Ready to Move vs Under Construction Flat Chennai 2026 -- Which Is Better?
This is the most asked question by first-time buyers in Chennai. Ready-to-move (RTM) flats and under-construction projects both have merit, but the right choice depends on your financial situation, timeline, and risk tolerance.
Quick Comparison
| Factor | Ready to Move | Under Construction |
|---|---|---|
| Price | 10-20% higher | 10-20% lower |
| GST | None (if OC obtained) | 5% (or 1% for affordable) |
| Delivery Risk | Zero | Medium to High |
| Loan EMI | Starts immediately | Pre-EMI or moratorium |
| Rental Income | Immediately | After possession (18-36 months) |
| Customisation | Limited | High |
| PropScore Impact | Generally higher | Depends on builder track record |
When Ready to Move Wins
You Are Paying Double Rent + EMI
If you are currently renting and buying a new flat, every month of pre-EMI period on an under-construction flat means you are paying both rent and pre-EMI interest simultaneously. On a 60L loan at 8.75%, pre-EMI is ~43,750/month -- plus your existing rent.
You Need to Avoid GST
Ready-to-move flats with an Occupancy Certificate (OC) attract zero GST. Under-construction flats attract 5% GST. On a 70L flat, 5% GST = 3.5L extra.
Filter Ready-to-Move flats on Propspedia
When Under Construction Wins
Budget Constraint
Under-construction units are typically 8-15L cheaper than RTM equivalents in the same project and locality.
Long Investment Horizon
If you are buying purely to invest, under-construction allows you to participate in price appreciation during the construction period. A project that takes 24 months to complete often sees 15-20% appreciation by handover.
How PropScore Handles RTM vs Under-Construction
PropScore scores under-construction projects on a different rubric:
- Builder delivery track record gets 3x weight for under-construction
- RERA quarterly update frequency is checked -- builders who skip quarterly filings lose points
- RTM projects generally score higher because delivery risk is eliminated
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FAQ
Q: Is it safe to buy under-construction in 2026 given past builder defaults?
A: Post-RERA, large-scale defaults are less common because RERA mandates builders to maintain a separate escrow account with 70% of collections ring-fenced for construction costs. High PropScore builders (80+) on Propspedia have demonstrated track records of on-time delivery.
Q: Does home loan interest vary between RTM and under-construction?
A: The rate is the same, but for under-construction, banks disburse in tranches linked to construction milestones. You pay interest only on the disbursed amount (pre-EMI) until the full loan is disbursed.
