A big question that homebuyers face in the real estate market is whether to buy an under-construction homes or a ready-to-move-in property? The big advantage of RTMI homes is that you can move in immediately and there is less risk of builder delays or problems. But if you are a little patient, an under-construction property can give you a discount on the price, an opportunity to customize according to your needs and can give you benefits like higher returns in the long term.
Therefore, for smart investors, an under-construction home can be a better option, provided you check the builder’s reputation and the project’s timeline thoroughly. So, which option will you prefer? Let’s understand this in more depth and in simple words.
The special attraction of under-construction homes
Under-construction homes are properties that are still under construction, and offer buyers the opportunity to buy in the early stages of the project. In India, especially in cities like Mumbai and Chennai, demand for these homes has grown rapidly because of the many benefits they offer. Let’s find out why under-construction properties can be a better option than ready-to-move-in (RTMI) homes.
Cost savings
The biggest advantage of under-construction homes is their affordable price. Builders offer these at a lower price than RTMI homes, sometimes offering discounts or extra benefits to attract early buyers. RTMI homes are priced higher, while under-construction options are budget-friendly. This difference can prove to be a big advantage, especially for first-time homebuyers or investors.
Opportunity to change as per your choice
The layout and design of RTMI homes are already fixed, but in under-construction properties, you can make changes as per your choice. From floor plan to tiles, paint or fixtures, you can get your home designed in your own style. This flexibility proves to be a big advantage for buyers who want to buy a personalized home.
Easy payment plan
In under-construction properties, the payment can be divided into installments, which reduces financial pressure. Many builders divide the payment over a long period during the construction period. This is better for buyers who do not have a large amount at once.
Getting better choice
Buying in the early stages of the project can give you options like better floor, location and view. In high-demand locations like Mumbai, good units get sold quickly, but in under-construction properties, you can easily book the house of your choice in advance.
Chance of price appreciation
Buying an under-construction home in a developing area can be a smart investment. As infrastructure improves and demand grows, property values rise with it. Luxury residential projects in cities like Mumbai offer opportunities where early buyers can benefit from a significant price appreciation.
Modern infrastructure and technology
Under-construction homes come with new technology, energy-efficient systems, and modern amenities. Upgrades like smart home features, green design, and community facilities make them future-ready. Older RTMI homes, on the other hand, do not have these features, and upgrades cost extra.
Low risk from trusted builders
Although under-construction properties carry the risk of delays or quality issues, buying a home from a reputed builder reduces this risk for you. It is important to check the builder’s past track record and project completion history to make your purchase smooth.
Final Word:
If you are looking for a better option in budget, want to take advantage of future property value appreciation, or want to build your dream home, then under-construction property can be the right choice for you. Just make your right home investment by choosing a reliable builder.
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Comparing Under-Construction Homes or a Ready-to-Move-In
To make a good decision, it is important to compare the pros and cons of under-construction homes and RTMI properties. In the table below, you will find a short comparison of the two:
| Aspect | Under-Construction Homes | RTMI Homes |
|---|---|---|
| Cost | Lower, with potential discounts | Higher, often at a premium |
| Customization | High flexibility in design and finishes | Limited to existing layout and features |
| Payment Flexibility | Staggered payments over time | Full payment or loan required upfront |
| Availability | More choices in location, floor, and views | Limited to available units |
| Investment Potential | Higher appreciation in developing areas | Stable but lower growth potential |
| Risk | Possible delays or quality issues | Minimal risk, immediate possession |
| Tax Implications | Subject to GST (5% additional cost) | GST-exempt |
| Infrastructure | Modern, future-ready designs | May require upgrades or renovations |
The biggest advantage of RTMI homes is that you get immediate possession of the property and can inspect it first. But it costs more, has fewer customization options, and the potential for future value growth is limited.
Under-construction properties are delivered in a shorter time, but you can also benefit from better pricing, customisation choices, latest amenities and long-term appreciation. And the price difference is also reducing, making under-construction options even more attractive.
So if you can be patient and are willing to wait a bit, under-construction property could be more beneficial for you.
