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20 Most Affordable Housing Projects in Bangalore

List of affordable housing projects in Bangalore

“Affordable Housing” is a very popular word these days in the Indian Real Estate Sector. With a fast population shift from rural to urban areas, home buyers look for a property which is economical, affordable and within the reach of their pockets. Therefore, people are getting attracted to the Affordable Housing Scheme. Even in cities like Bangalore, with on average higher purchasing power compared to many other cities such as Delhi, Mumbai, Gurgaon, Chennai, Ahmedabad, and Pune, the demand for affordable housing is increasing at a very fast pace.

While building cost-effective homes is a challenge in itself. To meet the growing demand for affordable housing, the Government of India and all the major real estate players have come up together with a number of low budget housing schemes and plans. Government’s ‘Pradhan Mantri Awas Yojana’, ‘Housing for all by 2022’, and ‘Public-Private Partnerships for Affordable Housing’ are some of the major incentives that are helpful in the growth of the affordable housing sector in India.

Even in cities like Bengaluru, where the average buying capacity of people is higher as compared to other cities, home buyers look for properties that are well within the reach of their pockets.

So, if you are planning to buy affordable homes in Bangalore, here are the top 20 affordable housing projects that offer 1, 1.5, 2, and 3 BHK housing units within your budget:

List of 20 Affordable Housing Projects In Bangalore:

Projects Name

Builders Name

Location

Tata New Haven

TATA Housing Dev Co Ltd

Tumkur Road

Concorde Epitome

Concorde Group

Electronic City Phase II

Concorde Spring Meadows

Concorde Group

Tumkur Road

LGCL Happy Days

LGCL

Off Hennur Road

Pride Palatia Phase I

Pride Group

Hennur Road

Goyal Orchid Greens

Goyal & co.

Kannur

Artha Emprasa Startup City

Artha Property

Hoskote

Avanti by Shriline

Shriline Properties Pvt Ltd

Attibele – Anekal Road

Brigade Bricklane

TooGoodHomes by Provident

Brigade Group

Provident Housing Limited

Jakkur

Thanisandra Main Road

Pride Sunrise

Pride Group

Bannerghatta Jigani Road

Brigade Parkside East

Brigade Group

Sarjapur Road

Brigade Parkside West

Brigade Group

Mysore Road

Iconest 3

Icon Homz

Bommasandra

Provident Park Square Ph-II

Provident Housing Limited

Judicial Layout 2nd Phase

Brigade Parkside North

Brigade Group

Jalahalli

Gallium at Brigade El Dorado

Brigade Group

Bagaluru

Confident Oxygen

Confident Group

Sarjapur Road

Provident Equinox

Provident Housing Limited

Kambipura

Provident Capella

Provident Housing Limited

Whitefield

  1. Tata New Haven

The luxurious residential development Tata New Haven by TATA Housing Development Co Ltd strategically located in Tumkur Road is offering 1.5, 2, and 2 BHK residential units ranging from 708-1286 sq.ft. with modern amenities like landscaped garden, indoor games, CCTV camera, gymnasium, basketball court, skating rink, lift, clubhouse, 24 hours water supply and much more.

  •  Project Name: Tata New Heaven
  • Developer: TATA Housing Development Co Ltd
  • Location: Tumkur
  • Unit Configuration: 1.5, 2, & 3 BHK Apartment
  • Rate: 5200/sq.ft.
  • RERA Registration No: PRM/KA/RERA/1251/309/PR/170916/000146
  • Price Range: Rs 36.81 L to Rs 66.87 L
  • No of Units: 1613
  • Possession Date: 30-Sep-19
  1. Concorde Epitome

Concorde Epitome by Concorde Group is an unmatched Residential property located in Electronic City Phase II, Bangalore. The project offers 2 and 3 BHK residential units ranging from 1217 – 1534 sq. ft. with plenty of benefits that include prime location, comfortable and lavish lifestyle, great amenities, healthy surroundings, and high return. Some of the modern amenities are a gymnasium, billiards room, table tennis, party hall, children’s play area, swimming pool, a landscaped garden among others.

