Ready vs Under-Construction Properties: Why Tomorrow’s Homes Are Beating Today’s

Gone are the days when ready-to-move-in homes were at the top of the prospective homebuyers’ wishlist in India. Fuelled by the emergence of branded developers, regulatory reforms, increased supply of new units, and rising transparency, under-construction (UC) homes are now back in demand.

According to a recent survey by Anarock, demand for ready-to-move-in (RTMI) homes in India has been on a decline and is at the lowest end of the preference chart. In the first half of 2025, the demand ratio for ready homes versus new launches dropped to 16:29, compared to 20:25 in the first half of 2024 – in a complete reversal from the early pandemic years when RTMI homes dominated — with the ratio at 46:18 in H1 2020 and 32:21 in H1 2021.

Why This Shift?

One main reason for this shift is the  increased supply of new units by the large and listed developers. These established developers have garnered higher confidence among prospective homebuyers due to their reputation for timely project delivery, the survey reveals.

In the past, new launches were mainly dominated by smaller players, leading to numerous delays in project completion, which eroded buyer confidence. Consequently, buyers favoured ready homes.

In a significant boost to homebuyer confidence, the Economic Survey 2024–25 reveals that the Real Estate (Regulation and Development) Act (RERA) has now registered 1.38 lakh projects across the country, alongside the resolution of an equal 1.38 lakh consumer complaints. This twin achievement underscores RERA’s growing role in ensuring transparency, enforcing accountability, and safeguarding buyer interests.

Industry experts note that this heightened regulatory efficiency is gradually bridging the preference gap between ready-to-move-in homes and newly-launched projects, signalling a healthier and more balanced real estate market.

Col Sanjeev Govila (Retd), Certified Financial Planner and CEO of Hum Fauji Initiatives, a financial advisory firm, says that the reversal is driven by three strong currents.

First, affordability. “Ready homes have become steeply priced, while under-construction projects are offered at 15–20 per cent lower entry points. That price difference is not cosmetic - it decides whether many buyers can enter the market at all,” he says.

Second, payment flexibility. Construction-linked payment plans spread the burden over two to three years, perfectly aligning with household cash flows.

And third, the confidence in future infrastructure. Buyers today are betting on metro lines, IT corridors, and urban growth stories that will mature by the time their homes are ready.

In short, “Indian homebuyers are finally learning to buy tomorrow, not just today,” informs Govila.

Pros And Cons Ready And UC Homes

The charm of a ready-to-move-in property is immediate possession and certainty - you see what you get, you avoid delays, and you can even start rental income from day one.

“For those taking a home loan, tax benefits begin instantly, and there is no GST to worry about. But all of this comes at a price literally. Ready homes are costlier, often by 15–20 per cent, and much of the appreciation potential is already exhausted. Choices are also limited because inventory in established areas is shrinking. To put it sharply, a ready home buys you instant peace, but not much growth,” says Govila.

On the other hand, an under-construction home is about possibilities. You enter at a lower price, enjoy phased payments, and have the potential for strong appreciation as the project and surrounding infrastructure develop. Designs are more modern, and you can sometimes influence layouts or finishes.

The trade-off, however, is patience and risk. Delays, quality variations, and the 5 per cent GST add to the burden. Rental income is off the table till possession.

Which Option Is Beneficial For Buyers?

According to industry experts, under-construction properties hold an edge over ready-to-move in homes for investors. While RTMI units offer immediate possession and rental income, their potential for capital appreciation is limited, as most of the price growth is already built in, meaning investors pay a premium for stability rather than growth.

In contrast, “under-construction projects are significantly cheaper, providing a lower entry point. As construction progresses, property values rise steadily, offering a clear window for appreciation. Flexible, construction-linked payment plans and attractive launch offers further enhance the investment case, making it financially manageable and profitable over time,” says Mohit Gawri, vice president-sales, RISE Infraventures, a real estate advisory firm.

Most new launches are situated in high-growth corridors with ongoing infrastructure development, enabling investors to benefit from both the construction phase and the post-completion period.

“With RERA ensuring transparency and accountability, the risks of delays have significantly reduced. Altogether, under-construction homes deliver stronger long-term returns, higher growth potential, and a more future-ready asset than RTM properties,” Gawri adds.

Santosh Agarwal, CFO and Executive Director of Alpha Corp Development Limited, says, “India’s housing sector is witnessing a decisive shift, with homebuyers increasingly favouring under-construction properties. This preference is being driven by flexible payment structures, access to modern amenities, and the potential for capital appreciation during the project lifecycle. While ready homes provide the comfort of immediate possession, their premium pricing limits choice. Under-construction projects, on the other hand, offer wider options, scope for customization, and stronger long-term value.”

“While ready-to-move-in homes were once the top choice during the pandemic due to certainty and safety, the demand has now tilted towards under-construction properties. This change is driven by competitive pricing, flexible payment options, and buyers’ confidence in reputed developers delivering on time. With improving infrastructure and a growing appetite for larger, amenity-rich homes, under-construction projects offer greater value and future appreciation. However, homebuyers should evaluate developers’ track records carefully, as this trend opens exciting opportunities to invest in modern, future-ready living spaces,” says Manish Jaiswal, CEO, Eldeco Group.

For buyers and investors, thus, under-construction properties generally hold the edge. They allow entry at lower prices, benefit from infrastructure-led appreciation, and provide better upside over time. “Ready homes make sense only if the objective is immediate rental yield or diversifying into income-generating assets,” suggests Govila.