Ready-to-move or under-construction flat: which one to buy?
The short answer
Buy a ready flat if you need to move soon and want to see exactly what you are paying for. Buy an under-construction flat if you can wait and want a lower price with staged payments. In the same area an under-construction flat usually costs 10% to 30% less, but most of them carry 5% GST while a ready flat with a completion certificate carries none.
Price and GST: the biggest difference
A Brigade Group guide puts under-construction flats 10% to 30% below ready ones in the same area. Tax closes part of that gap. An under-construction flat that is not classed as affordable housing carries 5% GST with no input tax credit, and a ready flat with a completion certificate carries no GST. Affordable housing is taxed at 1%, and in non-metro cities it means a carpet area up to 90 sq m (about 969 sq ft) and a value up to ₹45 lakh.
For example, on a ₹50 lakh flat that is not affordable housing, 5% GST adds ₹2.5 lakh. That is our own arithmetic, not a quote for any project.
| Ready-to-move | Under-construction | |
|---|---|---|
| Price | Usually 10% to 30% higher | Usually lower, with early-buyer pricing |
| GST | None once the completion certificate is issued | 5%, or 1% for affordable housing |
| Possession | You can move in now | After the promised date, and delays happen |
| Payments | Mostly at the time of purchase | Staged with construction progress |
| Seeing the flat | You can inspect the actual unit | You see a plan or a sample flat |
| Changes | Little room | Some room in the early stage |
| Rent and EMI | EMI can replace rent straight away | You may pay both until possession |
When a ready flat makes sense
- You need to move within weeks, for a job or a school session.
- You want to check the finish, water supply, light and neighbours before paying.
- You are taking a home loan and do not want to pay rent and EMI together.
When an under-construction flat makes sense
- You can wait for the promised date and have a plan for rent until then.
- The lower price and staged payments fit your budget better.
- The project is registered with RERA and you can visit the promoter’s earlier work.
Check these either way
Start with the RERA registration. Our guide on how to check RERA registration in Bihar takes about ten minutes. For an under-construction flat, read the completion date and the delay compensation in the agreement. For a ready flat, ask for the completion certificate and any pending society dues. The full paper list is in documents to check before buying an under-construction flat.
Frequently asked questions
Is GST charged on a ready-to-move flat?
Not once the completion certificate is issued, according to Brigade Group’s guide. Confirm this on your invoice.
Which is cheaper, ready or under-construction?
Under-construction is usually cheaper at the base price, but 5% GST narrows the gap.
Can I take a home loan for an under-construction flat?
Yes. Banks usually release the loan in stages as construction progresses (Housing.com).
What if the builder delays possession?
Under RERA you can file a complaint with the Authority. The steps are in our RERA guide.
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Please note: This post is a general guide only. It is not legal, tax or financial advice. Narsimha Property Consulting is a consultant, not the developer, and every buyer is responsible for their own due diligence. Please check all figures and papers with official sources and your own advisers.
Sources
पहले देखिए। फिर तय कीजिए।See it first. Then decide.
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