India is among the fastest-growing nations globally, and its real estate market reflects this rapid development. Across the country, cities are experiencing a construction boom, with numerous residential and commercial properties in various stages of development. For buyers and investors, under-construction properties offer a range of advantages, especially in thriving real estate hubs like Mumbai, known for its exceptional growth in the sector. Let’s explore the key benefits of purchasing a property during the under-construction phase.
One of the most compelling reasons to invest in an under-construction project is the cost-benefit. During this stage, developers are keen to attract buyers to secure funding and facilitate project approvals. Consequently, prices are significantly lower compared to ready-to-move-in properties, with savings of up to 20% to 30% in some cases. Additionally, after obtaining RERA certification, builders in Mumbai often increase prices. Buyers can avoid this price escalation by locking in the property during the under-construction phase. Many developers also offer enticing financial schemes, such as staggered payment plans and exclusive pre-launch offers, resulting in substantial savings of up to 10% to 15%. Additionally, the prevailing home loan interest rates, typically ranging from 7% to 9%, can amplify the cost benefits by enabling buyers to plan their finances effectively.
Booking an under-construction property gives buyers the coveted first-mover advantage. This includes the flexibility to select preferred floors, layouts, views, and specific units that suit their needs. Buyers can also request interior modifications or customizations to align with their preferences. Builders are typically more accommodating during the construction phase, making it easier to incorporate such changes. The cost savings achieved during this stage can be redirected toward creating luxurious interiors and enhancing the overall living experience.
Under-construction projects often come with convenient payment options designed to ease the financial burden for homebuyers. For instance, many schemes require a small down payment initially, with the balance payable upon possession. This arrangement provides buyers with a breather before EMI payments begin.
Furthermore, buyers can leverage the benefits of the Pradhan Mantri Awas Yojana (PMAY) scheme. Eligible buyers under the Low-Income Group (LIG) and Middle-Income Group (MIG) categories can receive a subsidy of up to Rs. 2.67 lakh, significantly reducing their financial burden. First-time women buyers also benefit from lower stamp duties and exclusive subsidies, offering savings of up to Rs. 2 lakh. These incentives make under-construction projects particularly attractive for first-time homebuyers.
Investing in an under-construction property is a strategic move that can yield significant financial returns. As the project progresses and nears completion, property values often appreciate substantially. In some cases, the price increase can range between 10% to 40%, according to a report by Knight Frank India. For investors, this means the property’s value rises considerably in a relatively short time, enhancing the overall asset portfolio.
The extended timeline of under-construction projects allows buyers to prepare financially and logistically for their new home. This includes planning the interiors, exploring furnishing options, and arranging finances without the urgency associated with ready-to-move-in properties. For first-time buyers, this gradual approach makes the home-buying process more manageable and less stressful.
To attract early buyers, developers often go the extra mile by including add-on benefits like free club memberships, waived maintenance charges for a certain period, upgraded specifications, and free maintenance for up to two years. These perks can significantly enhance the value of your investment while ensuring a superior lifestyle.
Thanks to the Real Estate (Regulation and Development) Act (RERA), buyers have greater transparency and accountability when purchasing under-construction properties. RERA mandates timely project completion and protects buyers from potential delays or malpractices. Choosing a reputed developer further ensures that your investment remains secure.
Buying an under-construction property offers numerous advantages, from cost savings and customization options to flexible payment plans and lucrative investment returns. It’s an excellent opportunity for first-time homebuyers and seasoned investors alike. However, it’s crucial to partner with reputable builders and developers to ensure a seamless and secure transaction. Whether you’re looking for your dream home or a high-return investment, under-construction properties provide a smart pathway to achieving your real estate goals.
