New launches offer lower entry prices and wider choices, but buyers must verify title, approvals, Rera disclosures, developer track record and construction progress before committing funds

Under-construction properties are attracting increasing interest from Indian homebuyers as buyers look for newer projects, larger homes and potentially lower entry prices. However, the financial advantage of buying at the launch or construction stage comes with additional risks that require careful due diligence.

According to Anarock’s Consumer Sentiment Survey, around 34 per cent of buyers preferred newly launched projects in the first half of 2026, compared with 18 per cent who preferred ready-to-move-in homes. This marks a significant shift from the first half of 2022, when ready homes were preferred by 30 per cent of respondents compared with 25 per cent for new launches.

The changing preference reflects growing confidence in regulated project timelines, the availability of larger homes and the reputation of established developers. But a lower initial price should not become the sole reason for committing a substantial portion of one's savings to an under-construction property.

Why Buyers Are Moving Towards New Launches

One of the biggest attractions of a newly launched project is the possibility of entering at a lower price compared with a completed property in the same locality.

Developers often use competitive launch pricing to generate early sales momentum. If the project is completed on schedule and the surrounding market appreciates, buyers could potentially benefit from capital appreciation before possession.

New launches also provide greater choice. Buyers can select from different unit sizes, floors, views and layouts before the inventory becomes limited.

Construction-linked payment plans can further spread the financial burden over the development period instead of requiring the entire purchase price upfront.

Demand has particularly been visible in the larger-home segment, with buyers increasingly considering properties in the approximately ₹90 lakh-₹1.5 crore range, according to the information cited by Anarock.

Lower Entry Price Does Not Mean Lower Overall Cost

Buyers should calculate the complete acquisition cost rather than comparing only the advertised base price.

The final cost can include the basic sale price, preferential location charges, parking, maintenance deposits, club or amenity charges, registration-related expenses, taxes and other applicable costs.

Launch discounts, freebies and waivers can make a project appear cheaper, but the effective price should be compared with similar properties in the same micro-market.

An apparently attractive offer may have little financial benefit if the developer has simultaneously increased the base price or added other charges.

Possession Delays Can Disrupt Financial Planning

The biggest risk associated with an under-construction property is uncertainty around completion.

A delay can leave a buyer paying rent while simultaneously servicing a home loan. Depending on the loan structure, the buyer may initially pay pre-EMI on the amount already disbursed by the lender, increasing the financial burden without providing access to the home.

Extended construction timelines can also affect planned school admissions, relocation, job-related moves and other household financial decisions.

Before booking, buyers should carefully compare the completion timeline disclosed in the project's Rera records with the possession date mentioned in the agreement for sale.

Verify Rera Registration and Project Details

Rera has significantly improved transparency in the real estate sector, but buyers should not treat registration as a substitute for independent due diligence.

Before making a payment, buyers should verify the project's Rera registration number, sanctioned plans, approvals, declared completion date, developer disclosures and details of encumbrances.

The information available on the relevant state Rera portal should be compared with the documents and promises provided by the developer.

Any significant discrepancy between marketing material and approved plans should be investigated before proceeding.

Conduct an Independent Title Search

One of the most important checks is the legal title to the land.

Buyers should obtain an independent legal opinion confirming the developer's ownership or development rights and checking for mortgages, charges, litigation, acquisition proceedings or other restrictions affecting the property.

A title search should not be limited to documents supplied by the developer.

Where relevant, buyers can also examine records available through the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (Cersai) and the Ministry of Corporate Affairs (MCA) for charges and other relevant information.

Rera registration does not itself guarantee that there are no title-related issues.

Make Sure Sanctioned Plans Match the Promise

The home being sold should correspond with the approved project documentation.

Buyers should verify the unit's area, floor, layout, specifications, parking arrangements and promised amenities against the sanctioned plans and Rera disclosures.

Particular attention should be paid to clauses dealing with changes to specifications, common areas and amenities.

If a feature is important enough to influence the purchase decision, buyers should ensure that it is properly documented rather than relying on a salesperson's verbal assurance.

Examine the Developer’s Track Record

The developer's previous projects can provide useful information about its execution capabilities.

Buyers should examine:

• Completion timelines of previous projects

• Quality of construction

• History of possession delays

• Rera complaints and orders

• Pending litigation

• Financial condition

• Project-level borrowings and charges

• Lender relationships

• Insolvency or default proceedings, where applicable

Speaking with residents of completed projects can also provide practical information about construction quality, maintenance, possession experience and how the developer handled post-sale issues.

