top of page

Under-construction vs Ready-to-move-in

A question that usually troubles almost all home buyers is whether to opt for a ready-to-move-in house or book an under-construction one. Since both these property types serve and suit different purposes and intents, it is imperative to know their pros and cons in detail Here is a ready guide to help you take the decision.


Under Construction

Easier on the pocket:

If factors such as location, area, property type and builder are same, a ready-to-move house costs more than an under-construction one. The difference in pricing can vary from anywhere between 10 - 30 percent.

Higher returns

If you sell the property closer to possession, you stand a good chance of earning a healthy appreciation on your capital investment.

RERA Compliance:

Any Under-construction project when Area is not less than 500 sq mtr & flats are more than 8, will necessarily come under the ambit of RERA and thus, become liable to comply to fair trade practices. Buyers can avail information on their respective State’s RERA website (For Goa:


Immediate availability

One of the prime advantages of a ready unit is the absence of any waiting period. All you have to do is make the payment, some documentation work and move in. This also saves you from the double burden of paying your rent and the EMIs.

You get what you see:

You actually get what you have paid for. As the unit is ready for you to inspect before you finalise the purchase, there is no risk of discrepancies with the promised layout, features, and amenities.

Free from GST Implication:

The recently implemented Goods and Services Tax (GST) levies a five percent tax on purchase of under-construction properties. Ready properties, however, are left out of the ambit of GST.


Under Construction

Higher risk:

There have been cases when the builder has failed to deliver on time or in some severe cases, failed to deliver at all due. It is important to do a detailed background check of the builder before investing in an under-construction project,

Discrepancy in the final outcome:

One of the most common glitches associated is not getting the promised product at the time of possession. Usual inconsistencies include lesser usable area than promised, changed layout and deficient amenities.

GST Implication:

Purchasing an under-construction property will attract a tax incidence of 5% of the total cost of property with addition to Stamp duty and registration charges, resulting in heavy expenditure on taxes.


High Cost:

One of the most obvious drawbacks of buying a ready-to-move unit is the higher cost. As mentioned above, the cost difference could be anywhere between Rs 20-30 per cent.

Quality of construction:

You can evaluate the work progress and thus being aware of the quality of construction like materials used, strength of the building etc. However, in case of a ready unit, you cannot conduct any such checks.

Age of the property:

Unlike an under-construction property, buying a ready unit might not always ensure you a brand new home. It might have been in up for sale for a long time. Hence, if it has not been maintained properly, it might start looking old.

27 views0 comments


bottom of page