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Efforts being taken by the Narendra Modi government to boost the real estate sector are in the 'right direction', a senior official of Crisil Ratings said.
"Efforts being taken by the government are in the right direction.
“However, it will take some time to get the desired results," Anurag Jhanwar, director, Real Estate Ratings, Crisil told reporters in Kochi.
Pointing out that the sector was largely unorganised, he said the ease of funding is not there.
Of 100 files reaching a banks, only five are approved. There are no set benchmarks or practises, he said.
He was speaking at a function after handing over the seven star rating citation to V Sunil Kumar, Managing Director and Anil Varma, Executive Director of Asset Homes for their project 'Asset Kasavu', the first villa project in South India to get the Crisil rating.
Seven star rating is the topmost real estate project rating given by Crisil, a Standard & Poor's company.
Crisil Real Estate Ratings provide city specific all-round assessment of real estate projects and help buyers benchmark and identify quality projects within their cities.
The key factors evaluated in the Star Ratings process are quality of legal documentation, construction related risks, financial flexibility/visiblity of the project, innovative attributes of the project, besides the background and track record of the project sponsor.
"There is need for enhanced transparency in the real estate sector which can be achieved through self-regulation by developers.
“The good news is that we are now seeing developers coming forth and embracing this concept by opening themselves up for third party evaluation, which was a positive sign indicating dedication towards customer centricity and professionals", he added.