Market Trends and Considerations
Under-construction homes are seeing a resurgence of interest, especially after Covid. According to a 2021 report by Times Property, buyers in cities like Chennai are preferring to buy under-construction properties as they have low initial costs and flexible payment plans. However, there are some risks involved, so buyers should gather complete information about the builder they are buying from before buying a home.
How to make the right purchase? Here are some tips:
- Research the builder: Check his previous projects, delivery timeline and reputation. You can easily check through the official website of RERA according to your state. Here you can check the reputation of the builder by entering the name of the builder or the RERA number of the project.
- Understand the timeline: Find out when the property will be ready, what is the possession date of the property and also keep in mind some delay while planning.
- Plan finances: Choose the payment plan according to your budget, calculate GST and other expenses in advance.
- Location matters: Choose a location that has high growth potential, like Mumbai, Chennai, where property values are expected to appreciate rapidly.
If done carefully, under-construction homes can also turn out to be a smart investment, else it could turn out to be a loss-making deal.
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Who Should Choose Under-Construction Homes?
Under-construction homes are good for whom?
- First-Time Buyers: Homebuyers who want to buy their home for the first time and also have a low budget.
- Investors: Those who want to take advantage of the rising property prices in the coming time, especially in developing areas.
- Customizers: Those who want to get the house designed or modified according to their choice.
- Patient Buyers: Those who can wait till the construction is completed (usually 2-5 years).
On the other hand, RTMI (Ready-to-Move-In) homes are better for those who:
- Want to move in the house immediately after buying it.
- Want to take less risk, want to avoid fraud. Even if they do not get the benefit of much savings.
Conclusion
Under-construction homes are not only affordable but can also be customised to your liking and can also increase in value in the future. These can be a better option than RTMI properties. Yes, there is a little risk, such as the property not being delivered on time, but if you choose a trusted developer and do your research, this risk is minimized for you.
Especially in a changing market like Mumbai, this can be a golden opportunity for homebuyers in 2025. You can get a modern, personalised and amenity-rich property at a low price and also have the scope for its value to increase in the future.
So are you ready to explore the options of under-construction homes? First, look for a trusted developer and make the right decision keeping your financial goals in mind. After all, this is your dream home, isn’t it?
If you want to buy an under-construction property but are afraid of fraud, you can take the help of a RERA certified real estate agent. They will help you completely in dealing with a property from a trusted developer.
Also Read: How Your Home’s Direction Affects Your Life in 2025
Frequently Asked Questions
Why are under-construction homes often cheaper than RTMI homes?
Under-construction homes are generally available at a low price as builders offer discounts to attract initial buyers. This allows buyers to save money, unlike RTMI (Ready-to-Move-In) homes which are more expensive than under-construction homes as possession is immediate and the risk is lower. Moreover, builders also give some freebies or offers to make the deal even more attractive.
Can I customize an under-construction home to suit my preferences?
A big advantage of under-construction homes is the flexibility you can make. While the home is being built, buyers have the opportunity to choose layouts, finishes, or fixtures to suit their lifestyle. This flexibility is not usually available in RTMI (Ready-to-Move-In) homes, where the design is already fixed.
What are the financial benefits of buying an under-construction home?
Payment plans for under-construction homes are usually flexible where you can spread the payments over the construction time period. This reduces the financial burden compared to RTMI homes, where mostly full payment or loan has to be made upfront. But note, under-construction properties are also subject to GST, which increases the cost by around 5%.
Are under-construction homes a good investment?
Under-construction homes can be a good investment for homebuyers, especially in developing areas like Mumbai. If you buy in the initial stage, you can benefit from the appreciation in prices till the project is completed. Also, when the surrounding infrastructure develops like better roads, metro, shops, the property value can increase even more. So, investing in the beginning can give homebuyers good returns in the future.
How can I reduce the risks associated with under-construction homes?
If you want to avoid project delays or quality issues, then choose a builder who has a good past record and who delivers the project on time and does quality construction. Check their old projects and customer reviews thoroughly. Trusted builders like Hiranandani, Rustomji, Dosti Realty, Purvankara and many others, whose work is reliable, can keep you tension-free while investing in under-construction property. And you can invest without any hesitation.