  •  Project Name: Concorde Epitome
  • Developer: Concorde Group
  • Location: Electronic City Phase II
  • Unit Configuration: 1217 – 1534 Sq.ft.
  • Rate: 4200/sq.ft.
  • RERA Registration No: PRM/KA/RERA/1251/308/PR/171015/000698
  • Price Range: 51.11 lakh – 60.42 lakh
  • No of Units:180
  • Possession Date: 31-Dec-19
  1. Concorde Spring Meadows

Concorde Spring Meadows by Concorde Group, located off Tumkur Road on Hesaraghatta Main Road. This project is offering 1,2,3 BHK residential apartments. It is the ideal destination for a well-balanced life with best in class infrastructure and facilities all in the vicinity. Concorde Spring Meadows comprises of a wide array of amenities that include Landscaped Garden, Swimming Pool, Gymnasium, Play Area, Jogging Track, 24Hr Backup Electricity, Table Tennis, Party Area, Senior Citizen Park, Multi-purpose Hall, provision for Laundry, Skating Rink, Cricket Practice Net, and Multipurpose Games Court.

  •  Project Name: Spring Meadows
  • Developer: Concorde Group
  • Location: Tumkur Road
  • Unit Configuration: 596 sq.ft – 1456 sq.ft
  • Rate: 8023/sq.ft.
  • RERA Registration No: PRM/KA/RERA/1251/309/PR/180227/002657
  • Price Range: 47.81 lakh – 64.70 lakh
  • No of Units: 356
  • Possession Date: 30-Jun-21
  1. LGCL Happy Days

LGCL Happy Days by LGCL is an ultimate reflection of the urban chic lifestyle located in Off Hennur Road, Bangalore. It comprises of 2 BHK Apartments that are finely crafted and committed to providing houses with unmatched quality. The Apartments are spacious, well ventilated and Vastu compliant. This project has close proximity to many famous schools, hospitals, shopping destinations, tech parks and every civic amenity required so that you spend less time on the road and more at home.

  •  Project Name: LGCL Happy Days
  • Developer: LGCL
  • Location: Off Hennur Road
  • Unit Configuration: 900 sq.ft.
  • Rate: 6556/sq.ft.
  • RERA Registration No: PRM/KA/RERA/1251/309/PR/180313/002625
  • Price Range: 59 lakh
  • No of Units: 237
  • Possession Date: 31-Dec-21
  1. Pride Palatia Phase I

Pride Palatia Phase I by Pride Group situated in Hennur Road, Bangalore offers 2 and 3 BHK apartments. Located at Chikkagubbi, the project lies right off Hennur Main Road and is well linked to places like Jalahalli, Chikballapur, Brookefield, Frazer Town, Bommasandra, JP Nagar Phase 7, Vasanth Nagar, Begur and Jakkur among others. The project comes with several amenities for residents including a well-equipped gymnasium, clubhouse, 24-hour security services, playing zone for kids, landscaped gardens, swimming pool, CCTV surveillance, indoor game facilities, video door phone facilities, and television network.

  •  Project Name: Pride Palatia Phase I
  • Developer: Pride Group
  • Location: Hennur Road
  • Unit Configuration: 877 sq.ft. – 1354 sq.ft.
  • Rate: 6100/sq.ft.
  • RERA Registration No: PRM/KA/RERA/1251/446/PR/171013/000463
  • Price Range: 53.49 lakh – 82.59 lakh
  • No of Units: 207
  • Possession Date: 1-Dec-19
  1. Goyal Orchid Greens

Goyal Orchid Greens by Goyal & Co. is located in Kannur, near Chikkagubbi locality on Hennur Main Road of Bangalore. It is an under-construction project that offers 2 and 3 BHK apartments span across 2.27 acres of land parcel and known for specifications such as Vitrified Tiles flooring in kitchen, living room and other parts of the apartment. The key amenities offered by Orchid Greens include a gymnasium, swimming pool, children’s play area, clubhouse, jogging track, power backup provision, and indoor games facility.

  •  Project Name: Goyal Orchid Greens
  • Developer: Goyal & Co.
  • Location: Kannur
  • Unit Configuration: 1180 sq.ft. – 1561 sq.ft.
  • Rate: 4068/sq.ft.
  • RERA Registration No: PRM/KA/RERA/1251/446/PR/171014/000328
  • Price Range: 48 lakh – 63.50 lakh
  • No of Units: 240
  • Possession Date: Sep-19
  1. Artha Emprasa Startup City

Artha Property has launched its premium housing project, Emprasa Startup City strategically situated in Hoskote, Bangalore. The project offers 1, 2 BHK residential apartment from 692 sqft to 741 sqft in Bangalore East. This project is span across 8.18 acres of vast land parcels consists of 900 units. Among the many luxurious amenities that the project hosts are Swimming Pool, Multiplex And Theatre, Smart Transport, Training Center, Cricket And Soccer Field, etc.

