One of the first decisions a homebuyer faces is whether to buy a finished home or book one in a project still being built. Both can be right. It depends on your money, your timeline and how much risk you can carry.
Ready-to-move: what you gain
- You see exactly what you get: quality, view, neighbours and the society.
- No GST on the purchase if the project has received its completion certificate.
- You stop paying rent, or start earning rent, immediately.
- No risk of delay or of the builder failing.
Under-construction: what you gain
- A lower entry price, often meaningfully below similar ready homes.
- Staggered payments linked to construction, which suit buyers whose savings grow over time.
- A choice of units and floors in a new project with modern amenities.
The costs people forget
- GST: 5% on under-construction homes (1% for affordable housing as defined), without input tax credit.
- Rent plus EMI: you may pay rent and pre-EMI interest together until possession.
- Delay risk: even good builders face delays. RERA gives compensation, but time lost is not refunded.
A quick comparison method
Add up the total cost of the under-construction home by possession date, including GST, pre-EMI interest and the rent you will pay meanwhile. Compare that with the price of a similar ready home today. If the gap is small, the ready home usually wins.
Tip:Check the RERA project page for the builder's declared completion date and quarterly progress before booking.
Our advice
First-time buyers who need to move soon should lean towards ready or nearly ready homes. Investors with a longer horizon can consider under-construction projects from builders with a strong delivery record. Use AI Match with "Ready to move" as a priority to see ready options in your budget.
Frequently asked questions
Is GST charged on ready-to-move flats?
No, if the project has received its completion or occupancy certificate. GST applies to under-construction property.
How much cheaper are under-construction flats?
Often noticeably cheaper than similar ready flats, but compare total cost including GST, interest and rent until possession.
What if my under-construction project is delayed?
Under RERA you can claim interest for the delay or, in some cases, a refund with interest, through the state RERA authority.
This article is general information, written in November 2026, and is not legal, tax or financial advice. Rules, rates and limits change; please confirm the current position with the authority concerned or a qualified professional before you act.
