With an abundance of options available, one of the first decisions prospective home buyers must take is whether they should opt for a ready-to-move-in or an under-construction property. Which is the better choice?
The answer is not always straightforward. Both have their unique advantages and drawbacks. And you must weigh them and decide which option is the best suited for your unique condition. So here are some major pros and cons of ready-to-move-in and under-construction homes to help simplify that decision:
As the name suggests, ready-to-move-in properties are finished residential properties that you can start enjoying immediately. But are they the right choice for you?
Instant Access: One of the major benefits of ready-to-move-in property is virtually zero waiting period. You can immediately move in after making the payment and completing the necessary documentation. This relieves you of the stress of having to pay both rent and EMIs as you wait for possession.
You Get What You See: In ready-possession homes, you get precisely what you see. There is no chance that what you saw during the visit will change once you move in. So you have the opportunity to check for the features you want and choose the home best suited for your vision.
No GST: The Goods and Service Tax does not apply to ready-to-move-in properties. Additionally, you can immediately start collecting tax benefits if you use a home loan to purchase a ready-possession home.
Learn From the Locals: You can interact with the locals to understand their experience living in the area, check the social infrastructure and connectivity, and see if this is the right community for you. You can also understand any potential issues you may face and decide whether the property is worth investing in.
High Costs: Ready-to-move-in properties often sport a costlier price tag, often 20% to 30% higher than under-construction property.
Construction Quality: You have no way of verifying the construction quality, analyzing the project development, and learning about the materials when buying a finished apartment. You will have to rely on visual checks and the word of the seller to gauge construction quality.
Property Age: Buying a ready-to-move-in property does not guarantee you a brand-new home. The apartment may not have been put on sale for a while, it might have been on the market for some time, or previous owners may not have maintained it well. All these factors contribute to the home appearing old.
Lack of RERA Registration: Older properties, with occupancy certificates issued before 1st May 2016, are not covered under the RERA Act. Therefore the responsibility of proper due diligence and access the relevant information from public platforms falls on the buyer.
Compared to ready-to-move-in homes, under-construction properties are in various stages of completion and still have some work to do. If you are ready to wait, are under-construction properties better for you?
Lower Costs: When compared with ready-possession properties, under-construction properties can be anywhere between 10% and 30% cheaper. If you are on a tight budget and are ready to wait, this price difference can be worthwhile.
Higher Appreciation: Property prices go up as the construction progresses. Additionally, improvement in local infrastructure during this time can also increase overall property values. So if you are looking for a higher return on investment, purchasing a property in the early stages of construction makes more sense.
Flexible Payment Options: An under-construction property offers much more flexible payment options than a finished property. For example, you can reserve the property with a small down payment and pay the balance on possession or make partial payments as the construction progresses.
New Construction: If you want to live in a brand-new home with no maintenance issues and a long life, under-construction properties are the way to go. They also give you access to the latest amenities, services, and design trends for a trendy home.
RERA Compliance: Every property with an occupancy certificate issued after 1st May 2017 has to be registered under RERA. Therefore, all under-construction properties fall under RERA authority and are required to abide by its principles and ethical business practices. You can easily get information about new under-construction projects on the
Offers: Since there is a wait to move into under-construction properties, builders often run promotions and offers to attract buyers. So you have to option to not only look for the home design and amenities you want but to find the most attractive offers as well.
Greater Risk:Under-construction properties are higher risk investments as builders may fail to deliver on schedule or – in the worst case scenario – fail to deliver the project due to lack of resources. So researching the builder and choosing a reputed real-estate developer is essential when investing in under-construction properties.
Disparity between Design and Finished Product: With under-construction properties, you run the risk of not receiving the promised amenities, altered layouts, or insufficient usable space at the time of possession.
GST and Tax Implications: Under-construction properties are subject to GST – 1% for homes priced under INR 45 lakh and 5% for properties worth more than 45 lakh – in addition to stamp duty and registration fees. Additionally, you also cannot claim tax benefits for under-construction properties until possession. However, the interest you pay on a home loan is tax-deductible (up to INR 2.5 lakh) if you move in within three years of securing the loan.
Ready-to-move-in or under-construction, both properties have their advantages and drawbacks. You need to assess your unique situation and decide which option suits your needs the best.
Looking for a property to suit your lifestyle? Get in touch with the Squarea team today to find the ideal home for you.
