Under Construction or Ready to Move? The Real Cost Difference

Under-construction units are cheaper per square foot than finished ones in the same micro-market. Whether that discount is worth taking depends on costs that do not appear on the price sheet.

GST is the clearest difference

Under-construction residential property attracts GST at 5%, or 1% for units qualifying as affordable housing, in both cases without input tax credit. Once a project holds its completion certificate, a ready-to-move or resale home attracts no GST at all. On a one crore purchase that is a straight five lakh swing in favour of the finished unit.

The cost of waiting

If you are renting while your apartment is built, add that rent to the cost of the under-construction option. Three years at forty thousand a month is fourteen and a half lakh. Many buyers also start servicing loan interest during construction under a construction-linked plan while still paying rent, which is the expensive combination.

Delay is the real risk

This is what RERA was written for, and it is why the declared completion date on the TG-RERA portal matters. Check the promoter's delivery record on their earlier registered projects, not just their brochure. A developer who has delivered three projects on schedule is a materially different proposition from one whose last two are running years late, even if the buildings look identical in the renders.

What under-construction buys you

A lower entry price, a staged payment schedule that is easier on cash flow, first choice of floor and facing, and the possibility of appreciation during construction. For an investor with time and tolerance for risk, that combination can work well.

What ready-to-move buys you

No GST, no delay risk, rent saved from day one, and the ability to inspect the actual apartment rather than a show unit. You can see the finish quality, the water pressure, the lift speed and the neighbours. For most first-time buyers we think that certainty is worth the premium.

If you do choose under construction, insist on the occupancy certificate before final payment and possession. A building without one is not legally fit for occupation.