assigned varying levels of importance. Once the evaluation process is complete, the project is assigned a grade.
The MahaRERA grading system will have a number of benefits for homebuyers as follows:
It provides homebuyers with more information about real estate projects, such as the project’s financial health, legal compliance, and construction progress, which will enable them to make more informed investment decisions.
The grading system will lower the risks for homebuyers by providing them with a greater sense of assurance in their investments, given the fact that projects with high grades are less likely to run into financial issues.
Developers who want to get a high grade will need to ensure that their projects are financially sound, legally compliant, and constructed on time and within budget, thus encouraging them to improve the quality of their projects.
When homebuyers know that there is a system in place to assess the quality of real estate projects, they are more confident and more likely to invest in the market. This can help to stimulate the economy and generate employment opportunities.
The grading system will protect consumers from unscrupulous developers. The level of transparency in this system will make it more difficult for developers to get away with wrongdoing. Thus, preventing consumers from being scammed or misled.
It will immensely help improve the accountability of developers in the real estate sector. Developers who want to get a high grade will need to ensure that they are complying with all applicable laws and regulations. This can help to prevent corruption and ensure that homebuyers are treated fairly.
MahaRERA’s grading system shines as a beacon of transparency and accountability in Maharashtra’s real estate sector. Granting homebuyers access to vital information and the ability to evaluate projects against predetermined criteria, not only enhances transparency but also promotes quality, lowers risk, and bolsters market confidence. This initiative safeguards consumers and sets a benchmark for the industry, enhancing overall accountability and equity. As the real estate landscape in Maharashtra evolves, MahaRERA’s grading system stands as a testament to innovation’s role in fostering an informed and secure investment environment for all stakeholders.