Under-Construction vs. Ready-to-Move Homes: What’s Better?

For most homebuyers in Chennai, purchasing a house is not just a lifestyle choice, but a significant financial commitment. One of the first and most critical decisions you’ll encounter is whether to go for an under-construction property or a ready-to-move-in (RTM) home. Both have compelling advantages and equally important drawbacks. Your decision will likely shape your experience as a homeowner for years to come, so it’s important to weigh every factor carefully.

Let’s examine the key differences and what makes each option ideal, depending on your needs and situation.

1. Possession Timeline

Under-Construction: These properties typically come with a 2 to 5-year possession window. If you are not in a hurry to move, this timeline can work to your advantage.
Ready-to-Move: As the name suggests, you can occupy the property immediately upon purchase, making this ideal for buyers looking for instant housing.

Why it matters: In Chennai, where rental costs in areas like Adyar, Anna Nagar, or Velachery are steep, a ready home can eliminate ongoing rent expenses, while an under-construction property allows you to continue living elsewhere until your home is completed.

2. Cost and Payment Structure

Under-Construction: Generally priced lower than completed projects. The cost can be spread over time as construction progresses, making the financial load more manageable. Builders also offer attractive pre-launch pricing and offers.
Ready-to-Move: Higher upfront costs, since you’re paying for a finished product. EMI and loan repayment start immediately.

Why it matters: In emerging corridors like Pozhichalur, Pallavaram, or Tambaram, under-construction homes allow buyers to invest early in an appreciating market. However, you should verify the builder’s track record and financial stability to avoid delays.

3. Legal and Regulatory Risks

Under-Construction: There is an inherent risk of project delays, deviations in layout, or changes in promised specifications. However, RERA (Real Estate Regulatory Authority) in Tamil Nadu has improved transparency and accountability.
Ready-to-Move: What you see is what you get. Legal clearances, occupancy certificates, and physical possession reduce your exposure to compliance risks.

Tip: Whether under-construction or ready, always verify the RERA registration number and legal title of the property. Don’t hesitate to get legal counsel to vet the documents.

4. Quality of Construction

Under-Construction: You rely on promises and plans. You can’t inspect the final product until it’s ready. A reputable builder with a strong delivery track record becomes crucial.
Ready-to-Move: You can inspect everything—walls, flooring, fittings, layout, ventilation, and views—before you commit.

Why it matters: Construction quality varies across builders in Chennai. Choosing a trusted developer like Viva Housing, known for transparency and quality checks, can make all the difference.

5. Customization Options

Under-Construction: Offers greater flexibility. You may be able to request design tweaks, custom fittings, or layout changes during construction.
Ready-to-Move: Limited to surface-level renovations or internal modifications. Structural changes are typically off the table.

Pro Tip: If you’re picky about design or want a personalized home, under-construction is better—but ensure changes are documented and approved.

6. Tax Implications

Under-Construction: Attracts 5% GST (Goods and Services Tax) unless it’s an affordable housing unit (which is taxed at 1%).
Ready-to-Move: No GST if the project has received a Completion Certificate.

Real-World Impact: On a Rs. 60 lakh property, the tax difference can run into lakhs. This makes ready homes financially appealing for budget-conscious buyers.

7. Resale and Rental Income

Under-Construction: Longer gestation period before you can earn rental income or resell.
Ready-to-Move: Can be rented out immediately, generating cash flow.

Why it matters: If you’re buying property as an investment, consider your timeline for returns. Locations near the Chennai Metro expansion corridors or industrial belts offer better rental potential.

8. Emotional and Practical Considerations

Under-Construction: Involves waiting and uncertainty, but offers hope of appreciation and personalization.
Ready-to-Move: Immediate gratification and reduced stress. What you inspect is what you move into.

Tip: For first-time buyers or elderly homebuyers, the peace of mind in a ready home often outweighs the cost savings in an under-construction one.

Why Choose Viva Housing

At Viva Housing, we build trust before we build homes. Whether you opt for one of our ready-to-move-in apartments in Pallavaram or invest in an under-construction project in Pozhichalur, we offer complete transparency, clear documentation, and timely delivery.

Our properties are RERA-registered, CMDA-approved, and backed by solid legal support. We help you weigh the pros and cons based on your family’s needs, financial goals, and lifestyle priorities.

Explore our curated portfolio of Chennai homes today and take the guesswork out of your homebuying journey.