+
Need to mandate certifications and ratings in real estate
Real Estate

Need to mandate certifications and ratings in real estate

Mandating certifications help only when there are uniform and standard parameters by policymakers—the building fraternity unanimously agrees that there are no certifications or ratings available in India.

“ISO certification is one that can be considered, but it comes with its own limitations,” says Dr Niranjan Hiranandani, Founder & Managing Director, Hiranandani Group and President, NAREDCO. “What has made our company stand apart from others in the market till today is our zero tolerance for quality standards from 1987. Certification is mainly for documentation but one has to deliver more than what it is asked for in documents and certificates.”

That said, the certification system can certainly bring greater accountability and transparency to the sector. As Deepak Suvarna, Chief Projects Officer-Head Projects, Mahindra Lifespaces Developers, says, “The success model of Building Construction Authority, Singapore (BCA), is an example of what can be replicated in India but there is a cost attached.” Mahindra Lifespaces has engaged an external agency to conduct assessments that are similar to CONQUAS, the rating model used by BCA, Singapore.

Mandating certifications and ratings have an added advantage for end-customers as it ensures safety, delivers eco-friendly lifestyles, provide sustainable homes and increases the overall standard of living, says Shabbir Kanchwala, Senior Vice President, K Raheja Corp. “Further, a good rating makes it easier for developers to market their homes, which additionally improves the rental yield and appreciation of return on value of the property,” he says.

Sharing his perspective, Shashi Prabhu, Founder & Managing Director, Shashi Prabhu & Associates, says, “Rating the project will be helpful, especially for 50-60 year-old buildings. These buildings require redevelopment or maintenance. It is essential for engineers to visit a site and put them in a different category.”

Meanwhile, Pradeep Jain, Chairman, Parsvnath Developers, points to agencies such as CBRE, ICRA and other patent agencies, Knight Frank and others who have taken up the role of rating projects in India—a positive rating from them goes a long way in claiming better rentals and market price.

For instance, CRISIL Real Estate Star Gradings help buyers benchmark and identify quality projects within their city. As T Raj Sekhar, Director, CRISIL Real Estate Gradings, says, “The key factors evaluated in CRISIL Star Gradings process are quality of legal documentation, construction-related risks and financial flexibility or viability of the project, besides the background and track record of the project sponsor.” To assess project construction quality, CRISIL considers structural quality, infrastructure and integrated facilities, finish, after-sales service and any likelihood of time and cost overruns. For project innovation, CRISIL considers innovations in land acquisition, construction technology, building design and project funding.

SHRIYAL SETHUMADHAVAN

Mandating certifications help only when there are uniform and standard parameters by policymakers—the building fraternity unanimously agrees that there are no certifications or ratings available in India. “ISO certification is one that can be considered, but it comes with its own limitations,” says Dr Niranjan Hiranandani, Founder & Managing Director, Hiranandani Group and President, NAREDCO. “What has made our company stand apart from others in the market till today is our zero tolerance for quality standards from 1987. Certification is mainly for documentation but one has to deliver more than what it is asked for in documents and certificates.” That said, the certification system can certainly bring greater accountability and transparency to the sector. As Deepak Suvarna, Chief Projects Officer-Head Projects, Mahindra Lifespaces Developers, says, “The success model of Building Construction Authority, Singapore (BCA), is an example of what can be replicated in India but there is a cost attached.” Mahindra Lifespaces has engaged an external agency to conduct assessments that are similar to CONQUAS, the rating model used by BCA, Singapore. Mandating certifications and ratings have an added advantage for end-customers as it ensures safety, delivers eco-friendly lifestyles, provide sustainable homes and increases the overall standard of living, says Shabbir Kanchwala, Senior Vice President, K Raheja Corp. “Further, a good rating makes it easier for developers to market their homes, which additionally improves the rental yield and appreciation of return on value of the property,” he says. Sharing his perspective, Shashi Prabhu, Founder & Managing Director, Shashi Prabhu & Associates, says, “Rating the project will be helpful, especially for 50-60 year-old buildings. These buildings require redevelopment or maintenance. It is essential for engineers to visit a site and put them in a different category.” Meanwhile, Pradeep Jain, Chairman, Parsvnath Developers, points to agencies such as CBRE, ICRA and other patent agencies, Knight Frank and others who have taken up the role of rating projects in India—a positive rating from them goes a long way in claiming better rentals and market price. For instance, CRISIL Real Estate Star Gradings help buyers benchmark and identify quality projects within their city. As T Raj Sekhar, Director, CRISIL Real Estate Gradings, says, “The key factors evaluated in CRISIL Star Gradings process are quality of legal documentation, construction-related risks and financial flexibility or viability of the project, besides the background and track record of the project sponsor.” To assess project construction quality, CRISIL considers structural quality, infrastructure and integrated facilities, finish, after-sales service and any likelihood of time and cost overruns. For project innovation, CRISIL considers innovations in land acquisition, construction technology, building design and project funding. SHRIYAL SETHUMADHAVAN

Related Stories

Gold Stories

Next Story
Products

Interio by Godrej launches modular workplace solutions

Interio by Godrej has launched Workscapes, a modular workplace solutions category designed to help organisations configure and adapt workspaces to changing requirements. The portfolio combines mobile and compatible furniture and support elements that can be rearranged across different work modes without changes to fixed layouts.Workscapes includes Collaboration Tables, Privacy Solutions, Mobile Markerboards and Space Dividers, Power Solutions, Storage and Support Elements, Meeting and Presentation Tools, and Seating Elements. The range is designed for focused work, collaboration, informal disc..

Next Story
Infrastructure Urban

CAFE-III Gives Auto Industry Investment Clarity

The government’s new Corporate Average Fuel Economy (CAFE-III) norms have provided the automobile industry with a clearer framework for technology investments, according to industry representatives. The framework seeks to balance environmental objectives with flexibility for manufacturers while encouraging the adoption of flex-fuel vehicles and biofuels. Society of Indian Automobile Manufacturers (SIAM) President Shenu Agarwal said the five-year framework would give automakers greater predictability to plan investments and accelerate innovation. He said the regulation established annual targ..

Next Story
Infrastructure Energy

Mines Ministry to Auction Two Offshore Mineral Blocks in Andaman Sea

The Ministry of Mines will launch an auction of two offshore mineral blocks in the Andaman Sea on Thursday, seeking to unlock India’s offshore mineral potential and strengthen long-term mineral resource security. The blocks will be offered under a composite licence, which permits exploration and development activities in accordance with the applicable regulatory framework. The ministry said the auction was intended to encourage systematic exploration, attract investment and promote the use of advanced technologies for offshore mineral exploration and development. The initiative is also aimed..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code