Dependency on CRISIL ratings increase among home buyers
Rating agencies such as CRISIL have made the life of home buyers easy. This was not the case a decade ago when evaluating the various risks associated with real estate projects was a nerve-wracking exercise.
However in the present scenario, if you follow their guidelines, then you can be rest assured that your money is in safe hands. CRISIL assigns a Real Estate Star (CREST) rating to projects based on a few key parameters. Based on the past performance of the developers, and looking at the present progress of a project, CRISIL assesses if the project will be delivered on time while meeting the specifications.
They scrutinise the builders’ track records and the builder’s construction skills, the quality of their management team, their processes, financial strength and accounting standards to assess their ability to complete the project as per the specifications.
Along with it, in an on-going project material testing is done and the experience of project consultants such as architects, structural contractors and other suppliers is also evaluated. CRISIL also looks at the level of innovation in design, construction and features.
The legal aspects are not neglected as it is the core of any property and due diligence is conducted on the clean land title and whether statutory approvals and clearances have been obtained. CRISIL also looks at the list of the bankers who have approved loans for the project.
Source- The Hindu Business Line
