Property Insight

Quick Guide to Choosing an Under Construction Property


A home is one of the three basic needs. It represents security and is a means to put down roots.

Few things bring as much pride, joy and a sense of achievement as owning your house. Perhaps you are looking for a moderate budget dream home or are looking to diversify your investment portfolio by acquiring a residential property.

Either way, there are some crucial choices to make. Location, project, builders… all of these are important considerations. An under-construction property is more apt for investment purposes, even when you want to buy it for yourself. There is no reason why the investment and potential appreciation aspect of a property should not be considered when you are buying your own home.

Read on to know all about under-construction properties – their advantages and disadvantages, and more importantly, how to choose the right one.


How to Choose the Right Under-Construction Property

how to choose right under construction property

As the market offers a plethora of options, it is your responsibility to choose the right property wisely. Recognising feasible under-construction properties that are best for you does not have to be a dreaded task. Here are a few things you should check out before finalising your investment:


Focus On the Location

Thanks to the lack of space within the core of a city, the under-construction properties are often slightly remote areas. With time, these parts of the city will benefit from future developments of infrastructure and market, which will ultimately boost the value of your investment too. However, this may not be true for all locations. So, do your research thoroughly and keep abreast with all current and near-future developments that would surround your residential project.  If a builder claims that there are upcoming developments of shopping malls or resorts in the area, make sure the local authorities that monitor such developments say the same. Also, do not forget to check the proximity to key points of the city like markets, schools and entertainment centres that determine the liveability of the property.


Reliable Real Estate Developer 

The reliability of a developer plays a significant role in assuring not only you but also the banks that are about to finance you. Thorough research into the delivery times of all previous projects, their rate of appreciation, and the years of experience the firm carries will help you pick the best developer. You can also take to social media, forums or even talk to actual customers and residents that have engaged with the builder, to get a better idea of the developer’s credibility.


Find Your Ideal Layout

Find the ideal floor-rise or the preferred facing direction according to Vaastu compliance when investing in an under-construction project like Mahima Shubh Nilay Villas. An added benefit is that a work-in-progress project offers you the flexibility to avail small changes to the unit you would be purchasing. You can try and negotiate with your builder into providing some customisation to your apartments like raised or lowered platform in the kitchen or designated area for specific pieces of furniture.


Consider the Amenities 

What truly makes an investment worth it are often the facilities and services that embellish the project. Be it well-planned parking and open spaces, green building concept with rainwater harvesting or healthy amenities like gym and swimming pool, each play a role in shaping your decision. Like with most things, the more affordable amenities, and the merrier the resident.


Quality of Construction 

The quality of construction is another factor that helps choose the right real estate builder. In an ongoing project, it is easier to check the construction quality. To assure yourself, you can have an independent authority inspect the building materials used and verify the certificates that prove that the codes and norms required were followed.


Read Closely, Before You Sign 

To complete a purchasing process, certain legal documents such as title deed, approved building plans, etc. need to be in place. The documents help keep the transaction clean, systematic and devoid of any hassles in future. The most crucial document while buying an under-construction property is the Commencement Certificate. The certificate is only issued after the appropriate authorities have inspected the site and given the go-ahead to the developer to begin construction. Do not finalise your purchase without all the required documents present. When you finally do sign, make sure you read the agreement thoroughly and have a clear understanding of payment terms and the date of possession.


Advantages and Disadvantage of Under- Construction Property

pros and cons for under construction property

Like all investments real estate or otherwise, an under-construction property needs to be evaluated too. In general, the sentiment towards under-construction property is often encouraging due to lower costs. But it may not be all beds of roses just yet. For an essential and seemingly permanent decision like real estate investment, you need to make an informed decision. Here are few of the merits and drawbacks of an under-construction property may possess:


Advantages of Under- Construction Property 

Government has your back: There are many benefits of investing in under-construction real estate in 2019. Namely, lower GST – the new GST rate applicable from 1st April 2019 is 5% on under-construction property. Also, thanks to RERA, the buyer is safe from any frauds or malpractices of the builder.

Design according to your personal taste: Most developers can indulge you with a few customisations in your space. For example, if you need a designated area for a small temple, a few slabs for seating in the balcony, or wall slabs to accommodate storage in the kitchen. These changes hardly cost too much to the builder or you but in the end, provide you with a more comfortable space for you.

Broader and better options: There are ample options available for under-construction properties. You can pick and choose based on your preferred location, price, and possession time. Unlike in a ready-to-move-in apartment, an under-construction property offers you the freedom to select the particular floor you want as per your convenience.

Flexible payment option: According to your budget and savings, you opt for home loans and payment schemes most beneficial to you. You can choose to pay EMIs only on the amount disbursed instead of the entire loan amount secured. When paying the developer for an under-construction property, the bank keeps the payment in sync with the pace of construction.

Investment in time saves dimes: The price difference is often significant between an under construction and a ready-to-move-in unit. If all fundamental factors like location and developer are the same, an under-construction property could save you 10-30% on the price tag. Since the time of booking till the time the construction is complete, the value of your property will continuously increase. Buying it at a lower price will, therefore, get you higher returns.


Disadvantages of Under- Construction Property 

Timelines of projects are not meeting: Many real estate developers either deliver their projects late or even not at all! Such situations arise either due to malpractices, genuine financial crunch or legal issues. With RERA, a home buyer has the right to demand compensation for the delay.

False promises: One of the most common problems associated with under-construction properties is the danger of not getting the promised product at the time of possession. Inconsistencies like lesser carpet area/size than assured, a change in layout without prior intimation and lack of amenities are the usual complaints. RERA entitles the buyer to avail full refund in such scenarios.

Compromise with quality: Your builder may make tall claims about quality, but often reality turns out different. The end product may have paint chipping off the walls too soon, doors and windows may turn out to be of poor quality or walls may be thinner and hence make drilling a nightmare. Under RERA, if a buyer discovers any defects within the first five years after possession, the developer is required to do the necessary repairs free of cost within 30 days.



While millennial trends may bring rental and co-living solutions, investment in owning a residential property still scores on top for most. Real estate investment is a great option to secure your financial future.

The best strategy while buying any residential property in India, whether under construction or ready to move in flats, is to pick the right real estate developer. The right builder assures quality construction, timely delivery, provides RERA registered projects and has enough goodwill for banks to approve your home loans quickly.

What amenities do you look for in residential property? Let us know in the comments below!

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