Real estate project grading by MahaRERA will begin in April

According to the MahaRERA, all real estate projects registered in Maharashtra since January 2023 will be evaluated starting in April 2024.

According to Ajoy Mehta, chairman of the real estate watchdog, Moneycontrol, the Maharashtra Real Estate Regulatory Authority (MahaRERA) would begin grading projects in April 2024 to assist buyers in making educated judgments.

The real estate markets in Mumbai, Pune, and Nagpur are anticipated to account for the majority of the projects that will be evaluated. In September of last year, MahaRERA declared its intention to assign a grade to state-wide real estate projects.

We are beginning project grading, and it is anticipated that this will begin in April 2024. We are launching the grading process next month, although the precise date has not yet been set, Mehta stated.

We will begin rating all projects in January 2023, and we released the grading matrix last year. We're going to score the projects based on four criteria," he stated.

The grading matrix will be changed every six months of the fiscal year, under MahaRERA. The first marking period will run from March 31, 2024, to October 1, 2023. Since the deadline for posting the Q4 quarterly progress report (QPR) is April 20, 2024, the grading will be released at the end of April.

In a similar vein, grades for April through September of 2024 will be released for the second round of grading. October 20, 2024, is the deadline for uploading QPR for this. Thus, according to a MahaRERA official, "we can expect the second round of grading to be out by October end."

Based on the data that developers have given, MahaRERA's IT Solution MahaCRITI will be used to carry out the grading.

Four factors have been selected in general by the MahaRERA using data that developers have supplied. These include the project summary, technical, financial, and legal aspects. Homebuyers will see information on these parameters to aid in their decision-making.

We will show, for instance, that a developer has finished 20% of the project but has spent 90% of the receivables. This will enable purchasers to make wise choices. Given that the industry is not yet ready for it, we will not grade every project. Information distribution is the first step, and over the following two to three years, we can even begin evaluating or grading projects," the MahaRERA representative stated.

Since the implementation of MahaRERA in May 2017, over 44,000 projects have been registered in Maharashtra, and over 14,000 of those projects have been completed.

A comparable project grading scheme is also being developed by Uttar Pradesh RERA.

 Source: Money Control