Sobha strengthens its best practices, Embassy jumps into top 3

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News Point: Sobha, Embassy, Piramal, Ashiana Housing are some of the brands to improve upon its best practices and emerge as winners, but the sector in its collective spirit is yet to embrace best practices, finds Track2Realty Best Practices Report 2019. 

In the second edition of evaluating the best practices being followed in the Indian real estate, Bangalore-based Sobha Limited has yet again maintained its leadership position. As a matter of fact, it has improved its performance, compared to first study with Track2Realty best Practices Report 2017. 

Track2Realty best Practices Report 2019finds that post REIT announcement and increasing focus on affordable housing, public perception has improved in favour of Bangalore’s Embassy Group. Embassy Group jumps to third best performer across India, compared to its last reported standing at number four.

Godrej Properties maintained its second spot for the second consecutive time. However, what is noteworthy is the fact that most of the top 10 performers have improved their performance score from the previous study in 2017.

The emerging reality in the sector is that the policy changes and the compliances are goading the leading brands to right direction. But the track record of vast universe of the developers is still anti-thesis of best practices. As a matter of fact, while the handful of developers are streamlining their processes and improving their consumer connect, the sector is witness to a long tail where best practices is seen as a liability.

Very much like the previous study, the study this time too finds that the performance of the South India in general, and Bangalore in particular, has been way ahead of the national benchmark of best practices. Five out of the top 10 best practices performers nationally come from the Bangalore market. These are Sobha Limited, Embassy Group, Prestige Group, Puravankara Limited and Brigade Group.  

Out of the remaining five, Godrej Properties has sizeable presence in Bangalore while Mumbai-based K Raheja Corp also has decent presence in the South Indian markets. The rest two nationally top best practices performers, Oberoi Realty and Piramal Realty, are from Mumbai, while DLF is the only player from North India.

As a matter of fact, Bangalore has also been voted as number one choice of investment by the Indian buyers. Bangalore not only retains its number one investment magnet choice but also improves its investment score, compared to Track2Realty Best Practices Report 2017. Out of the top 10 investment worthy cities voted by the Indian buyers, four are from the South India. These are Bangalore at Number 1, Hyderabad at Number 3, Chennai at Number 7 and Coimbatore at Number 10.

The leadership chart in South India is once again led by Sobha Limited. But what could surprise many is the jump of Embassy Group from number four last year to now at number 2. The list is then followed by Prestige Group, Godrej Properties, Brigade Group, Puravankara Limited, K Raheja Corp, Salarpuria Sattva, RMZ Corp and Mahindra Lifespaces.

West Zone, most notably in Mumbai & Pune, has been found to be next best performer. In West Zone, Piramal Realty has surprised as the top performer, up three spots from its last ranking at number four in 2017. Godrej Properties slips to number two from its leadership position, while Oberoi Realty is at number 3. The list is followed by K Raheja Corp, L&T Realty, Phoenix Mills, Kalpataru, Shapoorji Pallonji, Sunteck Realty and Hiranandani Group.    

The East Zone led by Kolkata-based developers are gradually understanding the importance of compliances & consumer connect to improve on best practices. The market leader in the region is Ambuja Neotia, followed by Godrej Properties, South City Projects, Srijan Realty, Forum Group, RDB Group, PS Group, Unimark Group, Shrachi Realty and Mani Group.

However, the track record of the North India (across the markets of Noida-Greater Noida, Ghaziabad, Gurgaon, Faridabad) has been pretty pathetic. So much is the very concept of best practices missing in North India that some of the leading brands otherwise were pushed down by the smaller but credible developers with only handful of projects.

The North Indian best practices leadership chart is headed by Godrej Properties. But what could come as a surprise to many is the fact that a relatively silent player in the region, Ashiana Housing has been 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 moot point today is whether the Indian real estate is inching towards the adoption of best practices. The answer could be both yes and no. But in an objective assessment what the report finds is the ground reality that the sector may have improved a bit, but definitely not to the desirable extent.

Some of the top ranked developers who have shown certain amount of promise and, more importantly, intent to adopt the best practices need to be appreciated. Such developers are anyway only a handful.

By and large the study noted that there is a resistance to adoption of best practices. The prevailing mindset is that of ways & means to escape from the regulatory compliances. Many of them are flouting the regulations with fair amount of success too. Moving forward, such developers would anyway lose the market presence since the market is tilting towards consumers and the investors are no longer finding the business very lucrative for short-term profiteering.

Track2Realty Best Practices Report 2019 is India’s only report to evaluate the performance of the Indian real estate companies in terms of adoption of best practices in the business.  

The evaluation report rates & ranks the given real estate companies through consumer centric social audit where we let the consumer evaluate the respective developers. The developers have been evaluated through the defined metrics of Fiscal Management; Execution; Market Depth; Consumer Connect; Transparent Deals; Functional Professionalism; Care; Employer; Communication and; Desirable Practices.

The top ranked developers have this time not only been evaluated through structured buzz of scientific consumer survey but also unstructured buzz that tracks social media & other open forum buzz. The unstructured buzz has been monitored on the defined parameters of Brand Awareness; Brand Acceptance; Brand Appreciation; Brand Accountability; Brand Affordability; Repeat Buying; Peer Endorsement; Social Buzz; Beyond Catchment and; Critique Choice.

Track2Realty is an independent media group managed by a consortium of journalists. Starting as the first e-newspaper in the Indian real estate sector in 2011, the group has today evolved as a think-tank on the sector with specialized research reports and rating & ranking. We are editorially independent and free from commercial bias and/or influenced by investors or shareholders. Our editorial team has no clash of interest in practicing high quality journalism that is free, frank & fearless.  

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