Why are pre-launch favorites?

Sales of ordinary flats in Hyderabad have been declining for the last a few months, with many buyers inclining towards UDS or pre-launch. Without considering whether the project will be completed or not, why are so many buyers taking the risk? Are they genuine home buyers or investors?

The real sector is booming in Hyderabad and land prices have risen significantly. But why and how? It is true that land cost has gone up significantly. As a result, the prices of affordable flats have skyrocketed. The flat rates have increased from Rs 4,000 to Rs 6,000 per sq.ft in Miyapur, during the last two years ago. But there has been miraculous development in Miyapur over these two years, which could have prompted the price rise. The government has not yet developed the Gurnadham tank behind D-Mart. It has become a routine for local public representatives to visit the tank, occasionally reviewing the works for publicity. But there has been little progress in the execution of works.

While the price of a 1,000 sq.ft flat increased by Rs 20 lakh in just two years, there has been no great increase in incomes of the salaried home buyers. Observing this, a construction company taking up its project on the main road between Miyapur and Bachupally, has launched the UDS scheme offering flats at a rate of just Rs 3,500 and sold nearly 500 flats. With this, several small builders too launched selling their flats through UDS and pre-launch offers in Miyapur, Bachupally, Mallampet, Bhaurampet, Patancheru, Rudraram, Muthangi, Bhanur, Velimalam, and Kollur, among others.

People too started thinking that Hyderabad will continue to develop in future anyway and as the prices are high in the projects of reputed builders, they naturally got inclined towards purchasing flats offered by agents at low price under prelaunch or UDS offers. These agents too lured them saying that the purchase rate is low and such a great opportunity will not be available in future. As a result, people who want to own a home in Hyderabad, are selling their properties in native places and investing their life savings in these projects. But who is responsible if these builders fail to hand over the completed flats to the investors in a timely manner? What would be the fate of these home buyers? It is high time that the State government wake up to the UDS and pre-launch scams and take strong measures to curb such illegal sales taking place in the reality sector.