Under Construction vs Ready to Move in Property

  • Posted by: namrata Realestate
  • 30th April, 2018
  • 2

So you have decided to get yourself your own home and all set to take the plunge. But isn’t the market confusing you what to choose-Ready to move or under construction property, which is better?

Primarily it is about the buyer’s preferences. However you can look at the pros and cons of both options.

Ready-to-move-in Property



  1. The property is available immediately, there are no delays.
  2. If you stay in the house you save on rent or earn rent by letting it out.
  3. Many a times builders offer various freebies so as to reduce his inventory.
  4. There are no discrepancies in the layout, amenities etc. You would get what you had seen.
  5. The ready properties don’t come in the purview of GST which is 12%.
  6. Tax benefits may be availed.


  1. There is a huge cost difference from an under-construction unit – almost 20-30 per cent.
  2. There is no way to check the quality of construction.
  3. Title clearance—It is the passing of ownership of the house from the seller to the buyer. This is extremely important and requires a lot of legwork and legal work to ensure correctness of documents.
  4. Ready units having Occupancy Certificate as on 1 May, 2016, are not included under RERA.
  5. If the property is a few years old then there is negligible scope for capital appreciation, as a lot of the development around it would have already taken place.


Under Construction Property

under construction


1) One can make an informed decision based on the builder’s track record in terms of project delivery and quality of construction by visiting different project sites of the builder.

2) The property is usually priced competitively which lowers your cost considerably.

3) Various non-Structural alterations as desired may be done during construction stage

4) Interiors may be done as per buyer’s wishes.

6) RERA protection – As per law, all projects post 1 May, 2017 need to be registered under RERA. This law protects buyer’s interest. Any information regarding these properties can be sought on the buyer’s respective State’s RERA website.

7) You can expect higher return on investment on an under construction property over a period of time.


1) It involves higher risk and cost. There could be delay in project delivery or there can be failed delivery. Increase in lending rates, etc hugely impacts buyer’s finances and risk.

2) There might be variations in the amenities/structure/layout from what was promised at the time of possession in under-construction properties.

4) There are no income tax concessions for under construction homes till possession.

So now that you are better informed , happy buying !

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