  •  Project Name: Artha Emprasa Startup City
  • Developer: Artha Property
  • Location: Hoskote
  • Unit Configuration: 692 sq.ft. – 741 sq.ft.
  • Rate: 3950/sq.ft.
  • RERA Registration No: PRM/KA/RERA/1250/304/PR/171031/001084
  • Price Range: 27.33 lakh – 29.26 lakh
  • No of Units: 900
  • Possession Date: 31-Dec-19
  1. Avanti by Shriline

Avanti by Shriline is a luxurious residential development by Shriline Properties Pvt. Ltd. It is built on an area spreading across 2 acres, consists of a total of 236 aesthetically designed 1 and 2 BHK units in a stilt +4 floors spread over 6 Wings. Being situated along Attibele-Anekal Road, close to proposed STRR (Satellite Town Ring Road), the project lies in close proximity to Electronic City – Bengaluru’s latest IT hub and among favorite residential areas in Bangalore South. All the necessary amenities & open green spaces together give you a great nature to live.

  •  Project Name: Avanti by Shriline
  • Developer: Shriline Properties Private Limited
  • Location: Attibele – Anekal Road
  • Unit Configuration: 530 sq.ft. – 961 sq.ft.
  • Rate: 3583/sq.ft.
  • RERA Registration No: PRM/KA/RERA/1251/308/PR/171031/001664
  • Price Range: 18.98 lakh – 30.33 lakh
  • No of Units: 236
  • Possession Date: 31-Dec-20
  1. Brigade Bricklane

Packed with thoughtful conveniences and modern amenities, Brigade Bricklane by Brigade Group is an under-construction residential project, strategically located at Jakkur, Bangalore. It is offering 1 and 2 bedroom apartments span across 8 acres of land parcel consists of 749 units. It includes amenities such as a Children’s Play Area, Basketball Court, Amphitheatre, Cycling & Jogging Track, Gymnasium, ATMs, medical facilities, education institutions, and parks are within easy reach.

  •  Project Name: Brigade Bricklane
  • Developer: Brigade Group
  • Location: Jakkur
  • Unit Configuration: 663 sq.ft – 1022 sq.ft
  • Rate: 5040/sq.ft.
  • RERA Registration No: PRM/KA/RERA/1251/309/PR/180808/001981
  • Price Range: 33.41 lakh – 50.99 lakh
  • No of Units: 749
  • Possession Date: 1-Dec-21
  1. TooGoodHomes by Provident

TooGoodHomes by Provident Housing Limited situated in Thanisandra Main Road near Manyata Tech Park, Bangalore. It offers 249 units of  2 BHK apartments in 2.03 acres of the land parcel, ranging between 888 sq. ft. to 944 sq. ft. Some of the key amenities include a swimming pool, gymnasium, clubhouse, children’s play area, senior citizen sit-out, terrace garden, jogging track, 24-hours power back-up among others. Tech parks, shopping malls, best of educational institutes, world-class hospitals and the Kempegowda International Airport are all in close proximity, making this a perfect investment.

  •  Project Name: TooGoodHomes by Provident
  • Developer: Provident Housing Limited
  • Location: Thanisandra Main Road, Near Manyata Tech Park
  • Unit Configuration: 888 sq.ft. – 944 sq.ft
  • Rate:  5686/sq.ft.
  • RERA Registration No: PRM/KA/RERA/1251/472/PR/180808/001982
  • Price Range: 50.49 lakh – 52.59 lakh
  • No of Units: 249
  • Possession Date: 31-Dec-21
  1. Pride Sunrise

Pride Sunrise is a residential project by Pride Group situated at Bannerghatta Jigani Road, Bangalore. Homes at Pride Sunrise have been smartly designed in compact configurations which allow for maximum space optimization, designed by leading architects. It offers 128 units 1 and 2 BHK residential apartments spread across 1.35 acres of land. The project has very close proximity to Electronic City as well as Jigani Industrial Area which is home to the best international workspaces and entertainment hubs. The locality of this project has a high appreciation potential due to its location in South Bengaluru’s fastest growth corridor with excellent infrastructure and Metro connectivity.

