- Increased construction cost
- Government determines the market value
- Tough time ahead for those who bought in UDS, prelaunch sales
- High time to take back their investments
- Otherwise might lose them!
King Johnson Koyyada: A few months ago, a gang of fraudsters entered Hyderabad’s real estate market in the name of UDS and prelaunch sales. They created chaos in the market and collected money by offering flats for Rs 2,000 per sq.ft in regular apartments, Rs 3,000 per sq.ft in luxury apartments and Rs 4,000 per sq.ft in skyscrapers. The UDS and prelaunch scammers have already collected 100 per cent amount from buyers. At the same time, people who got lured by the lower prices, are now understanding the reality and demanding the sellers to return their money. Judging by the conditions prevailing in the market for some time now, the fraudsters are now in deep trouble.
Construction materials prices have risen sharply due to the outbreak of the Russia-Ukraine war, as well as rising petrol and diesel rates. Construction companies are lamenting that the construction cost has increased by as much as 20 per cent per sq.ft. The UDS and prelaunch builders are turning their back, due to rising construction material prices and realising that they too sold flats at an unnecessarily low rate. They are unable to figure out how to get out of this situation. Therefore, it can be said that the rush of UDS and pre-launch builders has slowed down to some extent in the recent past. The publicity on the social media had somewhat mellowed down, real estate experts observed.
On the other hand, the government has determined the minimum prices for flats in the State i.e. one cannot sell flats for lesser than the prices set by the government even under prelaunch and UDS sales. Investors are not coming forward to purchase, if the builders are selling for a higher rate than the UDS, prelaunch rates which have been prevalent in the market. In the meanwhile, the buyers too are now working smartly as they became aware of UDS/prelaunch scams and are purchasing flats only after gaining confidence that the project will be completed. As a result, the UDS and prelaunch irregularities have somewhat subsided. Under the current circumstances, even if all the flats are sold in UDS or prelaunch, it is difficult to complete the construction. With majority of available investments paid to the land owner, it would be difficult for the builders to complete the project construction. Therefore, some real estate experts are predicting that the UDS and prelaunch sellers are now caught between the Devil and the Deep Sea.
Are those who bought flats in trouble?
People who have already purchased flats under UDS/prelaunch sales must analyse the actual situation prevailing in the market. They must check whether the builder concerned completes the construction in time or not. Otherwise, they should demand for returning at least their original investment. If these builders fail to deliver and flee, the buyers might lose out their original investment as well. Thus, they must remain vigilant and take all precautions to safeguard their money. New home buyers should not fall into the trap of these scamsters under any circumstances.
