**The Core Difference** Under-construction (UC) properties are those where the building is not yet complete and the Occupancy Certificate (OC) has not been issued. Ready-to-move (RTM) properties have the OC and can be occupied immediately. **Financial Comparison** | Factor | Under-Construction | Ready-to-Move | |--------|-------------------|---------------| | GST | 5% (with ITC) | Nil (OC issued) | | Price | 10–20% lower | Higher | | Loan disbursement | Stage-wise (pays interest from day 1) | Fully disbursed on possession | | Stamp duty | On agreement value | On market value | For a ₹1 Cr apartment, saving GST of ₹5 lakh on RTM is significant, but the ₹10–20 lakh lower price on UC (at equivalent quality) can offset this. **Possession Risk in South India** In Tamil Nadu, TNRERA data for 2025 shows that 38% of under-construction projects delivered within 6 months of RERA promised date, 44% had delays of 6–18 months, and 18% had delays exceeding 18 months or were stalled. In Telangana, TS-RERA shows better performance: 51% on time, 35% with short delays, 14% with major delays. **Pre-EMI vs Full EMI** Banks disburse UC loans in tranches linked to construction milestones. You pay pre-EMI (interest only on disbursed amount) during construction. This pre-EMI is not tax-deductible under Section 24(b) during the construction period — you can claim it only after possession, spread over 5 years. RTM loans are disbursed in one shot, and full EMI (interest + principal) starts immediately, but the interest is fully deductible from Year 1. **When UC Makes Sense** - You have 2–3 years before you need to move in (giving you time to pay pre-EMI without being rent-burdened) - You can identify a reputable, financially strong builder with no stalled projects - The price discount is 15%+ over comparable RTM **When RTM Makes Sense** - You need to move in within 6 months - You want to physically verify the apartment quality, finishes, and actual carpet area - You cannot tolerate the financial uncertainty of construction delays **Our Recommendation** For first-time buyers who will be paying both EMI and rent simultaneously: choose RTM. The certainty of what you're getting and the tax benefit from Day 1 outweigh the price discount. For investors or second-time buyers with patience: UC in a well-executed project by a Tier-1 developer can deliver better returns.