  •  Project Name: Pride Sunrise
  • Developer: Pride Group
  • Location: Bannerghatta Jigani Road
  • Unit Configuration: 570 sq.ft. – 797 sq.ft.
  • Rate: 4912/sq.ft.
  • RERA Registration No: PRM/KA/RERA/1251/308/PR/181103/002126
  • Price Range: 19.94 lakh – 28 lakh
  • No of Units: 128
  • Possession Date:31-Dec-20
  1. Brigade Parkside East

Parkside East by Brigade Group is a unique gated community project located strategically on Sarjapur Road in East Bangalore and is blessed with ready social infrastructure. It offers thoughtfully designed 1 and 2 BHK apartments keeping in mind the specific needs of varying age groups. This community has one set of blocks named CLASSIC, dedicated solely for the seniors, with a range of special services and features. While the other set of blocks named PRIME caters to the lifestyle choices of today’s cosmopolitan families. Wading Pool, Swimming Pool, Mini Golf, Jogging Track/Brisk Walk, Outdoor Gym, Senior Friendly Indoor Gym are some of the key amenities provided by the builder.

  •  Project Name: Brigade Parkside East
  • Developer: Brigade Group
  • Location: Sarjapur Road
  • Unit Configuration: 704 sq.ft to 1252 sq.ft
  • Rate: 5690/sq.ft.
  • RERA Registration No: PRM/KA/RERA/1251/446/PR/180621/001910
  • Price Range: 40.05 lakh – 68.73 lakh
  • No of Units: 282
  • Possession Date: 31-Dec-20
  1. Brigade Parkside West

Parkside East by Brigade Group is a unique gated community project located strategically on Mysore Road, Bangalore and is blessed with ready social infrastructure. It offers thoughtfully designed 282 units of 1 and 2 BHK apartments span across 5 acres of land parcel keeping in mind the specific needs of varying age groups. This community has one set of blocks named CLASSIC, dedicated solely for the seniors, with a range of special services and features. While the other set of blocks named PRIME caters to the lifestyle choices of today’s cosmopolitan families. Wading Pool, Swimming Pool, Mini Golf, Jogging Track/Brisk Walk, Outdoor Gym, Senior Friendly Indoor Gym are some of the key amenities provided by the builder.

  •  Project Name: Brigade Parkside West
  • Developer: Brigade Group
  • Location: Mysore Road
  • Unit Configuration: 711 sq.ft. to 1266 sq.ft
  • Rate: 5690/sq.ft.
  • RERA Registration No: PRM/KA/RERA/1251/310/PR/180611/001894
  • Price Range: 40.45 lakh – 69.50 lakh
  • No of Units: 292
  • Possession Date: 31-Dec-20
  1. Iconest 3

Icon Homz bringing up a new housing complex named Iconest 3 in Bommasandra, Bangalore. The property is located just beside the national highway 44, which connects the city to the neighboring city of Hosur to Attibele. It offers 224 units of 1,2, and 3 BHK apartments that are finely crafted and committed to providing houses with unmatched quality. The project is spread across 2 acres of land. Some of the unmatched amenities include a children’s play area, badminton court, landscaped garden, library, jogging track, gymnasium, 24-hours power back-up among others.

  •  Project Name: Iconest 3
  • Developer: Icon Homz
  • Location: Bommasandra
  • Unit Configuration: 475 sq.ft. to 841 sq.ft.
  • Rate: 4737/sq.ft.
  • RERA Registration No: PRM/KA/RERA/1251/308/PR/181122/002157
  • Price Range: 22.49 lakh – 32.77 lakh
  • No of Units: 224
  • Possession Date: 1-Jun-21
  1. Provident Park Square Phase II

Provident Park Square Phase-2 by Provident Housing Limited is a newly launched residential project located in the prime area of Judicial Layout on Kanakapura Road in Bangalore. Spread across 20 acres of land area, Park Square offers 1, 2 & 3 BHK homes sized from 526 sq. ft. to 1106 sq. ft. with luxurious in-home features as well as amenities at comfortable prices. It offers some world-class amenities these include a luxury clubhouse with over 30 premium amenities and a banquet hall, Micro-mall with retail stores, cafes, ATM Dedicated meditation & yoga deck, senior-citizen court, a children’s play area, cricket pitch, and badminton court among others.

