One of the first choices NRI buyers face is whether to buy a ready-to-move home or one that is still under construction. Each has clear advantages, and the right answer depends on your goals, your timeline and how much risk and involvement you are comfortable with from abroad.
Ready-to-move: what you see is what you get
Advantages
- No delivery risk - the building exists; you can inspect the actual flat, the finish quality and the view.
- Immediate use or rent - you can move in, or let it out and start earning rent straight away.
- No GST - GST does not apply to a completed property sold after the completion (or occupation) certificate has been issued.
- Clear picture of the community - you can see the maintenance standard, occupancy and the neighbourhood as it really is.
Trade-offs
- Usually a higher price per square foot than a comparable new launch.
- Full payment (or loan disbursement) is needed up front.
- Limited choice of units - the best floors and views may be gone.
- For resale homes, more legal due diligence on the chain of title is needed.
Under-construction: a lower entry price, with a wait
Advantages
- Lower entry price in many cases, especially at launch.
- Staggered payments - construction-linked or time-linked plans spread the outflow over the construction period.
- Choice - wider selection of floors, views and layouts.
- A brand-new home with modern amenities when it is delivered.
Trade-offs
- Delivery risk - projects can be delayed. RERA requires registered completion dates and provides remedies (such as interest for delay), but enforcing them takes time.
- GST applies on under-construction property (at concessional rates for housing, without input tax credit).
- Rent forgone during construction, and possibly pre-EMI interest if you take a loan.
- What you get may differ slightly from the brochure - read the specifications in the agreement, not the marketing material.
Side-by-side
| Ready-to-move | Under-construction | |
|---|---|---|
| Price | Typically higher | Often lower at launch |
| Payment | Up front | Staggered over construction |
| GST | None after completion certificate | Applicable |
| Delivery risk | None | Yes - check developer track record |
| Rental income | Immediate | Only after possession |
| Inspection | Actual unit | Sample flat / plans |
| Involvement from abroad | Lower - one-time transaction | Higher - follow progress, instalments, possession |
Which suits you?
Ready-to-move tends to suit you if you want rental income now, are buying for parents or family who will move in soon, plan to return to India in the near term, or prefer to avoid follow-ups from abroad.
Under-construction tends to suit you if you have a longer horizon, want to spread payments, are buying from a developer with a strong delivery record, and are comfortable monitoring progress (or have someone in India to do so).
Due diligence for NRIs - either way
- Check the RERA registration and, for under-construction projects, the registered completion date and quarterly progress reports on the state RERA website.
- For ready homes, ask for the completion or occupation certificate.
- Look at the developer's record on previous projects: were they delivered on time, and what is the build quality like?
- Have a lawyer review the agreement for sale - possession date, delay compensation, carpet area and specifications.
- Pay only through your NRE/NRO accounts or banking channels, and keep all records for future repatriation.
- If you cannot be present, set up a specific Power of Attorney early.
Thinking about costs over the whole holding period
Comparing only the headline price can mislead. For an under-construction home, add GST, any pre-EMI interest during construction and the rent you will not earn until possession (or the rent you keep paying elsewhere, if you plan to live in it). For a ready home, add any refurbishment a resale flat may need and the opportunity cost of paying everything up front. Then compare the two on the same basis - the total cash you put in and when - rather than on price per square foot alone. It also helps to stress-test the under-construction option for a delay of a year or more and ask whether your plans, such as a return to India or a child starting college, would still work.
Resale homes: extra checks
If the ready home is a resale, ask for the full chain of title documents, check that the seller has cleared any home loan (and obtain the lender's release of the original deed), confirm there are no dues to the society or authority, and verify that the property tax and utility bills are up to date. If the seller is also an NRI, remember that you, as the buyer, must deduct TDS under Section 195 and will need a TAN.
A middle path: near-completion projects
Projects that are close to completion - structure complete, finishing under way - can offer some of the benefits of both: less delivery risk than a new launch, a chance to see the actual building, and sometimes a better price than a fully ready home. GST still applies until the completion certificate is issued.
Browse ready-to-move projects or under-construction projects, or ask an advisor for a balanced shortlist.
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