Ratings agency CRISIL has urged Housing Boards and State Governments to generate more awareness on the significance of ratings in developing a real estate project, to help create a level playing field.
Though there are increasing number of real estate projects in India, lack of awareness among public and developers has led to only some takers to rate their projects, a top CRISIL official said.
“Currently there are more than 50,000 small and big real estate developers in India but only 60 of them have come forward to rate their projects,” CRISIL Head, Corporate and Infrastructure Ratings Akash Deep Jyoti told media.
He said rating a real-estate project would help create a “level playing field” among developers by bringing in more “transparency” and more organised operations.
“To create awareness on value of ratings we need the support of everyone, including Housing Boards and Housing Department in State Governments,” he said.
Akash said many developers attract buyers by putting out huge advertisements of their future projects. However once completed, the project differs in many aspects from the promises held out to buyers, he alleged.
“The only reason developers place big advertisements in papers is to attract buyers. People invest huge amounts on buying flats or homes in such projects but may not be happy when it gets completed,” he said.
Currently 107 projects developed by 60 builders have CRISIL (Credit Rating and Information Services of India Ltd) rating”, he said, adding a buyer can get to know whether the developer has CRISIL rating by going through CRISIL’s website.
Asked about the earlier practice of the public to invest in real estate, Akash said “People were buying properties only from referrals, a practice in vogue for centuries.”