  •  Project Name: Provident Park Square Phase II
  • Developer: Provident Housing Limited
  • Location: Judicial Layout 2nd Phase
  • Unit Configuration: 526 sq.ft. to 1106 sq.ft.
  • Rate: 6538/sq.ft.
  • RERA Registration No: PRM/KA/RERA/1251/310/PR/180507/001648
  • Price Range: 34.39 lakh – 64.39 lakh
  • No of Units: 208
  • Possession Date: 1-Oct-21
  1. Brigade Parkside North

Parkside North by Brigade Group is a unique gated community project located strategically on Jalahalli in North Bangalore and is blessed with ready social infrastructure. It offers thoughtfully designed 1 and 2 BHK apartments span across 5.32 acres of land, keeping in mind the specific needs of varying age groups. This community has one set of blocks named CLASSIC, dedicated solely for the seniors, with a range of special services and features. While the other set of blocks named PRIME caters to the lifestyle choices of today’s cosmopolitan families. Wading Pool, Swimming Pool, Mini Golf, Jogging Track/Brisk Walk, Outdoor Gym, Senior Friendly Indoor Gym are some of the key amenities provided by the builder.

  •  Project Name: Brigade Parkside North
  • Developer: Brigade Group
  • Location: Jalahalli
  • Unit Configuration: 711 sq.ft. to 1207 sq.ft
  • Rate: 5390/sq.ft.
  • RERA Registration No: PRM/KA/RERA/1251/309/PR/181122/002152
  • Price Range: 38.32 lakh – 62.64 lakh
  • No of Units: 434
  • Possession Date: 31-Mar-21
  1. Gallium at Brigade El Dorado

Brigade Gallium At Brigade El Dorado an affordable apartment complex situated at Bagaluru Near Yelahanka in Bangalore. It offers 463 units of 2 and 3 BHK apartments, and a total of 12 blocks configured to have 1 basement + ground +21 floor elevations will be offered, upon completion, with excellent structural formulations in accordance to the principles of Vastu. This project has a total area size of 4.2 acres which include key amenities like 10-acre Central Park, Swimming Pools, Two Clubhouses, Kids’ Play Area, Open-air Amphitheatre, Football Field, Community Gardening, Multipurpose Hall, Creche, Cricket Ground, Convenience Store, Gym among others.

  •  Project Name: Gallium at Brigade El Dorado
  • Developer: Brigade Group
  • Location: Bagaluru
  • Unit Configuration: 795 sq.ft to 1068 sq.ft.
  • Rate: 4415/sq.ft.
  • RERA Registration No: PRM/KA/RERA/1251/472/PR/190427/002540
  • Price Range: 35.10 lakh – 44.60 lakh
  • No of Units: 463
  • Possession Date: 31-Dec-23
  1. Confident Oxygen

Confident Sarjapur Oxygen by Confident Group situated in Sarjapur Road is offering 2 and 3 BHK luxury apartments in 40 acres of vast land with varied amenities like tennis court, basketball court, kids play area, swimming pool, clubhouse and more. These residential apartments in Sarjapur Road are centrally situated and are surrounded by world-class infrastructure and facilities. This project is very close to many international schools and hospitals. It has also close proximity to the new Wipro office and RGA Tech Park.

  •  Project Name: Confident Oxygen
  • Developer: Confident Group
  • Location: Sarjapur Road
  • Unit Configuration: 927 sq.ft to 1114 sq.ft
  • Rate: 5228/sq.ft.
  • RERA Registration No: PRM/KA/RERA/1251/308/PR/190531/002591
  • Price Range: 48.46 lakh – 57.29 lakh
  • No of Units: 250
  • Possession Date: 30-Jun-22
  1. Provident Equinox

Provident Equinox is a luxury residential apartment project by Provident Housing Limited in the rapidly expanding neighborhood right off NICE Junction, Mysore Road, Bangalore. The project offers 672 units of 2 and 3 BHK spacious apartments with luxurious features in 2.08 acres of land parcel. Amenities at Provident Equinox include a fully equipped clubhouse, landscaped gardens, gymnasium, swimming pools, recreation rooms, outdoor sports courts, a children’s play area, party hall, and 24/7 security to its residents.

  •  Project Name: Provident Equinox
  • Developer: Provident Housing Limited
  • Location: Kambipura
  • Unit Configuration: 883 sq.ft to 1082 sq.ft
  • Rate: 4519/sq.ft.
  • RERA Registration No: PRM/KA/RERA/1251/310/PR/190525/002576
  • Price Range: 39.90 lakh – 49.90 lakh
  • No of Units: 672
  • Possession Date: 31-Mar-22
  1. Provident Capella

Provident Capella is a residential community situated in Whitefield near Hope Farm Junction, Bangalore. This project features 1, 2 and 3 BHK well-built luxury apartments in 6 acres of land. The master plan reveals the presence of 7 towers with Basement + 2 Parking + 11 floors arrangement. 780 units are offered in phase 1 with a size range of 420 sq.ft. to 1100 sq.ft. It is a unique project themed with the concept of a child-friendly environment that helps the kids to engage in several activities. Some of the unmatched amenities include Swimming pool, multi-purpose court, culture club, meditation room, yoga lawn, party lawn, open-air theatre & stage, Kabaddi Court, Outdoor gym, Jogging track, children’s play area, cricket pitch, Skating bowl, Retail, Shopping, and Cafe among others.

