Under construction vs ready to move comes down to a trade. An under-construction flat in Pune can cost less than a comparable ready one and is paid for in stages, but it adds 5% GST, years of rent and pre-EMI interest, and the risk that possession slips. A ready-to-move flat with its occupancy certificate carries no GST and no waiting cost but costs more; on our worked numbers for a ₹2.10 crore 3 BHK, the ready flat is cheaper overall only if it costs less than about 4–6% more.
Key takeaways
- GST is 5% on an under-construction flat and nil if the entire price is paid after the completion certificate or first occupation.
- In our example, rent and pre-EMI interest add ₹35.1 lakh over a three-year wait.
- Against a ₹2.10 Cr flat delivered on time, a comparable ready flat wins only below about ₹2.19 Cr; with a one-year delay, below about ₹2.23 Cr.
- If possession is late, Section 18 of the RERA Act lets you exit with a refund and interest, or stay and claim interest for every month of delay, at about 10.95% a year in MahaRERA orders.
Under construction vs ready to move: side by side
As a reference point, Bhansali Bespoke Balewadi is an under-construction 3 & 4 BHK project with possession targeted for December 2029, though some portals show December 2030, so a buyer booking there today is taking the first route.
| Factor | Under construction | Ready to move (OC received) |
|---|---|---|
| Price | Paid in construction-linked stages; may be below comparable ready stock | Paid at once; compare like for like, since averages mix in older resale |
| GST | 5% of agreement value | Nil if the entire price is paid after completion or first occupation |
| Home loan | Disbursed in stages; interest-only pre-EMI | Fully disbursed; full EMI from month one |
| Waiting cost | Rent plus pre-EMI until possession | None |
| Main risk | Delay, plan changes, a stalled project | Hidden defects, pending dues, an older building |
| Defect liability | Five years from handover (RERA Section 14(3)) | Same rule, but on a resale flat part of it may have run |
The price gap: what Balewadi data shows
In September 2026, Square Yards showed Balewadi under-construction listings at ₹15,000 per sq ft across 28 projects and ready-to-move listings at ₹12,969 across 182, without stating the area basis. Ready stock looks cheaper largely because it includes older resale flats, not because a new ready flat costs less. Compare two specific quotes for flats of similar size, age and location, both per sq ft of RERA carpet area; our guide to carpet area vs built-up area shows how to convert.
GST and stamp duty: what changes
Under Notification 11/2017-Central Tax (Rate), as amended in 2019, a non-affordable flat sold before completion pays an effective 5% GST, except where the entire consideration is received after the completion certificate or first occupation, whichever is earlier. On ₹2.10 crore that is ₹10.5 lakh; see our guide to GST on under-construction flats.
- A flat sold as “ready” before its occupancy certificate still attracts GST, so check the certificate’s date against your payment dates.
- Stamp duty is 7% plus ₹30,000 registration for a man buying within PMC limits either way, so the dearer ready flat pays more: ₹16.75 lakh on ₹2.35 crore against ₹15 lakh on ₹2.10 crore. See stamp duty and registration charges in Pune.
Pre-EMI, rent and tax during the wait
During construction the bank pays the developer in stages and you pay interest only on the amount drawn. This pre-EMI does not reduce the principal. In the final year of our example it is ₹91,875 a month, and with rent of ₹45,000 the family pays ₹1,36,875 a month before it has a home of its own. A Balewadi 3 BHK rents for about ₹35,000–55,000 a month (Broker Network, July 2026); our home loan guide for a ₹2 crore flat has the stage-by-stage table.
Under section 22 of the Income-tax Act, 2025, interest for the period before the tax year of completion is deducted in five equal instalments from that year. For a self-occupied home the total interest deduction is capped at ₹2 lakh a year, falling to ₹30,000 if construction is not completed within five years from the end of the tax year in which you borrowed. Because the cap covers current and earlier interest together, on a large loan the instalments often add nothing. This relief has historically applied only under the old regime; check with a CA.
Considering a 3 or 4 BHK in Balewadi?
Bhansali Bespoke – The Hamptonns offers 3 BHK (1,186–1,212 sq ft) and 4 BHK (1,802–1,810 sq ft) homes in Laxmi Nagar, near Balewadi High Street. MahaRERA PM1260002600725.
Worked example: ₹2.10 Cr under construction vs ₹2.35 Cr ready
Assumptions: a family renting a 3 BHK at ₹45,000 a month compares an under-construction flat at ₹2.10 crore, with possession in 36 months, against a comparable ready flat at ₹2.35 crore. That 12% premium is an assumption, not market data. Both buyers are men buying within PMC limits, pay their own 25% first and borrow 75% at 7.5% for 20 years. For the under-construction flat, the loan outstanding is ₹10.5 lakh in year one, ₹94.5 lakh in year two and ₹1.47 crore in year three, as payments reach 30%, 70% and 95% of the price.
