The Strategic Edge: Why Smart Investors Prefer Under-Construction Flats
When it comes to real estate, the most common dilemma for buyers is a classic one: “Should I buy a ready-to-move apartment or invest in one that is still under construction?”
While the immediate gratification of a ready flat is tempting, seasoned investors—the ones who consistently grow their wealth—almost always lean toward under-construction properties. It isn’t just about the lower price tag; it’s a calculated financial move.
In this guide, we’ll explore the “Why” behind this preference, using real-world scenarios to show how you can maximize your investment.
1. The “Early Bird” Price Advantage
The most obvious benefit is the cost. An under-construction property is typically priced 20% to 30% lower than a completed one in the same locality.
The Human Example: Imagine two friends, Mr. Rahim and Mr. Karim.
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Mr. Rahim buys a ready flat in a prime area for $100,000.
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Mr. Karim invests in an under-construction project in the same area for $75,000.
By the time the building is completed three years later, the market value of both flats rises to $115,000. Mr. Rahim has gained $15,000 in equity, but Mr. Karim has gained $40,000. By simply having the patience to wait for construction, Mr. Karim earned a massive “passive profit” that Mr. Rahim missed out on.
2. Solving the Cash Flow Problem: Flexible Payments
One of the biggest hurdles in real estate is the massive upfront capital requirement. Ready flats usually require immediate full payment or a heavy bank loan with high interest starting from day one.
Under-construction properties solve this through Installment Plans. Instead of a $100,000 hit to your savings, you pay a booking amount (usually 10-20%) and spread the rest over 3 to 4 years. This allows investors to keep their liquidity, enabling them to invest in other businesses or stocks simultaneously. It turns a “burden” into a manageable “monthly contribution.”
3. The Luxury of Customization
A ready flat is a finished product; what you see is what you get. If you don’t like the tile color or the kitchen layout, changing it requires a “demolish and rebuild” approach, which is expensive and wasteful.
With an under-construction flat, you are part of the creation process.
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Wall Reconfiguration: Want a larger living room and a smaller guest room? It’s doable.
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Personalized Finishing: You can choose your own premium flooring, sanitary ware, and electrical fittings while the structure is being built. This ensures that when you finally move in, the home is a reflection of your personality, not the developer’s generic template.
4. Higher Return on Investment (ROI)
Real estate appreciation is highest during the construction phase. Once a project is completed and families move in, the price stabilizes.
Smart investors buy at the “Soft Launch” or “Foundation” stage. As the building rises floor by floor, the risk decreases and the value increases. By the time the “Handover” sign goes up, the investor has already enjoyed the most aggressive growth period of that asset’s lifecycle.
5. Modern Standards and Technology
Construction technology evolves rapidly. A flat built five years ago might use outdated wiring, plumbing, or insulation. By investing in a new project, you ensure your home meets the latest:
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Safety Codes: Enhanced earthquake resistance and fire safety systems.
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Smart Features: Modern lifts, energy-efficient lighting, and fiber-optic readiness.
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Eco-friendly Designs: Better ventilation and natural light management which lowers long-term utility costs.
Addressing the “Risk” Factor: How Pros Do It
We often hear the concern: “What if the project is delayed?” To solve this, smart investors don’t just buy a flat; they buy into a reputation. They minimize risk by:
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Verifying the Developer: They choose companies like Krishibid Properties, known for transparency and timely delivery.
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Checking Legal Papers: They ensure the land title, RAJUK/Municipal approvals, and building permits are crystal clear.
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Site Visits: They don’t just look at brochures; they visit the site to see the quality of materials (the grade of steel and cement) being used.
Conclusion: Is it Right for You?
Investing in an under-construction flat is a test of patience that pays off in dividends. It offers a lower entry point, higher appreciation, and a home tailored to your needs. If you are looking for a place to live in 15 days, buy a ready flat. But if you are looking to build wealth and a dream home, under-construction is the undisputed winner.
Don’t wait to buy real estate; buy real estate and wait.
