Should you invest during the property launch phase?

Investing in real estate during the launch phase of a project has become a strategic move for both homebuyers and investors. With developers eager to generate early interest and secure initial funding, the launch phase often brings a range of exclusive offers and pricing advantages. However, making the most of this opportunity requires a clear understanding of what the launch phase entails and how it differs from later stages of the property lifecycle.

What is the property launch phase?

The property launch phase refers to the period when a new real estate project is officially introduced to the market by the developer. This stage typically follows the acquisition of key approvals, such as RERA registration, and involves active marketing campaigns, sample flat viewings, and early sales efforts.

During this phase, developers aim to attract initial buyers by offering limited-time incentives, such as discounted prices, flexible payment plans, or added amenities. The launch phase is distinct from the pre-launch stage, which may begin before all approvals are in place and carries higher risks. It is also different from the post-launch stage, when pricing usually increases and unit availability becomes limited due to prior bookings.

Investing during the launch phase allows buyers to capitalise on introductory offers while having the assurance of regulatory compliance. This makes it an appealing entry point into a new project, especially in growing localities where property values are expected to rise.

Key benefits of investing during property launch phase

Booking a property during the launch phase can offer several strategic advantages like maximising returns and securing the best deals available.

1. Lower property prices

One of the biggest attractions of investing during the launch phase is the significantly lower pricing. Developers often introduce special launch rates to attract early buyers and generate momentum for the project. These prices are usually 5% to 15% lower than what the same unit might cost post-launch or at later stages of construction.

Early investors benefit from these promotional rates before the property appreciates in value due to construction progress, location development, and rising demand. This cost advantage can lead to substantial savings and a higher return on investment in the long run. For budget-conscious buyers, the launch phase is often the most affordable entry point into a promising project.

2. Better unit selection

Investing during the launch phase gives buyers first access to the best inventory within the project. Whether it’s a higher floor, preferred view, better vastu compliance, or proximity to amenities like the clubhouse or garden, early buyers can choose from a wide range of options before units start getting booked.

This flexibility in selection allows investors and homebuyers to secure units that best align with their lifestyle, future resale value, and investment goals. In contrast, waiting until later phases may mean settling for less desirable locations within the project.

3. Higher ROI potential

Buying a property during the launch phase can significantly boost your return on investment (ROI) over time. As the project progresses from launch to possession, property values generally increase due to rising demand, infrastructure development, and market appreciation. Early investors benefit the most from this price escalation.

By entering at the lowest price point and exiting (in case of resale) or leasing at a higher market value later, investors can enjoy substantial capital gains. This makes launch-phase investments particularly attractive for those looking to maximise profits within a relatively short time frame.

4. Attractive payment plans and incentives

Builders often introduce flexible payment plans and exclusive offers during the property launch phase to attract early buyers. These may include subvention schemes (where the builder pays EMIs until possession), no pre-EMI plans, low booking amounts, or staggered payment options linked to construction milestones.

Additionally, developers may offer limited-period discounts, freebies like modular kitchens or free car parking, or even waivers on floor rise and PLC (Preferential Location Charges). These incentives make the financial entry point much easier and more manageable for buyers compared to later stages, where such benefits are typically withdrawn.

5. Customisation opportunities

Investing during the launch phase often gives buyers the chance to customise key aspects of their property. Since construction is yet to begin or is in early stages, developers may offer flexibility in choosing floor plans, interior layouts, flooring materials, fittings, and even wall colours or finishes.

This level of personalisation is usually not possible once the project progresses or is near completion. Early buyers can thus tailor their home to suit their preferences and lifestyle needs, which is an advantage not typically available in ready-to-move-in or resale properties.

6. First-mover advantage

Investing during the property launch phase offers a significant first-mover advantage. As one of the earliest buyers, you can choose from the best available units, be it in terms of view, floor level, layout, or Vastu compliance. Premium units are often snapped up quickly, and early investors have the opportunity to select prime options before prices increase or inventory becomes limited.

Moreover, as the project progresses and the surrounding infrastructure develops, property values generally appreciate. Early investors stand to gain maximum capital appreciation by entering at the lowest price point and benefiting from the project’s overall growth and market demand.

7. Better loan terms and conditions

Investing in a property during its launch phase can often make it easier to secure favourable home loan terms. Banks and financial institutions tend to offer competitive interest rates and flexible repayment options for newly launched, RERA-approved projects, especially when developers have tie-ups with lenders.

