MahaRERA is currently in the process of implementing a grading system for all real estate projects registered with them since the start of this year.
According to officials, the objective of this initiative is to enable homebuyers to make well-informed decisions prior to investing in real estate projects. The grading system, as outlined in the order issued by MahaRERA on June 16, will assess various factors including financial, legal, technical, and timely completion risks. Starting from April 2024, the grading system will be accessible on the MahaRERA website.
To ensure developers have sufficient time to provide the necessary details, the Maharashtra Real Estate Regulatory Authority (MahaRERA) intends to allow an ample submission period. The grading system will incorporate quarterly reports on various factors, and the assessment will be conducted between October 2023 and April 2024, as stated by a MahaRERA official.
According to the official, the initiative will begin by rating the projects and subsequently grading the promoters.
MahaRERA, the official governing body, has further emphasized that the implementation of the grading system aims to aid homebuyers in making well-informed decisions. To establish the rating of real estate projects, MahaRERA has meticulously devised a comprehensive proposal, outlining the criteria and procedure. In order to gather valuable input, suggestions, and objections, the proposal has been open for review from various stakeholders until July 15. The grading mechanism will be applicable to projects registered from January 2023 onwards, with the announcement of project ratings scheduled twice a year. The initial rating list is set to be unveiled in April 2024. Since 2017, a total of 40,000 projects have been registered with MahaRERA.
According to the authority, various grading mechanisms are being followed globally. The implementation of a grading system for real estate projects will be beneficial for consumers, as it will enable homebuyers to evaluate and choose projects that align with their specific requirements and financial considerations. This system aims to provide homebuyers with a better understanding of the projects available to them, facilitating more informed decision-making.
Sunil Furde, the national vice-president of CREDAI, expressed his support for the grading system introduced by MahaRERA, considering it as a positive initiative. He believes that this system will encourage real estate developers to adhere to all the rules and regulations governing the industry. Furde also mentioned that similar grading systems are already in place in other countries, further highlighting the global precedence for such mechanisms.
According to Ramesh Prabhu, the chairman of the Maharashtra Society Welfare Association, the grading system introduced by MahaRERA is a pioneering move by a real estate regulatory authority. He believes that this initiative will motivate developers to enhance their grading standards, which will be assessed by an independent agency approved by MahaRERA. Consumer activists have pointed out that homebuyers often lack clarity regarding the reliability of developers and the complexities of various contracts. The grading system is expected to address these concerns and provide clarity to homebuyers, thereby aiding them in making more informed decisions.
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