Top Benefits of Buying Under-Construction Property

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As the demand for residential homes in India continues to rise, buying an under-construction home offers several advantages over ready-to-move-in residences. These properties combine the promise of contemporary living with a canvas for customization, allowing you to shape your space according to your preferences. At AsmitA India Reality, we recognize the allure of real estate investment and have established a sterling reputation in the industry. Our commitment to high-quality projects ensures long-term returns. We are dedicated to providing accurate information on the benefits of purchasing under-construction properties to help buyers acquire their desired property at an accessible price and as a sound investment.

As one of the prominent builders in Mumbai, AsmitA India Reality, we recognize the allure of real estate investment and have established a sterling reputation in the industry. Our commitment to high-quality projects ensures long-term returns. We are dedicated to providing accurate information on the benefits of purchasing under-construction properties to help buyers acquire their desired property at an accessible price and as a sound investment.

Advantages of Under-Construction Properties

Let’s explore the various benefits of buying under-construction properties:

1) Lower Acquisition Costs

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When compared to ready-to-move-in properties, purchasing an under-construction property can result in significant savings. Typically, the price per square foot for properties under construction is 3 to 5% lower. Builders often offer discounts during the construction phase to boost sales, and buyers can often negotiate additional price reductions. Locking at a lower price protects against future price increases. Furthermore, the reduced purchase price results in lower stamp duty and registration taxes.

Additionally, the Income Tax Act of 1961 allows for higher interest deductions of up to Rs 2 lakhs under Section 24B and tax deductions of up to Rs 1.5 lakhs on principal repayment under Section 80C. Despite the longer waiting period for possession, the long-term savings make under-construction properties an appealing choice.

2) Customization Opportunities

Owners of under-construction properties have the opportunity to choose fittings, finishes, and floor plans. Buyers can select tiles, cabinets, and flooring and modify the floor plan. Builders are typically more accommodating to customization requests during the construction phase. Customization adds significant value by allowing you to create an ideal residence that suits your lifestyle. However, buyers should be reasonable with customization requests to avoid delays and increased costs. Ideally, all changes should be finalized during the initial stages of construction. Extensive modifications made after construction has begun can lead to project delays. In addition to obtaining written approval from the builder for customization requests, buyers should assess the impact on property possession timelines.


3) Future Asset Appreciation

Typically, under-construction properties appreciate at a faster rate than completed properties. As construction progresses, the location’s infrastructure improves and becomes more developed. The lower pre-launch prices result in a higher appreciation rate once the project is completed. The prospective market value of the property increases as the building matures. However, appreciation is contingent on factors such as location, builder reputation, and demand-supply dynamics. Investing in under-construction properties, whether for end-use or investment, can yield substantial returns over time. After a few years, when the property becomes available for occupancy, owners can anticipate substantial gains when selling the property. It’s a prudent choice for those with a long-term investment horizon. Moreover, NRIs can buy property in India by investing in under-construction projects for better returns. However, there are risks associated with project delays that could impact returns. It’s wise to conduct thorough research before making a purchase.


4) State-of-the-Art Amenities

New, residential under-construction buildings and commercial under-construction buildings often feature amenities not found in older complexes. The construction industry incorporates cutting-edge technologies and eco-friendly features. Homes may include intelligent home automation, electric vehicle charging stations, solar panels, and more. In commercial spaces, eco-friendly building materials, energy-efficient HVAC systems, and intelligent lighting controls are used. These new features enhance the desirability of the property among owners and tenants.

Nonetheless, it’s crucial for buyers to confirm promised amenities through RERA registration and regular site visits during construction. Occasionally, architects may omit certain amenities or specifications during construction, so examining the amenities and visiting the location is vital.


5) Flexible Payment Plans

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Compared to completed homes, builders offer more flexible payment options for under-construction properties. Payments are structured as milestone-based instalments. Buyers only pay a nominal fee upon booking and have the flexibility to plan their finances more effectively since they aren’t required to pay the full purchase price upfront. However, it’s essential to carefully assess payment plans to ensure they comply with RERA regulations.

Timely instalment payments also help maintain a positive relationship with the builder. It’s crucial for buyers to thoroughly understand the payment schedule and be aware of any applicable penalties for missed payments. Seeking professional advice to evaluate the payment plan before reserving a property is strongly advised.

