The dilemma between purchasing an under-construction property or a ready-to-move home represents one of the most significant decisions in a homebuyer’s journey. This choice involves balancing immediate needs against long-term financial considerations, especially in a thriving market like South Chennai, which accounts for 64% of all residential sales in Chennai as of Q3 2024[7]. Whether you prioritize immediate possession or are willing to wait for potentially better returns, understanding the nuances of both options is crucial for making an informed decision that aligns with your specific requirements and financial goals.
What is a Ready-to-Move Home?
A ready-to-move home is a completely constructed property with all necessary approvals and completion certificates in place. These properties allow for immediate possession after purchase, eliminating waiting periods and uncertainty about the final product.
Ready-to-move homes provide peace of mind as buyers can physically inspect and verify all aspects of the property before making a purchase decision[1]. This option is particularly appealing for those who need immediate housing solutions or want to avoid the uncertainties associated with construction timelines. Additionally, these properties come with functional amenities and established neighborhoods, offering an instant lifestyle upgrade without transitional inconveniences.
What is an Under-Construction Property?
An under-construction property refers to a residential unit that is still in the building phase and hasn’t received its completion certificate. These properties are sold by developers before or during construction, with possession promised at a future date as specified in the agreement.
Under-construction properties typically offer more competitive pricing compared to ready-to-move homes in the same location[10]. They also present opportunities for customization during the building process and potential for significant capital appreciation by the time of completion. The lower entry point makes these properties accessible to a broader range of buyers and can be particularly attractive to first-time homeowners and investors looking for long-term value appreciation in growing areas like South Chennai.
Under-Construction vs Ready-to-Move: Comparison Table
| Factor | Under-Construction | Ready-to-Move |
|---|---|---|
| Price | Lower entry cost | Higher price point |
| Risk of Delay | High possibility of timeline extensions | None (immediate possession) |
| GST | 5% applicable (1% for affordable housing) | No GST with completion certificate |
| Customization | Possible depending on construction stage | Limited to post-possession renovations |
| Rental Income | Delayed until possession | Immediate potential |
| Tax Benefits | Limited until possession | Immediately available |
| Loan Disbursement | In stages as construction progresses | Full disbursement upon purchase |
| Quality Assessment | Based on sample flats and developer reputation | Direct inspection possible |
Pros of Under-Construction Properties
Lower Purchase Price
Under-construction properties typically cost 15-25% less than ready-to-move counterparts in the same locality, offering a significant financial advantage[10]. This lower entry point makes homeownership more accessible, especially in premium locations like South Chennai.
Modern Features & Layouts
Newer projects incorporate contemporary designs, smart home features, and modern amenities aligned with current lifestyle preferences. Under-construction properties often feature better space utilization and updated technological integrations compared to older completed projects.
Potential for Price Appreciation
As construction progresses and the neighborhood develops, property values typically increase. Purchasing early in the development cycle can result in substantial appreciation by the time of possession, with Chennai’s residential market showing robust 48% year-over-year growth in new launches[7].
Phased EMI Structure
Most banks disburse construction-linked loans in installments based on construction milestones, reducing the immediate financial burden on buyers. This staggered payment structure allows homebuyers to manage finances more effectively during the waiting period.
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Cons of Under-Construction Properties
Possession Delays
Despite RERA regulations, construction delays remain common in the industry. According to consumer protection guidelines, homebuyers have the legal right to terminate their agreement if possession is delayed by more than six months[2]. These delays can create significant financial strain when buyers must simultaneously pay rent and EMIs.
Legal Uncertainty
Properties without proper RERA registration pose higher risks regarding title clarity, approval status, and developer credibility. Before investing, verify the project’s RERA registration and the developer’s track record of timely delivery to minimize legal complications later.
GST Implications
Under-construction properties attract 5% GST (1% for affordable housing), adding to the overall cost[3]. Unlike ready properties with completion certificates that are GST-exempt, this additional tax burden must be factored into your budget calculations.
Dual Financial Burden
During the construction period, buyers often face the double financial pressure of paying existing rent while servicing the home loan EMI. This dual expense can significantly impact monthly budgets and should be carefully considered when planning your purchase timeline.
