Of late, there are numerous developers/companies offering flats at half the market price. But did you ever wonder why the builder is selling the flats for half the market price as pre-launch or UDS (undivided share) land when he could have made better profits by selling them for original market price? Exactly. The builders are selling flats for half the market price as they do not have adequate money to start the project itself in the first place. And how can you trust those who do not even have funds to start the project, to complete such high-rise towers and massive projects. Everyone must ponder over this basic point.
For instance, the Aliens Group launched its Space Station project at Tellapur despite having no money at its disposal to commence construction. Banks did not sanction large loans required for completion of the project. However, the developer tried to push the project into the market by placing attractive advertisements in the newspapers and used the proceeds from the sale to complete the project. But by the time it was realised that it was impossible to take the project any forward, the damage was done. Many people who bought flats in the project, were badly cheated.
However, the builders in Telangana especially Hyderabad have not learnt lessons from such incident which happened a decade ago. Some greedy buyers who had invested their hard-earning savings with another builder Sahitya Group, have lost it. As the project did not take off even after three-four years, they staged a protest at the company headquarters at Jubilee Hills, demanding it to either complete the project or return their money. However, the next day, the company managing director released a video asking buyers to exercise restraint, which became a topic of discussion in the market.
Don’t fall for sweet talk
Companies which have been selling plots, have recently started selling apartments and villas. Buyers should be beware of such companies which are selling these properties for much lower prices than the market price. You must not fall for the promises made by the company representatives who make false claims that they are always available at the service of buyers. These fraudsters will make you believe that the construction work will be taken up soon after obtaining permissions from the HMDA and other local bodies. Treat them with some caution as they would lure you with attractive offers and low prices. But after collecting money from you, it is always uncertain whether the company would continue or not and it would be difficult to nab them in case of them fleeing overnight. As the money was paid even before the project got RERA approval, even the government will not come to help you. While one cannot treat all the companies offering pre-launch schemes as the same, it would be unwise to believe them blindly as well.