| Cost until both families live in their own flat | Under construction, ₹2.10 Cr | Ready to move, ₹2.35 Cr |
|---|---|---|
| Agreement value | ₹2,10,00,000 | ₹2,35,00,000 |
| GST (5% / nil) | ₹10,50,000 | Nil |
| Stamp duty (7%) and registration | ₹15,00,000 | ₹16,75,000 |
| Rent for 36 months at ₹45,000 | ₹16,20,000 | Nil |
| Loan interest paid in 36 months | ₹18,90,000 (pre-EMI) | ₹38,30,942 (EMI of ₹1,41,986) |
| Total cost at month 36 | ₹2,70,60,000 | ₹2,90,05,942 |
Delivered on time, the under-construction flat comes out about ₹19.5 lakh ahead. The ready-flat buyer avoids ₹26.7 lakh of GST and rent but pays ₹25 lakh more for the flat, ₹1.75 lakh more stamp duty and ₹19.4 lakh more interest, because the whole loan is drawn from day one. The answer swings with the price gap:
| Ready flat price | Premium | Against on-time delivery (month 36) | Against a one-year delay (month 48) |
|---|---|---|---|
| ₹2.15 Cr | 2.4% | Ready ₹5.2 lakh cheaper | Ready ₹10.6 lakh cheaper |
| ₹2.20 Cr | 4.8% | Ready ₹0.96 lakh dearer | Ready ₹4.1 lakh cheaper |
| ₹2.25 Cr | 7.1% | Ready ₹7.1 lakh dearer | Ready ₹2.3 lakh dearer |
| ₹2.30 Cr | 9.5% | Ready ₹13.3 lakh dearer | Ready ₹8.7 lakh dearer |
| ₹2.35 Cr | 11.9% | Ready ₹19.5 lakh dearer | Ready ₹15.1 lakh dearer |
The break-even premium is about 4.4% (₹2.19 crore) for on-time delivery and 6.3% (₹2.23 crore) for a one-year delay. A year’s delay costs the under-construction buyer ₹16.4 lakh in rent and pre-EMI, but the ready-flat owner pays ₹12.1 lakh of interest that year, so the gap narrows by only about ₹4.3 lakh. The example leaves out returns on cash, rent increases, tax deductions, maintenance and the ready flat’s age, and it assumes the project is finished at all.
Delay risk and your RERA remedies
Section 18(1) of the RERA Act, 2016 applies if the promoter fails to complete or give possession by the date in the agreement for sale, or stops business because its registration is suspended or revoked. You can then:
- Withdraw: the promoter must, on demand, return the amount received with interest at the prescribed rate, plus compensation under the Act.
- Stay: the promoter must pay interest for every month of delay until it hands over possession.
MahaRERA orders apply SBI’s highest marginal cost of lending rate (MCLR) plus 2%. SBI’s three-year MCLR, its highest, rose to 8.95% from 15 October 2026, so that is about 10.95% a year. On 18 June 2026 the Bombay High Court upheld interest at that benchmark and held that accepting late possession does not waive it (Raw Law). If it were calculated on the ₹1.995 crore paid by the 95% stage, a year’s interest would be about ₹21.8 lakh, more than the ₹16.4 lakh the delay costs. But you collect it only after a complaint, an order and recovery, which can take years.
- Delay runs from the possession date in your registered agreement; check it matches the date on MahaRERA, as our guide on how to check MahaRERA registration explains.
- A stalled project is a bigger risk than a late one: a refund order is only as good as the promoter’s ability to pay.
When each option makes sense
Under construction suits you if
- You can carry rent plus pre-EMI for three years or more.
- You want a specific layout, floor or newer specification.
- You have checked the developer’s delivery record, and the gap to comparable ready flats is well above your break-even.
- A delay of a year or two would not force you to sell.
Ready to move suits you if
- You must move within months, for a job, a school admission or the end of a lease.
- Rent and EMI together would stretch your income.
- You want to see the exact flat, its light and neighbours, before paying.
Bottom line
An under-construction flat is cheaper only if the price gap pays for GST, rent, pre-EMI and the risk of delay. On a ₹2.10 crore flat, a comparable ready flat must cost roughly 4–6% more before booking under construction pays off, and more if the developer’s record is weak. Either way, see the occupancy certificate or MahaRERA record yourself. For The Hamptonns, current figures are on the price page, sizes on the floor plans page and distances on the location page. This is general information, not legal or tax advice; have an advocate review the agreement and a CA your tax position, or contact us to run these numbers.
FAQs
Is it better to buy an under-construction or ready-to-move flat in Pune?
It depends on the price gap and the wait. In our example, a ₹2.10 crore under-construction 3 BHK delivered on time beats a comparable ready flat costing more than about ₹2.19 crore, once GST, rent and pre-EMI are counted. If the ready flat costs less than that, or the project is likely to run late, the ready flat is usually the better buy.
Is GST payable on a ready-to-move flat?
No, provided the entire price is paid after the completion certificate is issued or after first occupation, whichever is earlier. Resale of a completed flat also attracts no GST. A flat sold as “ready” before its certificate still attracts 5% GST on non-affordable homes, so ask to see the certificate and check its date against your payment schedule.
What can I claim if my under-construction flat is delayed?
Under Section 18 of the RERA Act you can withdraw and get your money back with interest and compensation, or stay in the project and claim interest for every month of delay until possession. MahaRERA orders apply SBI’s highest MCLR plus 2%, about 10.95% a year at SBI’s October 2026 rates. You must file a complaint and then recover the amount.
What is pre-EMI on an under-construction flat?
Pre-EMI is interest-only payment on the part of the home loan the bank has disbursed to the developer so far. It rises as construction progresses and does not reduce the principal. In our example of a ₹1.575 crore loan at 7.5%, pre-EMI reaches ₹91,875 a month once ₹1.47 crore has been drawn.
Can I claim tax deduction on home loan interest during construction?
Not until construction is completed. Under section 22 of the Income-tax Act, 2025, interest before the year of completion is deducted in five equal instalments from that year. For a self-occupied home the total interest deduction is capped at ₹2 lakh a year, falling to ₹30,000 if construction is not completed within five years from the end of the tax year of borrowing.