Additionally, since property prices are lower at the launch stage, the loan amount required is also less, reducing the overall interest burden. Some developers may also assist with pre-approved loans or limited-period subvention schemes, further easing the financing process for early buyers.

8. Rental income potential

Investing early in a property launch can position buyers to tap into strong rental income potential once the project is completed. Since launch-phase purchases often come at lower prices, the yield (rental income relative to investment) tends to be higher compared to units bought at later stages.

Early investors can also plan ahead to furnish or customise their units to appeal to tenants, especially in high-demand areas near business hubs, educational institutions, or transit corridors. Once possession is granted, these well-positioned units can start generating steady rental returns, helping offset EMIs or even create a passive income stream.

Risks to be aware of before investing during property launch

While investing during the launch phase of a property offers several advantages, it’s important to be mindful of potential risks that can affect your returns or cause delays. Here are some key risks to consider before committing to a launch-phase investment:

• Project delays: One of the most common risks is construction delay due to regulatory approvals, funding issues, or operational setbacks. Delayed possession can disrupt your financial planning or rental income expectations. 
• Developer credibility: Investing early requires trust in the developer’s reputation. Choosing a builder with a poor track record may expose you to the risk of incomplete or poorly constructed projects. 
• Design or layout changes: Projects in the initial stages are subject to changes in floor plans, amenities, or even unit sizes. Such modifications may not align with your original expectations. 
• Market fluctuations: Property values can fluctuate due to changes in market demand, interest rates, or economic conditions. Early investors may see slower capital appreciation if the market turns unfavourable. 
• Hidden costs: Launch prices may appear attractive, but there can be hidden costs such as floor rise charges, PLC (preferential location charges), or escalation clauses that increase the final outlay. 
• Liquidity constraints: Unlike ready-to-move-in properties, under-construction homes are less liquid and can be difficult to resell quickly if you need to exit the investment early.

Tips for safe investment during property launch phase

Investing in a property during the launch phase can offer excellent value, but it also requires due diligence. Here are key tips to ensure your investment is secure and profitable:

• Verify RERA registration: Always ensure the project is registered under the Real Estate Regulatory Authority (RERA). This protects your rights as a buyer and ensures transparency in timelines, pricing, and approvals. 
• Research the developer’s track record: Choose developers with a solid reputation for timely delivery and quality construction. Look into their completed projects, delivery timelines, and customer reviews. 
• Understand the payment plan: Opt for construction-linked or milestone-based payment plans to avoid paying large sums upfront. This ties your investment to the actual progress of construction. 
• Inspect legal approvals and title clearance: Make sure the project has all the necessary approvals, like land title, building plan, environmental clearance, and commencement certificate. If needed, consult a legal expert to verify documents. 
• Read the agreement carefully: Go through the builder-buyer agreement in detail. Pay attention to the possession date, grace period, penalty clauses for delay, and refund policies. 
• Estimate the total cost: Account for all charges, such as stamp duty, registration, GST (if applicable), development fees, and any preferential location charges, to avoid surprises later. 
• Visit the site: If possible, visit the project site to understand its location, connectivity, and surrounding infrastructure. This helps assess future livability and resale potential. 
• Plan for delays: Factor in a buffer time of 6–12 months beyond the promised delivery date to manage expectations and financial planning, especially if you’re relying on rental income.

Housing.com POV

Investing in a property during its launch phase is not just a cost-saving strategy. It’s a calculated bet on potential. The real value lies in foresight. Early investors don’t just benefit from lower prices; they also gain access to the most strategic units, ride the wave of price appreciation, and often influence buyer sentiment that shapes the project’s market trajectory. In competitive urban markets, especially in metros like Mumbai, Bangalore, and Pune, launch-phase investments can generate stronger returns than post-possession deals, if done wisely.

That said, this early entry also demands a sharper eye for risk. The Indian real estate market has matured significantly post-RERA, but delays, overpromises, and execution gaps still exist. The launch phase is where optimism meets uncertainty. This is why thorough due diligence, awareness of hidden costs, and understanding market dynamics are crucial.

All in all, it’s widely believed that launch-phase investment is best suited for buyers who can afford a medium-term holding period and are willing to trade instant gratification for long-term gain. With the right builder, the right location, and the right paperwork in place, early investment can be a rewarding move, not just financially, but strategically in your property portfolio.

FAQs