For more details on this subject, please email hello@squarea.io
PUNE, MAHARASHTRA, INDIA, February 13, 2025 / EINPresswire.com / -- This Sunday, 16th February, SQUAREA presents GIME 2025, Pune’s first-of-its-kind Global Investments, Mobility & Education Roadshow, in partnership with Henley & Partners at Hyatt Pune, Kalyani Nagar. This exclusive event is designed for investors, entrepreneurs, and families looking to secure global residency and citizenship through investment-led routes. As economic landscapes evolve and international mobility becomes increasingly valuable, GIME 2025 will host global experts and offer strategic guidance into International Golden Visa, Permanent Residency, and Citizenship Programs, through cross-border wealth planning, investment, and business expansion routes.
The event will host programs and country experts from the United States, United Kingdom, Canada, Greece, Portugal, and Latvia. Key programs up for discussion will include the U.S. EB-5 Immigrant Investor Visa, which offers an expedited route to the U.S. Green Card; Portugal’s Golden Residence Permit, a preferred option for those looking to secure Schengen residency through investment; and Canada’s Start-Up Visa Program, designed for tech entrepreneurs aiming to establish and scale businesses in North America. The event will also offer Greece’s Golden Visa, the United Kingdom’s Business Investment and Citizenship Program, and Latvia’s Residency by Investment Program. Alongside, UAE’s Golden Visa Program will also be present.
In an era where investment migration is increasingly becoming a critical component of growth and lifestyle planning, GIME 2025 aims to bridge the gap between investors and global opportunities.
Investing in real estate is a pivotal decision, one that hinges significantly on the choice of location. Whether you are buying property for the first time or adding to your investment portfolio, the question often comes down to this: Should you invest in the vibrant heart of the city or explore the expansive suburban regions? In 2024, India's real estate landscape continues to evolve, with significant developments in both urban and suburban areas. In such a scenario, understanding the best real estate investment areas has become essential for both investors and homebuyers.
The Indian real estate sector is projected to reach an estimated value of $1.5 trillion by 2030, with a compound annual growth rate (CAGR) of about 9.2% from 2023 to 2028. The first half of 2024 saw a continued surge in residential sales, reaching 173,241 units, an impressive 11% year-on-year growth. This positive trend indicates a strong demand for housing in the market.
This blog delves into the key considerations, the pros and cons of each option, and the latest market insights to help you make a well-informed decision.
Before diving into detailed insights, it’s essential to understand the key factors that distinguish urban and suburban real estate investment areas:
Alt text: A comparative glance at the key differences between city and suburban real estate investments.
Urban centers across India remain hotspots for real estate investment due to high demand, robust infrastructure, and proximity to key amenities. Cities like Mumbai, Pune, Bengaluru, and Delhi are well-known for their vibrant job markets and advanced infrastructure, making them some of the best real estate investment areas.
1. High Demand and Fast Appreciation : Urban properties often see quicker appreciation. Mumbai's prime localities like Bandra and Powai saw an average price increase of 7-9% in 2023-2024 (Knight Frank India's Prime Residential Index). While in Pune, Koregaon Park has seen consistent appreciation of 6-8% annually, making them ideal for short-term investments in the best real estate investment areas.
2. Proximity to Amenities : Cities offer a wealth of amenities such as hospitals, schools, restaurants, and entertainment venues. Pune is renowned for its educational hubs, adding to its appeal as one of the best real estate investment areas in India.
3.Job Opportunities: Major cities house industries across sectors like IT, finance, and manufacturing. For instance, Pune’s IT hubs and tech parks attract a large workforce, making it a strong contender for real estate investment areas in India.
Public Transportation : Urban transport systems, like Mumbai’s local trains or Delhi’s metro, including Pune’s ongoing metro project, boost property values around transport hubs, solidifying their status as the best real estate investment areas.
Longer Commutes: Suburbs can be farther from major job centers, increasing travel time. However, with improved transport networks such as the Pune Metro Extension, connectivity to suburban areas is gradually improving.
Limited Social Infrastructure: While development is ongoing, many suburban areas still lack the robust social infrastructure found in cities. This can be a drawback for those who value proximity to shopping malls, entertainment centers, and restaurants.
In 2024, both urban and suburban markets in India are poised for growth, driven by government initiatives, economic recovery, and rising demand. Programs like PMAY and RERA have improved transparency, making suburban regions particularly appealing. The ARHC scheme also enhances suburban areas by providing affordable housing near industrial hubs. Meanwhile, smart city projects are revitalizing urban centers, boosting livability and sustainability.
