Difference between pre-launch and soft-launch in real estate


These days the demand for residential projects in real estate is much more. There are many underlying factors to it, which drives the real estate companies day by day. There are numerous Furthermore, these days the prop-tech companies are giving many lucrative offers to attract homebuyers. Here is where the terms pre-launch and soft-launch comes into relevance. 

In the below post, let us have an outlook into what each of these terms means- pre-launch, soft-launch, etc.

The term Pre-launch

A project is said to be in the pre-launch state when the ‘coming soon’ board is placed by the developers. This is that stage where the builder makes an announcement about their residential project but still has not received the administrative and legal approvals, let not initiated the process. To be more precise, the projects which are classified into this group is not legally approved. Also, the builders might not have initiated the formalities for getting the approvals. So, in a way, buying a home at this phase is highly risky. But then why do people buy homes from pre-launch sessions?

Why Pre-launch then?

Pre-launch projects are highly winsome for homebuyers, especially those who do not have enough funding even for the down payment. Since it is often associated with cutbacks in the original total cost of buying a home, it is the most preferred option while buying new homes. This is so true for the first-time homebuyers who would be so much attracted towards the pre-launch offers given by the builders. 

How pre-launch can be advantageous for the builders?

These days it is quite difficult to get a bank loan for the realty sector and often builders find this cumbersome. This is eliminated by the system of pre-launch. So, in order to obtain the interest-free capital from the market itself, builders give some pre-offers in the project. In this way, even before the project is unveiled in the market, the news of launch is sent to the group of investors via word and mail. There is no valid information available in the marketing medium though. 

Those buyers who want to buy the homes at prices less than the actual market prices will find these offers very attractive and will invest in. This is used as the interest-free capital for the rest of the construction phases.

Advantages of a Pre-launch offer

Though highly risky, this whole process is interesting. The prices of the residential projects will get reduced to around 30 – 40% during the pre-launch stage. This is a considerable amount in the real estate market and that is why many buyers fall for pre-launch. When compared to the ready-to-occupy projects, these pre-launch projects will be available for sale within a very less price. The cheaper price is what is the biggest advantage in pre-launches.

Factors to be considered in pre-launch 

But there are few factors which have to be cross-checked before investing in a pre-launch project. One has to ensure that the developer or builder chooses is having a positive remark in the market. The reputation of the developer has to be checked before committing to a project. Whether the builders were able to deliver their previous projects on time, what were the troubles arisen, and there goes the list. Here we have a reputed builder, Shriram Properties offering a pre-launch project. Check Shriram Codename Dil Chahta Hai Dobara for details.

Also, one has to ensure that none of the previous projects has undergone design changes or any major changes after the pre-lunch session. Since there is no legal and administrative validity, it is unsafe to opt out other ways. By choosing those developers which maintains a clean track or record over the long run can help in eliminating any unwanted troubles during the owning. Also, one has to make sure that the buyers will definitely get the exact project for which they have signed up initially, without major changes. 

It doesn’t come without risks

But as already discussed, a pre-launch comes with a lot of risks irrespective of the advantages and the price reductions offered. For example, while it is on the sale run, not even the foundation stones will be laid out. Yes, since the initial stage is meant for finding out the fruitful investors, concentration slightly deviates from the project construction phase. Neither will be an administrative nor legal validation for the same. It is meant purely to attract buyers.

A pre-launch is just a plan being sold. So, sometimes the developers will make some clauses that can make some amendments in the development plans as per the permissions which are yet to receive. This can lead to some future changes in the agreement which was already made between the developer and the buyer, which in turn can lead to conflicts. Also, it can lead to designs not matching the requirement or the expectation. 

Moreover, during this initial stage, only the plan is laid out, not the project. So, there is no clarity about the project and sometimes there can be an unexpected wait of a long time. That is to say, the project might get delayed for 6 months to even a year depending upon the cash flow and other things related to the developers. That is why it is always advised to choose a reputed developer for the same. 

How pre-launch differ from soft-launch?

Now, let us look into the difference of soft-launch from pre-launch. Is soft-launch safer than pre-launch? Read on to know more.

A soft launch is way safer than a pre-launch. The only difference is that in pre-launch there is not even the initiation for the legal and administrative approvals. But, in a soft-launch, the approvals are in line, though it isn’t completed. This is an assurance for the money being invested in the residential project. The approvals will be in progress, yet the project will be due for sale as well.

Also, the documentation processes will be half done in a soft-launch. At this stage of sale, the project will be legally approved and thus it provides credibility for the investment. So, in case of delays or any further complaints, one can get assistance from the law. 

Moreover, these days soft-launches are considered to be the first stage after registering the project with the respective State’s regulatory authority. After obtaining the RERA number the projects are risk- free and safe for sure. Thus ensuring a safe source of investment.


To conclude, these pre-launches and soft-launches are part of attracting the homebuyers towards a project at the initial stage of construction. The process is not risk-free completely, but if done with careful planning and proper investigation, can lead to great discounts and big savings while buying a new home. You can also read how integrated townships can help in modern times.