We are please to state that Liases Foeas has carried out more that 60 projects rating. All the rated projects have withstood in their performance in commensuration to the rating attained by them.

Still, Liases Foras real estate rating has revisited the unparallel threshold of Micro Analysis for project appraisal.

Rating Approach & Assessment :

Liases Foras Real Estate Projects Rating has revisited the threshold of Micro Analysis of real estate environment.

Considering that the rating should signify the success of the project, an in depth appraisal of marketing dynamics factors has now been incorporated along with product appraisal.

Under current competitive scenario of real estate market, the success of real estate projects depends upon both the efficiency of the project (Product) as well as the efficiency of the location where the project is situated. And success of the project depends upon the duel impact of these two main parameters represented as marketing dynamics parameters and product parameters

Appraisal of Marketing Dynamics Factor :

Appraisal is carried out in regards to relative efficiency of the location, demand and supply phenomenon in the location, Price efficiency and scope of appreciation, Relative demand coefficient and business turnover coefficient.

Appraisal of product :

The research based scientific rating methodology is dedicated to help the buyer to make an appropriate decision and to get an optimum result in his property deal. The entire rating technique is based on hierarchy priority of all the factors- attributes, which a buyer/purchaser take in to consideration while buying or purchasing a property.

Factors like Zone Classification, Sustainability, Location, Accessibility, Credibility, Product, Lifestyle, Infrastructure, Surroundings, Amenities, Security and Cultural Appropriateness which plays an important role as an ingredient to make it a integral product to satisfy the buyers need.

The project is rated and appraised on 15 such factors that are defined and classified into sub-factors as mentioned in the detailed project appraisal analysis. Each factor considered is important from buyer’s point of view and carry significant impact in his buying decision. Therefore specific importance has been assigned to each factor that is in accordance to the degree of influence it carries in buyers mind for selecting a residential apartment. The numerical weighted of the specific importance is based on extensive research and surveys carried on potential purchasers.

Explanation of Factors:

The Zone classification has been defined as to how the specific location is perceived if it is a highly posh and prestigious location, it carries high weighted.

Image of the building - it reflects, how the image of the building has been perceived in that particular locality and its competitive strength. This factor is dynamic and is dependent upon the awareness, the project generates with time. A new project in under construction stage may not carry high points initially, but with the progress of the project and the word of mouth spread, the image will enhance and the points may go up.

Status of the project i.e. if a project is ready it carries more weighted than the under-construction project.

Past Customer Satisfaction Grade: A survey conducted on existing customer of the developer defines this factor, which is a reflection of developer’s commitments in regards to service, quality, timely possession…etc.

Sustainability of the complex from the point of water supply, electricity supply, communication, assorted living facility, transport…etc within the complex, carries maximum importance. Mainly the facilities catering to basic necessities of the individuals. Applicable more in far suburbs of Mumbai where infrastructure facilities are not adequate and a developer can provide extra feature to accommodates customers needs which are not in vicinities. However an area fully develop does not demand for such features, necessarily be incorporated in the project as most of the basic necessities are available within the vicinities.

Then location, which includes land price, traffic condition, road condition, development plans in the area, altitude, growth % ratio etc. Which is followed by accessibility (Reach) to the institutions of basic necessities.

Which is then followed by credibility of the builders, that means his track record, years of experience, and perceived reputation.

Which is followed by product that includes construction quality, product features, Etc.

Then Lifestyle, which refers to the income group of the target audience. Which is followed by infrastructure in the area including sewage sanitation, water supply, power supply, roads …etc.

Then surroundings, which include land use ratio, land built-up ratio, landscape, occupancy, level…etc. Which is followed by Amenities surprisingly standing 3rd from the last, here we would like to distinguish between product features and amenities. Amenities are not individually owned they are the common facilities used by all the resident of building/ complex like swimming pool, club house, garden etc. whereas product features are for individual/ flat owners like flooring, wiring living room dining room bed room, telephone etc

The security within the complex and out side of the complex. And at the last cultural appropriateness that means the mix of people residing in the complex.

What is rating is not so very important as much as to know what is to be rated - a house or a person!

