Is the discount on new projects worth the wait? A reality check on ready-to-move-in vs under-construction homes
Under-construction homes are typically priced 15–20% lower than ready units, but buyers may have to wait three to four years or more for possession
In 2021, Priya Sharma, a marketing professional from Noida, booked a 2BHK apartment in an under-construction project that promised delivery within 24 months. But as of mid-2025, the project remains unfinished, delayed by funding and approval issues. Meanwhile, Priya continues to pay both EMIs and rent, stretching her finances and forcing her to delay major life plans, including starting a family. Fortunately, since the project is registered under RERA, she is eligible for compensation from the developer.
Despite such risks, under-construction homes offer notable financial advantages, most significantly, they come at a lower price compared to ready-to-move-in properties.
“One of the biggest benefits is the lower price, developers typically offer these properties at a discount of 15–20% (or more), depending on market conditions, compared to the price once the project is complete, which usually takes three to four years or longer,” says Sunil Dewali, co-CEO of Andromeda Sales and Distribution, a loan distributor.
Also, the payment schedule is easier since the buyer makes staggered payments linked to project completion milestones. Some developers also usually offer additional early-bird discounts.
“Moreover, under construction properties have better capital appreciation potential since demand for them rises the closer they get to the hand-over stage. The wait is worth it if there is no immediate need to move in and if the developer has a strong reputation for timely project completion. If he doesn't, the picture can change radically,” says Santhosh Kumar, vice chairman, ANAROCK Group.
Buyers should do their due diligence
If buyers are planning to purchase an under construction property, they should research the developer’s past track record of delivery. The RERA (Real Estate Regulatory Authority) website provides project-wise and developer-wise data. If the developer is listed, their financials and project updates are publicly available via stock market disclosures.
“Choose developers with a long-standing track record and minimal disputes or complaints. You can also check social media groups and real estate forums where existing buyers share their experiences with completed projects,” says Dewali.
Under RERA, developers must adhere to committed timelines and periodically update construction progress, sales data, and approvals on the RERA website. Buyers can access this information online. If a project or developer is not registered under RERA, it is advisable to avoid such investments.
When does it make sense to purchase a ready-to-move-in property
There are a few things you need to consider when buying a ready-to-move-in property. If you don’t urgently need a property, consider waiting for two to three years. You can save significantly and enjoy better financial flexibility. However, if you require a property immediately, a ready-to-move-in flat is the way to go.
“If you have the full funds ready, a ready-to-move-in property saves you rent and offers certainty. What you see is what you get. Under-construction homes may look cheaper on paper, but with rising interest costs and delivery risks, the total outflow often balances out. Buyers are frequently disappointed when the final product doesn’t match the sample flat,” says B Srinivasan, director and founder, Shree Sidvin Investment Advisors.
Investors also benefit, as ready flats can start generating rental income from day one, offering quicker returns. Additionally, for buyers who don't have specific customization needs, ready units provide the convenience of what-you-see-is-what-you-get, without the hassle of delays or construction oversight. With growing preference for certainty and immediate value, many customers today are willing to pay a premium for peace of mind.
Here’s what to keep in mind when buying an under-construction property
When buying an under-construction property, a buyer should factor in EMIs and delays. “Adding pre-EMIs or interest-only payments during construction, the total payable EMIs post possession, the rent they have to pay while they await final handover, and all additional costs that they would incur if the project is delayed for any reason, will give a fairly accurate picture,” says Kumar. Such added costs include extended pre-EMI, the longer-than-anticipated periods of having to pay rent, and registration and stamp duty and sundry taxes.
Anagh Pal is a personal finance expert who writes on real estate, tax, insurance, mutual funds and other topics
