PreLaunch Sellers & Buyers in Trouble

End of UDS/pre-launch sales?
Prelaunch developers likely to disappear with revocation of GO 111
Gated communities in 33 district headquarters in next 4 years
80 percent construction of Kismatpur villas completed
Giridhari Constructions MD Raghupathi Reddy

Giridhari Constructions MD Raghupathi Reddy said the repeal of the GO 111 would not have any adverse impact on the real estate sector in Western Hyderabad. In a conversation with Real Estate Guru on the occasion of the launch of the new project in Mahbubnagar, he explained that it was a myth that cancellation of GO 111 would have a negative impact on the realty sector. Further, he informed that the construction of a house has become expensive in both urban and rural areas. He said that a person known to him, started building a house in his hometown with an estimate of Rs 20 lakh, but it costed him Rs 80 lakh by the time of its completion. Excerpts from his interaction…

Rising petrol and diesel rates have pushed up construction costs. Prices of steel, cement, sand, and metal have increased by 40-50 per cent. Labour costs too have doubled after the Corona pandemic. As a result, those who sell flats in pre-sale and UDS were bound to incur huge losses. This is because a large percentage of them sold flats at just Rs 3,000-Rs 2,000 per sq.ft. As the construction cost alone has escalated to Rs 3,000-Rs 2,000, it would be impossible for one to complete the project after taking into consideration of other expenditure including cost of land or land owner’s share, maintenance costs, fees and taxes to be paid to the government agencies and marketing expenditure among others. Therefore, the cancellation of GO 111 would completely end the practice of prelaunch and UDS sales. These projects are likely to remain non-starters with no clarity on whether these projects which were sold and purchased even before the construction began, would even get permissions. Both the sellers and also buyers are at fault in this issue.

Ongoing projects

The construction work of the high-end villa project in Kismatpur is in progress and 80 per cent complete. The villas will be handed over to buyers within a year and a half. With a view to provide the state-of-the-art amenities available in Hyderabad city to the urban dwellers of Tier-II and Tier-III cities, we are making efforts to develop the gated community layouts, apartments and villas from Adilabad to Amangal. To this end, we have launched apartments in the already developed gated community layout project in Mahbubnagar. The flats, which were part of the first instalment, were sold at Rs 4,000 per sq.ft on the launch day itself. With this, we are gearing up to launch the second phase shortly. Thus, we have set a target of constructing a total of 4 lakh sq.ft.

Weekend getaways in Vikarabad

We are building 40 Weekend Homes in about 12 acres at Vikarabad, taking into account of the ease of commuting from Hyderabad and people’s interest in Vikarabad region. The response is beyond our expectations. Currently, we are selling each villa of 2,000 sq.ft in 240 Sq. Yards for Rs 95 lakh. We are currently selling plots in a gated community developed in 10 acres at Zaheerabad.

Season Township also has been launched in 30 acres at Jadcherla, where we are also planning to build an apartment. We are in the process of pooling land in areas like Karimnagar and Warangal. In the next four years, we have set a goal of developing gated community plots, apartments and villas in all the 33 district headquarters in the State. Our idea is to ensure that people living in those areas too enjoy modern amenities and quality lifestyle. Therefore, we are making strides towards reaching our goal, even if it is a bit difficult.