The home of a person has its association with several attributes –intangible as well as tangible. These must be taken into considering in their specific order of importance to define a house that caters to the perceived and felt needs of an individual.

Builder’s reputation, past track record, building material used, adherence to National Building Codes by the builder, transparency, financial strength of the builder and timely possession are important but not adequate factors to be considered for rating of real estate projects.

Not so much known builder in the industry may build a better and more commercially viable project than who is known to have created more landmark constructions in the industry.
The rating of such project based on mere general factors of builder’s reputation his financial strength. Etc., will not be correct.

Then what are the reasons for a not so very well known builder making his project better and more viable? The obvious reason is that besides giving better construction, timely possession, legally sound project, his project (product) is more capable in satisfying the needs of the people therefore is more successful.

A buyers’ perspective should reflect in rating real estate rather than a builder’s perspective. Not to forget that now marketing dynamics have changed, and it is buyers’ market.

Therefore rating should mean to the buyer. And Rating should mean commercial viability of the project too. Because it is buyer who suffers more than the builder in a commercially not so viable project. There have been a few such cases in past that a highly rated project has not been a success.

There are many more factors that are important and significant in our view that makes a project more commercially viable, which can not be ignored to be considered for rating a project. They are the factors that define the House that defines house as a product. Which caters to the perceived and felt needs of the purchasers. Until and unless we adhere specific importance to these factors we can not have a correct rating system in real estate industry.

What we mean that the comparison of the factors like location, accessibility, lifestyle, amenities, credibility of the builder, quality of construction, sustainability of the project, infrastructure,. etc. has to be taken into consideration for rating a real estate project because these factors makes very high degree to influence in the mind of a purchaser. Because they mean the need of the purchaser.

The project scoring high on these factors carries more commercial viability. And eventually be more successful.

A highly reputed builder developing a project with best of the amenities like swimming pool, Jacuzzi, sauna… excellent building material. so on so forth, but fails to provide adequate water supply, can not make a commercially viable project no matter how highly rated he is. Because he fails to satisfy the basic need (necessity) of the purchaser. His project is not sustainable.

A property is not just plain four walls with a roof covering, it has various tangible and intangible attributes attached to it, which caters to the perceived and felt needs of the individuals. When some one purchases a property he does not only purchase a shelter, it purchases a infrastructure, he purchases a location, he purchases lifestyle, a cultural mix, amenities… etc.

It was therefore important to assess all the attributes, and to comprehend the specific significance each attribute has over the other. So we conducted extensive survey asking the potential purchaser to rank the attributes the consider for property purchase.  Hierarchical order of the factors consider for Real Estate purchase.

There are some major attributes as shown in above graph like project’s sustainability, location, accessibility, product, credibility of the developers; amenities, infrastructure, security and cultural appropriateness... that contribute significantly in making a property purchase decision. All these attributes are important in the decision-making; however, they vary in their degrees of importance.

Let’s take a practical example. Amenities such as swimming pool, Jacuzzi, sauna, gym, or a clubhouse do enhance the value of the project. However, with an inadequate water supply, all the above amenities become redundant and non-functional. This clearly means that the project’s sustainability from the point of view of availability of water supply, power, communications, transport, health services, security …etc., is of primary importance and therefore carries more importance and hierarchy over other amenities like club house with swimming pool, Jacuzzi... Moreover the impact of these amenities on the monthly outlay of the purchaser is also significant and to be ascertained too.

This is the crux and the hypothesis of evolution of the logical and scientific approach to real estate industry.

Based on this hypothesis we initially worked on assessing the parameters attached to the property, then we worked on defining each parameter.

Thereafter we carried out an extensive survey of potential property purchasers. We asked them to rank all these parameters as per their degree of importance. And then we took weighted average to arrange the parameters accordingly.

All the parameters have been defined in terms of sub factors like: Sustainability of the complex from the point of water supply, electricity supply, communication, assorted living facility, transport…etc carries maximum importance. Mainly the facilities catering to basic necessities of the individuals. Then location which includes land price, traffic condition, road condition, development plans in the area, altitude, growth % ratio etc.

Which is followed by accessibility (Reach) to the institutions of basic necessities.

