Under-Construction Property: Benefits, Risks, and Things to Check Before Buying
Most new flats in Jaipur are sold before the building is finished. The price looks attractive, the payment is spread over two or three years, and the brochure shows a home that does not yet exist. That is the trade an under-construction property offers: a lower cost and more choice in exchange for waiting and trusting the builder to deliver. This guide explains how that trade works, where it goes wrong, and what to check before you book.
What is an under-construction property?
An under-construction property is a flat, villa or plot in a project where building work is still going on. You pay in instalments linked to construction stages, and you take possession when the building is complete and the authority has issued the occupancy certificate. Until then, you hold an agreement for sale, not the flat itself.
Benefits of buying under construction
- Lower price. Builders price early units below the ready-to-move rate to raise funds for construction. The gap is usually ten to twenty per cent, though it varies by project and city.
- Staggered payments. You pay as the building rises, which eases the pressure on savings and home loan EMIs.
- Better choice. Early buyers pick the floor, the facing and the corner unit; late buyers take what is left.
- New construction. You get current design, fittings and safety standards, with the builder's defect liability under RERA for five years after possession.
- Possible appreciation. Prices often rise between launch and completion, but this is not guaranteed and depends on the market at that time.
Risks you should understand
- Delay. Possession dates slip for reasons from approvals to funding. A two-year wait can become four.
- Paying rent and EMI together. Until possession, many buyers carry both.
- The flat may differ from the brochure. Area, view and finishes can change within the limits the agreement allows.
- Builder risk. If the developer runs out of money or loses an approval, work can stop. RERA improves recovery but does not remove the risk.
- GST. Under-construction flats attract GST; ready flats with an occupancy certificate do not. This narrows the price gap.
- Hidden charges. Parking, club fees, preferential location charges and development charges can add ten to fifteen per cent to the base price.
Things to check before buying an under-construction property
RERA registration
Every project above a small size must be registered with the state real estate authority before it is sold. In Rajasthan, look the project up on the RERA Rajasthan website. The page shows the promoter, the sanctioned plan, the number of units, the promised completion date and quarterly progress updates. If the project is not there, do not pay anything.
Land title and approvals
Ask for the title deed of the land, the development agreement if the landowner is different, the sanctioned building plan from the local authority and the bank's no-objection if the land is mortgaged. Have a lawyer read these before the booking amount is paid.
The builder's record
Visit a project the builder has already completed. Ask residents how late the possession was and how the building has held up. A builder's finished work tells you more than any brochure for flats in Jaipur or anywhere else.
Payment plan
The common options are:
- Construction-linked plan: instalments are due as each stage (foundation, slabs, finishing) is completed. The safest for the buyer.
- Time-linked plan: instalments fall on fixed dates regardless of progress. Avoid unless the builder's record is strong.
- Subvention or no-EMI-till-possession schemes: the builder pays your loan interest for a period. Read the fine print; the cost is usually built into the price.
Under RERA, a builder may take no more than ten per cent of the price before the agreement for sale is signed and registered.
Possession timeline
The completion date on the RERA page is the one that counts. The agreement should state the same date and the compensation if it is missed. Build a buffer of a year into your own plans.
Legal documents
Keep the agreement for sale, every payment receipt, the allotment letter and the approved plan. At completion, insist on the occupancy certificate before taking possession, then register the sale deed. The registered deed becomes your title.
The unit itself
Compare carpet area, not super built-up area. Check what the flat faces and what may be built next to it. Whether you are looking at 3 BHK flats in Vaishali Nagar, 4 BHK flats in Jaipur or 5 BHK flats in Jaipur, ask for the cost sheet with every charge listed before you decide.
Conclusion
An under-construction property rewards patience and punishes shortcuts. It can give you a better flat at a lower price, if the project is RERA-registered, the land title is clean, the builder has finished buildings before, and the payment plan is linked to construction. Keep a year's buffer on the possession date, budget for GST and extras, and do not hand over the keys to your savings on the strength of a brochure. Done that way, buying before the building is finished is one of the sounder decisions in real estate in Jaipur.
Frequently asked questions
Is an under-construction property cheaper than a ready flat?
Usually, by about ten to twenty per cent, but GST on under-construction flats narrows the gap. Compare the all-in cost, not the base price.
What if the builder delays possession?
Under RERA you can claim interest for the delay or withdraw and recover your money with interest. File a complaint with the state authority if the builder does not respond.
Can I get a home loan on an under-construction flat?
Yes. Banks disburse in stages as construction progresses, and you pay pre-EMI interest on the amount released until possession.
What is the most important check before booking?
The project's page on the RERA site, followed by the land title and the builder's completed projects.
Should I take possession without an occupancy certificate?
No. Without it the building is not legally fit to occupy, utilities may not be connected in your name, and resale becomes difficult.
Anil Shah
The Anil Shah editorial team writes about Jaipur real estate - market trends, home-buying guides, RERA updates and investment insights - drawing on 25+ years of building landmark residential and commercial projects across the city.
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