Pre-Launch Properties in India, A Complete Investor’s Guide

May 1, 2023 madhyam

The real estate market in India has seen steady growth in the past few years, and investing in pre-launch properties has become a popular choice among investors. Pre-launch properties refer to properties that are still under construction and are being marketed before the project is completed. In other words, these properties are sold before they are ready for possession. Developers use pre-launch as a marketing strategy to generate interest and funds for their upcoming projects. Investors can book a pre-launch property by paying a booking amount, which is generally lower than the market price.

The possibility for greater returns on investment, accessibility to a broader variety of homes, and affordable pricing are just a few of the reasons why pre-launch properties are becoming more and more popular in India. Additionally, by making an investment in pre-launch properties, buyers can secure funding early on, which may result in higher returns as the value of the property rises over time. Additionally, buyers benefit from the ability to customise the property to their preferences, which is not always possible with already-built properties.

Things you need to know before buying pre-launch properties

Developer reputation: Research the developer’s reputation and track record before investing. Look for reviews and feedback from previous buyers to gauge their experience and satisfaction.
Location: Location is key when it comes to real estate investments. Make sure the property is in a desirable location with good connectivity, infrastructure, and amenities.
Project specifications: Look into the project’s specifications, including the floor plan, amenities, and quality of construction. Make sure they meet your expectations and requirements.
Legal approvals: Ensure that the project has received all the necessary legal approvals and permits from local authorities.
Payment terms: Check the payment terms and schedule before investing. Make sure they are feasible and align with your financial goals.

Key advantages of investing in pre-launch properties

Discounted prices: Pre-launch properties are typically offered at a discounted price, which can provide significant savings compared to buying the same property once it is officially launched.
Potential for higher returns: Pre-launch properties often appreciate in value after the official launch, which can provide higher returns on investment.
Better unit selection: Investing in pre-launch properties allows you to choose from a wider selection of units, including the most desirable ones before they are sold out.
Customization options: Pre-launch properties may offer customization options for the interior design, fixtures, and finishes, which can provide a personalized touch to your investment.
Payment Flexibility: Developers may offer more flexible payment plans during the pre-launch period, which can help you manage your finances better.

Developers offering pre-launch properties

Godrej Properties: Known for their premium projects and quality construction, Godrej Properties has several pre-launch properties in various cities, including Mumbai, Pune, and Bangalore.
M3M Group: M3M Group is a renowned real estate developer with a diverse portfolio of commercial, residential, and retail properties. They have several pre-launch projects in Gurgaon, Delhi NCR.
Sikka Group: Sikka Group is a leading real estate developer in India with a focus on commercial, residential, and retail properties. They have several ongoing pre-launch projects in various locations.
DLF: DLF is one of the largest real estate developers in India, with a focus on luxury residential and commercial properties. They have several pre-launch projects across major cities in India.

Conclusion

Investing in pre-launch properties also offers the potential for higher returns and the ability to lock in funding at an early stage, potentially leading to greater returns in the future. However, it’s essential to conduct due diligence and research before investing in any pre-launch property to minimize risks and ensure a successful investment.

Overall, pre-launch properties in India present a promising investment opportunity for investors who are willing to take the time to do their research, understand the market dynamics, and make informed decisions. With the right approach, pre-launch property investments in India can be a wise investment choice for those seeking long-term returns in the real estate sector.

Note: Do not confuse pre-launch with under-construction projects, “Under-construction projects are generally at 30 to 70 per cent completion stage where the developer has sold around 20 to 30 per cent of the project. At this stage, a majority of the approvals are in place, and most banks are ready to provide home loans, thus making it a comparatively safer investment.