  •  Project Name: Provident Capella
  • Developer: Provident Housing Limited
  • Location: Whitefield
  • Unit Configuration: 430 sq.ft. to 1100 sq.ft
  • Rate: 6044/sq.ft.
  • RERA Registration No: PRM/KA/RERA/1250/304/PR/190606/002596
  • Price Range: 25.99 lakh – 56.99 lakh
  • No of Units: 780
  • Possession Date: 14-Dec-23

 

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Should I Buy An Under-Construction Flat or Ready-T0-Move-In Bangalore?

rtmv2

Why one should buy an under-construction flat over ready-to-move-in Bangalore?

Buying property is an important decision for all. It’s an emotional decision which can be taken very cautiously. You are not going to switch your home in the next few years after buying, rather you will not sell it off except you get a better deal or need a bigger home.

The resale housing market, especially the new, ready-to-move-in section, gives home-buyers a chance to avoid the risks of buying under-construction properties that are likely to extreme delays.

Ready-to-move-in properties reduce the chances of getting cheated, apart from offering other benefits.
Ready-To-Move-In flats are more expensive than an under-construction flat in the same locality. You should have a strong financial position for a ready-to-move-in flat, as you would have to pay the full cost of the property before the builder handovers you the keys. Your home loan should be sanctioned, and EMIs on the full loan amount will start instantly. On the other hand, an under-construction flat has an easier payment method, as you would have to make staggered payments spread over the years.

This is, perhaps, the only positive for an under-construction flat, however. “The price gap between RTM and under-construction apartments has narrowed considerably because of the supply overhang

If you are planning to buy a property, you would get lots of options. But there is an advantage in choosing a ready-to-move-in property. Below we are listing a few of its advantages and disadvantages:

Advantages of Ready to Move in Property:

  • Immediate Authority on Your Flat Purchase: In case of ready-to-move-in property, you can instantly move into your new house. You will immediately get the possession of your home, what you have paid for whereas for an under-construction property you have to wait for 3-5 years for the flat to be delivered.
  • Low-Risk Involvement: In a ready-to-move-in property there are no risks of delay possession. While in the case of under-construction property, project delays are much more common and there are many cases where a builder has duped buyers. So, you need to be cautious while choosing a builder for an under-construction property.
  • Instant Relief from Paying Rent: Once you relocate into your new home, you won’t have to pay any rent. All you have to pay is EMI for your home loan. While in an under-construction property, you will have to carry both EMI and Rent for a number of years.
  • You will get what you will see: An under-construction property is sold on papers. Sometimes, there can be some discrepancies in the final outcome and what you were promised. On the other hand, in the case of ready-to-move-in property, you will first see and inspect the product and then only you will decide to buy it or not.
  • Immediate Tax Benefits: In a ready-to-move-in property you can challenge tax exemption on your home loan on both principal and interest repayment instantly while tax benefits on home loan for an under-construction property can be claimed only after you get the flat possession.
  • Only EMI With No Down Payment: The most helpful thing about ready-to-move-in property is that you will have to pay EMIs on the home loan, and would include no other payments. In case of an under-construction property, EMI normally begins after completion of construction work. Despite this, if there is any delay in the construction, then the EMI will start once the home loan gets dispensed.
  • Check The Infrastructure And Other Facilities: When you are buying a ready-to-move-in property, you can check the infrastructure and other facilities around the flat before buying the property.
  • No increased cost: This is another advantage of buying a ready-to-move-in property as you are not supposed to pay the increased cost of the property after paying the booking amount. But in the case of under-construction properties, you have to bear the increased cost of the property.
  • Buy within Your Budget: In a ready-to-move-in property, you can select a property within your budget. If you have a lower budget, you can buy a home that fits into your budget. Whereas, when you buy an under-construction property if the project got delayed for three or more years the builder asked for increasing the cost of construction which you have to bear and it increases your overall budget.
  • No GST: Taxes play a crucial role in buying a property. Currently, a buyer does not pay any GST while buying a ready-to-move-in property. An under-construction flat, on the other hand, attract 12% GST. So, if you buy an under-construction flat worth Rs 60 lakh, you will have to pay Rs 720,000 as GST.
  • Rental income: If the flat you’ve bought as an investment and not for personal use or, if you are planning to move in later, you can rent it out and make some rental income. You can use the rental income to pay your EMIs or keep it as a rental income.
  • Ease of selling: It is difficult to sell an under-construction property, especially if its possession is delayed or it’s involved in litigation. In many cases, developers do not allow the transfer of apartments until the project is complete.

