Reviving real estate sees increasing pre-launch offers
Mumbai- With rising demand and sales of real estate projects, the trend of project pre-launches has been re-entering the prime real estate markets of India like Mumbai, Delhi-NCR and Bangalore.
The Maharashtra government has made the way simpler for developers to get regulatory clearances for real estate projects. Following this, the real estate in Mumbai is expected to see huge revival in growth.
Pre-launch in real estate is referred to sale of units by developers even before their project is actually launched. Usually in this type of sale, buyers and investors are offered good discounts as the risk factor of their investment is high.
Due to economic slowdown, lagging real estate sales and lack of demand, over the past two years, the pre-launch activity had been almost nil which currently seems to have witnessed a spurt. Mumbai is likely to see a number of pre-launches in this calendar year, says chief executive of Jones Lang LaSalle India (JLL).
For instance, the renowned Lodha Developers of Mumbai has already sold the first lot of high-end apartments at its central Mumbai project, Codename Blue Moon. It had got 1,300 applications for about 750 apartments. The buyers include 70 percent domestic buyers and 30 percent non-resident Indians (NRIs). After identifying a demand which is far higher than the availability of units in the project, the realtor opted pre-launch sale.
Pre-launch sales are advantageous to developers as it draws investors and cash flow is eased. It is noted that, gradually, the investors are shifting their focus from projects in Mumbai to projects in neighbouring Navi Mumbai and Thane districts where more projects are being launched.
JLL’s chairman says that, the developers of large unsold inventory in big projects are at high risk to offer discounts when compared to those with smaller projects and limited inventories. In many pre-launch cases, developers offer attractive benefits in order to lure more investments.
Ajmera Realty and Infra India Ltd has planned a 700,000 sq. ft. project ‘Casa Vyoma’ in Ahmedabad. They are planning to start a pre-launch of the project in Ahmedabad because it is new market to them and the pre-launch would help the developer in understanding the territory.
Director Dhaval Ajmera said that unlike Bangalore and Mumbai, where the company has multiple projects, this project is a new experience for the company and so a pre-launch was required to understand the territory.
Similarly, Pune-based Kumar Urban Development Ltd has also held a pre-launch drive for his 103-acre township in Kharadi, Pune.
In an altering real estate market, where there is no guarantee of rise and fall of sales, the pre-launch way is an excellent option for reputed realtors, and particularly when demand is high.
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