Every homebuyer in an Indian city faces the same fork: buy a ready-to-move flat you can inspect today, or book an under-construction one at a lower price and wait. The under-construction option looks cheaper on the brochure – often 15 to 30 per cent less than ready units in the same area. But the real comparison is not brochure price versus brochure price. Taxes, rent paid while you wait, delay risk, and what you can verify with your own eyes all shift the maths. Here is the honest comparison.

The price gap – and what eats into it

Under-construction flats are cheaper for a simple reason: you are funding the builder’s construction and bearing the waiting risk. A flat priced at 1 crore under construction might cost 1.2 crore ready-to-move in the same project. But three costs narrow that gap. First, GST: under-construction properties attract 5 per cent GST (1 per cent for affordable housing) on the agreement value, while ready-to-move flats with an occupation certificate attract no GST – on a 1-crore flat, that is 5 lakh rupees straight away. Second, stamp duty and registration apply to both, so no difference there. Third, and biggest: rent. If construction takes three years and your rent is 25,000 a month, you will pay 9 lakh in rent waiting – money that buys you nothing. Add GST plus rent, and the effective gap shrinks dramatically, sometimes to single digits.

Risk: what you can and cannot verify

The ready flat’s superpower is certainty. You walk through the actual unit, check the sunlight, the ventilation, the finishing, the view – and, crucially, whether the building actually exists as promised. Under-construction buyers purchase from floor plans and sample flats, trusting the developer to deliver. RERA has reduced the horror stories – escrow accounts, registered timelines, compensation for delays – but delays still happen, and a stuck project can trap your money and your plans for years. The risk checklist for under-construction:

• Developer track record: have their past projects been delivered on time?
• RERA registration and the project’s reported completion percentage versus the promised timeline.
• Funding: is construction visibly progressing, floor by floor?
• Title and approvals: commencement certificate, environmental clearances, land title.

With a ready flat, most of these questions answer themselves – the building is there.

The appreciation argument – and its limits

Under-construction’s genuine advantage is appreciation during construction: as the project nears completion, prices typically rise, so early buyers capture the upside. Investors have long used this to flip units before possession. But this works only in rising markets with credible developers; in flat markets or with delayed projects, the “appreciation” never materialises and you have paid rent for nothing. Ready flats, meanwhile, can be rented out immediately – a 1.2-crore flat fetching 25,000 a month earns 3 per cent gross yield from day one, partially offsetting the higher price. For end-users who need a home, not an investment, the rental income argument often tips the scales.

Who should choose which

Choose ready-to-move if you need certainty – a family that must move by a date, a buyer who has been burned before, or anyone buying in a city where they cannot monitor construction. The premium buys sleep. Choose under-construction if the developer’s record is impeccable, the RERA filings check out, the discount after adjusting for GST and rent is still meaningful, and you have flexible housing in the interim. A middle path exists too: projects in the final stages of construction, where the building is visibly nearly done – much of the discount remains while most of the risk has evaporated. Whatever you choose, never book without verifying RERA registration, and never pay more than 10 per cent before the registered agreement for sale.

FAQs

Is GST applicable on ready-to-move flats?

No, provided the project has received its completion or occupation certificate. GST applies only to under-construction properties.

Can I get a home loan for an under-construction flat?

Yes – banks disburse in stages linked to construction progress, and you typically pay pre-EMI (interest only) until possession, after which full EMI begins.

What if the developer delays beyond the RERA timeline?

You can claim monthly interest for the delay period or withdraw with a full refund plus interest. File with your state’s RERA authority.

Compiled by the Khabar 24h Editorial Desk from publicly available sources.