Homebuyers Weigh Risks and Rewards: Under-Construction vs. Ready-to-Move Properties

As of November 10th, 2025, homebuyers in India are facing a challenging real estate landscape. With home loan rates hovering around 8.5-9.5% and property prices at all-time high levels, they must carefully evaluate whether to invest in under-construction or ready-to-move (RTM) properties.

Real estate experts advise that the decision now hinges less on the quoted price and more on the total cost of ownership (TCO). This includes factors like EMIs, rent, GST, and tax benefits. Even though ready-to-move homes have a higher upfront cost, they can be 6-10% cheaper in effective ownership once these components are accounted for.

Under-construction homes allow for staggered payments over 2-4 years, easing initial cash flow through lower pre-EMIs or deferred interest schemes. However, buyers must factor in the loss of ₹1-1.5 lakh in annual tax savings during construction, as deductions under Sections 80C and 24(b) apply only after possession.

In contrast, ready-to-move buyers can claim the full ₹1.5 lakh under Section 80C and ₹2 lakh under Section 24(b) from Year 1, improving short-term liquidity. Additionally, they eliminate rent from the first day, which can translate into ₹5-7.5 lakh in cumulative savings over five years.

The perceived price discount of 10-20% on under-construction homes often comes with execution and delay risk, especially in projects that face 24-36 months of lag. Even under RERA, delays and market volatility persist, whereas ready homes offer certainty in terms of quality, location readiness, and actual livability.