What are the six points in PortfolioXL developer evaluation?

The framework covers: (1) Delivery track record — on-time completion history; (2) RERA compliance — registration status and complaint history; (3) Construction quality — site visits, material specifications, and third-party audits; (4) Payment plan structure — milestone-linked vs. time-linked, penalty clauses; (5) Title and approvals — clear chain of title, all statutory approvals in place; (6) Balance sheet and inventory — debt levels, unsold inventory, and cash flow health.

Why is RERA compliance alone not enough?

RERA registration is a baseline legal requirement, not a quality signal. Many developers are RERA-registered but have delayed projects, poor construction quality, or weak financials. Our framework looks beyond registration to actual delivery performance, financial health, and construction standards.

How does the balance sheet check protect investors?

A developer with high debt and slow inventory absorption faces execution risk. If the developer defaults, project delays follow, and buyers may lose priority in insolvency. We analyze debt-equity ratios, interest coverage, and inventory turnover to flag developers under financial stress before our clients commit.

How We Evaluate a Gurgaon Developer: The Six-Point Framework Behind Every Mandate

Most buyers evaluate developers on brand. We evaluate on delivery history, RERA compliance and balance-sheet discipline. Here is the framework we run before recommending a single rupee of client capital into any project.

The brand is not the asset

A developer's brand tells you what they want you to believe about them. The asset you are actually buying is determined by six things you can verify — and brand is none of them.

We have applied this framework to every Gurgaon residential developer transacting above ₹5 Cr per unit since 2019. The pattern is unambiguous: brand correlates poorly with outcome. Delivery discipline correlates almost perfectly.

The six points

1. Delivery track record on comparable scale

Past performance on smaller projects does not generalise. We look at the developer's three most recent projects at the same scale, mix, and price band as the one being underwritten — and measure actual handover dates against original commitment dates.

Acceptable: ≤9 months slippage. Anything beyond is a red flag.

2. RERA compliance pattern

We pull every RERA registration the developer holds in Haryana and check:

Quarterly progress reports filed on time
Updated possession dates (and how many times they have moved)
Complaints filed, and the disposition of each
Penalties levied and paid

A clean RERA file is not the floor — it is the entry ticket. We disqualify on first unresolved complaint above ₹50 lakh exposure.

3. Construction quality at the prior handover

We physically inspect the developer's most recently handed-over tower — not the sample flat. Specifically:

Common-area finish quality 18 months after handover
Lift, DG, STP, fire-system maintenance status
Resident association feedback on snag closure

This single site visit tells you more about what the buyer will actually own than any glossy brochure.

4. Payment-plan structure

Aggressive front-loaded payment plans (60% inside first 12 months) shift construction risk to the buyer. Disciplined construction-linked plans align developer cash flow with delivery.

Our preferred structure: maximum 30% on booking + agreement, balance strictly construction-linked, 10% on possession.

5. Title and approvals — independently verified

We do not rely on developer-furnished title reports. Our panel counsel pulls:

30-year title chain from sub-registrar records
DTCP licence, environmental clearance, fire NoC, occupation certificate eligibility
Any encumbrance, mortgage, or litigation on the parent land parcel

A single missing approval at the project level can delay handover by 18–36 months. The cost of independent verification is trivial against the cost of getting this wrong.

6. Balance-sheet and inventory overhang

For listed developers, we read the last four quarterly results. For unlisted, we triangulate via:

Inventory months of supply (months of cover at current sales velocity)
Net debt / EBITDA where disclosed
Cross-pledged land bank versus free land bank

A developer with 30+ months of unsold inventory is a developer who will discount your project to clear theirs. That hurts your resale value before you even take possession.

What the framework rejects

Across the last 36 months, this framework has caused us to decline to underwrite seven Gurgaon projects that were actively marketed and selling well at the time. Of those seven, four have since slipped possession by more than 18 months, two have RERA complaints exceeding ₹2 Cr in aggregate exposure, and one has been frozen by an environmental clearance dispute.

The discipline is the alpha.