Pre-Launch Real Estate Sale down 60%

Due to higher borrowing costs and abnormal inflation, Pre-Launch Real Estate sales have taken a back seat within the last 2 months and is down by a whopping 60%.

Pre-launches enabled builders to take advance bookings for a project after getting the requisite building permits, but much before starting construction, providing them with virtually free cash.
Sanjay Chandra, MD of Unitech Ltd, India's leading real estate company which is also part of the Morgan Stanley Capital Index, said,

Almost 60 per cent of home buyers are staying away from pre-launches. They want to wait and buy an apartment once they see the apartment building actually being constructed.

Builders and Developers have no deadlines unlike us where we lose the project / client. For instance, SJR Builders of Bangalore who developed SJR Park Vista delivered the homes to pre-launch buyers 9 months after the scheduled date. For 9 months, the BUYER lost an opportunity of at least Rs 200,000. [Avoid SJR]

Citigroup India Equity Research has downgraded all the Real Estate Stocks in India.