Under-Construction Properties | The Rising Star of Real Estate Investment
Introduction
India’s real estate market in 2025 is seeing a remarkable shift in investor behavior — and one category that’s commanding increasing attention is under-construction properties. Historically, buyers leaned toward ready-to-move-in homes for convenience and minimal risk. But in recent years, investor confidence in under-construction projects has grown sharply, fueled by better returns, innovative project designs, and evolving regulations.
According to Magicbricks’ Q1 2025 report, the average price of under-construction properties across India’s top eight cities has surged by 31% year-on-year, outpacing the 21% rise seen in ready properties. So, what’s behind this trend? Let’s break it down.
Why Under-Construction Properties Are Back in Demand
1. Lower Entry Prices
One of the biggest draws for under-construction homes is affordability. These properties are usually priced 10–25% lower than ready-to-move-in (RTMI) properties in the same location. For investors and end-users, this makes it easier to enter premium neighborhoods or larger unit categories like 3BHK or 4BHK homes.
2. Higher Appreciation Potential
Because they are bought at lower prices and take 2–3 years to complete, under-construction homes offer better capital appreciation. As the project nears possession, prices typically rise, giving early investors an edge in terms of resale value or rental potential.
3. Flexible Payment Plans
Builders often offer staggered payment plans such as construction-linked schemes, subvention plans, or down payment discounts to attract buyers during the construction phase. This reduces the immediate financial burden on investors.
Data Snapshot: City-Wise Trends
Let’s look at the YoY price growth of under-construction properties in major cities (as per Magicbricks Q1 2025):
- Bengaluru: 33% increase
- Hyderabad: 32% increase
- Pune: 30% increase
- Mumbai: 28% increase
- Delhi NCR: 27% increase
These numbers clearly show that under-construction properties are outperforming RTMI homes in appreciation across most cities.
Regulatory Support & Improved Transparency
The introduction of the Real Estate Regulatory Authority (RERA) was a turning point for the under-construction segment. It brought accountability and legal safeguards to buyers:
- Developers must register projects and disclose timelines.
- Buyers can track progress and file complaints easily.
- Projects with RERA approval are less likely to face delivery delays or legal issues.
As a result, consumer trust in under-construction homes has grown significantly.
Modern Amenities and Smart Infrastructure
Developers launching new projects in 2024–25 are focusing on modern amenities and future-proof designs to attract buyers. Under-construction homes now often include:
- Smart home automation
- Green building certifications
- EV charging stations
- Co-working spaces and wellness zones
- High-speed internet infrastructure
Such features make new properties more desirable compared to older ready homes lacking these upgrades.
Investor Profile: Who’s Buying Under-Construction Homes?
- First-time buyers who are flexible on moving timelines but want a better deal.
- Long-term investors aiming for capital appreciation over 2–3 years.
- NRI buyers who prefer buying from reputed builders and expect high ROI.
- Millennial buyers looking for lifestyle homes with tech integration.
This diverse buyer base is adding depth and stability to the under-construction segment.
Risks and Mitigations
While under-construction properties come with advantages, there are also risks:
- Project delays due to labor shortages, material cost hikes, or legal issues.
- Developer credibility is crucial — investing in unknown or underfunded builders can be risky.
- Financing challenges if banks hesitate to lend for certain projects.
Mitigation tips:
- Always choose RERA-registered projects.
- Check developer track record and financial stability.
- Understand the payment schedule and hidden charges.
- Get legal advice to review the Builder-Buyer Agreement.
Ready-to-Move-In vs. Under-Construction: A Quick Comparison
| Feature | Under-Construction | Ready-to-Move-In |
|---|---|---|
| Price | Lower | Higher |
| ROI Potential | High | Moderate |
| Risk | Moderate | Low |
| Amenities | Latest Designs | May be outdated |
| Tax Benefits | Available post-possession | Immediate |
| Customization | Possible | Limited |
Quickbulls Take: Strategic Investing in 2025
For smart investors, under-construction homes present an exciting opportunity in 2025. With prices still on an upward trend, regulatory support via RERA, and greater transparency in developer practices, the risks are significantly lower than a few years ago.
At Quickbulls, we recommend evaluating upcoming projects in developing micro-markets such as:
- Thane (Mumbai) – New townships with integrated amenities
- Hinjewadi (Pune) – Tech corridor growth
- Sarjapur Road (Bengaluru) – Affordable and premium options
- Gachibowli (Hyderabad) – NRI-friendly investment zone
- Dwarka Expressway (Gurgaon) – Infrastructure-led boom
Conclusion
The real estate landscape in India is evolving — and under-construction properties are taking center stage. With lower entry costs, future-ready features, and strong appreciation potential, this segment is no longer a high-risk gamble but a calculated investment.
Whether you’re a first-time homebuyer or an experienced investor, under-construction homes in 2025 offer a smart path to wealth creation.
