Under-Construction vs Ready-to-Move Homes in India: Which Should You Choose in 2025?

Buying a home is often the biggest financial decision in an Indian family’s life. But with reports of 5–10+ year delays on unfinished projects, many buyers wonder: Is it safe to buy an under-construction home? The answer: it can be risky without proper checks. Under-construction flats may come cheaper and with schemes like “No EMI till possession” (a 20:80 payment plan where the builder covers EMIs until handover), but delays and disputes can bite you with dual expenses (EMIs and rent). In contrast, ready-to-move homes offer certainty, immediate possession, no construction risk, and clear cost (no GST). This guide will break down the definitions, benefits and risks of each, plus a due-diligence checklist so you can decide confidently in 2025.

What Is an Under-Construction Property?

An under-construction (UC) property is one you book before it is built. Developers often lure buyers with lower prices or payment schemes. For example, in a popular “No EMI till possession” plan (a subvention scheme), the buyer pays ~20% upfront and the developer pays the EMIs until handover. Often these projects also enjoy GST benefits (typically 5% tax instead of 12%) and other promos. Construction-linked payment plans (CLPs) let you pay in stages as the work progresses, easing upfront cash needs.

However, these perks come with big risks. Completion dates can slip (often for years), builders can halt work or even go bankrupt, and plan specs may change mid-stream. Buyers are essentially betting on a promise and the developer’s track record. As one homebuyer story shows, a flat booked in Gurugram in 2019 (promised by 2021) was still unfinished in 2025. In short: you get a bargain up front, plus flexibility and customization if all goes smoothly, but be prepared for delays or disputes.

Before locking in any project, it’s critical to evaluate the home builder’s past record and credibility. To read more about how to stay away from unreliable developers, check out our blog on How to Choose a Home Builder: Checklist for Homeowners

What Is a Ready-to-Move Property?

A ready-to-move (RTM) home is fully built and certified (with a Completion Certificate/Occupancy Certificate). You pay the (higher) purchase price and can occupy immediately. Because the project is finished, there’s no construction risk or GST. In fact, as industry experts note, RTM properties carry “no risk of project delays or cost overruns”, a major advantage. Buyers can inspect the actual apartment, verify materials and finishes, and avoid surprises in legal approvals. This makes RTM units ideal for families, retirees, or NRIs needing instant occupancy.

The trade-offs are mainly cost and customization. RTM homes cost 10–30% more (same location), and there’s little room to alter layouts or fittings. But you gain certainty: immediate possession, one-time tax (stamp duty) payment, and no double expense of EMI-plus-rent. In short, ready homes offer peace of mind with higher but fixed costs.

Pros & Cons: Under-Construction vs Ready-to-Move

Factor	Under-Construction	Ready-to-Move
Cost	Usually cheaper (often 10–30% less)	Higher upfront cost, but fixed
EMI vs Rent	Risk of double payments: you may pay EMIs and rent if delayed	Move in now- no rent, only EMI
Risk	High- project delays, plan changes, fraud or insolvency	Low- property ready, developer liable for defects
Customization	Possible, choose layouts, fixtures early on	Limited, only minor changes allowed
Verification	Based on plans/advertising, must trust builder’s reputation	Physical inspection of unit and amenities
Tax Benefits	Deductions (interest under Sec.24, 80C) start after possession	Immediate, you claim loan interest and principal deductions from day one

Key Risks of Buying an Under-Construction Flat

Even with RERA in place, under-construction projects can present serious pitfalls. Real homebuyers’ stories and data reveal common issues:

1. Lengthy Delays (3–10+ years): It’s not uncommon for projects to overrun schedules by many years. News reports cite buyers stuck more than a decade in stalled projects. 

   
   

2. EMI + Rent Burden: Delays often force buyers to pay their home loan EMI while renting elsewhere. This “dual burden” can be crushing. ET notes “homebuyers…end up paying home loan EMIs and the rent” during prolonged delays. Hindustan Times echoes this hardship: “the first challenge is to pay both EMI and rent,” significantly straining finances.

   
   

3. Legal/Regulatory Loopholes: Although RERA mandates registration and 70% escrow of funds, enforcement varies. Many smaller developers still bypass RERA or misuse funds, leaving buyers exposed. RERA violations (like delay in updates or fund diversion) do happen, and tribunals are backlogged. In practice, RERA is only as effective as its enforcement.

   
   

4. Builder Insolvency & Stalled Projects: Financial problems hit many developers. A law journal reports ~4.12 lakh housing units (₹4.08 trillion in value) were stalled due to builders’ inability to complete projects. In fact, real estate made up 54% of corporate insolvency cases in 2022. High-profile cases (Jaypee, Amrapali, etc.) highlight how a builder’s collapse can devastate buyers.

