Crisil launches real estate ratings

The agency also made public its assessments of 21 projects spread across nine tier-I and II cities in India.

Kudva said: “A developer commissions Crisil and gives us access to

various details needed for assessment. We take into account our parameters and rate the project. Once the developer accepts the rating,we go public with the rating and project analysis which will be given to common buyers for free.”

Crisil’s parameters include the past record of the developer,the infrastructure he is erecting,finishing,timely completion,cost overruns,after-sales service,legal issues like title and project innovations such as green buildings.

The rating will be given mid-way through the project and will be under surveillance till project completion,during which it can be revised,she said.

There is a growing need in the market for objective,independent and credible assessment of real estate projects which led Crisil to launch the new product.

Kudva said: “As disposal incomes rise,real estate is the biggest non-finance investment and there are inherent issues of the sector.” She said the agency will soon complete 50 project ratings.