A 3-step guide to choosing the right real estate developer in 2022!
PropReturns Blog coverimage

Read it in 5 mins

A 3-step guide to choosing the right real estate developer in 2022!

By Dhaval Shah

Last updated - Mar 9th, 2023

Table of content

Investing in the right property is important, but what’s more crucial is to choose the right property developer. We often shadow the significance of choosing the right real estate developer which is actually the first and foremost step of property buying. There are more than 82,000 real estate companies in India led by many small and big developers.

Besides, the real estate sector has seen many downs during the pandemic period and most of the developers faced execution issues, delayed project deliveries, and low sales which resulted in stalled projects causing a major loss to the buyers. So, how to know that your developer is the right choice you have made in such an uncertain situation? Following our 3-step guide will help you meet the correct property developer to make a sound investment decision.

Step 1 : Research:

This is the most common step that you might follow while picking the right developer, isn’t it? But are you researching your real estate developer, the right way? Here are some things you need to follow while researching your property developer-

a. Developer’s website -

While researching on the internet for the top developers in your preferred locations, one thing you can’t miss out on is their websites and online presence! Renowned and stable developers have their own websites that are self-explanatory to let you know about their years of experience, their completed projects, areas where they operate, and reviews from past customers. Shortlist the developers which have an extensive experience in the industry, and have constructed quality projects in this time period.

b. Meet face to face-

Many times, we tend to get over a call with the chosen developer and try to get just the overview of his work, the ongoing project/property that you are going to invest in, and end up making hasty investment decisions. But taking an extra effort and meeting your developer can give an in-depth look at many factors like the project timelines, deal flow, documentation, pricing, amenities, etc.

c. Documentation-

The Government has adopted the RERA in principle as a way to protect the interests of property buyers. All states have RERA websites containing information about the developer and the project under consideration. For instance, Maharashtra’s RERA department is called ‘MahaRERA.’ The RERA website provides the necessary information. If any promoter, or real estate development company fails to register as per the Act, he shall be liable to a penalty which may extend up to 10% of the estimated cost of the real estate project. Buyers purchasing property that is still not registered with RERA can face difficulties and will be on the weak side if they approach RERA in case they want to file a complaint.

- Check for No Objection Certificates (NOC): Every property developer should have NOCs from the authorities of the location before starting a project. These NOCs assure that the area is safe, livable, and has enough resources for the residents to reside. Given below are some important NOCs that you should look out for-

- Building layout approval : This is done to scrutinize the size and potential of the plot and the provision of civic infrastructure.

-Non-agriculture permission: One can’t build residential property on agricultural land. If the developer builds a property on agricultural land he should first convert the land into a residential plot. However, the properties like offices, schools, churches, and kennels can be built on agricultural land. So, checking for this document with your builder depends on what kind of property you are buying.

- NOC from the sewage, water, and electricity department: This NOC clarifies that the necessities in the particular location are available or there is a scarcity in any of these.

- Land ownership papers: Land ownership papers are a sign of clear titles on the land held by your developer on which the project is being built. This can be assessed by income-tax documentation, sale deeds, government survey records, etc.

-Completion Certificate (CC): This is an important legal document that you need to check if you are investing in a fully constructed project. This document certifies that the project is fully constructed according to the given norms and master plan.

d) Visit the past constructions and owners-

Sometimes, getting a third-party review is a must! Just relying on the developer’s words and great online presence can’t be the exact indicators! So, make it a point to visit the past constructions of your real estate developers and check the building’s layout, ask the residents if the developer sticks to his promises or not. You can also get a gist of what was promised and if it is delivered to the buyers. This way, you are safeguarded and will be able to make the right investment decision.

e) Timelines and deadlines!

You should inquire about the past projects and deliverables of the developer. Check whether his/hers past projects were completed or not. Ask him about the timeline of the given project and if he will take responsibility for the delayed project. It typically takes 6-9 months to complete a mid-sized project of 1500-2800 square feet. Nine to twelve months can be needed to complete a large renovation or new construction project involving 3,000-5,000 square feet of high-end details. Usually, projects over 5,000 square feet are highly specialized and can take over a year to complete.

Step-2 : Safety and legality check-

With any investment, there is a safety factor that plays an important role. Buying a property is a long-term investment and decides your wealth generation for the future. So, paying due diligence to every detail is crucial. Below are some factors to keep in mind-

The following are some basic legality checks that you need to do before going forward to investing-

a. Verify the title of the property

b. Check if amenities mentioned in the brochure, are mentioned in the contract

c. If it is a ready-to-move property, check if all the dues are clear, like light bills and property tax.

d. Ask for an encumbrance certificate, which indicates if the property is already mortgaged or not.

Look for these safety measures before investing-

1) Construction quality-

While making commercial real estate investments or residential investments, always inspect the construction quality of the project. Check if the amenities have good mechanisms and if the materials used are strong enough for a building to hold on to for at least 50+ years. A low construction quality can’t stand natural calamities or any adversities, making your investment a dead investment in seconds! So, a thorough inspection and investigation of the raw materials, and amenities should be done prior to investing in the property. It won't be possible for you to check the raw materials and equipment used to construct the property. Hence, you can audit the quality of your construction by adopting third-party audits. In India, third-party audits for quality construction are done by the auditors registered with the Quality Council Of India. An independent audit can be expensive, so you can ask your builder to do so. Doing this gives a clear picture of the quality of each and every aspect of your property, be it amenities or raw materials.

2) Safety measures-

Nowadays, safety measures like fire extinguishers, safe evacuation floors, and elevators with a Grade-A Certification that occupy a large capacity of passengers are equally important for a sound investment. Also, proper surveillance systems and 24/7 security are also important parts of investing in any commercial or residential property.

Step-3 : Pricing, payment plans, and livability factors-

Check if the pricing that your developer is offering you, is the right fit for their product. Are the amenities, fixtures, and facilities a great fit for your budget? Ask these questions to yourself before investing. Check if the rate of return the property is giving you is reasonable for your investment. Also, get financial metrics from your builder to assess how much the property will appreciate in the future. Furthermore, consider hiring a developer who has a good facility management team to take care of any problems or hassles associated with property management caused in the future.

Besides, ensure that the area wherein the project is located is well-equipped with livability factors like medical care, retail stores, transport facilities, etc. This gives a brief overview of not just the area is worth investing in or not, but also your developer's considerate approach towards people’s necessities.

With this, we wrap up our 3-step guide to choosing the right real estate developer. Oh, yes! Before leaving, we would be glad if you check out more about us and explore various real estate investment opportunities on our website!

Author avatar
Dhaval ShahInvestment Associate

Related stories

Signup for our newsletter

Enter your email to receive the latest news and updates from PropReturns.