What Are the Benefits of Purchasing an Under-Construction Property?

 What Are the Benefits of Purchasing an Under-Construction Property?

Higher education, modernization, and the desire to enjoy a comfortable lifestyle encourage many young adults to purchase an under-construction property compared to the earlier generation, who considered investing in such properties risky. Adults today are willing to take that small risk considering the success rate of reputed builders in the timely completion of possession, the quality of materials used in building the property, and the state-of-the-art amenities offered.

Under-Construction Property

The easy availability of finance and low home loan interest rates motivate buyers to consider under-construction properties as their dream houses.

Let’s look at the benefits of purchasing an under-construction property.

Staggered Payments

Staggering, or simply spreading out, the payments over a period is the most significant advantage of purchasing an under-construction property. Generally, the builders require you to initially pay a specific lump sum amount – around 20% of the property value – as a token of your commitment. The rest of the amount can be spent at regular intervals based on a prescribed schedule or depending on the property’s completion stage.

Thus, you can comfortably pay for the purchase based on your future income stream, and you don’t have to arrange for a large quantum of funds in a rush.

Lower Cost

You must have noticed that the prices of under-construction properties are generally lower than resale properties of the same builder by 15% to 20%. So, purchasing such property could be beneficial if you are willing to wait for your dream house for 2 to 3 years. Besides, many individuals buying properties as an investment do not mind the waiting period, especially if the project is by a reputed builder.

If a home loan finances the payments, the staggered payments by the lender ensure that your interest on the loan commences only from the time of making the payment to the builder. This further reduces the interest cost of the loan.

Advanced Amenities

Everyone desires a home with state-of-the-art amenities. Nowadays, a society is a township with builders providing play zones with the latest games, clubhouse, swimming pool, lounge, banquet hall, audio-visual room, jogging track, yoga studio, RO plants, etc. Besides, the fittings used in home décor or security may also be of the latest design and better quality.

Technology, especially home amenities, evolves at a rapid pace. A property under construction has more advanced amenities offered by the builders than the resale properties by the same builder. The costs also reduce as technology improves.

This quickly strikes a chord with millennials aspiring to own modern homes.

Fresh Possession

Buyers can get new possession of the property when the construction is completed. No sanitization, repair, or maintenance work is needed before shifting into the new home.

Increase in Valuation

Builders have the expertise to identify the site with the potential for appreciation. Often, new locations for the construction of buildings may be selected in the city outskirts, which have new industries or government-backed infrastructure coming up shortly. Roads, metro connectivity, schools and colleges, malls, and other supporting infrastructure spring up in the vicinity in no time. This increases the valuation of the under-construction property in 4 to 5 years.


Many banks and financial institutions have tie-ups with real estate companies to offer home loans to potential buyers. The terms may be more favorable if the builder has an established track record.

You can check your home loan eligibility using the EMI calculator for different tenures and interest rates.

Dennis Bailey


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