Summary of this article
Early purchases may offer lower prices and wider choices
Verify RERA registration, completion dates and project progress
Check developer history to assess delays and delivery risks
Buying an under-construction property can offer homebuyers an opportunity to enter the market at a previous price point, access a wider choice of homes, and plan their future move. However, this decision requires careful evaluation of the project, developer, and legal documentation. Unlike ready-to-move-in homes, any under-construction property requires the buyers to assess what is promised on paper rather than what they can physically inspect. The choice depends on one’s individual priorities, financial bandwidth, and risk appetite.
Understanding the Advantages
One of the key advantages of buying early is the potential price benefit. Properties are generally offered at lower prices during the initial stages of construction than closer to possession, although the difference varies by location, project stage, and prevailing market conditions.
Early buyers may also get a wider selection of floors, orientations and layouts. The longer period before handover can help families plan their finances and future relocation while assessing how the surrounding neighbourhood develops.
Says Ram Raheja, managing director, S Raheja: “What a buyer gains by entering before completion is time and entry point. On price, the position is straightforward: a project is usually available at a lower price earlier in its cycle than closer to possession, though how much lower depends entirely on the stage, the location and the market at that moment.”
What Should Buyers Check Before Investing?
Documentation is central to evaluating an under-construction property. Buyers should begin with the registered carpet area, room proportions, natural light and the layout’s functionality rather than solely relying on the advertised square footage.
The agreement for sale and its schedules must clearly specify materials, fittings, building systems, parking allocation and common-area provisions. Any feature promised verbally should be verified in writing before the agreement is signed.
The Real Estate (Regulation and Development) Act, or RERA, provides another important layer of scrutiny. Buyers should verify the project’s registration number, declared completion date, quarterly progress updates and applicable escrow provisions. These details can help them assess project progress and the developer’s commitments.
Adds Raheja: “The RERA registration is the buyer’s most useful instrument here and remains the least used. The registration number, the declared completion date, the quarterly progress updates and the escrow provisions are all publicly available. Buyers who ask us for these at the first meeting are also the buyers who are most comfortable at possession.”
The developer’s track record is equally important. A history of timely delivery, construction quality and regulatory compliance can provide greater confidence that commitments made on paper will translate into a completed home.
Balancing Opportunity With Risk
Construction delays and stalled projects remain important concerns. Approximately 156,000 housing units across the top seven cities were stalled as of December 2025, with the majority belonging to projects launched before RERA came into force, as stated in ICRA’s March 2026 report.
Ultimately, buying an under-construction property is a question of balancing opportunity with uncertainty. A competitive entry price and greater choice can be attractive, but thorough documentation checks, RERA verification and scrutiny of the developer’s delivery record are essential before signing the agreement.