Pros of Ready-to-Move Homes
Immediate Possession
The most compelling advantage of ready-to-move homes is the elimination of waiting periods. Buyers can move in immediately after purchase completion, making these properties ideal for those with urgent housing needs or relocation plans.
No GST Applicability
Ready-to-move properties with completion certificates are exempt from GST, resulting in direct cost savings of 5% compared to under-construction options[3]. This tax exemption represents significant savings, especially for higher-value properties.
Easy Quality Verification
Buyers can physically inspect every aspect of the property before purchase, eliminating uncertainties about build quality, finishes, and actual dimensions[1]. This transparency reduces the risk of discrepancies between expectations and reality that sometimes occur with under-construction properties.
Immediate Tax Benefits
Homeowners can immediately claim tax deductions under Section 24(b) for interest paid on housing loans (up to Rs. 2 lakh annually for self-occupied properties)[8]. Additionally, immediate possession allows for potential rental income generation if the property is purchased as an investment.
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🔗 View Completed Projects
Cons of Ready-to-Move Homes
Higher Cost
Ready properties typically command a 15-25% premium over similar under-construction options due to eliminated waiting periods and construction risks[10]. This higher entry cost may require larger down payments and result in higher EMIs for the same property specifications.
Limited Unit Availability
Ready projects often have fewer available units, restricting choices in terms of floor preferences, views, and orientations. Popular configurations may already be sold out, limiting your options compared to newly launched projects.
Minimal Customization Opportunities
Ready properties offer limited scope for structural modifications or layout alterations. Buyers must adapt to existing designs and features, with customization limited to interior decorations and non-structural changes.
Potentially Dated Designs
Completed projects that have been in the market for some time may feature older design concepts and technologies. Newer under-construction projects often incorporate more contemporary layouts, amenities, and smart home features that align with evolving lifestyle preferences.
Who Should Choose What?
For End-Users:
Choose Ready-to-Move Homes if you:
- Need immediate housing without waiting periods
- Prioritize certainty over potential savings
- Have budget flexibility for higher upfront costs
- Want to avoid the dual burden of rent and EMI
- Prefer seeing exactly what you’re purchasing
- Need immediate tax benefits under Section 24(b)
Choose Under-Construction Properties if you:
- Have flexible moving timelines (at least 2-3 years)
- Prioritize cost savings and are working with tighter budgets
- Want newer designs and contemporary layouts
- Seek customization opportunities
- Can manage the uncertainty of construction timelines
- Are purchasing from RERA-registered, reputable developers with proven delivery records
For Investors:
Choose Ready-to-Move Homes if you:
- Need immediate rental income generation
- Prefer lower-risk investment options
- Want easier exit opportunities
- Prioritize liquidity over maximum returns
Choose Under-Construction Properties if you:
- Have a longer investment horizon (3-5 years)
- Prioritize capital appreciation potential
- Can absorb construction risks with a diversified portfolio
- Are investing in high-growth areas of South Chennai
Southland Developers – Where Trust Meets Transparency
With over 3,000 satisfied families, Southland Developers has established itself as a trusted name in South Chennai’s real estate market. Our portfolio includes both under-construction and ready-to-move properties, giving buyers flexible options to match their specific needs and timelines.
What sets us apart is our unwavering commitment to transparency and customer satisfaction. All our projects are RERA-registered with clear documentation, and we maintain a proven track record of on-time delivery. Our customer service excellence extends beyond the purchase process, with comprehensive post-possession support ensuring your homeownership journey remains hassle-free.
Whether you’re drawn to the immediate gratification of our ready-to-move homes or the value proposition of our under-construction projects, Southland Developers offers quality living spaces built with integrity and delivered with care.
👉 Book a site visit today to explore our properties and experience the Southland difference firsthand. Our experts will help you navigate the under-construction vs. ready-to-move decision based on your specific requirements and preferences.
🔗 Contact Southland Developers
By weighing these factors carefully and consulting with real estate experts, you can make an informed choice that aligns with your financial capacity, timeline requirements, and long-term goals. Remember that the best choice ultimately depends on your individual circumstances, priorities, and risk tolerance.
