The investment potential of pre-launch properties is often seen as beneficial; the potential for appreciation is higher and selecting units is more competitive (and sometimes purchase contracts allow for customizations like the unit’s view or layout). Entering into early stage of any real estate project is always beneficial during EOI(Expression of Interest) offers. Sometimes, few Builders & Developers also offer No Pre EMI Till Possession and EMI Holidays schemes. This lucrative scheme saves you from any kind of financial crisis since most of the home buyers pay rent with EMI together.
Pre-launch properties carry risk like all investments. It is important to match risk appetite and value project stages. Financial and legal opinions of the project should help with the assessment of the risk.
Lower Prices
The project stage of pre-launch properties allow for a more affordable entry point and/or flexible payment plans. These factors contribute to the decision for many homebuyers and investors, but the risk at this stage of property development is high, making diligent legal investigations necessary. Ensure the builder has a solid history and check all government and legal clearances and approvals before making any payments.
To attract an early investment and assess demand in the market, the price for pre-launch properties is set low and in some cases, competitive. A price differential for the same unit can be substantial between the price at the pre-launch, post-launch, and possession prices.
Entry price for the pre-launch properties is low, which helps to build a more diversified property investment portfolio. More investment properties help to achieve higher potential long-term investment returns. The pace of the project, regulatory approvals, labor shortages, and buyer demand are all factors which can impact the value of the investment.
The variety of units and the more flexible entry and pricing structures are some of the reasons that attract buyers and investors to pre-launch properties. However, all the elements of a real estate opportunity should be assessed and evaluated, including the location of the project, the available legal approvals, the builder’s track record, and the probability of future growth, before making any real estate investment.
Casual investors tend to view pre-launch properties as investments that provide a higher level of opportunity as they are given the option to choose their preferred unit, meaning they can choose a unit that best suits their style or view and their intended investment horizon.
It is also common to see flexible payment structures, along with financial incentive offers and discounts, designed by the sellers of pre-launch properties. Together, these provide a lower entry fee and an improved financial outcome. Pre-launch properties that are offered for sale in emerging micro markets that have robust and developing infrastructure are also likely to provide significant financial returns, making these properties attractive for people focused on real estate investments in Pune.
Highly Appreciated
Often, reputable builders or developers offer discounts to lure interest and make sales in advance of the formal launch of the property. Such offerings mean that buyers are likely to receive substantial financial returns in the future and the investment is appreciated because the construction is yet to commence on such properties.
During the pre-launch stage, buyers also have the option to customize their units. This is possible because they have the flexibility to decide how the unit is situated within the development, and they may also decide the view and the size of the unit by choosing the floor and any locations that best suits their preferences within the development. Flexible payment structures are a common feature of the offerings made by most builders to facilitate long term investments.
However, it is important to consider all risks when choosing to invest in a property still under construction. Make sure you check the legal permissions and the developer’s credibility, and confirm you are buying from a builder registered with RERA. You should also check the draft layout and building plan, and request the land title documents. Keep in mind a developer’s past projects and their success when making a decision.
Flexibility
Because of the flexible payment plans for properties under construction, they can be a good option for buyers who find the purchase of a fully developed property difficult. Also, developers often entice early investors with discounts on future purchases, free memberships, and referral bonuses.
Investors can also take advantage of the flexible payment plans to customize their properties by choosing the views, layout, and locations within the construction. The flexibility to customize the unit may also positively affect the value of the property in the future. Well-known developers also let their investors pick the lender to finance the property.
There are some drawbacks of investing in property which is still under construction, but if the investor is knowledgeable, they can take advantage of the opportunity to fulfill some of their long-term investment goals. The developer’s past projects, market research, and developer’s credibility also serve as a good risk mitigation strategy. Also, check the developer’s financial situation and legal permissions before making a decision.
Which Location to Select
Here is the list of few hot localities where real estate investments are always fruitful with manifold returns in last 10 years. Whitefield leads the list followed by Sarjapur Road, Electronic City, Gunjur CDP Road and Varthur main road. Since Bangalore East have highest number of Tech Parks & IT Companies, home buyers find these localities as best options to invest in.