A developer with a strong brand name should not automatically be exempt from due diligence.

Visit the Construction Site

Documents provide only one part of the picture. Buyers should also visit the project site.

The actual construction progress should be compared with the developer's stated timeline. Buyers can look at the stage of structural work, internal infrastructure, roads, utilities and other visible components of the project.

Repeatedly missed construction milestones or a site that appears substantially behind the disclosed schedule should prompt additional questions before further payments are made.

Be Careful With Assured Returns and Buyback Offers

Assured-rent, guaranteed-return and buyback schemes can make an investment appear more attractive, but buyers should understand who is ultimately responsible for making the promised payment.

Such commitments are generally contractual obligations of the developer or another party and should not automatically be treated as equivalent to a bank guarantee.

If a return, discount, waiver, rental commitment or buyback arrangement forms part of the reason for purchasing the property, it should be clearly documented in the relevant agreement.

Buyers should be particularly cautious about unusually high assured returns and should examine the developer's track record of honouring similar commitments.

Link Payments to Actual Construction Progress

For an under-construction property, the payment schedule is critical.

A construction-linked payment plan broadly aligns instalments with project progress. This can reduce the risk of making substantial payments long before corresponding construction has taken place.

Home-loan disbursements are also generally made in stages as construction progresses. Until the entire loan is disbursed, borrowers may pay pre-EMI, which represents interest on the amount already released.

Buyers should understand exactly when full EMI payments will begin and how the payment structure will work if construction is delayed.

Read Subvention and Flexible Payment Schemes Carefully

Some projects offer payment structures designed to reduce the buyer's immediate financial burden. However, these arrangements can contain conditions that materially affect the total cost.

Buyers should establish:

• Who pays the pre-EMI

• How long the arrangement remains valid

• What happens if possession is delayed

• Whether the developer can discontinue the benefit

• What happens if loan disbursement is delayed

• The total interest payable over the loan tenure

The decision should be based on the total financial cost, rather than simply the initial monthly payment.

Consider the Impact of GST and Other Costs

Under-construction residential properties can attract GST, subject to applicable rules and exemptions, while the tax treatment of a completed property can differ.

Buyers should therefore compare the effective acquisition cost of an under-construction home with a ready-to-move-in property after accounting for applicable taxes, registration expenses, loan costs, maintenance and other charges.

The difference can sometimes materially alter the apparent price advantage of a new launch.

When a Ready-to-Move-In Property May Make Sense

A ready home provides something an under-construction property cannot: greater certainty.

The buyer can inspect the actual property, evaluate construction quality and amenities and generally move in without waiting for a future completion date.

For buyers currently paying rent, avoiding a prolonged period of simultaneous rent and loan-related payments can also simplify household cash flows.

A ready property may command a higher price because the construction and possession risk has already been substantially removed, but buyers should compare that premium against the financial and time costs associated with waiting for an under-construction project.

There Is No One-Size-Fits-All Choice

The choice between a new launch and a ready-to-move-in property ultimately depends on the buyer's financial position, time horizon and tolerance for construction risk.

A new launch may offer greater choice and potentially a lower entry price, while a completed home provides greater visibility over what the buyer is actually purchasing.

The important point is that a lower launch price should not be viewed in isolation.

Smart Homebuying Checklist

Before booking an under-construction property, buyers should ideally:

1. Verify the project's Rera registration and disclosures.

2. Conduct an independent title search.

3. Check sanctioned plans and statutory approvals.

4. Compare the promised possession date with official project records.

5. Examine the developer's previous delivery record.

6. Check litigation, complaints, charges and encumbrances.

7. Visit the construction site and assess actual progress.

8. Compare the complete cost with ready and competing projects.

9. Put discounts, incentives and other promises in writing.

10. Understand the construction-linked payment schedule.

11. Calculate pre-EMI, EMI and total interest costs.

12. Review delay, refund and compensation clauses with a property lawyer.

Market Outlook

India's residential market continues to see strong interest in newly launched projects, but the growing popularity of under-construction properties makes disciplined due diligence increasingly important.

For homebuyers, the objective should not simply be to secure the lowest launch price. Title security, regulatory compliance, developer execution capability, construction progress, payment structure and total ownership cost are equally important.

A property purchase is typically one of the largest financial commitments a household makes. Spending additional time and money on legal, financial and technical due diligence before signing the agreement can help buyers identify risks that may otherwise become expensive to resolve after the purchase.