The Benefits of Purchasing an Under-Construction Property

February 21, 2023


The home-buying process often includes several decisions to be made, such as location, budget, builder, project, facilities and amenities – are all factors that influence the decision. One of the most important decisions, though, is buying a ready-to-move property vs buying an under-construction property. Most first-time homebuyers and investors prefer to buy a flat or apartment during construction. However, there are many benefits that come with such a decision.

Cost benefits – One of the greatest advantages of buying an under-construction property in Mumbai is the cost-benefit. Developers typically announce the launch of their projects, and the early bookings bring in a lot of liquidity which is then ploughed into the project's construction. At the same time, home buyers need to wait anywhere between 1-3 years for possession, depending on the project's speed or scale. The property's price at launch or under construction, though, is much lesser than a ready-to-move flat. So planning and booking early can make luxury apartments affordable to those on a budget.

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The flexibility of payments – When you buy a residential property, you are typically required to pay a down payment of about 20%, while the remaining can be sourced from a home loan. However, you must make the entire payment when you buy a ready-to-move property. Purchasing a property under construction will help you make staggered payments as the construction work progresses. This also helps you take a flexi loan in which you withdraw the funds provided by the lender as necessary and make EMI payments only on the loan amount utilised.

Cost appreciation – One of the main reasons homebuyers prefer ready-to-move properties is that it is available for personal use and saves on rental outflow during construction. On the flip side, an under-construction property often appreciates during construction, which can take between 1 and 3 years. This means that though you may be spending on rent while your residential property is under construction, the asset's appreciation in value upon completion can be much higher than the amount spent on rent, depending on the area and demand. This is particularly helpful if you are a real estate investor.

Developer discounts – Even during the planning stage, developers often start to think of sales strategies and marketing. The builder or developer gains liquidity only when more units are sold. As an incentive, most builders offer deep discounts for buyers willing to purchase in the early stages of construction. Then, as they plough more money into the construction process, they offer the same flats and units at higher prices and lesser or no discounts. The homebuyer also has greater pricing flexibility when investing in an under-construction property.

Customised development – As a homebuyer, you may not have much say in the unit layout or plan. Still, by investing in an under-construction property, you may be able to add customised accents and opt for different tile patterns or door or window materials. In addition, when you buy into a project under construction, you can plan your interiors well in advance with the help of a professional designer. This will help you find an electric outlet, vent, and water outlet placement according to your planned interiors. It also reduces redundancies with respect to colouring the walls or picking wallpapers.

Reputed builders and developers in Mumbai directly list their offerings on real estate platforms like Blox, sometimes even before launch. So be on the lookout for these and leverage the cost advantages of investing in under-construction properties.


I believe in making the impossible possible because there’s no fun in giving up. Travel, design, fashion and current trends in the field of industrial construction are topics that I enjoy writing about.

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