Should You Invest During The Property Launch Phase?

The property launch phase is when a new project finally steps into the spotlight. Billboards go up, glossy brochures circulate, and that perfectly staged sample flat is opened for viewing. Developers usually have RERA approvals ready by this point, which makes it a safer bet than the shaky pre-launch stage built mostly on promises rather than paperwork.

During the launch, the developer wants one thing: momentum. They want early buyers, fast bookings, and cash flow to show the market that the project is alive and kicking. To make this happen, they throw in discounts, flexible payment plans, waived charges, and sometimes even shiny extras like modular kitchens or free parking. Buyers get lured in by this “limited-period” atmosphere, and for good reason. The deals at this stage usually don’t return later.

Key benefits of investing during the property launch phase

1. Lower property prices

This is the number one hook. Launch prices are deliberately kept lower, often 5 to 15 per cent cheaper than what the same flat will cost once momentum builds. Think of it as the “introductory offer” of the real estate world. For a buyer, especially one working with a strict budget, this can mean lakhs of rupees saved upfront.

Now, imagine a Rs 1 crore flat priced at launch for Rs 88–90 lakh. By the time construction hits halfway, the same unit may already be tagged at Rs 1.05 crore. That gap becomes the investor’s gain.

2. Better unit selection

Being early means picking from the full buffet before the good dishes are gone. First movers get the corner flats, the higher floors, the garden-facing balconies, and the Vastu-friendly layouts. Everyone else arriving later settles for leftovers. For a homebuyer, this means locking in a flat that actually fits lifestyle and resale potential, instead of taking whatever remains.

3. Higher ROI potential

Property values move upwards as construction advances, nearby roads and metro lines open, and schools and malls start mushrooming. The person who buys at launch is the one riding this entire wave. Enter at the bottom, exit at the crest, that’s where capital appreciation feels real. For investors planning resale in three to five years, the launch phase is the natural entry point.

4. Attractive payment plans and incentives

Builders know cash flow is oxygen in the early stage. So they bend backwards to make payments easier. Zero-pre-EMI schemes, subvention plans, and staggered milestone-linked payments are all designed to reduce pressure on the buyer. On top of this come limited freebies: maybe the modular kitchen, maybe club membership, maybe a car park waiver. Later buyers? They pay full price, no frills.

5. Customisation opportunities

When construction hasn’t gone too far, developers sometimes allow buyers to tweak layouts, finishes, or fittings. Want Italian tiles instead of ceramic? Want the study wall knocked down to expand the living area? At launch, those conversations are still on the table. Once the project nears completion, such flexibility vanishes.

6. First-mover advantage

There’s a psychological edge, too. Early investors help set the tone for pricing and demand. Being among the first isn’t just about bragging rights, it’s about being the one who shapes buyer sentiment and grabs the units with the highest future appreciation.

7. Better loan terms and conditions

Banks are usually more than willing to finance launch-phase RERA-approved projects. Sometimes developers even tie up with lenders for pre-approved loans, making paperwork smoother. Since the ticket size is lower at this stage, the loan amount required is less, which means lower EMIs over time.

8. Rental income potential

Early entry means early exit into the rental market once possession arrives. Because the purchase price was lower, the rental yield becomes more attractive. For example, a flat bought at Rs 90 lakh and rented at Rs 40,000/month offers stronger returns than the same flat bought later at Rs 1.1 crore, fetching the same rent. It’s arithmetic, plain and simple.

Risks to be aware of before investing during the property launch

None of this is risk-free. Anyone pretending otherwise is selling a dream.

Project delays: Developers promise 2027 possession, but 2029 rolls around and the tower still looks like scaffolding. It happens, often.

Developer credibility: A bad track record developer can harm early buyers badly. Past delivery timelines matter more than glossy brochures.

Design or layout changes: That lovely podium garden shown at launch? Sometimes it can also shrink, go away, or turns into a parking lot.

Market fluctuations: Property price hike is not always guaranteed. Economic slowdowns, increasing interest rates, or oversupply in the area can slowdown growth.

Hidden costs: The “launch discount” can be squared off by hidden floor-rise charges, preferential location charges, and other clauses hidden into fine print.

Liquidity constraints: An under-construction property is not always convenient to flip quickly if cash is needed. Unlike a ready home, it sits locked until the right buyer shows up.

Tips for safe investment during the property launch phase

Verify RERA registration. Non-negotiable. Without RERA, the risks shoot up.

Check developer track record. Look at past projects, delivery timelines, and customer reviews.

Scrutinise the payment plan. Construction-linked plans are safer than large upfront commitments.

Inspect legal approvals. Land title, building plan, and commencement certificate should not be missing.

Read the agreement. The penalty clauses, the grace period, the possession date all matter more than the sales pitch.

Account for the full cost. Stamp duty, GST, registration fees, PLC, everything.

Visit the site. Location reality can look very different from brochures.

Plan for delays. Add a 6–12 month buffer to your expectations. It saves a lot of frustration later.

FAQs

Is it a good idea to invest in a property during the launch phase?

It can be, provided RERA registration, developer track record, and approvals check out.

How much can I save by investing early?

Savings of 5 to 20 per cent are common compared to later stages.

Will I get to choose the best units in the launch phase?

Yes. Early buyers have first pick of prime inventory.

Are there risks involved?

Yes, delays, design changes, hidden costs, or market slowdowns. Proper due diligence reduces exposure.

Can I avail a home loan during the launch phase?

Yes. Banks usually support RERA-approved launch projects.

Is GST applicable to the launch-phase property?

Yes, on under-construction units. Ready-to-move-in homes are exempt.