   
   

5. Quality Concerns: With long delays, even when construction resumes, shortcuts may appear. Buyers face risks of poor materials (low cement/water ratio), inadequate curing, leaky waterproofing, etc. These defects might only become apparent after handover. While harder to quantify, such quality issues are often reported in forums.

   
   

In summary, UC flats can work if everything goes right, but many things can go wrong. Always factor these real-world risks when deciding.

Many delays happen because homeowners are not aware of the construction stages and what timelines should realistically look like. To understand this better, read our guide on House Construction Process in India: From Design to Move-In.

When Under-Construction Can Still Make Sense

An under-construction home may be right for you if you match all of these:

1. Top Developer with Track Record: Established Tier-1 builders (like DLF, Prestige, Brigade, etc.) with a history of on-time deliveries and strong finances are the safest bets. Due diligence on a reputable developer can greatly reduce risks. (For tips on vetting builders, see our [home builder checklist] and internal link below.)

   
   

2. RERA Compliance: The project must be properly registered with RERA (and ideally have no past penalties). Check the RERA number and make sure the promoter follows strict Construction-Linked Payments (CLP) and escrow rules. This ensures 70% of your money is ring-fenced for that project, and you pay only as milestones are met.

3. Escrow Account & CLP: Confirm the funds are in an escrow account and that you pay only on construction milestones, not a lump sum. This prevents diversion of funds and aligns developer incentives with progress.

   
   

4. Long-Term Horizon: You should not need the home urgently. If you can afford to wait (5+ years) for potential gains, UC properties can yield higher appreciation. In fact, ANAROCK Chairman Anuj Puri observes that UC projects “suit those eyeing long-term gains, provided they choose RERA-compliant developers”.

   
   

5. Financial Preparedness: You should be able to handle periodical payments and the possibility of continuing EMIs plus rent (in case of overruns). If you already have low debt and flexible plans, a delay can be absorbed; otherwise it’s safer to avoid UC.

   
   

In short: UC makes sense for investors or planners who can wait, have a solid lender and buffer, and have vetted a top-tier, RERA-approved builder. End-users needing a home soon are usually better off with ready units.

Some projects still deliver on time when backed by modern construction practices. To learn how technology is changing timelines, read our detailed blog on Modern Construction Methods & Technologies.

Due-Diligence Checklist for Buyers

Whether you choose ready or UC, thorough checks are vital. Before signing, do all of the following:

1. RERA Registration: Verify the RERA registration number on your state’s official portal. Confirm the project is listed and check if past projects by the developer had any non-compliance issues.

   
   

2. Escrow Proof: Ask for bank statements or a letter showing the escrow account deposit (70% of project funds, as mandated under RERA). If the builder cannot prove this, consider it a red flag.

   
   

3. Payment Terms: Never pay a lump sum in advance. Use a stage-wise Construction-Linked Plan (CLP) tied to specific milestones. Developers sometimes advertise “no EMI till possession,” but as experts warn, these schemes often cap at ~2 years, after which you resume paying EMIs. Always know exactly when payments are due.

   
   

4. Approvals & Certificates: Inspect all legal approvals. For any property, demand copies of Development Permission (DP), land title documents, and NOCs (fire, environment, etc.). For a ready home, ensure the Completion Certificate (CC) and Occupancy Certificate (OC) are in hand. (These certify that the building is legally fit for occupation.)

   
   

5. Site Visits: Visit the site (or model unit) regularly. Document progress with photos and notes. On a ready unit, inspect the finished quality: level floors, good paint work, and functioning amenities.

   
   

6. Builder Reputation: Research the developer’s past projects and reputation. Look up customer reviews and news (or see our guide on choosing a builder). Check if similar projects were delivered on time and free of litigation.

   
   

7. Contract Clauses: The Sale Agreement should explicitly state possession date (or formula), and include penalty clauses for any builder delay. Make sure terms like carpet area, amenities, and specifications are clearly defined.

   
   

8. Legal Advice: If in doubt, have a property attorney review all documents. They can spot hidden clauses (like forced arbitration) and ensure your rights are protected.

   
   

Every point you check reduces risk. Don’t proceed until you’re satisfied with verification and documentation, especially for under-construction deals.

Why Many Buyers Prefer Ready-to-Move in 2025

In today’s market (2025), many buyers lean toward ready-to-move homes for good reasons:

1. Instant Possession & No Double Costs: You can occupy immediately with no waiting period. This means one-time expenses: pay your EMI or rent for the house, but not both. Ready homes eliminate the “dual burden of paying rent and EMIs simultaneously” that plagues UC buyers. This financial certainty is especially appealing with rising interest rates and living costs.

