Chennai’s real estate market offers a balanced mix of completed developments and ongoing projects across established and emerging localities. Choosing between a ready-to-move and an under-construction property depends on factors such as budget, risk appetite, timeline, and purpose of purchase. Below is a detailed explanation of both options with their advantages and limitations in the Chennai context.
Ready-to-Move Properties
Ready-to-move properties are completed units that have received the Occupancy Certificate and are legally fit for possession and habitation.
Advantages
Immediate possession and usage
- Buyers can occupy the property immediately after registration. This is ideal for families looking to relocate quickly or professionals moving to Chennai for work.
No construction or delivery risk
- Since the project is completed, there is no uncertainty related to construction delays, changes in specifications, or project abandonment.
Transparency in quality and space
- Buyers can physically inspect the apartment, common areas, amenities, ventilation, natural light, and construction quality before making a decision.
No GST liability
- Completed properties are exempt from GST, reducing the overall cost compared to under-construction units.
Immediate rental income and tax benefits
- Investors can start earning rental income immediately. Home loan interest and principal repayment benefits can also be claimed without delay.
Established surroundings
- Most ready properties are in developed neighborhoods with existing roads, water supply, public transport, schools, and hospitals.
Limitations
Higher purchase price
- Ready-to-move properties usually cost more because the construction risk is eliminated and the area may already be developed.
Limited availability and choice
- Preferred units (higher floors, corner flats, or specific orientations) may already be sold, leaving fewer options.
Minimal customization
- Structural changes are not possible, and even interior modifications may be limited.
Maintenance considerations
- Older projects may require higher maintenance costs or repairs over time.
Under-Construction Properties
Under-construction properties are projects in various stages of development and are sold before completion.
Advantages
Lower initial cost
- Under-construction units are generally priced lower than completed properties in the same location, making them more affordable.
Flexible payment structure
- Payments are linked to construction milestones, reducing the immediate financial burden and allowing better cash-flow management.
Higher appreciation potential
- As the project nears completion and surrounding infrastructure develops, the property value may increase significantly.
Customization options
- Buyers may have limited flexibility to choose layouts, finishes, or upgrades during the construction phase.
Modern specifications and amenities
- New projects often offer contemporary designs, better safety features, energy-efficient systems, and updated amenities.
Limitations
Risk of delays
- Construction delays can extend possession timelines, impacting personal plans and finances, even under regulatory oversight.
Additional tax cost
- GST is applicable on under-construction properties, increasing the total purchase cost.
Dual financial pressure
- Buyers may need to pay rent for their current accommodation while also servicing home loan EMIs.
Uncertainty in final outcome
- The delivered unit may differ slightly from brochures or model apartments in terms of space, quality, or finishing.
Delayed returns
- Rental income and full tax benefits begin only after possession.
Overall Perspective
In Chennai, ready-to-move properties offer stability, immediate usability, and lower risk, making them suitable for end-users and conservative investors. Under-construction properties, on the other hand, attract buyers seeking affordability, phased payments, and long-term capital appreciation, but they require patience and a higher tolerance for uncertainty. The right choice depends on the buyer’s financial planning, time horizon, and comfort with risk rather than market conditions alone.
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