Under Construction Homes-Cheaper, But Risky!

For instance, in Delhi-NCR, a two-bedroom ready-to-move-in flat may costs around 40 to 50 lakh but the same flat would costs you nearly 30 to 40 lakh if the flat is under construction. Besides, the locations also matters when it comes to pricing. Another advantage of buying such property is the payment of low EMIs.  This means, EMIs are paid according to the work in progress in each stage and so, the EMIs in the preliminary stage are very low for such projects.

Moreover, under-construction houses provide benefit for both developers and end-users. The end-users get cost benefit and developers get their customers even before they transfer the possession. Most importantly, one can get higher returns over time on the under construction house which is perhaps not possible in an already built home.

But higher returns have higher risks too.

Project delay is the biggest problem in under construction houses. Under construction residential developments have become a frequent issue in real estate sector and home buyers are getting trapped into this problem.  In most of the cases, developers face challenges to complete projects due to late approvals, increase in input costs and limited funds.