Underconstruction Vs Ready-To-Move-In Homes: Know Pros and Cons of Both

Even as the prices of real estate are at elevated levels due to increased demand and higher interest rates, homebuyers are looking for options that can lower their housing prices. In order to buy relatively cheaper homes, buyers also consider under-construction properties. But, is it worth buying under-construction homes, or you should go for ready-to-move-in housing units? Here’s what experts say.

Manoj Gaur, president of CREDAI NCR and chairman & managing director of Gaurs Group, said, “When deciding between under-construction and ready-to-move-in properties, buyers seeking affordability and a range of preferences should lean towards under-construction. It offers flexibility with lower costs and a wider array of floor and location choices.”

He, however, said due diligence is vital due to potential delays. Fortunately, RERA safeguards against non-delivery and penalises delays, offering security amidst the wait. Besides, investing in under-construction properties also offers a higher return on investment.

The Indian real estate has been witnessing increased demand since the second quarter of 2022, after a two-year hiatus due to the COVID-19 pandemic. According to JLL’s latest report on Wednesday, the Indian real estate sector is set for growth as it has potential access to about $41 billion of untapped domestic institutional capital.

Sanjeev Arora, director of 360 Realtors, said, “For buyers prioritising convenience and immediate occupancy, ready-to-move-in properties stand out. With no waiting time, they offer total peace of mind. However, this convenience often comes at a premium, and buyers may have limited options in terms of floor and location preferences. Balancing cost and convenience is critical when making a decision.”

Ultimately, it depends on personal inclination because, due to RERA, investing in a home has become a safe proposition, he said.

As the prices of housing units are rising, three Indian cities witnessed healthy growth in prime residential prices in Q2 2023. According to a recent Knight Frank report, in Q2 2023, prime residential prices in Mumbai grew at 5.2% year-on-year (YoY). With an increase of 3.6% YoY in Q2 2023, Bengaluru ranked 20th and New Delhi positioned itself at 26th with an increase of 0.2% YoY.