Here is a list of eight parameters prepared by ICICI Securities that can help you choose a developer who could make your money grow:

Look for a company with diversified business segments. This generally implies greater flexibility and lower volatility of earnings

In times of a downturn experts believe that companies with leased assets will do better than those that own them. Rentals are more sticky and do not fall as far (or as fast) as sale price, providing steady cash flows. However, asset owners have greater market-cap creation capability over the long term

Management quality is important The level of disclosures, greater clarity on the balance sheet and land bank, drive and skill for creating sustainable earnings growth as against dependence on capital appreciation are crucial attributes of a good developer

Product differentiation As the market matures across most Indian cities, understanding market demand and offering products with better value addition would be a key success factor

As capital gains reduce companies with construction done in-house (as against outsourcing the work) would have better margins, execution and quality of construction

Analysts favour developers with greater exposure to residential and commercial sectors against developers with greater exposure to large SEZs or mega malls

Developers with lower average land costs have a competitive advantage due to lower input costs and lower breakeven point in a market downturn

Look for developers with operations in tier II cities or suburban areas of tier I cities, as they offer higher capital appreciation potential and lower downside risk