Under-Construction or Ready-to-Move: Pricing the Wait
Short answer: under-construction prices 12–22% below comparable ready stock, and that gap is payment for delivery risk, 5% GST and time. It is worth taking only when the developer's last three RERA projects delivered close to committed dates.
UC discount to ready stock
12–22%
GST on under-construction
5%
GST after occupancy certificate
0%
Prior projects we verify
3
What the data says
The discount is real, but so is the holding cost of rent paid while waiting, which must be netted against it.
Ready inventory lets you inspect the actual unit, view, finish quality and society functioning before paying.
RERA delay penalties exist but enforcement and payout timelines vary, so they are a partial rather than full hedge.
Under-construction in an emerging corridor still holds infrastructure-linked upside that mature ready stock has already priced in.
How EstateVeda executes this
Verify the developer's last three RERA timelines against actual handover dates.
Net the discount against expected rent paid during construction plus GST.
Stress-test the payment plan against realistic rather than committed construction milestones.
For ready stock, commission independent structural and OC/CC verification before booking.
Risks we underwrite against
Delays beyond the RERA date erode the discount through extended holding cost.
Escrow non-compliance by weaker developers has historically preceded stalled projects.
Ready units in older projects can carry deferred maintenance and dated specifications.
EstateVeda verdict
Take under-construction only with a T1–T5 developer in a funded corridor and a four-year-plus horizon. Otherwise pay the premium for ready inventory and remove the risk entirely.
Frequently asked questions
Is under-construction property cheaper?
Typically 12–22% cheaper in the same corridor, but the discount compensates for construction risk, 5% GST and the rent you pay while waiting.
Does ready-to-move property attract GST?
No. Once an occupancy certificate is issued, the sale is outside GST, unlike under-construction inventory at 5% (1% for affordable housing).
How do I judge whether a developer will deliver?
Check the last three RERA-registered projects against their committed completion dates. A consistent record is the strongest available predictor.