Too tempting to not accept the diamond-like offer?

“What happens if you accept it?”

Buyers… be alert…
Investors… be cautious…

Has the HMDA illegally granted permission to sell flats?

In the recently auctioned Kokapet project, a company that acquired the land has reportedly started selling flats during the pre-launch phase itself. Recently, they organised a meeting with channel partners in Daspalla and began selling flats even before the official launch.

Interestingly, this company is reportedly selling flats in Vedipakodilla at just Rs 6,500 per sq. ft. — well below the actual cost. The question arises: how can they sell flats before receiving approvals, finalising floor plans, or having a complete understanding of the project? Has the HMDA given this company the all-rights permission to sell flats prematurely? Is HMDA okay with collecting money upfront even before construction begins?

In the Kokapet auction, if land is priced at roughly Rs 136 crore per acre, building a 60-story skyscraper is almost essential to make the project viable. With 60 floors, the land cost works out to about Rs 3,000 per sq. ft., and construction cost adds roughly Rs 6,000 per sq. ft. After including fees for approvals, consultants, marketing, and finance costs, the total comes to about Rs 8-9,000 per sq. ft. This means the final price of a flat should be around Rs 12,000 per sq. ft.

So, if this company is selling flats at just Rs 6,500 per sq. ft. during the pre-launch, it’s clear that they are taking a huge risk. Presumably, their strategy is to pay whatever is due to HMDA upfront and worry about how to construct the project properly later.

Getting flats in Kokapet at Rs 6,500 per sq. ft. is indeed a tempting offer for investors. But the big question is: will this project actually be completed or not? It’s unclear what kind of internal arrangements the company has, but the entire Hyderabad real estate sector is watching this project with keen interest. This is because the company has never undertaken high-rise constructions before, and everyone is eagerly waiting to see how they will execute a 60-story skyscraper.