Disadvantages of buying a ready-to-move-in property:

  • High Property Cost: One of the major drawbacks of buying a ready-to-move-in property is the higher cost as compared to an under-construction property. The cost difference could be anywhere between 20-30%.
  • Construction Quality: It is very easy for an under-construction property to analyze the work progress and thus being aware of the quality of construction in terms of the material used, the strength of the foundations etc. But you can not conduct any such inspection in a completed flat.
  • Age of The Property: Buying a ready-to-move-in property might not always ensure you a brand new home like an under-construction property. The flat which you have bought might be up for sale for a long time. Therefore, if it has not been maintained properly, it might look old.
  • Exclusion from RERA: An old ready-to-move-in flats with Occupancy Certificate as on 1st May’ 2016 have not been included under RERA. Thus, its promoters are not accountable to make its information available on a public platform.
  • The under-construction projects are no less in terms of quality and cost if you do all your due diligence on the project such as price, location, developer, and other related aspects. The under-construction projects offer a higher return than a ready-to-move-in-property.

Advantages of buying an under-construction property:

  • Cost-effective: The cost of a property for the buyer is one of the most important things. An under-construction property is likely to cost less than ready-to-move-in properties. Buyer will get many options of under-construction properties. It is also true that possession gets delay but cost worth. With RERA in place, developers must deliver on time and if they don’t they are responsible for compensation to buyers. Post RERA, there is an added advantage of booking a unit in an under-construction for the buyers.
  • Good Appreciation on Investment: Since you are buying your property at a lower cost, the appreciation is expected to be higher. As the construction work in progress, the cost of your property also increases. For good returns on their investment, one should check the location, upcoming infrastructure and employment hubs situated nearby.
  • Payment Flexibility: While buying a ready-to-move-in property, a buyer has to pay the entire amount one chance. There are stamp duty, registration charges and other miscellaneous expenses as well. But at the initial stage for an under-construction property, you are paying 10-15% as a booking amount for under-construction properties. You pay EMIs to the bank in case the property is financed or else you pay as per the construction plan.
  • Discount and offers: It is very difficult to get a discount on a ready-to-move-in property. It is a complete house and you need to pay the cost as per the market and even more depending on the amenities. However, if you are buying in an under-construction project, there are several discounts and freebies offer such as gold coin, modular kitchen, air conditioner, gold coin, free car parking among others. You can also negotiate on the final price.

Disadvantages of buying under-construction property:

  • Under-construction properties are usually in the under-developed parts of the city and therefore, the capability for price appreciation due to future development is always good. However, this is not true in each and every case. Earlier, buyers have stuck in lots of litigation cases after buying under-construction properties. Before buying an under-construction property, one must have to look at the location and coming plans around that area. Apart from that, in an under-construction project, a buyer also has flexibility in payments, with options like construction-linked plans, subvention schemes, flexible payment plans, etc. Below is the list of disadvantages for an under-construction property:
  • Delay Possession: This is one of the most common issues related to under-construction projects. In most cases, the project got delayed due to various reasons and in this situation, the buyers face the consequences. Generally, the builders projected a maximum of 3 years timeline to complete the project. But in maximum cases, the project got delayed for more than 3-5 years.
  • The increase in property costs: This is another common problem faced by the people who book an under-construction property. If the project got delayed for even 2-3 years, the builder asks for the increased cost for the property. It is a kind of burden on you as you were expecting a certain amount to be paid once you got the possession of the property, but because of the delay in the construction, you have to bear the increased cost of the property.
  • Compromise with quality: When the builder shows you the sample flat, it is usually built with all possible facilities and with the best quality products. With time, you make an expectation of getting the same quality of work done within your home, but when you get the real home you find that it is much different from the promised one as the builders don’t use good material in construction. This type of situation arises very rarely and with unprofessional developers. After the implementation of RERA, a builder cannot change the building approval plan once sanctioned and display the same on their website.
  • False projection & promises: This is one of the most common and biggest issues with under-construction properties. The builders make numbers of promised to the customers related to infrastructure and amenities within the society, but in most cases, you don’t receive what you have been promised. But after implementation of RERA, the builder has to offer what he has promised during the agreement. A builder cannot change the building approval plan once sanctioned and display the same on their website.

