A PRESS REPORT ON THE BEST PRACTICES OF REAL ESTATE DEVELOPERS ACROSS INDIA
BANGALORE TOPS THE BEST PRACTICES
Bengaluru emerges as by far the best market for property in terms of a variety of metrics, according to a first of its kind study of the top developers in India.
City based developers take four out of the top five, and seven out of the top 20 spots in a rating that looks at ten “best practice“ parameters, including fiscal management, functional professionalism, execution, consumer connect and transparent deals. Sobha, Prestige, Embassy and Brigade feature in the top five; Godrej Properties, at No.2, was the only non-Bengaluru developer here. Puravankara, Nitesh and RMZ feature in the top 20.
The study done by independent Delhi-based research centre and think-tank group Track2Realty has looked at 100 leading developers across the country . Track2Realty says the rankings are based on a survey of 10,000 respondents, focusing on 4Ps, namely practice, process, perception and performance. It noted that “best practices“ and “Indian developers“ may sound contradictory , and “too critical (an) evaluation would have amounted to discarding the majority of the top line developers from the list of Top 100.“
The companies were initially selected from different cities based on their market size, market impact, market differentiationcontribution, investors’ choice and public perception. They were then evaluated on the ten best practice parameters. Other parameters included market depth, care, employer, communication, and desirable practices.
Sobha got the highest ratings in six parameters, including transparent deals, consumer connect, commu nication and care. The report said Sobha was the only developer with a backward integration model for quality control and topped the table on public perception and brand satisfaction. Its debt-equity ratio, along with Puravankara, and borrowing cost are also better than the corporate benchmark of listed companies, the report added.
Prestige was at No. 3 and the report notes that it has an impressive track record of delivering to satisfaction, having the least number of consumer cases and litigations, and reporting better results compared to most national developers in spite of being a predominantly south India developer. Embassy was the top choice in office space and commercial real estate. The report called it the top choice of foreign investors in India for both property development and asset management.Brigade was lauded for being one of the top picks for foreign investors, for expansion through joint ventures and license to build five World Trade Centres in the south.
Sobha, Prestige, Embassy and Brigade also featured among the top 10 companies in the country in terms of “buyers’ vote of trust“ at Nos. 1, 2, 4, and 6 respectively .The report said about 7 customers out of 10 were ready to be repeat customers of Sobha, and 6 out of 10 for Prestige.Both these also had top of mind recall. Embassy has the perception of a “clean and transparent developer.“ Brigade has a good track record of buyer satisfaction across segments.
There is also a “buyers’ market preference“ ranking, and Bengaluru takes the top spot. It gets the best ratings in parameters including developers’ credentials, amenities & pricing, job market, and law & order. In developers credentials, the Bengaluru ones score the highest at 7.5 (on 10), followed by Chennai and Mumbai at 7 each. Builders from Delhi NCR score the lowest at 5.
Bengalureans may complain about the infrastructure, but the city’s infrastructure & connectivity also gets the top rating; Ahmedabad is the only other city with the same rating. Track2Realty said the survey respondents were predominantly educated professionals, with nearly equal number of respondents selected from luxury, mid-segment and affordable houses.