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Bengaluru-based Sobha Limited has maintained its leadership position in the Track2Realty Best Practices Report 2019, which evaluates the best practices being followed in Indian real estate. Sobha improved its performance, compared to first study in 2017. Godrej Properties maintained its second spot for the second consecutive time. Most of the top 10 performers improved their performance score in the second edition of the study, from the previous study in 2017. The report found that after the announcement of real estate investment trusts (REITs) and the increased focus on affordable housing, public perception has improved in favour of Bengaluru’s Embassy Group, which emerged as the third best performer across India, compared to its previous standing at number four.
The report rates and ranks real estate companies through a consumer-centric social audit. The developers were evaluated through the metrics of fiscal management; execution; market depth; consumer connect; transparent deals; functional professionalism; care; employer; communication; and desirable practices. The top developers were not only evaluated through scientific consumer surveys but also through an ‘unstructured buzz’ that tracks social media and other open forums. The unstructured buzz was based on the parameters of brand awareness; brand acceptance; brand appreciation; brand accountability; brand affordability; repeat buying; peer endorsement; social buzz; beyond catchment; and critique choice.
South Indian real estate markets lead best practices
Similar to the previous study, this time too, the performance of south India in general and Bengaluru in particular, was way ahead of the national benchmark of best practices. Five out of the top 10 best practices performers were from the Bengaluru market. These brands were Sobha Limited, Embassy Group, Prestige Group, Puravankara Limited and Brigade Group. Out of the remaining five, Godrej Properties has sizeable presence in Bengaluru, while Mumbai-based K Raheja Corp also has decent presence in the south Indian markets. Among the other top performers at the national level, Oberoi Realty and Piramal Realty, are from Mumbai, while DLF is the only player from north India.
Bengaluru was also voted as the number one choice of investment, by Indian buyers. The city not only retained its number one position as an investment magnet but also improved its investment score. Out of the top 10 investment worthy cities voted by the Indian buyers, four were from south India – Bengaluru at number one, Hyderabad at number three, Chennai at number seven and Coimbatore at number 10.
The leadership chart in south India is once again led by Sobha Limited, with the Embassy Group jumping from number four last year to number two. The top two are followed by Prestige Group, Godrej Properties, Brigade Group, Puravankara Limited, K Raheja Corp, Salarpuria Sattva, RMZ Corp and Mahindra Lifespaces.
In the west zone, Piramal Realty was the top performer, up three spots from its last ranking at number four in 2017. Godrej Properties slipped to number two from its leadership position, while Oberoi Realty was at number three. These were followed by K Raheja Corp, L&T Realty, Phoenix Mills, Kalpataru, Shapoorji Pallonji, Sunteck Realty and Hiranandani Group.
The east zone was led by Kolkata-based developers, who were gradually understanding the importance of compliances and consumer connect, to improve on best practices. The market leader in the region was Ambuja Neotia, followed by Godrej Properties, South City Projects, Srijan Realty, Forum Group, RDB Group, PS Group, Unimark Group, Shrachi Realty and Mani Group.
The track record of north India (across the markets of Noida-Greater Noida, Ghaziabad, Gurugram and Faridabad) has been worrisome. Some of the leading brands were pushed down in the rankings by smaller but credible developers having only a handful of projects. The north Indian list was headed by Godrej Properties. A relatively silent player in the region, Ashiana Housing, was voted as second best, in terms of adoption of best practices. The list is then followed by DLF Limited, Sobha Limited, ATS Group, Gulshan Homz, Mahindra Lifespaces, Mahagun, Central Park and ABA Corp.
The report finds that the sector may have improved a bit, in terms of adoption of best practices but definitely not to the desirable extent. By and large the study noted that there was resistance to the adoption of best practices. However, in future, developers who flout regulations, will lose market presence, as the market is tilting towards consumers and the investors are no longer finding the business very lucrative for short-term profits, the report warned.
Sobha gets top honours in India’s first ever real estate best practices audit report
In a first of its kind, in-depth report on best practices prevalent in the real estate sector in the country – Track2Realty’s Best Practices Report-2017, Sobha Ltd has been ranked number one, followed by Godrej Properties and the Prestige Group
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.