RERA (Real Estate Regulation and Development Act) is likely to pre-launch stage will be abolished and a project can be launched only after obtaining all approvals. Real Estate Developers are expected to move a build and sell model instead of selling residential projects before construction even begins.
RERA Act will not allow developers to test the markets by going for pre-launch sales. They would prefer to rather build a part of the project and then sell it to buyers.
With the rising preference, ready properties sale of which have risen significantly in the past year, compared with under construction projects. Customers progressively choose to buy complete project due to increasing uncertainly in the real estate market. In this way, RERA will remove the pre-launch stage and force developers to launch a project under the new guidelines only once all approvals are in place. This is believed to be a safer approach since cash outflows will be limited during the pre-constructions stage. This will help maintain fixed funds for timely completions of the project.
The developer plans to adopt this model in the two or three projects it has lined up for launch in the near future. For the buyer it gives him the comfort that the project will be completed in time.