New trends have been noticed in the Hyderabad real estate market. Some investors are jumping to conclusions without exercising caution while investing in real estate projects and getting their fingers burned.
In fact, what precautions should they take to avoid getting cheated?
The dynamics of the Hyderabad construction sector have completely changed. The number of people buying homes to settle down in the city is decreasing. The number of people investing in real estate purely for investment purposes is increasing. Such investors have been investing in new projects and pre-launch sales of projects with the intention of earning more profits in less time. But some greedy buyers should realise that they will be able to earn more profits in less time only when the builder begins construction activity. They should think in terms of what would happen to their investment in case the builder did not launch the project. What would be the fate of investors if the proposed project failed to get clearances from authorities?
Suppose the site on which the proposed project is yet to take off is blacklisted or needs conversion. The investors should be able to visualize the crux of the problem.
If the project failed to take off, the investment would go down the drain.
In Hyderabad’s real estate sector, the situation was such that even builders from states like Rajasthan, Karnataka, Gujarat, and AP were making a beeline to Hyderabad and launching pre-launch sales of the projects that pose problems to the local builders.
Those who seek to invest in real estate should invest either in reputed developers’ projects or RERA-registered projects to avoid bottlenecks. Even if the approvals for the projects are delayed to some extent, there is at least some guarantee that the developer will definitely deliver the project.
Before deciding to invest in a real estate project, investors should check the background of the organisation completely.
They should verify the track record of the builder. While giving possession of flats to the buyers, did the builder in question give possession without posing any problems to the buyers?
While investing in a project, one should make a long-term investment without expecting profits in six months or one year.
Investors are advised not to give credence to the publicity gimmicks of the developers, who would ask buyers to invest Rs 10 lakh or Rs 20 lakh and earn monthly rentals. The builders will pay rent for some period out of the money invested by the investors, and afterwards, the builder might show an empty hand. Therefore, it is advisable that buyers not put their money in such schemes.
