Maharashtra RERA Introduces Grading System for Real Estate Projects
Listen to this News
June 19th, 2023
In a groundbreaking move, the Maharashtra Real Estate Regulatory Authority (MahaRERA) is set to implement a grading system for housing projects across the state. This initiative aims to empower homebuyers in filtering out unprofessional developers while providing them with a better understanding of project suitability and quality. However, some analysts express concerns that highly graded projects may exploit the system by charging significantly higher prices than the prevailing market rates.
The grading process is scheduled to commence between October 2023 and March 2024. Initially, all projects registered from January 2023 onwards will undergo grading. Subsequently, the authority plans to establish a matrix for grading promoters as well. The first round of grading results is expected to be announced on April 20 next year.
Factors Considered for Grading
The grading system, automatically generated through MahaRERA's IT solution MahaCRITI, evaluates various factors. These include a project overview, technical snapshot, financial details, and legal snapshot. The system considers the promoters' compliance track record, legal litigations, project finance quality, amenities, the status of statutory approvals, booking percentage, financial and legal encumbrances, and audit certification, among other criteria. Such information is typically inaccessible to homebuyers or rarely provided by builders.
Enhanced Decision-making for Homebuyers
The introduction of the grading system aims to assist homebuyers in making more informed decisions. By considering factors like financial risk, legal risk, technical risk, and timely completion risk, potential investors can better understand the projects they are considering. MahaRERA clarifies that project grading does not guarantee an absence of issues but can instill confidence in homebuyers. Global examples of successful grading systems in Singapore, Australia, and Dubai have inspired this move by MahaRERA.
Public Opinion and Stakeholder Feedback
MahaRERA has invited public suggestions and objections regarding the grading system. Stakeholders and the general public can provide their feedback on the proposed framework until July 15. The regulator aims to incorporate diverse perspectives to ensure the system's effectiveness and fairness.
Empowering Homebuyers through Grading
The introduction of a grading system for real estate projects by Maharashtra RERA marks a significant step toward empowering homebuyers. By considering multiple factors and providing transparent information, this system enables buyers to make more informed decisions. While concerns exist regarding potential price disparities, the aim of the grading system remains focused on enhancing consumer protection and transparency within the real estate sector.
Source: timesproperty.com
Share This:
Read all Thane Real Estate Latest News
To Know About Thane Real Estate Development Contact Us at 022 2580 6868