The pre-launch projects are not beneficial either to the buyer or to the developer. Therefore, it is always advisable to avoid them. The following is a case in example. Attracted by low price of Rs 3000 a square feet in Narsingi on the city outskirts prior to 2014, many have bought flats. By 2017, the per square feet cost went up to Rs 7000 to Rs 8000. Those who have brought the flats at this rate will be able to enjoy the appreciation only when they sell the flat at Rs 11,000 to 12,000 per sft.
But, some of them have bought the flats at Rs 3000-4000 per sft in pre-launch events. Because of the Covid-19 situation, the market appreciation is apparently hard to come by. At this juncture, those who have bought the flats in pre-launch events may bring them to the market for sale, trying to dispose of the flat more or less the same price. As a result, it would reflect on the sales of the realtor who sold the flats in pre-launch events.
Not only in Narsingi, but elsewhere in the city the realtors who have developed projects in pre-launches have been facing similar problem. Realtors who have sold the flats in pre-launch events are destined to face similar problems. The realtors who sell their flats without registering the project with the RERA also would have to face the same problems. Experts warn that the realtors should not dig their own grave by encouraging pre-launches. Several realtors have been facing rough weather in the market due to sale of flats at cheaper prices by those who have bought them in pre-launch offers. Therefore, intelligent promoters should open their eyes to the reality.
A developer building 500 flats can sell 100-200 flats in pre-launch offers, but not all. The rest of the 300 flats should be sold as per the prevailing market rate. Otherwise, he is destined to sustain loss. Of the 300 flats, the builder might have sold 200 of them at good price in the market. However, he is destined to suffer loss while selling the balance of 100 flats in competition with those who bought flats in pre-launch offers. In Hyderabad market, several builders have been facing similar problems. Therefore, it is advisable for promoters to not to sell flats in pre-launch events.
