Pre-launch is often a problem in developers
The pre-sale of the residential units is a largely followed of the practice universally-you pay for the property as it comes up. Although the developers in India take a step back after offering the units for sale at pre launch stage. Post that the buyers start demanding over delivery dates.
What this is meaning for the developers is that the offering of the investors and the opportunities to buy residential units before even procuring all the needed approvals. Many a times, the land title due diligence or the product mix (retail, residential, commercial) considerations may still be remaining as pending decisions.
It might work that the developers appraise an inner circle of the brokers and investors that a property not officially launched in the market which is available for sale. The pre launch of housing units can become a problem often the buyers ask for deliveries even when the property is not ready to be launched in the market. In order to do away with all these main problems the property developers are trying to do away with the pre launch techniques. Hopefully after this the problems will not arise for the developers.
Source: Financial Chronicle
