Launch price and price ladders: how builders move price by phase

7.4.1 What is a launch price?

A launch price is the price a builder sets when a project opens for booking, after it is registered on K-RERA. Before registration, Section 3(1) of the RERA Act, 2016 bars a builder from booking or selling flats in a planning area. So the launch is the first point at which a price can apply to a booking. Builders often state the launch price as a rate per square foot of area. That rate is only one part of what you pay. The full cost of a flat also includes premiums such as floor rise, parking and club charges, deposits, GST and stamp duty and registration. The flat cost sheet chapter explains each line. The RERA Act does not set or cap a builder’s price. It does make the builder put the cost in writing. Section 13(2) says the agreement for sale must state the dates and manner of payments towards the cost of the flat.

Term	What it means
Launch price	The rate the builder sets when booking opens
Rate per square foot	The base price per unit of area, before other charges
Cost sheet	The builder’s full price break-up for one flat
Agreement for sale	The contract that fixes the payments towards the cost

7.4.2 How do builders move the price by phase?

Builders can raise the price in steps after the launch, by phase or by the number of flats sold, but no law sets these steps. A builder can open a first phase or tower at one rate, then raise the rate for later towers. It can also raise the rate after a set number of flats are booked. These are pricing choices, and they differ between builders and projects. Sachi has not found a published rule or dataset for them, so treat each step as a claim to check. Here is an arithmetic example, not market data. Say a builder launches at ₹8,000 per square foot and raises the rate by ₹250 at each of two steps. A 1,200 square foot flat costs ₹96 lakh at launch, ₹99 lakh after one step and ₹102 lakh after two. Ask the builder what the current rate is, and how it plans to change. Get any promise about the price in writing.

Step (example only)	Rate per sq ft	Base price of a 1,200 sq ft flat
Launch	₹8,000	₹96,00,000
After one step of ₹250	₹8,250	₹99,00,000
After two steps of ₹250	₹8,500	₹1,02,00,000

7.4.3 How do you read a launch offer?

Read a launch offer by asking what it changes in the total cost of your exact flat. Then ask whether it will be in the agreement for sale. Launch offers take many forms: a lower rate for early bookings, waived charges, free parking, a payment plan, or a gift. Some reduce the cost, and some only move payments later. Ask for the cost sheet of your exact flat with the offer applied. Then ask for the same flat’s cost sheet without the offer. The difference is the real value of the offer. Check whether the offer has a deadline, and whether it depends on paying more early. Section 13(1) caps the advance at 10 percent of the cost before a registered agreement for sale. Section 11(2) makes every advertisement show the K-RERA registration number. Section 12 gives you compensation for a loss caused by a false statement in an advertisement or brochure. Keep a dated copy of the offer.

Type of offer	What to check
Lower rate for early booking	The rate on your cost sheet, in writing
Waived charges	Which lines go to zero on the cost sheet
Free parking or a gift	Whether it is in the agreement for sale
Payment plan	Whether the total cost changes, or only the timing
Deadline	Whether it pushes you to pay before the agreement

7.4.4 How do you compare a launch price with other flats?

Compare the full cost of each flat on the same basis, not the advertised rate per square foot. Builders can quote rates on different areas: carpet area, built-up area or super built-up area. A lower rate on super built-up area can cost more than a higher rate on carpet area. So convert each price to a cost per square foot of carpet area. The carpet area chapter explains the three areas. Add every charge from the cost sheet, then GST and stamp duty and registration. Divide the total by the carpet area. Do this for your shortlisted flat at the launch, and for similar flats in launched projects nearby. If you hold an EOI, add the price from your EOI terms to the comparison. A launch price is worth paying only if the total cost per square foot of carpet area is in line with similar flats. Write down each figure and its source.

1. Get the cost sheet of each flat you compare.
2. Add every charge, GST and stamp duty and registration.
3. Divide the total by the carpet area.
4. Compare with similar launched flats nearby.
5. Write down each figure and its source.

7.4.5 When can a launch price change after you book?

After you book, the price is fixed by your written documents, so check what they say about any change. The agreement for sale sets the payments towards the cost of your flat, under Section 13(2) of the RERA Act. Read the price clause, and look for any term that lets the builder add charges later, such as for cost increases or new taxes. Ask the builder to explain each such term in writing. A change in a tax, such as GST, can change what you pay, because tax rates are set by law and not by the builder. The GST chapter explains the current rates for flats. Price steps that the builder makes for later bookings do not change your agreed price. Keep your cost sheet, allotment letter and agreement for sale together. If the builder later demands an amount that is not in them, ask for the clause that allows it, in writing.

Item	Can it change after you book?
The agreed price in your agreement	Only as the agreement allows
Charges added later	Only if a clause in the agreement allows them
Taxes such as GST	Yes, if the law changes the rate
Builder’s price steps for later bookings	No effect on your agreed price

Sachi reads K-RERA filings for Bangalore projects. To compare a launch with registered projects nearby, Ask Sachi.