When you start looking for a new flat in Virar, Nallasopara, Naigaon, Mira Road or Dahisar, you will see two types of homes. Some are under construction. Others are ready to move.
Both can be a good choice. But they are very different in cost, risk and timing. This guide explains the difference in simple words, so you can pick the one that fits your life and your budget.
What do these terms mean?
Under construction flat
An under-construction flat is a home in a building that is still being built. You book the flat now, pay in stages as the work moves ahead, and get the keys on the possession date. Every such project must be registered with MahaRERA.
Ready to move flat
A ready-to-move flat is in a building that is complete. In a proper ready-to-move project, the builder has received the Occupation Certificate (OC) from the local authority. You can see the actual flat, pay, register and move in soon after.
Quick comparison
| Point | Under construction | Ready to move |
|---|---|---|
| When you move in | On the possession date (can be years away) | Soon after registration |
| GST | Yes (see below) | No GST if sold after OC / completion certificate |
| What you see before buying | Plans, sample flat, site | The actual flat |
| Payment | In stages, linked to construction | Mostly at once (with home loan) |
| Main risk | Delay in possession | Fewer choices of floor and size |
| Rent while waiting | You may pay rent and EMI together | No waiting period |
| Stamp duty | Yes | Yes |
GST: the biggest cost difference
This is the point most first-time buyers miss.
- Under-construction flats: GST is charged. For a normal residential flat, the rate is 5%. For an “affordable” flat, the rate is 1%. In the Mumbai Metropolitan Region, a flat counts as affordable when its carpet area is up to 60 square metres and its value is up to ₹45 lakh.
- Ready-to-move flats: If the flat is sold after the completion certificate or OC is issued, no GST is charged.
GST is worked out on the flat price after a deduction for land, so the actual amount is lower than 5% of the full price. GST rules can change, so always ask the builder to show the GST amount as a separate line in the cost sheet, and check it before you pay.
Stamp duty applies in both cases. In Thane and Palghar districts (Mira Road, Virar, Vasai, Nallasopara, Naigaon) it is 7% for men and 6% for women. In Mumbai (Dahisar, Borivali) it is 6% for men and 5% for women. Read our full guide on stamp duty and registration charges in Maharashtra.
Benefits of an under-construction flat
- More choice. You can often pick your floor, view and size, because most flats are still unsold.
- Payment in stages. You pay as the building rises, which can give you time to arrange funds.
- Newer building at possession. You get a brand-new building when you move in.
- Price at booking. The price you agree at booking is written in your agreement, so you know your cost from day one.
Risks of an under-construction flat
- Delay. Possession can be late. Some possession dates are many years away. For example, one Naigaon East project on our Naigaon page, Seasons (MahaRERA P99000066568), shows a proposed completion date of 30 April 2033 on MahaRERA.
- Rent plus EMI. If you live on rent, you may pay rent and home loan EMI (or pre-EMI interest) at the same time until possession.
- What you get may differ. You are buying from plans, so check the carpet area and specifications written in the agreement.
How RERA protects you
Under Section 18 of the RERA Act, if the builder fails to give possession as per the agreement, you have two choices:
- Exit the project and get your money back with interest, plus compensation as provided in the Act; or
- Stay in the project and get interest for every month of delay until possession.
This protection works only for a registered project. So always check the MahaRERA registration and compare the possession date on MahaRERA with the date in your agreement.
Benefits of a ready-to-move flat
- What you see is what you get. You can check the actual flat, light, ventilation, water pressure and view.
- No GST when bought after OC / completion certificate.
- No waiting. You save on rent and can move in soon.
- No construction delay risk.
Things to watch in a ready-to-move flat
- Check the OC. Ask to see the Occupation Certificate. A building without OC can cause problems with water, electricity, loans and resale. If you are not sure, ask us and we will help you check the OC status of a project.
- Fewer choices. The best floors and views may already be sold.
- Larger payment at once. You will need your down payment and loan ready quickly.
- Check society charges and maintenance, which may start right away.
How your home loan works in each case
The loan process is a little different for each type of flat.
For an under-construction flat
The bank does not pay the full loan on day one. It releases money to the builder in parts, as each stage of construction is completed. Until the full loan is released, many banks let you pay only the interest on the amount released so far. This is often called “pre-EMI”. Some buyers instead choose to start full EMIs early. Loan terms differ from bank to bank, so ask your bank which option they offer and what it means for your total interest.
Also check whether your bank has approved the project. A bank-approved project can make the loan process smoother.
For a ready-to-move flat
The bank usually releases the loan in one go at the time of registration. Your full EMI starts soon after. Because you move in at once, you do not pay rent and EMI together.
Is a ready-to-move flat always more expensive?
Not always. The price per square foot can be different from project to project, and builders sometimes offer deals on both types. The fair way to compare is to add up the total cost to move in: price, GST (if any), stamp duty, registration and other charges, plus any rent you will pay while you wait for possession. Then compare that total, not just the price on the brochure.
Which one is right for you?
Choose under construction if:
- You are not in a hurry to move.
- You can manage rent and EMI together for some time.
- You want more choice of floor and size.
- The builder has a clean MahaRERA record and a realistic possession date.
Choose ready to move if:
- You want to move in soon or stop paying rent.
- You want to avoid GST.
- You want to see the actual flat before you pay.
- You do not want to take the risk of delay.
Options in our areas
We list both types of projects. Browse our ready-to-move flats, which at the time of writing include projects in Mira Road, Dahisar, Nallasopara West and Naigaon East. You can also see our full list of under-construction flats. These lists change often, so call us for the latest options.
If you are buying for the first time, our guide to hidden charges in a new flat will help you build the full cost sheet. If you are looking in Virar, use our new flat buying checklist for Virar.
A simple checklist before you pay
- Check the MahaRERA registration and possession date.
- For ready flats, see the OC with your own eyes.
- Get a full cost sheet: price, GST (if any), stamp duty, registration, parking, society and other charges.
- Compare carpet area, not just “super built-up” area.
- Read the payment schedule and the delay clause in the agreement.
- Talk to your bank about the loan for that specific project.
Need help deciding?
BestHouz helps first-time buyers compare under-construction and ready-to-move flats from Virar to Borivali with 0% brokerage. We are a MahaRERA-registered agent (Reg. No. A51700027725).
📞 Call or WhatsApp 7498626832 or message us on WhatsApp. Share your budget and move-in timeline, and we will shortlist options for you.