Come April 2024, the Maharashtra Real Estate Regulatory Authority (MahaRERA) will start grading projects to help homebuyers make informed decisions, Ajoy Mehta, chairman of the realty watchdog, told Moneycontrol.
Majority of the projects that will be graded are expected to be from the Mumbai real estate market, followed by Pune and Nagpur. MahaRERA had last September announced its plans to grade real estate projects in the state.
"We are under the process of starting to grade projects, and the same is expected to start from April 2024. The exact date of making the gradings is not finalised yet, but we are rolling it out next month," Mehta said.
"All projects from January 2023 will be taken for grading initially, and we announced the grading matrix last year. There are four criteria basis on which we are going to grade the projects," he said.
According to MahaRERA, the grading matrix will be updated every six months of the financial year. The first grading period will be from October 1, 2023 to March 31, 2024. The grading will be published in April end as the due date for uploading the Q4 quarterly progress report (QPR) ends on April 20, 2024.
Similarly, the second round of grading will be published for the period of April 2024 to September 2024. The due date for uploading QPR for this will be October 20, 2024. "Hence, we can expect the second round of grading to be out by October end," said a MahaRERA official.
The grading shall carried out through MahaRERA's IT Solution MahaCRITI, on the basis of the information submitted by developers.
Also read: MahaRERA to grade real-estate projects every six months from April 2024
Grading criteria
The MahaRERA has broadly chosen four parameters based on information uploaded by developers. These are technical, financial and legal details, and project overview. Information about these parameters will be displayed to homebuyers to help them take a decision.
"For example, if a developer has completed 20 percent of the project but hasp spent 90 percent of the receivables, we will display that. This will help homebuyers to make informed decisions. We will not go and give grading for each projects considering the sector is not ready for it now. The start is with giving out information and gradually over the period of next two to three years, we can even start grading projects like giving them a rating," the MahaRERA official said.
Also read: Can Maharashtra RERA classify and rate real estate developers or projects?
In Maharashtra, more than 44,000 projects have been registered since MahaRERA came up in May 2017 and more than 14,000 projects have been completed.
Uttar Pradesh RERA is also working on a similar plan to grade projects.
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