HYDERABAD: In Nov 2025, dozens of prospective homebuyers in the city woke up to a sales pitch on WhatsApp about a brand-new residential project. The address on the digital poster was the uber-luxurious Neopolis in Kokapet. The price? A mouth-watering Rs 6,500 per square foot (sft) — almost half the rate quoted in most upscale pockets of Hyderabad.But there was a catch. The project details matched exactly with a site that had gone under the hammer barely 24 hours earlier. It was not difficult to guess that the “branded residences” venture at “Hyderabad’s next landmark” — as it was being marketed — did not have the mandatory approval from the Telangana Real Estate Regulatory Authority (TG-RERA).
When TOI posed as a buyer and called the broker listed on the poster, he nonchalantly said: “We will get the approvals soon,” before going on to explain a One-Time Payment (OTP) offer. “You pay 20% now and the remaining in the next 30 to 45 days. If you miss the chance, the price after approval will be more than Rs 12,000 per sft,” he said.This is not a one-off case. Industry insiders claim that over 70% of all new projects in Hyderabad are taking the pre-launch and OTP route to raise funds and kickstart construction.Over the past few weeks, TOI called multiple brokers to verify this. It found at least half a dozen of them selling similar “branded residences” across Kokapet, Tellapur, Kollur and other areas — some by prominent construction firms — urging buyers to “secure their future” by investing in luxury projects.
They offered rates as low as Rs5,500 per sft to Rs6,500 per sft, compared to the typical Rs10,000-plus per sft quoted for RERA-approved projects in the same localities. None of these projects had either a name or mandatory permissions.And despite being illegal, brokers are far from discreet. Online promotionsTOI investigation found that social media platforms are flooded with flyers aggressively marketing these schemes, with brokers’ contact details prominently displayed. While most such projects are concentrated along Hyderabad’s swank IT corridor — Gachibowli-Narsin gi-Kokapet and beyond — areas such as Patancheru, Tellapur, Dundigal, Medchal and Uppal too have dozens of OTP/pre-launch-driven ventures.“We have some units available at Rs8,500. They will be ready by 2030,” a broker told TOI when contacted. But the name of the villa project in Medchal did not feature on TG-RERA’s official website listing sanctioned projects.Even the name of the realtor — who claimed to be RERA-registered — yielded no results. “You can pay just Rs5 lakh now and book the unit. The remaining amount can come in three weeks. Most units are sold, so you must decide soon,” another broker operating in the IT corridor told TOI , flaunting how he had several projects for buyers to choose from.He even dismissed concerns about the sale being illegal. “This is beneficial for the buyer. Also, the builder is well-known, so approvals will come easy,” he added.Industry fears crashThe mushrooming of such sales across Hyderabad has left the industry worried. Stakeholders fear it could trigger a major market crash and dent the city’s image.“Often, some developers engage brokers to promote pre-launch/OTP offers even before the land is acquired. In fact, they use these funds to pay for it. This indicates that the developer does not have the financial bandwidth to start construction. In such a scenario, the chances of the project getting stalled are very high. And who will that hurt? Buyers,” said A Sumanth Reddy, chairman, National Association of Realtors-India.Customers, be cautiousWhile urging developers to stick to the rulebook, industry bodies also called on buyers to exercise caution before investing their hard-earned money.“It is very important for builders to conduct their business in accordance with the law because if they slip, their credibility — along with that of the entire industry — will take a hit in the long run,” said N Jaideep Reddy, president, Credai-Hyderabad.He also urged homebuyers to do their due diligence before choosing a project. “Don’t let a good deal blind you. Ensure the developer is credible and has all the necessary permissions in place before you pay even a rupee. Else, it will be impossible to recover the loss if the developer defaults,” he cautioned.
