Is It Worth Investing in a Newly Launched Project? Everything You Need to Know

Published on: 07 Jan 2025

Is a newly launched project worth investing in? But still skeptical about it? Here is all you need to know about a newly launched project.

A newly launched stage is when a project is in its very initial phase of construction. Builders announce their project proposals and start the sales immediately for their project. Since COVID, the real estate market has had a very slow sales pace. So, newly launched projects are great chances for home buyers to gain benefits by looking at the economic aspect of the property.

Yes, there might be risks involved since the property is under construction yet and should you invest in such a property or not?
Let's talk about this!

How and why does a developer want to sell during the initial launch of a project?

So looking from the point of view of the developer, they launch their project to raise capital at very early stages, which is again invested in developing the project, like the amenities and infrastructure of the project.

The launch of the project gives the developer an insight into the market and where it is headed. Sales of the project take place by word of mouth, email, advertising, and approaching real estate consultants who help developers accelerate sales in its launch stages. We help developers, too. To know more, follow us on LinkedIn.

Risks in newly launched projects

There can be certain risks associated with buying in a newly launched project. Let's look into them.

• The project may not have approvals from government departments.
• Getting such licenses may take a long time and could delay the project.
• The project may have yet to be cleared for home loan approvals by banks and other institutions.

Things to look at before investing in a project

Doing complete research is a must when it comes to buying a home, and research not only about the property, area, and amenities but also about the developer.

Look into the projects they have delivered before this and the impression they carry in the market. Look for the offered amenities and offers.

Always know about the RERA guidelines, which the Real Estate Regulatory Authority has, before taking any decision know these guidelines. These things will help you know about the project and if it is legit: Invest in a project, do a lot of background checks, and learn about past projects.

As we discussed the risks involved, taking precautionary steps is suggested. Research the guidelines, and buy when you know what you are investing in.
If you are buying your second home, new projects are great for you since you would have the security of having a first home and can wait for the project's development.

Benefits of investing in a newly launched property

Lower price : To raise capital, developers attract buyers by offering the property 10-30% cheaper than the finished projects. This saves costs for marketing and commercial loan interest. Their investment is secure, so they allow this cost-benefit to trickle down to the customers.

You get to choose: Buyers can choose the location and amenities. Also, you can choose which side you want the balcony to face and things like this because the property still needs to be built, so you can easily choose from many options when buying a newly launched project. Customization becomes easy, raw materials are available, and construction workers are present. The developers will agree to minor adjustments once you show interest in buying.

Low-cost investment opportunity with new launches: Newly launched property is a good investment opportunity because the costs are lower, so the prices will increase eventually. The prices of properties will rise quickly once the construction is completed successfully. It may increase by about 10-40%. So there you have a successful investment.

Conclusion:
Any real estate, be it pre-built or newly launched. If you decide to invest, there are always going to be risks and opportunities attached to it. There are many advantages to investing in a newly launched property. It offers lower costs and excellent investment opportunities. The scope of growth is high if we compare it with already-owned properties.

You can customise and add new features. The developer will be more than okay to make minor changes if you are interested in the property. You get to choose the location and the floor. Buying in a new launch period is a reasonable proposition.

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