Buildings collapsing in Mumbai is nothing new. In fact, this is a nationwide phenomenon affecting under-construction and new structures as well as old, dilapidated buildings. Despite the National Building Code, which regulates construction in the country, many developers in India continue to flout safety and quality rules to save on costs. So it has become critically important for buyers to be more vigilant.
Anurag Mathur, CEO — Projects and Development Services, Jones Lang LaSalle India, says, “In light of recent building collapses, the need for quality construction materials and techniques have once again been brought to the forefront.” He says that many of the older buildings in Mumbai and its surroundings were constructed along inadequate quality parameters and should have been redeveloped long ago. But newer constructions are also at risk. “Many have been built on a cookie-cutter basis with a view to maximise profitability. This is especially true in the case of some of the budget housing projects where seemingly, every possible financial corner has been cut,” he adds.
To be certain of construction quality, buyers should check that the developer is ISO-certified. “Some owners overlook the builders’ credentials and are deceived in the bargain,” says Brotin Banerjee, Managing Director and CEO, Tata Housing. “Buyers must do their homework before investing. The builder must be accredited; their projects should have the necessary approvals, No Objection Certificates and certificates from the authorised bodies. The responsibility of the builder does not end at selling the house to the buyer, but at making the residents’ stay as restful as possible.”
Besides scrutinising documents such as sanctioned approval plans and a sales agreement that should clearly state all the clauses, the buyer should also evaluate the consultants engaged and their track records.
It’s also worth visiting the developer’s completed and ongoing projects, checking on-site testing facilities and gathering feedback from existing customers.
Though you can’t become a construction expert overnight, there are steps to follow when checking the building quality. Kishor Pate, CMD, Amit Enterprises Housing, a Pune-based real estate developer, says, “A simple way for a layman to get an idea of overall construction quality is to check how thick the walls are.”
“They should be a minimum of nine inches in thickness — any thing less is indicative of shoddy construction. The buyer can also insist that the structural liability clause be introduced in the sale agreement,” he says.
Real estate experts say it is equally important to ask to see all the relevant documents. A Griha-certified green building is automatically certified as structurally sound and environmentally sustainable and the developer must provide you with the relevant documentation. “One should keep in mind that the actual investment value lies not only in the flat but also in the share of the land where the building stands. If the undivided land share is not mentioned in the sale agreement, the buyer can ask for it to be documented,” says Pate. However, it is advisable to involve a knowledgeable real estate agent or experienced property lawyer.
The nail test
Generally, if a project has been built on good quality construction parameters, it should last for at least 80 years before reconstruction is needed. Pate says that the quality of concrete depends on its ratio to the sand used and whether the concrete has cured adequately. “The rule of thumb is that you should not be able to drive a nail into a wall easily,” explains Pate, adding that foundation faults can be identified by patched cracks in exterior walls and that cracks on the structure can occur if a building is constructed without proper soil investigation. “If you spot mould and moisture in a building, that means the builder has not used good quality materials and there are defects in construction,” he says.
Mathur says that developers also need to factor in climate. For instance in Mumbai, high salinity levels and dampness should be considered. Structural audits should be performed on older buildings. Sachin Sandhir, Managing Director, Royal Institution of Chartered Surveyors (Rics) South Asia, says that in a primary market, it is difficult for buyers to ascertain the quality of construction. However, collectively they can hire an independent structural auditing firm for this purpose.
He gives the example of a developed property market such as the UK, which uses such tools as Rics’ Condition Report or Building Survey for selling and buying properties. “These reports provide a summary of risks, the condition of buildings and detailed information about the structure and fabric of the property. Building Survey also provides a thorough description of visible defects and potential problems. It then outlines repair options and the likely consequences of activities,” says Sandhir.
While he agrees that this may be a bit far-fetched for India at the moment, the inclusion of these reports are a natural progression of structural audits.
Check the ratings
For non-resident Indian investors who don’t have much time for multiple site visits, the best way to choose a property is to look at its ratings. Crisil, a global ratings firm, has introduced Crisil Real Estate Star Rating (Crest) that provides an all-round assessment of real estate projects. The rating is determined on the basis of parameters such as developers, construction quality, legal documentation, financial planning and innovation. It is assigned on a city-specific, eight-point scale.
“In construction quality, we take into consideration the profile of consultants, structural designs and its conformance to seismic zone requirements, wind and soil conditions, on-site and third-party tests conducted on the material used during construction, consultant inputs for errors rectifications or issues during construction, and technology used for construction,” says Anurag Jhanwar, Director, Crest.
Often, investors measure the longevity of an apartment based on its resale value or rental income but tend to overlook critical issues relating to its maintenance cost and safety and security. Until the proposed Real Estate Regulatory Bill is implemented and developers are held accountable, it is advisable to do your own scrutiny before buying that dream home.