   
   

2. Quality & Transparency: With a finished property, you can physically verify construction quality and materials. You see exactly what you get, no last-minute specification swaps or corner-cutting. Likewise, approvals are already in place, reducing legal surprises. In short, ready homes offer “full visibility” and peace of mind before you commit.

   
   

3. Clear Total Cost: RTM prices are fixed (no future cost overruns). Also, since the home is complete, you pay stamp duty/GST and move-in fees just once. (For instance, GST only applies to UC projects.) This makes budgeting simpler.

   
   

4. Safer Investment Climate: In uncertain markets, buyers avoid added risk. Many families and NRIs value the safety of a finished asset they can verify immediately.

   
   

According to a FICCI-ANAROCK survey (H2 2023), buyer preference between ready and under-construction nearly equalized (ratio ~23:24), up from a heavy bias toward UC in 2020. This shift suggests that for many, the security of a ready home now rivals the lure of cheaper UC deals.

Final Recommendation

For most end-users and first-time homebuyers, ready-to-move apartments are the safer choice in 2025. They offer immediate use, clear legal status, and no hidden delays. By inspecting the completed unit you avoid nasty surprises. Reserve under-construction purchases for cases where you can afford time and risk: for example, investors or buyers in new neighbourhoods who can wait for higher long-term appreciation.

If you do consider an UC project, be highly selective: opt for a reputed builder with RERA compliance, only pay by construction stage, and include penalty clauses for delays. As ANAROCK’s Anuj Puri advises, under-construction properties can deliver higher ROI for long-term planners, but only with trusted, RERA-registered developers.

Above all, prioritize due diligence. Verify all documents, track progress, and never rush. And remember, whether you buy ready or build your own, quality matters. If you ever decide to construct a home yourself, partner with an experienced Bangalore home construction company (like Bigger & Bigger Home Solutions) to get professional guidance and ensure on-time delivery.

Frequently Asked Questions

Q- Is it safe to buy under-construction property in India? 

A- It can be safe only with the right builder and safeguards. Large, RERA-registered developers with spotless records pose less risk. But delays of several years do happen in India, so be prepared for extra costs. Always verify approvals and use a staged payment plan to protect yourself.

Q- What documents should I check before buying an under-construction property? 

A- Key docs include the RERA registration (and project status on the state portal), land title papers, building approvals (DP, NOCs), and developer registration. Ensure a bank escrow clause is present. Do not rely on photocopies; always ask for official certificates or verified copies.

Q- What happens if the builder delays possession? 

A- Under RERA, the developer must pay penalty interest or refund your payments if they miss the deadline. You can file a complaint with the RERA authority to claim interest (often SBI MCLR+2%) or even seek a full refund. You may also approach consumer courts for compensation. However, legal remedies can take time, so prevention (choosing a reliable builder) is best.

Q- Can I stop paying EMI if the project is delayed? 

A- No – you remain legally obligated to your bank. Even if the developer halts construction, banks expect you to continue EMI payments. (If you were on a “no EMI till possession” scheme, that typically ends after a fixed period, and you must resume payments.) Talk to your lender about relief options (like a moratorium), but stopping EMI outright is not allowed.

Q- Which is better: Ready-to-Move or Under-Construction in 2025? 

A- It depends on your needs and risk appetite. If you need a home now (or prefer certainty), ready-to-move is generally better. If you have time, can tolerate delays, and want a lower price with customization, under-construction might suit you. Recent trends show buyer preferences evenly split, but families often lean toward ready homes for immediate use.

Q- How do I verify a builder’s credibility in India? 

A- Research thoroughly. Check past project delivery records, read reviews, and visit their completed projects. Look for any RERA or court cases involving the builder. Ask to speak with previous customers (willing builders will share references). A transparent builder will also happily show financials like escrow documents and progress reports.

Q- What is the difference between an Occupancy Certificate (OC) and a Completion Certificate (CC)? 

A- A Completion Certificate (CC) certifies that construction complies with approved plans and local building codes. An Occupancy Certificate (OC) goes a step further and permits occupancy, meaning the building is fit to live in. In many places, OC is a later-stage approval after CC. For ready-to-move flats, always ensure a valid OC (and CC) is issued.

Q- Do under-construction homes really cost less in the long run? 

A- They are cheaper initially, often 10–30% below ready prices. However, if delays drag on, those savings can be offset by extra rent/EMI costs. Also factor in GST (which UC homes still charge) and the risk of cost overruns. Overall, UC can cost less if everything goes well, but it carries uncertainty that ready homes avoid.