Hyderabad Real Estate Market Flooded with Unapproved Pre-Launch Projects
In November 2025, numerous prospective homebuyers in Hyderabad received unsolicited WhatsApp messages promoting a brand-new residential venture. The digital flyer highlighted the ultra-luxurious Neopolis development in Kokapet, with an enticing price tag of just Rs 6,500 per square foot—nearly 50% lower than the rates in most upscale neighborhoods of the city.
The Catch: Lack of Mandatory Approvals
However, there was a significant red flag. The project details perfectly matched a site that had been auctioned merely 24 hours earlier. It quickly became apparent that this so-called "branded residences" initiative, marketed as "Hyderabad's next landmark," lacked the essential approval from the Telangana Real Estate Regulatory Authority (TG-RERA).
When posing as a potential buyer, a broker listed on the poster was contacted. He casually stated, "We will get the approvals soon," before detailing a One-Time Payment (OTP) offer. "You pay 20% now and the remaining amount within 30 to 45 days. If you miss this opportunity, the price after approval will exceed Rs 12,000 per square foot," he explained.
Widespread Practice Across Hyderabad
This incident is not isolated. Industry insiders estimate that over 70% of new projects in Hyderabad are adopting pre-launch and OTP strategies to secure funds and initiate construction. Over recent weeks, investigations have uncovered at least half a dozen brokers selling similar "branded residences" in areas like Kokapet, Tellapur, and Kollur—some associated with prominent construction firms—urging buyers to "secure their future" by investing in luxury developments.
These brokers offer rates ranging from Rs 5,500 to Rs 6,500 per square foot, starkly lower than the typical Rs 10,000-plus per square foot for RERA-approved projects in the same localities. Notably, none of these ventures have official names or the required permissions.
Aggressive Online Promotions
Despite the illegality, brokers are far from discreet. Social media platforms are inundated with flyers aggressively marketing these schemes, prominently displaying contact details. While most such projects cluster along Hyderabad's prestigious IT corridor—spanning Gachibowli, Narsingi, and Kokapet—areas including Patancheru, Tellapur, Dundigal, Medchal, and Uppal also host dozens of OTP and pre-launch-driven ventures.
One broker, when contacted about a villa project in Medchal, claimed, "We have some units available at Rs 8,500. They will be ready by 2030." However, the project name was absent from TG-RERA's official list of sanctioned projects. Even the realtor's name, who asserted RERA registration, yielded no results.
Another broker operating in the IT corridor dismissed concerns about legality, stating, "This is beneficial for the buyer. Also, the builder is well-known, so approvals will come easy." He encouraged quick decisions, noting, "You can pay just Rs 5 lakh now and book the unit. The remaining amount can be settled in three weeks. Most units are sold, so you must decide soon."
Industry Fears of Market Crash
The proliferation of such sales across Hyderabad has sparked significant industry anxiety. Stakeholders warn it could trigger a major market crash and tarnish the city's reputation.
A Sumanth Reddy, chairman of the National Association of Realtors-India, expressed concern: "Often, developers engage brokers to promote pre-launch or OTP offers even before land acquisition. They use these funds to pay for it, indicating a lack of financial capacity to start construction. This raises the risk of project stalling, ultimately harming buyers."
Call for Caution and Due Diligence
Industry bodies are urging both developers and buyers to adhere to regulations. N Jaideep Reddy, president of Credai-Hyderabad, emphasized, "It is crucial for builders to operate within the law to maintain credibility. Any misstep can damage the entire industry's reputation in the long term."
He also advised homebuyers to exercise extreme caution: "Do not let attractive deals blind you. Verify the developer's credibility and ensure all necessary permissions are in place before making any payment. Otherwise, recovering losses in case of default will be nearly impossible."
This situation underscores the need for heightened vigilance in Hyderabad's booming real estate market, as unapproved projects continue to pose risks to unsuspecting investors.
