Buying an under-construction builder floor: risks and safeguards
New floors can be bought before completion at a better price. Here's how to protect yourself while the building goes up.
Many South Delhi builders sell floors while construction is under way. Buying early can mean a better price and a chance to choose finishes — but it carries risk.
The main risks
- Delays in completion and possession
- Changes in specification from what was promised
- Approval issues — deviations from the sanctioned plan
- Builder's financial health
Safeguards
- Agreement to sell with a clear possession date and a penalty for delay
- Written specification schedule — marble, sanitaryware, kitchen, lifts, air-conditioning, doors and windows
- Payment linked to construction stages, not dates
- Sanctioned plan and confirmation that the construction matches it
- Builder's track record — visit completed projects and speak to past buyers
- Check whether the project falls under RERA — see our guide Does Delhi RERA apply to builder floors?
GST
Under-construction residential property attracts GST — 5% without input tax credit for most homes (1% for affordable housing). Ready-to-move homes with a completion certificate do not. Include this in your budget with our total cost calculator.
Our role
We share the builder's past projects, verify approvals and help you negotiate stage-linked payments.
A typical payment schedule
| Stage | Share of price |
|---|---|
| Booking / token | 5–10% |
| Agreement to sell | 10–20% |
| Structure completed | 20–30% |
| Finishing stage | 20–30% |
| Possession and registration | Balance |
Payments linked to construction stages protect you if work slows down.
Site visits during construction
Visit monthly and take photographs. Ask the builder for the structural engineer's details and the name of the site supervisor, and check that work matches the drawings.
Choosing finishes
Builders often let early buyers choose marble, kitchen layouts, bathroom fittings and lighting. Record every choice in writing, with the cost of any upgrades.
Handover
At possession, run a full snagging inspection before you make the final payment.
Frequently asked questions
Is it cheaper to buy under construction? Often yes, because builders discount early sales to fund construction. Weigh that saving against the risk and the GST.
