A Complete Guide to Buying Under-Construction Property

Under-construction homes are usually priced lower than ready-to-move units in the same project or micro-market, and buyers often get a longer, more flexible payment schedule instead of paying the full amount upfront. That combination — a lower entry price plus appreciation between booking and possession — is the main reason investors and end-users alike keep buying before the building is finished. But it also means you're relying on a developer's execution, not a finished product you can walk through, so the due-diligence steps matter more than they would for a ready flat.

Verify RERA registration and the promised timeline

Every project should carry a RERA registration number, which you can look up on your state's RERA portal to confirm the developer's own disclosed possession date, sanctioned layout and any past delays on their other projects. A project without a valid RERA number, or one that's been registered but shows extensions on its original timeline, deserves extra scrutiny before you commit.

Understand the payment plan you're signing up for

Most under-construction projects offer either a construction-linked plan (you pay in instalments tied to actual building milestones — foundation, slab casting, brick work, and so on) or a time-linked plan (fixed instalments on fixed dates regardless of progress). Construction-linked plans generally protect the buyer better, since a stalled project means your payments pause too; time-linked plans put more of that risk on you. Read the payment schedule in the agreement itself, not just the sales brochure, since verbal promises from a sales team aren't binding.

Check what's actually included in the price

The quoted base price rarely includes everything. Preferential Location Charges (PLC) for a specific floor or facing, car parking, club membership, GST, stamp duty and registration, and maintenance deposits are typically charged separately — ask for a complete cost sheet before booking so you're comparing like-for-like across projects.

Read the builder-buyer agreement carefully

This is the document that actually governs your purchase, not the brochure. Look specifically for the clause on compensation if possession is delayed beyond the committed date — RERA mandates that buyers are entitled to a penalty interest in such cases — as well as the exact carpet area being sold (RERA requires sale on carpet area, not the older, larger-sounding super built-up area) and the process for cancellation and refund if you need to exit.

Factor in GST and possession-time costs

Under-construction purchases attract GST on the base price (5% for most units, 1% for those qualifying as affordable housing), which completed, ready-to-move properties don't. Budget for this separately from stamp duty and registration, calculated later, at possession, on the circle rate value at that time — not your original booking price. You'll also typically owe periodic maintenance and, on some projects, a one-time infrastructure or club charge that isn't always itemised upfront, so ask for it in writing.

Track construction progress yourself

RERA requires registered projects to upload quarterly progress reports to the state portal, covering construction completed against the promised schedule. Checking these yourself every few months — rather than relying solely on the sales team — gives an independent early signal if a project is falling behind, well before a delay becomes a dispute.

The bottom line

Under-construction property can be a genuinely good deal when the developer has a credible delivery track record and the project is RERA-registered with a realistic timeline. The homework — checking RERA status, reading the payment plan and the builder-buyer agreement, pricing in every additional charge, and monitoring quarterly progress — is what separates a good investment from a multi-year headache. If you're unsure how to read any of these documents, HomzRealtor's advisory team can walk through them with you before you sign.