Urban investments offer faster appreciation and proximity to job markets, while suburban areas provide affordability and space. Your choice depends on your financial goals and lifestyle preferences.
If you still find it difficult to decide, contacting a real estate expert like Squarea can help you navigate the complexities of property buying and investment in India.
Primary Keyword: Factors Affecting Property Prices in India
Secondary Keywords: Real Estate Market in India, Property Price Trends
Investing in real estate is a significant decision for homebuyers in India. Real estate constitutes an appreciable percentage of most people’s wealth. The real estate market in India is influenced by various dynamic factors that drive property price fluctuations. All these factors affecting property prices in India are very important for home buyers and investors to understand to navigate this complex scenario and make the right decisions. It attracts as well as creates huge opportunities for investors because of the size and scale of this real estate market.
In this article, we will discuss and analyze the main factors affecting property prices in India.
Experts predict moderate growth for the Indian real estate market. ICRA and Colliers suggest a shift from last year's rapid expansion to steadier progress. ICRA anticipates price stabilization, while Colliers highlights infrastructure projects and economic recovery as key drivers of resilience.
The seven major metros—Mumbai, Delhi NCR, Bangalore, Chennai, Pune, Hyderabad, and Kerala—are set to experience varied growth:
Mumbai: 5-8% rise, driven by metro expansion and coastal projects.
Bangalore & Hyderabad: Increases of 6-9% and 7-10%, respectively, due to the IT boom.
Chennai & Pune: Expected gains of 5-7% and 6-8%, aided by residential demand and metro expansions.
Kerala: 3-5% growth from NRI investments and tourism.
(Sources: CBRE India, JLL India, Colliers).The nexus between economic growth and property prices is well-established. India's real GDP expanded by 7.2% in FY23, the highest among major economies, fueling real estate demand. Q1 2024 saw record residential sales with 74,486 units sold, driven by large-scale projects, smart city initiatives, and urban renewal programs
Interest rates are a key determinant of property prices. Lower rates reduce borrowing costs, boosting demand, while higher rates may curb it. RBI's 2024-25 monetary policy aims to balance inflation and growth, shaping housing market trends accordingly.
Government policies directly impact the supply-demand curve of the real estate market in India. Policies like the Real Estate (Regulation and Development) Act (RERA), 2016 have increased transparency, boosting buyer confidence. The Pradhan Mantri Awas Yojana (PMAY) and GST reductions on under-construction properties enhance affordability, stimulating investments in new developments.
With 600 million people expected to live in cities by 2030 (40% of India’s population), housing demand is on a continuous rise. Bangalore, Hyderabad, and Pune are key beneficiaries, driven by industrial growth and skilled professional inflows.
The quality of infrastructure is another factor that determines values in properties. Areas well connected with transport, educational institutions, and health facilities attract a premium. Infrastructure projects like the Mumbai Trans Harbour Link and Bangalore's Namma Metro are expected to raise property prices by 20-30% in adjacent areas, highlighting the importance of connectivity for real estate appreciation.
The balance between housing supply and demand significantly impacts prices. In markets with high demand but limited supply, prices rise due to scarcity. Conversely, areas with abundant supply may experience stable or declining prices. For instance, the luxury housing segment in cities like Delhi NCR is seeing higher demand, driving prices up. In contrast, markets with substantial affordable housing inventory show more consistent rates.
Building material costs (steel, cement, labor) influence property prices. Developers often pass these increases to buyers, especially in high-cost cities like Mumbai, where land acquisition also inflates prices.
Job growth in IT and finance sectors, especially in Bangalore, Hyderabad, and Pune, increases housing demand. The Indian IT market is expected to reach $19.93 billion by 2025, further boosting residential real estate.
Industrial corridors like the Delhi-Mumbai and Chennai-Bangalore are enhancing property values in surrounding areas, supported by job creation and infrastructure improvements
Property price trends vary significantly across different regions, influenced by factors such as local economic activity, infrastructure development, and regulatory environment. Pune’s residential market claimed a substantial 16% of new residential launches across India’s top cities in Q2 2024 – adding around 18,900 units and marking a steady 1% quarterly increase.
Understanding the several factors affecting property prices in India is very important for home buyers and investors planning to invest in the real estate market in India. Staying informed about these factors is key to capitalizing on opportunities and navigating potential challenges.
For those looking to deepen their understanding and make informed decisions in this dynamic environment, consulting with experts in the field can be invaluable. SQUAREA offers insights that can help you navigate these complexities and align your investments with market trends.