Under Construction Projects in India: Key Benefits, Risks & Buying Guide (2025)

Introduction

With India’s urban landscape rapidly expanding, under construction projects are drawing significant attention from both homebuyers and real estate investors. These projects offer more flexibility, lower prices, and better customization options than ready-to-move-in flats — making them a preferred choice for many.

However, under construction properties also come with a set of risks: delayed possession, legal clearances, and developer credibility. That’s why it’s crucial to understand what you’re getting into before booking an under construction property in 2025.

This article covers the advantages, risks, documentation, legal checks, and expert tips you must consider before investing in an under construction home.

🧱 What is an Under Construction Project?

An under construction project refers to any real estate development that is still being built and not yet ready for possession. These can include:

• Residential flats and villas

• Builder floors

• Group housing societies

• Township projects by developers

Typically, these properties take 2–5 years to complete, depending on the size, approvals, and construction progress.

✅ Benefits of Buying an Under Construction Property

1. Lower Price Point

Under construction homes are usually priced 10–30% lower than ready-to-move-in units in the same locality. This makes it affordable for budget-conscious buyers.

2. Flexible Payment Plans

Buyers can opt for construction-linked payment plans, down-payment schemes, or even subvention plans (where EMIs start after possession).

3. Appreciation Potential

Buying early in a growing location allows your property to gain value over the construction period, especially in Tier 1 and Tier 2 cities.

4. Customization Possibilities

You may have the option to choose:

• Flooring type

• Kitchen fittings

• Wall paints

• Bathroom fixtures

5. Tax Benefits

Home loans taken for under construction projects are eligible for tax deductions under sections 80C and 24(b) (post-possession).

⚠️ Risks Involved with Under Construction Properties

1. Delayed Possession

Even in 2025, many developers face project delays due to:

• Funding issues

• Regulatory hold-ups

• Labor shortages

🕒 Always check RERA timelines and add 6–12 months buffer in your planning.

2. Developer Insolvency

If the builder defaults or declares bankruptcy, your money may get stuck for years.

3. Quality Concerns

Some developers may compromise on material quality or construction safety standards compared to what’s promised in brochures.

4. Changing Project Specifications

Layouts, floor plans, or promised amenities may change during construction.

5. GST Charges

Under construction homes attract 5% GST (without ITC), unlike ready homes which have zero GST.

📝 Key Documents to Check Before Buying

Always verify these documents before investing:

🏛️ Role of RERA in Protecting Buyers

Thanks to the Real Estate (Regulation and Development) Act, or RERA, homebuyers are now protected like never before.

Key RERA Benefits:

• Mandatory project registration

• Full disclosure of layout, timeline, and cost

• Buyer compensation in case of possession delays

• No arbitrary changes in project layout

• Funds collected must be used only for that project (70% to be escrowed)

✅ You can check project registration and updates on https://rera.gov.in

🏗️ Top Under Construction Hotspots in 2025

📍 Delhi NCR

• Greater Noida West (Techzone, Noida Extension)

• Sector 150, Noida (Greenfield projects)

• Dwarka Expressway, Gurugram

📍 Mumbai Metropolitan Region

• Kalyan, Dombivli, Panvel, Thane

• Goregaon and Mulund for luxury high-rises

📍 Bengaluru

• Whitefield, Sarjapur Road, Devanahalli

• Prime demand from IT workforce

📍 Pune

• Hinjewadi Phase 1-3

• Wakad, Baner for premium apartments

📍 Chennai, Hyderabad, Ahmedabad

• Peripheral zones with metro access and smart city benefits

💸 Pricing Trends & Payment Options

In 2025, most under construction projects are priced based on:

• Per square foot (super built-up or carpet)

• Floor rise, view charges, corner premiums

• Pre-launch or early-bird discounts

Popular Payment Plans:

• Construction-Linked Plan (CLP) – Pay as the project progresses

• Down Payment Plan – Pay 80–90% upfront, remaining on possession

• Subvention Plan – Builder pays EMI till possession

🏦 Financing Options & Home Loans

Banks/NBFCs offering home loans for under construction properties:

• HDFC Ltd

• SBI Home Loans

• LIC Housing Finance

• ICICI Bank

• Axis Bank

• PNB Housing

Tips:

• Look for pre-approved projects for quicker processing

• Ask about PMAY CLSS benefits (if applicable for EWS/LIG/MIG)

• Ensure the builder has tie-up with reputed banks

👷 Checklist Before Booking an Under Construction Project

✅ Confirm RERA Registration
✅ Visit actual site, not just brochure/video
✅ Check approvals from local authority
✅ Review the builder’s track record (previous delivery)
✅ Compare cost with ready-to-move options in same area
✅ Get a lawyer to vet the sale agreement

📣 Expert Tips for 2025 Buyers

• Prefer well-known builders with a good delivery record

• Avoid under construction resale unless legally vetted

• Use loan eligibility calculators to avoid over-borrowing

• Invest in areas with upcoming infrastructure: metro, highways, airports

• Always insure your property once possession nears

🏁 Final Thoughts

Under construction projects are a great opportunity in 2025 to own property at lower prices, enjoy modern amenities, and reap future appreciation. However, these benefits come with risks — and research, legal clarity, and smart planning are essential.

With RERA safeguards, bank tie-ups, and more transparent builders, buying under construction homes is safer than ever — but not risk-free. Choose your project wisely, and your dream home could be just a few floors away from becoming real.

🔗 Useful Resources

• RERA Portal: https://rera.gov.in

• SBI Home Loans: https://homeloans.sbi

• HDFC Home Loan Calculator: https://www.hdfc.com

• Policybazaar Property Insurance: https://www.policybazaar.com