Buying home: Choose based on urgency, risk appetite, and financial capacity

Go for ready home if you need to move in instantly and can pay full EMI; under-construction if you prefer phased payments and can tolerate construction risk

Demand for ready-to-move-in (RTMI) homes in India has slipped, according to ANAROCK’s latest Homebuyer Sentiment Survey. In the first half of 2025 (H1 2025), the demand ratio for ready homes versus new launches fell to 16:29. This is a sharp reversal from the pandemic years, when RTMI homes dominated — at 46:18 in H1 2020. 

Why this reversal? 

The RTMI craze began when the market was dominated by small, underfunded developers, whose projects got delayed or stalled. 

“Buyers preferred ready homes they could see and move into, even at a premium. Post-Covid, reputed and listed developers dominate the market, and buyers feel confident investing in their projects,” says Santhosh Kumar, vice chairman, ANAROCK Group. 

Pros and cons of RTMI homes 

The benefits of RTMI homes, according to Kumar, are WYSIWYG (what you see is what you get), no rent outgo during the wait for possession, freedom from delay risk, and instant move-in.

On the flip side, such homes typically cost 15–25 per cent more than under-construction (UC) homes, offer limited options, and appreciate more slowly. The scope for customisation is minimal. “They suit end-users seeking certainty. But in dynamic markets like Gurugram and Pune, the value gap with new launches is widening,” says Sam Chopra, president and country head, eXp Realty India. 

Pros and cons of under- construction homes 

UC homes come with lower entry costs, staggered payments that ease the cash flow burden, and newer Environmental, Social, and Governance (ESG)-compliant, smart-home features. “They also hold strong appreciation potential, benefit from goods and services tax (GST) relief, and give non-resident Indians (NRIs) an added edge as rupee depreciation amplifies their dollar earnings,” says Chopra. 

“Construction-linked payment plans and launch offers make them easier to manage financially,” says Mohit Gawri, vice president-sales, RISE Infraventures. He adds that with RERA (Real Estate Regulatory Authority) in place, the risk of delay has reduced. 

UC properties have a number of drawbacks as well. “These include paying rent during the wait, construction and delay risks — especially with local developers — delayed move-in, and GST charges, though these are often absorbed or bundled by developers,” says Kumar. 

How to make the choice? 

UC homes suit buyers who have a place to live in, have booked their house with a reliable developer, desire superior amenities, and are also keen to earn a higher return on investment. “RTMI works better if the property is scarce and ticks all the boxes, the price premium is not a concern, or you want immediate possession,” says Kumar. 

“Infra-rich markets like Noida, Dwarka Expressway, and Hyderabad make UC attractive, while Mumbai’s scarcity keeps RTMI in demand. Though GST cuts have narrowed cost gaps, the choice still hinges on supply in the city and personal cash flow,” says Chopra. 

What should investors choose? 

For investors, UC homes generally offer an 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,” says Sanjeev Govila, certified financial planner and chief executive officer, Hum Fauji Initiatives. Gawri adds that RTMI homes have limited appreciation potential since much of the price growth is already factored in.

Advice for borrowers 

Buyers who have taken a home loan get instant tax benefits on principal and interest in case of RTMI homes. “In UC homes, these benefits get deferred until possession, though pre-construction interest can be claimed later,” says Govila. RTMI homes suit borrowers who need quick possession, can pay full EMI from day one, and want immediate tax relief.

Tips for UC buyers

• Conduct due diligence on builder’s record, RERA status, finances
• Anticipate delays; budget for rent plus EMI
• Link payments to construction milestones
• Avoid over-leverage
• Monitor progress of construction
• Choose competitively-priced project in emerging infra hub

 

 

This writer is a Delhi-based  independent journalist