CONTENTS 1 REAL ESTATE IN INDIA 1 INTRODUCTION 10 2 DEFINITIONS 10 3 PERCEPTION OF REAL ESTATE 11 3.1 A Field Of Study 11 3.2 A Field Of Business 11 3.3 A Financial Asset 11 4 ATTRIBUTES OF REAL ESTATE 12 4.1 Physical 12 4.2 Institutional 12 4.3 Economic 13 4.4 Market 13 5 REAL ESTATE MARKET 14 5.1 Characteristics 14 5.2 Market Types 15 5.3 Types of Demand 15 6 KEY DRIVERS OF REAL ESTATE 16 6.1 Economic Growth 16 6.2 Demographics and Urbanization 16 6.3 Favourable Interest Rate and Fiscal Incentive 16 6.4 Growth in the next decade should come from Tier II/III cities 16 7 UNDEPENDABLE NATURE OF REAL ESTATE 17 8 NEED FOR RATING SYSTEMS 17 2 INTRODUCTION TO THE STUDY 1 NEED FOR THE STUDY: 19 2 AIM 19 3 OBJECTIVES: 19 4 RESEARCH QUESTIONS 20 5 SCOPE OF THE STUDY 20 6 METHODOLOGY 21 6.1 Selection Criteria of the Study Area 21 6.2 Study Frame Work 22 6.3 Data Sources 22 3 INTRODUCTION TO RATING MECHANISM 1 ORIGIN OF RATINGS 24 1.1 The World Scene 24 1.2 Evolution in India 24 2 SCOPE OF RATINGS 25 3 RATING METHODOLOGY 25 3.1 The Rating Process 27 4 EXISTING RATING SYSTEMS IN INDIA 29 4.1 ICRA - Investment Information and Credit Rating Services 29 4.2 CRISIL - Credit Rating and Information Services of India Ltd. 31 5 ADVANTAGES OF RATING MECHANISMS 33 6 DISADVANTAGES OF RATING MECHANISMS 33 4 CHARACTERISTICS OF THE STUDY AREA 1 AHMEDABAD CITY PROFILE 35 2 DEMOGRAPHIC CHARACTER 37 3 SOCIO - ECONOMIC CHARACTER 38 3.1 Annual Income 39 3.2 SEC Classification 39 4 REAL ESTATE OVERVIEW 39 5 NEIGHBOURHOOD PROFILE 41 5.1 Why Chandkheda, Motera and Ranip? 41 6 SWOT ANALYSIS 43 7 SAMPLING DESIGN 43 7.1 TO UNDERSTAND REAL ESTATE MARKET 43 7.2 TO APPLY PROPOSED RATING MECHANISM 44 7.3 TO OBTAIN DATA REGARDING PROJECTS 44 7.4 TO STUDY CUSTOMER SATISFACTION 45 7.5 Financial institutions 45 5 ANALYSIS FROM PRIMARY SURVEY 1 REAL ESTATE AND THE GOLDEN TRIANGLE 46 1.1 Home Buyer 46 1.2 Developer / Builder 47 1.3 Finance Institutions / Banks 47 2 COMMON PROBLEMS IN REAL ESTATE FUNCTIONING 47 2.1 Over Budget 48 2.2 Delayed 48 2.3 Non-smoothness 48 2.4 Inferior quality 49 3 ANALYSIS FROM PRIMARY SURVEY - TO UNDERSTAND PERCEPTION OF RATING 50 3.1 Inferences - Residents / End Users 50 3.2 Inferences - Banker/ Financial Institutions 51 6 PARAMETERS FOR RATING 1 PARAMETERS AND THEIR SIGNIFICANCE 54 1.1 Legal Parameters 54 1.2 Financial Parameters 59 1.3 Social Parameters 61 2 SELECTION OF PARAMETERS 64 3 SCORING OF PARAMETERS 65 4 THE RATING INDEX 68 7 CASE STUDIES IN AHMEDABAD 1 PARSHWANATH METROCITY, CHANDKHEDA 70 2 SANGATH BLISS, MOTERA 72 3 SWAMI NARAYAN CASTLE 1, RANIP 74 4 DEVNANDAN HEIGHTS, CHANDKHEDA 76 5 DEVRATNA 2, MOTERA 78 6 INDRAPRASTHA HIBISCUS, RANIP 80 7 SAMPAD RESIDENCY, MOTERA 82 8 HIMALAYA ZIRCON, CHANDKHEDA 85 9 SOPAN VEER RESIDENCY 2, CHANDKHEDA 87 8 RATING MECHANISM APPLICATION TO PROJECTS 1 FORMULATION OF GRADING THROUGH SCORES 89 2 CLASSIFICATION OF GRADES INTO SUB GRADES 89 3 APPLICATION OF PROPOSED RATING MECHANISM TO THE TARGET 91 9 CONCLUSIONS AND SUGGESTIONS 1 SUGGESTION 93 2 CONCLUSION 95 Annexures 97