Bangalore’s ever-changing real estate market provides a wealth of investment options, as it has numerous properties that attract the buyers. It makes both investors and purchasers increasingly drawn to flats that are still under construction.
Under construction are residential apartments that are still in the development stage and not yet ready for occupancy. While apartments that are ready to move into can be occupied right away.
However, under construction apartments provide a number of advantages in terms of money, personalization, and appreciation that make them a desirable option, particularly in a city that is expanding like Bangalore.
We have mentioned those benefits for you so it can help you in making your decision.
Reduced purchase price & early bird advantages
The comparatively cheaper buying price is one of the main benefits of choosing an apartment that is still under development. These apartments are frequently 20–30% less expensive than ready-to-move-in residences, making them an affordable starting point for purchasers.
Additionally, early bird discounts, variable pricing, and other promotional incentives are available to buyers who invest during the project’s early stages. This is particularly true for well-known builders that offer exclusive pre-launch prices in an effort to get traction early.
Pre-EMI Structure & Phased Payment
Flexible payment options are frequently offered when purchasing a property under construction. Payment plans are normally tied to construction milestones under the RERA Act, guaranteeing that you only make payments upon the completion of particular project phases.
The financial burden is much lessened by this staggered strategy, particularly when combined with pre-EMI payments. This strategy makes it easier to manage finances while continuing to live on rent or make investments elsewhere because the buyer just pays the interest portion of the house loan until they take possession.
Personalization & Choice of Preferred Unit
You have more latitude to customize your apartment while it’s being built. Frequently, you can alter interiors, pick from a range of floor layouts, and even pick particular preferences like
- Level of the floor
- Vastu-compliant methodology
- View from the balcony
- Units facing a park or a corner
You can engage with developers for small customizations (subject to approval) and have access to a wider selection of units than ready-to-move-in apartments, which have a restricted inventory.
Modern Infrastructure & Better Amenities
Modern designs, clever layouts, and infrastructure focused on lifestyle are common features of new residential complexes. Modern amenities like these are included by builders:
- Clubhouses that are fully furnished
- Gyms and swimming pools
- Landscaped gardens, jogging routes, and more
In order to assure sustainable living, a lot of projects these days concentrate on eco-friendly designs with waste management systems, solar energy, and rainwater collection.
Rental Income Opportunities
You have the option of renting the apartment out or moving in when it’s ready. Bangalore has a strong rental demand due to its growing workforce and big student population, particularly in the areas surrounding IT parks and educational institutions.
This guarantees a consistent rental yield, enabling you to begin making money practically as soon as you take control.
Tax Benefits on Under-Construction Home Loan
Homebuyers who buy residences that are still under construction might take advantage of these alluring tax advantages:
Section 24(b) allows for an annual interest deduction of up to ₹2 lakh, which includes pre-construction interest and can be claimed in five equal installments following ownership.
Section 80C allows for an annual principal repayment deduction of up to ₹1.5 lakh.
Extra deductions of between ₹50,000 and ₹1.5 lakh are available to first-time purchasers under Section 80EE or 80EEA.
Note: Only if the construction is finished within five years will these benefits be available. The interest deduction limit drops to ₹30,000 if it is postponed past this point.
Regulatory Safeguards & RERA
The Real Estate (Regulation and Development) Act (RERA) has given the real estate industry much-needed accountability and openness. When you purchase an apartment in Bangalore that is still under construction from a project that is registered with the RERA, you may be sure that:
- Prompt delivery and possession
- Complete disclosure of project specifics
- Legal lucidity about ownership, design, and authorizations
- Payment for postponements
By doing this, the likelihood of project delays, builder defaults, or legal problems is significantly reduced.
Modern Construction Quality & Warranty
Modern materials and the most recent construction standards are usually used in new constructions. This leads to
- Increased robustness
- Adherence to safety and fire regulations
- Construction, plumbing, and electrical warranties
This guarantees that the flat will continue to require little upkeep for a number of years after it is possessed.
Potential Drawbacks (Preparedness Section)
Despite all of the benefits, purchasing real estate that is still under development calls for careful consideration. Be ready for:
- Possession delays brought on by labor, material, or legal issues
- Market risks in the event of changes in the economy
- Unexpected expenses like parking fees, maintenance fees, and escalation clauses
Always check the builder’s history, make sure they are registered with RERA, and go over any legal documentation before moving forward to reduce hazards.
Conclusion
For purchasers looking for long-term gains, contemporary living, and cost savings, buying an apartment in Bangalore that is still under construction is a wise choice. There are numerous benefits, ranging from reduced buying costs and personalization choices to tax savings and capital growth.
To prevent future problems, it is crucial to pick an RERA-compliant project from a reliable builder and properly organize your funds.
Examine Esteem Ventures premium projects if you want to invest in a well-designed apartment that is still under construction in one of Bangalore’s most sought-after neighborhoods, such as JP Nagar.
