Sobha gets top honours in India’s first ever real estate best practices audit reportThursday, January 12, 2017
Sobha Ltd has been ranked number one in Track2Realty’s Best Practices Report-2017, followed by Godrej Properties and the Prestige Group. This is the first of its kind in-depth report on best practices prevalent in the real estate sector in the country. Ten developers across the Indian markets got an A+ (Outlook Positive) rating in the Track2Realty Best Practices Report 2017. Many of the large-size and recognized developers got a B+ (Outlook Stable), while some of the larger developers by market size, got a B Rating (Negative to Stable) or C Rating (Outlook Negative).
While the Indian real estate companies are adopting some of the globally recognised best practices, the sector has to travel a long way. Bengaluru-based Sobha Limited is at the top with an A+ Rating, followed by Godrej Properties and the Prestige Group. Out of the 10 well-defined metrics of the survey, Sobha Limited ranks at the top on six of those metrics, while Godrej Properties stands at the top on four metrics. What has elevated the positioning of Sobha Limited is the fact that they have been way ahead of other developers, in a 20-city public perception survey.
Overall, the performance of developers in South India, and Bengaluru-based developers in particular, has been better than developers in other parts of the country. Other than these, the corporate conglomerates have registered their presence, with decent track record of best practices in the business.
What comes out as a significant finding of the study, is the fact that size alone does not determine the standing of a developer in adoption of best practices. Mumbai-based Omkar Realtors & Developers or Rustomjee may not have national footprints, and yet, their track record of best practices is much better than many developers with a national footprint.
Similarly, Kolkata-based Srijan Realty with limited projects, Mumbai-based Radius Developers with a decent beginning and the Central Park project in Gurgaon-Sohna Road, could figure way ahead of some of the market front runners, in launching very many projects. Prateek Group, a Noida-based developer with only a handful of projects, also stands out as trustworthy developer.
The track record of large-sized developers, like Jaypee Group or Unitech was found to be negative. Similarly, in North India, a developer like Supertech with many projects, did not score very high on the desirable benchmark of best practices.
A list of 100 top companies was picked up and evaluated in this study. The companies were picked up based on their market size, market impact, market differentiation/contribution, investors’ choice and Public perception. These companies were thereafter evaluated on the defined metrics of:
- Fiscal management
- Market depth
- Consumer connect
- Transparent deals
- Functional professionalism
- Desirable practices
Each of these metrics have 5-7 sub-metrics and the process of evaluation has been in-house research, followed by qualitative survey among the organised segment of investors, HNIs, NRIs and other influential stakeholders of the Indian real estate.
This was further followed with a pan-India public perception survey. A sample size of 10,000 respondents were interviewed with a set of open-ended and close-ended questions to understand the consumer psychograph and outlook about these real estate companies.
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