6) Monitoring Construction Progress

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While there are numerous advantages to buying under-construction properties, it’s imperative that buyers monitor the progress of the project consistently. Construction delays are common in the industry, so visiting the site for regular reviews is essential. During these visits, you can assess the quality standards, labour availability, material supply, and equipment. Additionally, confirm compliance with approvals and legal requirements. Being proactive ensures that the property will be completed on time and to the desired quality standards. If you observe deviations from the project blueprint, it’s crucial to alert the builder immediately. In some cases, buyers may hire third-party quality inspectors to monitor construction progress regularly, minimizing risks and preventing significant obstacles in project completion.

Under-Construction Property vs. Ready-to-Move Property

Let’s compare the main differences between under-construction properties and ready-to-move properties:

Under-Construction Property

Ready To Move Property

Property is currently under development and construction is ongoing Property has been fully constructed and is ready for immediate occupation
Generally more affordable with discounts available from the builder. Prices appreciate as construction nears completion. Prices are usually higher since construction costs are already incurred. No discounts available.
Opportunity to customize and choose interior/exterior finishes, fixtures, layout etc as per preferences. Minimal scope for customization since construction is already complete.
Risk of delays in completion and timely possession. Project approvals could also impact timelines. No execution or approval risks since property is already built. Immediate occupancy.

The Right Time to Purchase for Investment

Timing is a crucial consideration when investing in under-construction properties. Capital appreciation can be maximized through strategic timing of acquisitions. Here are the optimal phases for property investment:

1) Early Construction Phase:

The ideal time to purchase an under-construction property is typically immediately following excavation and foundation work. Costs are at their lowest during this phase. Buyers can secure a property at the current price by making an early reservation with the builder.

2) Pre-Launch of Project:

Those who purchase before the official launch and marketing of a residential or commercial under-construction project can secure introductory prices. Prices incrementally rise with each construction milestone, ensuring a larger share of capital appreciation.

3) Completion of Superstructure:

Once the superstructure and floors are built, it becomes clearer whether the project will meet its completion schedule. Prices are higher than those of move-in ready units but remain lower than the final rates. Additionally, the execution risk of the project is relatively reduced at this stage.

4) 6-12 Months Before Possession:

Buying an under-construction property 6-12 months before the promised possession date is also an ideal time. At this point, construction is in the final stages, with only minor tasks remaining. Buyers can secure reservations for future occupancy at the current construction rate.

Summing Up

The purchase of under-construction projects provides purchasers with numerous advantages, including affordable prices, customization options, future appreciation, and more. As discussed, the optimal moment to invest is during a project’s early phases or pre-launch. This maximizes the return on investment from the purchase of an under-construction apartment.

AsmitA India Reality is among the reputable real estate developers who offer quality under-construction houses, apartments, and projects in various locations. Our ongoing project, AsmitA Grand Maison’s construction, is in full swing, offering flexible payment plans as well as hassle-free loan approvals from PNB and UBI. We have effectively delivered numerous residential and commercial properties on time as a reputable brand. With dedication to customer satisfaction, on-time delivery, and after-sales service make AsmitA Group a trustworthy option for purchasing a home under construction. Explore the projects offered by AsmitA India Reality if you’re a buyer who would benefit from purchasing an under-construction property. You can also book a free VR tour of AsmitA Grand Maison to view what the property offers.


1) Can I customize my under-construction home as per my requirements? 

Yes, purchasing an under-construction property allows the owner to make customization requests regarding the floor plan, fixtures, and amenities within certain restrictions. This flexibility is typically not available for move-in-ready residences.


2) How can I monitor the construction progress and quality of an under-construction property?

Buyers should schedule regular site visits during construction to inspect progress and quality standards. It’s also advisable to verify compliance with approvals, materials used, and construction milestones.


3) What are the risks associated with buying an under-construction property?

Common risks include construction work delays, quality issues, and legal complications. Conducting thorough due diligence on the builder and the project before purchasing can help mitigate some risks.


4) How can buyers check the status of an under-construction project?

Buyers should visit the under-construction site and inquire with the builder’s sales team regarding the project’s current status, approvals received, timelines for completing key activities, and more. This helps assess the project’s execution progress and the risk of delays in the property’s timely delivery.


5) What documents should buyers collect from the builder when purchasing an under-construction property?

Before reserving an under-construction property, it’s advisable to obtain and thoroughly review the builder’s sanction plans, payment schedules, site maps, layout plans, specifications, and completion certificate to prevent future disputes.