Ready-to-move or under-construction property: how to choose
Last updated 2 November 2026
Ready-to-move property lets you inspect what you are buying, start using it at once and pay no GST on a completed unit. Under-construction property spreads the payments over time, but adds GST and the risk of delay. The choice mostly depends on when you need the home and whether you can pay rent and a loan together.
This guide is general information, and not legal, tax or investment advice.
What is the main difference?
The main difference is what you know on the day you pay. With a ready unit, the risk is in what you can see and verify. With an under-construction unit, the risk is in what has not happened yet.
| Ready to move | Under construction | |
|---|---|---|
| What you can inspect | The actual flat, building and neighbours | A sample flat, a plan and a site |
| GST | None on a completed unit sold after the completion or occupancy certificate | Generally 5% on homes, or 1% on qualifying affordable housing |
| Payment | Usually most of it in a short period | Usually in stages over the build |
| When you can use it | Soon after registry | After completion and possession |
| Main risk | Title, dues, building quality and upkeep to date | Delay, changes and the developer’s ability to finish |
| Choice of unit | Only what is on sale at that moment | Often more floors and facings early on |
Is under-construction property cheaper?
It can be on the price list, but compare the total cost and not the headline. A lower price has to be set against GST, the interest you pay during construction, and any rent you pay while you wait.
- Add GST to the under-construction price. Leave it out for a completed unit after the certificate.
- Add the home loan interest you will pay before possession.
- Add your present rent for each month until the filed completion date, and then some margin.
- For a ready resale unit, add any repairs, a society transfer fee and dues.
Run both through the buying cost calculator. The calculator has a switch for GST, so you can see the same price with and without it.
How does RERA protect an under-construction buyer?
RERA gives you a filed completion date, rules on how the money is held and a route to complain. It does not stop delay from happening, and it cannot give you back the years you waited.
- The developer must keep 70% of buyers’ money in a separate account for that project, and cannot take more than 10% of the cost before a written agreement for sale.
- If possession is late, the buyer has remedies under the Act, including interest for the delay or a refund with interest in the situations it sets out.
- The developer is responsible for fixing structural and certain other defects reported within five years of possession.
A remedy takes time and effort to use. Use RERA first to check the project, not as a plan for when things go wrong. See how to check a RERA number.
What should you check on a ready property?
Check the completion or occupancy certificate first, then the title and the state of the building. “Ready” is a sales term, and only the certificate settles whether GST applies and whether the building is legally finished.
- The completion or occupancy certificate, for that tower.
- Sale deed chain and any loan on the property, if it is a resale.
- Unpaid maintenance, electricity and property tax dues.
- Seepage, lifts, fire equipment and parking, seen in person.
- Who runs the society and how much it has saved for repairs.
Our resale guide covers the paperwork for a completed flat in more detail.
Which should you choose?
Choose by your date, your cash flow and your tolerance for uncertainty. These tests usually settle it.
- You need the home within a year or so: buy ready. A filed date is a plan, and your family cannot wait on a plan.
- You cannot pay rent and an instalment together: buy ready, or choose a project close to completion.
- You have time and want a staged payment: under construction can work, with a developer whose finished projects you can visit.
- You want rent from the start: only a ready unit gives you this. Read what to check on rental income first.
- You want a particular floor or facing: an early-stage project will offer more choice, at the price of more waiting.
Our current projects are new developer inventory, and the process is the same for both. Tell Lalit your date and monthly limit, and the shortlist can start from those.
Frequently asked questions
Is GST charged on ready-to-move flats?
Not on a completed unit sold after the completion or occupancy certificate has been issued. If a unit is called ready but the certificate has not been issued, GST may still apply, so ask to see the certificate.
What if the developer misses the possession date?
The RERA Act gives buyers remedies, such as interest for the delay or, in the cases it sets out, a refund with interest. You can complain to UP RERA. Read your agreement and take advice for your case.
Can I get a home loan on an under-construction flat?
Generally yes, and banks usually release the money in stages as the building progresses. You may pay interest during construction, so ask your bank how the payments work and whether the project is approved by it.
Which is better for an investor who wants rent?
A ready unit starts earning sooner and you can check real rents around it. An under-construction unit earns nothing until completion. Neither promises a particular income, so check actual rents for similar units nearby.