Which is then followed by credibility of the builders, that means his track record, years of experience, and perceived reputation.

Which is followed by product that includes construction quality, product features, etc.

Then Lifestyle which refers to the income group of the target audience.

Which is followed by infrastructure in the area including sewage sanitation, water supply, power supply, roads …etc.

Then surroundings, which include land use ratio, land built-up ratio, landscape, occupancy, level…etc.

Which is followed by Amenities surprisingly standing 3rd from the last, here we would like to distinguish between product features and amenities. Amenities are not individually owned they are the common facilities used by all the resident of building/ complex like swimming pool, club house, garden etc. whereas product features are for individual/ flat owners like flooring, wiring living room dining room bed room, telephone etc.

The security within the complex and out side of the complex.

And at the last cultural appropriateness that means the mix of people residing in the complex.

Specific importance is also given to the zone classification as to how the specific location is perceived if it is a highly posh and prestigious location, it carries high weighted.

If a project is ready is carries more weighted than the under-construction project.

The objective of carrying out survey was, to have a collective mind approach. As the specific importance of the parameters may vary as per individual’s judgments.

Modus operandi :

As our objective is to assist the buyer in his deal making decision therefore our rating methodology is based on factual data and market research.

It comprises of:

(1)  Extensive survey: An observation visit to the clientele project as well as the other competitive projects coming-
       up within same vicinity.

(2)  Research: Measuring all the attributes and salient features of the clientele project as well as other competitive
       projects.

(3)  Public Perception: it consists of demand and requirement in that particular area.

(4)  Brokers Perception.

(5)  Assessing competitive analysis report: It consist of a complete competitive analysis.

Our proficiency is to read market perception and clientele output.

Our rating methodology is dedicated to help the buyer to make an appropriate decision and to get an optimum result in his property deal. Our entire rating technique is based on hierarchy priority of all the factors- attributes, which a buyer/purchaser take in to consideration while buying or purchasing a property.

Factors like Zone Classification, Sustainability, Location, Accessibility, Credibility, Product, Lifestyle, Infrastructure, Surroundings, Amenities, Security and Cultural Appropriateness which plays an important role as an ingredient to make it a integral product to satisfy the buyers need.

AAA+ Rating:

(1)  Project achieving more than 85% grading on maximum scale.

(2)  Ensure commercial viability of the project.

(3)  Builders having potential and resources to provide requisite quality in stipulated time.

(4)  Project is potentially premium in its specific location.

(5)  Project has attained commensurate grading in regards to Location, Accessibility, and Credibility of the Developer,
       Product, Lifestyle, Surroundings, Amenities, Infrastructure, Cultural Appropriateness and sustainability of the
       project.

AAA Rating:

(1)  Project achieving more than 70 to 85% grading on maximum scale.

(2)  Ensure commercial viability of the project.

(3)  Builders having potential and resources to provide requisite quality in stipulated time.

(4)  Project is potentially premium in its specific location.

(5)  Project has attained commensurate grading in regards to Location, Accessibility, and Credibility of the Developer,
       Product, Lifestyle, Surroundings, Amenities, Infrastructure, Cultural Appropriateness and sustainability of the
       project.

AA Rating:

(1)  Project achieving more than 60 to 70% grading on maximum scale.

(2)  Ensure commercial viability of the project.

(3)  Builders having potential and resources to provide requisite quality in stipulated time.

(4)  Project is potentially premium in its specific location.

(5)  Project has attained commensurate grading in regards to Location, Accessibility, and Credibility of the Developer,
       Product, Lifestyle, Surroundings, Amenities, Infrastructure, Cultural Appropriateness and sustainability of the
       project.

A Rating:

(1)  Project achieving more than 50 to 60% grading on maximum scale.

(2)  Ensure commercial viability of the project.

(3)  Builders having potential and resources to provide requisite quality in stipulated time.

(4)  Project is potentially premium in its specific location.

(5)  Project has attained commensurate grading in regards to Location, Accessibility, and Credibility of the Developer,
       Product, Lifestyle, Surroundings, Amenities, Infrastructure, Cultural Appropriateness and sustainability of the
       project.