If you plan to buy a house in Mumbai or Navi Mumbai, here is some good news for you.
You can finally refer to a ready reckoner site that will tell you how efficient and justified the price being demanded is.
In other words is it a price fair or can there be negotiations, and by how much?
Liases Foras, a Mumbai-based research and ratings agency, has launched India's first real estate sensitivity index.
Called Ressex, the index analyses price factoring in availability and supply versus actual demand and tracks price elasticity.
Said Pankaj Kapoor, CEO Liases Foras, "We have gone beyond mere data sampling and creation of mathematical algorithms. The methodology followed utilises data inputs to provide answers to questions that affect real estate, spanning both ends of the spectrum: from GIS to a door-to-door survey."
Ressex, explained Kapoor, is the numeric representation of potential and variation in the real estate industry.
"It is a product of micro research, it covers almost every new real estate development (primary supply), and, is not based on just a sample survey.
"There are various misconceptions about real estate rates, efficient rate is the one that is absorbed by the market demand and does not impact the market negatively. Ressex enables you to know the market efficiency and demand and supply, and industry professionals would be able to keep track of rate dynamics," he added.
The index is meant to be used for real estate investment by both industry professionals and end users.
While professionals will be able to measure the
impact of events like variation in rates, interest rate variation or changes in government policies, the end user will benefit by figuring out the efficiency of pricing on his chosen project.
Kapoor said in addition, the index will be useful for suppliers, consumers, developers, FDI, mutual funds managers, financial institutions and landowners.
Liases Foras has developed other tools such property ratings which rates real estate projects, both commercial and residential, on parameters such as like security, amenities, looks and location and rates them.
User have to click on the project of interest to see an overall rating which is arrived at by factoring all the parameters mentioned in the box.
Users can then move on to individual items which are benchmarked against industry or locational maximums.
Thus, users looking at security as the principal parameter will get projects rated based on security offered by others in the area.
Similarly, grading based on amenities or even cultural appropriateness can be done.
The index will tell users whether the project was located close to a slum or an industrial complex, as these are factors which tend to depress prices.
"Once you have shortlisted the properties, you can check the efficiency of the price demanded by various developers by working out ratios such as saleable versus carpet areas and negotiate accordingly," points out Kapoor.
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