Pros and Cons of Investing in Under-Construction vs Ready-to-Move Flats
When buying property in Mumbai, one of the key decisions is whether to go for an under-construction flat or a ready-to-move-in home. Both options come with distinct advantages and trade-offs depending on your budget, timeline, and investment goals.
Let’s break it down:
Under-Construction Flats
Pros:
- Lower Cost: Prices are usually 10–30% lower than ready flats in the same locality
- Flexible Payment Plans: Staggered payments (construction-linked or milestone-based)
- Higher Appreciation Potential: Buying early can yield strong ROI by possession
- Customisation: In some cases, you can choose floors, layouts, or finishes
Cons:
- Possession Delays: Even RERA-approved projects may get delayed
- GST Applicable: 5% GST (without ITC) is added to under-construction properties
- Risk Factor: Despite regulation, some developers may under-deliver on quality
- EMI + Rent: If you’re living on rent, you’ll have to manage both
Under-construction properties in areas like Chembur, Kurla, and Wadala are popular for their long-term potential.
Ready-to-Move Flats
Pros:
- Immediate Possession: No waiting—move in or rent out instantly
- No GST: GST is not applicable on completed properties with OC
- What You See is What You Get: You can inspect the actual unit before buying
- Rental Income Ready: Great for investors looking for instant returns
Cons:
- Higher Price: Premium pricing due to completion and demand
- Full Payment Required: Usually demands upfront payment or full loan disbursement
- Limited Choice: Fewer unit options in terms of floor or view
Ready-to-move flats in Chembur and Ghatkopar East are ideal for buyers who value certainty and speed.
Which One is Right for You?
Factor | Under-Construction | Ready-to-Move |
Budget Friendly | ✅ | ❌ |
Immediate Use | ❌ | ✅ |
Risk | Medium | Low |
Tax (GST) | 5% | 0% |
ROI Potential | High (long term) | Moderate (short term) |
Conclusion
Your choice depends on your financial planning and time horizon. Under-construction flats are great for patient investors, while ready-to-move-in homes suit immediate end-use buyers.
At Upgrade Realty, we offer both RERA-approved under-construction options and fully legal ready units across Mumbai—especially in Chembur, Wadala, and Kurla. Let us help you decide what’s best for you!