Ready-to-Move vs Under-Construction Flats in Pune: Which Should You Buy?

Ready-to-move vs under-construction flats is one of the first decisions every Pune homebuyer faces. A ready flat lets you move in and see exactly what you are buying. An under-construction flat usually gives you more choice of units and a longer payment schedule. The right answer depends on your budget, your timeline and how much risk you are comfortable with.

This guide compares the two on cost, tax, risk and flexibility, so you can decide with numbers rather than sales talk.

The quick comparison

Cost: GST makes the biggest difference

GST applies only to homes sold before the completion certificate is issued. Under the GST rate notification for construction services, a regular under-construction flat attracts an effective 5% GST without input tax credit, and an affordable home attracts 1%. In a city like Pune, "affordable" means a price of up to ₹45 lakh and a carpet area of up to 90 square metres. Once the completion certificate is issued, or the flat is first occupied, whichever comes first, a sale attracts no GST.

On a ₹1 crore flat, that is a difference of ₹5 lakh. Stamp duty and registration apply to both, so the full picture is in our guide to stamp duty and registration charges in Pune.

That does not automatically make ready flats cheaper. Developers often price ready inventory higher, because you are paying for certainty and immediate possession. Compare the total cost of each option, not just the GST line.

Risk: what can go wrong with each

Under-construction: delay and change

The main risk with ready-to-move vs under-construction is time. An under-construction project can be delayed, and the flat you receive may differ in small ways from the brochure.

RERA gives buyers real protection here:

• the promoter must keep 70% of the money collected from buyers in a separate account for land and construction costs, under section 4 of the RERA Act
• under section 18, if possession is delayed beyond the agreed date, you can either withdraw and get a refund with interest, or stay in the project and receive interest for every month of delay
• the final carpet area is measured again, and the Maharashtra model agreement limits how much it can vary

Before booking, check the project's MahaRERA registration, including the proposed completion date, any extensions and the quarterly progress updates.

Ready-to-move: what you cannot see

A ready flat removes the delivery risk, but brings its own checks:

• The paperwork. Ask for the completion and occupancy certificates, and check that the flat you are buying is covered by them.
• The building's condition. Look at seepage, lifts, water supply and how the society is run.
• Society charges and dues. Ask about maintenance, sinking fund and any pending dues on the flat.
• The carpet area. Measure it, and compare it with the agreement. Our guide to carpet area vs built-up vs super built-up explains what to compare.

Home loans and tax

Both options can be financed with a home loan, but the timing differs.

With an under-construction flat, the bank releases the loan in stages as construction progresses, and you usually pay only interest (often called pre-EMI) until possession. With a ready flat, the full loan is usually disbursed at once and full EMIs start straight away.

On tax, interest paid before possession is not lost. Under the Income-tax Act it is claimed in five equal annual instalments, starting from the year construction is completed. If you use the old tax regime for a self-occupied home, the overall interest deduction is capped at ₹2 lakh a year, and the full ₹2 lakh is available only if construction is completed within five years. Rules differ under the new tax regime, so check with your chartered accountant before you plan around the deduction.

Which one suits you?

A ready-to-move flat usually suits you if:

• you need to move in soon, or are paying rent you want to stop
• you want to see the actual flat, view and neighbourhood before paying
• you prefer certainty over the widest choice of units

An under-construction flat usually suits you if:

• you can wait two to four years for possession
• you want a specific floor, view or configuration
• you prefer to pay in stages as construction progresses
• you are comfortable checking the developer's track record and MahaRERA details carefully

How to compare two options fairly

1. Get a complete cost sheet for both, including GST, stamp duty, registration, parking, maintenance deposit and other charges.
2. Compare the price per sq ft of carpet area, not super built-up area.
3. For the under-construction project, check the developer's delivery record and the completion date filed with MahaRERA.
4. For the ready flat, check the completion and occupancy certificates and the society's condition.
5. Factor in rent you would pay while waiting for possession.

The PROPHUNT view

In the ready-to-move vs under-construction choice, there is no universally better option, only a better fit for your timeline and risk appetite. A ready flat is often worth a modest premium if you need certainty, while an under-construction flat from a developer with a strong delivery record can offer more choice and an easier payment schedule.

Compare live options across projects in Pune, from flats in Wakad to 3 BHK flats in Baner. If you would like help putting a ready and an under-construction option side by side, talk to our advisors.

This article is general information, not tax, legal or financial advice. Check the current GST and income tax rules with your chartered accountant before you decide.