Under-Construction vs Ready-to-Move: Running the Numbers
An under-construction flat priced 12% below a ready one is often the more expensive purchase once GST, pre-EMI and two years of rent are counted.
Hemant Srivastava
Founder, PropertyPilot India
6 min read
Add the four costs the brochure omits
Under-construction property attracts 5% GST (1% for affordable housing). You also pay pre-EMI interest on each disbursed tranche while the project is built, continue paying rent on your current home, and carry delay risk that no discount fully compensates for.
- 5% GST on a ₹90 lakh flat is ₹4.5 lakh with no input credit passed on
- Two years of pre-EMI on staged disbursement can exceed ₹6 lakh
- Two years of rent at ₹35,000 a month is another ₹8.4 lakh
Where under-construction still wins
A genuine launch discount of 20% or more from a developer with a clean delivery record in a corridor with visible infrastructure spending can still be the better trade — especially with a construction-linked plan that keeps early disbursement low.
Protections to insist on
Verify the RERA registration number and read the declared completion date, since the Act entitles you to interest on delay. Prefer construction-linked payment over subvention schemes, keep the builder's escrow compliance in view, and never pay outside the agreement value.