If you have been home-hunting or evaluating where to make your next real estate investment for sufficiently long, you have probably come across the terms 'pre-launch' or 'new-launch' property now and then. But what are these ‘new-launch’ properties? Would it pay to invest in these?.
A ‘new-launch’ property is a proposed project offered to a community of buyers and investors at a discounted price. It must be noted that new-launch properties are those that have not been officially launched yet. It means that these properties have only just been announced after obtaining necessary approvals from relevant authorities. These properties are formally found at a later stageHowever, it must be noted that new-launch projects are not the same as under-construction projects. An under-construction project tends to be partially complete, with the developer already having sold part of the project. Many developers allow clients to buy new-launch property to raise funds for their other projects. The concept of pre-launch properties is fast gaining popularity in India, especially in the major housing markets of Gurugram, Ahmedabad, Mumbai, an Pune. Although it may seem like a prospect suitable for those with a high-risk appetite, you will be surprised by the number of people who invest in new-launch properties. While it is true that there are a few risks involved in buying a new-launch property, the benefits could potentially outweigh the risks if you choose to invest wisely. Let’s look at the advantages of investing in a new-launch property. Trending: 5 Reasons - Amenities in Residential Projects Are Becoming Game Changer
If You Are Early Enough, You Get the Best Price
The most significant advantage of buying a new-launch property is that it tends to be offered at a highly discounted price. Thus, there is always the potential for your investment to fetch favourable returns when the property is officially launched.
Since real estate is a rather competitive market, real estate developers try to make new-launch properties a profitable deal for the client as well as for themselves in order to facilitate the progress of their project by securing funds to continue the construction.Navigating Price Revisions
It is commonplace for the price of a property to be revised when buyers show interest in the property. Thus, the price of a new-launch property and an under-construction property significantly differ from that of a ready-to-move-in property. This is due to the different combinations of external factors at play at various stages of the property lifecycle.
In the case of new-launch properties, builders are more likely to offer discounts to raise capital for construction. Some developers offer various freebies at this stage to attract buyers and investors. However, in the case of under-construction and ready-to-move properties, a variety of factors can lead builders to revise the prices of properties. These could be due to public amenities available in the project’s vicinity or a steep increase in the demand for the property.Trending: Ikaria: Purpose Designed Senior Living in Ahmedabad
Opportunity to Book Property before the Price Goes up
Nonetheless, buyers and investors must also be aware that developers can make changes to development plans for new-launch properties at a later stage.
As projects in the real estate market near completion, the price of properties tends to increase; this could be due to a variety of factors—growing public demand, rise in labour and material costs, and cost of resolving legal issues, among others. This is where new-launch properties offer the advantage of securing deals at low prices before these properties are launched in the market.
That said, in order to experience a hassle-free property-buying experience, be sure to thoroughly analyse the price proposition before sealing the deal with the developer. Buyers and investors should also note that new-launch properties tend to work better in situations where early possession is not a priority. If you can afford to wait for a certain time period, new-launch properties can offer you the best deal.You Get All the Extra Features You Want
Unlike in the case of a ready-to-move property — where the construction and interiors have already been completed — a pre-launch or newly launched property offers the chance to customise your space. Buyers usually have a say in the property's design and layout to ensure they get the perfect space that suits their requirements. You can also choose a property that offers easy accessibility, a favourable location, and the best view, all within your budget.
Considering all these advantages, the question ultimately comes down to whether purchasing new-launch property in India is a good idea. There is no universally correct answer to this question. The decision to buy a new-launch property is entirely based on your own needs. This is the perfect place to begin if you are an investor just finding your footing in the real estate market. However, homebuyers' considerations will differ based on their personal situations.Things to Keep in Mind before Buying New-launch Property
If you decide to invest in a new-launch property, ensure you keep the following aspects in mind:
● Make sure you conduct comprehensive research on the project you are planning to invest in.
● Refer to the Real Estate (Regulation and Development) Act, 2016, and the state's guidelines before making any decision and ensure that the developers adhere to these directives.
● If you decide to buy a new-launch property, it is advisable to choose an offering from a well-established brand in the industry. Avoid real estate developers that make unrealistic promises. It is a good idea to visit the developer’s other completed properties before you invest.
● Do not rush your decision. Take your time with each step, irrespective of the urgency created by the developer.
While buying a new-launch property, choosing a reputed real estate developer with an established track record is of utmost importance to ensure you get a fair deal.
If you are interested in learning more about the current real estate industry and its functioning, we at Adani Realty are here to help you.
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