What does CommonFloor data say?

As per CommonFloor research and analysis, we have selected four top real estate destination of India and found that Under-construction property rates are cheaper than ready-to-move-in. Why? Our builder is busy constructing the apartment and the locality around this apartment also develops with time. A few years later your apartment is ready and you take possession of it in a posh locality.  Under-construction flats give you bargaining power. You can negotiate with the builder for a cheap flat. Here is the list of top 4 localities and its rate as per BSP:

Locality

City

Avg Sale Price (RTM)

Avg Sale Price (UC)

Sarjapur

Bangalore

4,615

4,494

Whitefield

Bangalore

6,556

6,345

Hi-Tech City

Hyderabad

6,015

5,873

Rajarhat

Kolkata

4,923

4,476

Sector 104

Gurgaon

5,671

4,397

Price analysis between Ready-to-move-in Vs Under-construction:

RTM vs Under-construction2

From the above data, we found that the rate of an under-construction property is much cheaper than a ready-to-move-in property.

While buying a ready-to-move-in property, a buyer has to pay the entire amount one chance. There are stamp duty, registration charges and other miscellaneous expenses as well. But at the initial stage for an under-construction property, you are paying 10-15% as a booking amount for under-construction properties. You pay EMIs to the bank in case the property is financed or else you pay as per the construction plan. There is flexibility in terms of payment and you do not need to arrange a huge amount to buy an under-construction property.

The interest burden on loan:

In an under-construction property, a bank dispenses the loan amount partly to the builder. However, you may be required to pay the EMI on the approved loan amount and not the disbursed loan amount.

EMI for under-construction property permits you to make payments through EMIs, in a partially dispensed loan for an under-construction project. The loan amount is partially dispensed and EMI is fixed as per the approved amount. The period of the loan continues moving up with an extra amount being dispensed. The EMI will continue constantly during the tenure of the loan. Save on interest and secure faster payment of the loan. As your EMI starts instantly after the 1st disbursement, your principal repayment also starts together, by that reducing your interest burden and tenure.

Month

Stage

Amount Disbursed

Pre-EMI

1st Jan

On agreement

Rs 10 L (20%)

Rs 8,750

1st July

On completion of foundation and ground floor

Rs 10 L (20%)

Rs 17,500

1st October

On completion of 1st and 2nd floor

Rs 10 L (20%)

Rs 26250

31st December

On completion of 3rd floor and possession

Rs 10 L (20%)

Rs.39935

As explained above, you would pay (8750 x 6) + (17500 x 3) + (26250 x 3) = Rs 2,36,250 as pre-EMI (interest) towards the dispensed loan amount. Your EMI of Rs 39,935 for the leftover 20 years starts from 01-Feb (i.e., a month after final disbursal).

Here are the tax benefits that you can avail when you take a home loan for an under-construction property:

1) As under-construction properties are relatively cheaper, the capitals required for them would be relatively low. Therefore, the EMI payable on the loan amount would also be lesser.

2) As the EMI on the loan is pretty fair, you can increase your monthly instalments to decrease the loan period. This will encourage you to save more on your total interest payment.

3) The person who is taking the home loan can refuse the deduction of the interest amount paid during the pre-construction phase.

4) One can get tax benefits for the stamp duty and registration fee on the property.

5) The interest amount paid earlier to the year of completion is collected and 1/5th of this amount is released as a deduction each year for 5 years from the year of completion. Simply, the interest paid on the home loan during the pre-construction phase can be taken for deduction in these 5 equal instalments.

Recommendation & Suggestion:

You must buy under-construction flats only from builders who have approved from state RERA with a good reputation and established projects. After the implementation of RERA, a builder is responsible to deliver the project on the mentioned time and if they don’t, they are liable to pay compensation to the buyers.

Since you are buying an under-construction property at a lower rate, the appreciation is expected to be higher. As construction progresses, the price of your property also increases.

If you’re planning for under-construction property, estimate your financial position, documents required to purchase and about the developers. It is essential to know your neighbourhood and the available infrastructure around the area such as nearby markets, common public areas and parks, connectivity issues, among others.

If the developer is appreciated, then banks will definitely request you to get yourself a loan. Buying a home can be a risky business, but buying after a good research and thinking about the long term return will be profitable.

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