Is buying under-construction property risky in India?

Buying an under-construction home can offer price advantages and modern layouts, but it also carries specific risks:

• Construction Delays: Projects may run late due to financing gaps, regulatory hurdles, or builder inefficiency. Under RERA, developers must declare deadlines, but unforeseen issues can still arise.
• Developer Credibility: Choosing reputable builders with a proven track record reduces the chance of incomplete or stalled projects. Thorough due diligence is key.
• Project Changes: Builders sometimes alter plans mid-project, leading to variations in floor plans, amenities, or quality. Buyers must monitor developments closely.
• Escrow Protection: Under RERA, 70% of funds go into an escrow account, safeguarding buyer interests. This ensures money is primarily used for construction, not diverted elsewhere.
• Pricing & Payment Structure: Under-construction rates are typically lower than ready-to-move properties. However, staggered payment schedules mean buyers pay as construction progresses.

If you invest in RERA-compliant projects from financially stable builders, the risk is mitigated, and potential appreciation can be significant once the property is completed.