Ready-to-Move vs Under-Construction Property in Mumbai (2025): Which is the Better Investment?
June 03, 2025 in Property Guide
In 2025, Mumbai's real estate market is experiencing robust growth, fueled by transformative infrastructure projects like the Mumbai Metro expansion, Coastal Road, and Navi Mumbai International Airport. As the city evolves, both homebuyers and investors are evaluating whether to invest in a ready-to-move (RTM) property or an under-construction (UC) project. The choice largely depends on your financial goals, risk appetite, and investment timeline. While RTM properties offer immediate possession and rental income, UC projects often come with lower entry costs and greater appreciation potential. This guide explores the pros and cons of each option, tax implications, and real-world examples—including standout developments by Adani Realty—to help you make a confident and informed investment decision.
Market Snapshot: Mumbai Real Estate in 2025:
- Price Appreciation: UC properties in emerging areas like Thane, Panvel, and Navi Mumbai have seen 12–18% annual appreciation, compared to 6–10% for RTM properties in more saturated zones.
- Buyer Preferences: Over 60% of new homebuyers opt for UC properties due to affordability and flexible payment plans.
- Rental Yields: Ready-to-move (RTM) homes in prime locations like Bandra, Lower Parel, and BKC typically yield rental returns of around 2.5% to 3.5%, making them a better option for those looking to generate passive income.
✅ Ready-to-Move (RTM) Properties
Pros:
- Immediate Possession: Ideal for end-users or those seeking rental income.
- No GST: Properties with an Occupancy Certificate (OC) are exempt from GST.
- Transparency: What you see is what you get—no surprises in layout or quality.
Cons:
- Higher Cost: Typically 10–30% more expensive than UC properties.
- Limited Customization: Interiors and layouts are fixed.
- Lower Appreciation: Especially in already-developed areas.
Under-Construction (UC) Properties
Pros:
- Lower Entry Price: More affordable with staggered payment plans.
- Higher Appreciation Potential: Especially in infrastructure growth zones.
- Modern Amenities: Often include smart features and sustainable design.
Cons:
- Possession Delays: Even with RERA, delays can occur.
- GST Applicable: 5% GST (1% for affordable housing).
- Risk of Developer Default: Always check RERA registration and track record.
Risks to Consider
| Risk Type | Ready-to-Move | Under-Construction |
|---|---|---|
| Price Risk | High (in saturated markets) | Moderate (in growth zones) |
| Delivery Risk | Low | Medium to High |
| Legal/Compliance | Low | Medium (check RERA) |
| Liquidity | High | Lower (until completion) |
Tax Implications: What You Need to Know
✅ Ready-to-Move (RTM)
- GST: Not applicable if the property has an Occupancy Certificate (OC).
- Income Tax Benefits:
- Up to ₹2 lakh/year on home loan interest (Section 24b).
- Up to ₹1.5 lakh/year on principal repayment (Section 80C).
- Deductions are available immediately after possession.
- Capital Gains:
- Long-term gains (after 2 years): 20% tax with indexation.
- Short-term gains: Taxed as per income slab.
Under-Construction (UC)
- GST: 5% for non-affordable housing, 1% for affordable housing.
- Income Tax Benefits:
- Interest during Construction is not deductible immediately.
- Can be claimed in 5 equal installments post-possession (Section 24b).
- Principal repayment (Section 80C) is allowed only after possession.
- Capital Gains:
- The holding period starts from the possession date.
- The same tax rules as RTM apply.
| Tax Aspect | Ready-to-Move (RTM) | Under-Construction (UC) |
|---|---|---|
| GST | Not applicable (with OC) | 5% (non-affordable), 1% (affordable) |
| Section 24(b) (Deduction) | Up to ₹2 lakh/year (immediate) | Post-possession in 5 installments |
| Section 80C (Deduction) | Up to ₹1.5 lakh/year | Only after possession |
| Capital Gains | LTCG after 2 years from purchase | LTCG after 2 years from possession |
How to Choose the Right Option?
Ask yourself:
- Are you an end-user or an investor?
- End-users may prefer RTM for immediate use.
- Investors may benefit more from UC in high-growth zones.
- What's your risk appetite?
- Low risk → RTM
- Moderate to high risk → UC (with due diligence)
- What's your timeline?
- Need a home now → RTM
- Can wait 2–4 years → UC
A Real-World Example: Adani Realty's Presence in Mumbai
Some developers are bridging the gap between Ready-to-Move (RTM) convenience and Under-Construction (UC) value. Adani Realty, for instance, is actively shaping Mumbai's skyline with thoughtfully designed residential projects that combine luxury, connectivity, and long-term value by offering both kinds of projects. Their portfolio includes:
- Codename LIT, Thane (Teen Hath Naka) – A newly launched 18-acre luxury development (Under Construction)
- Monte South, Bycull – Ultra-spacious homes with panoramic views (Under Construction)
- Ten BKC, Bandra East – High-end residences in a prime business district (Under Construction)
- Linkbay Residences, Andheri West – Smartly designed homes with lifestyle amenities (Under Construction)
- The Views, Ghatkopar East – Urban living with excellent connectivity (Under Construction)
- Airica, Kanjurmarg West – Green surroundings and modern layouts (Under Construction)
- Western Heights, Andheri West – Sea-view homes with top-tier amenities (Ready to Move)
These projects reflect Adani Realty's commitment to quality, timely delivery, and sustainable living – making them worth considering, especially if you're leaning toward under-construction investments with long-term potential or ready-to-move options in prime locations.
Final Thoughts
There is no one-size-fits-all answer. If you value certainty and immediate use, Ready to Move property is your best bet. If you're looking for long-term gains and can manage some risk, UC properties – especially in well-planned developments can offer excellent returns.
Do your research, assess your goals, and choose wisely.
Frequently Asked Questions (FAQs)
1. What is the main difference between ready-to-move and under-construction properties?
A ready-to-move (RTM) property is fully constructed and available for immediate possession, while an under-construction (UC) property is still being built and will be delivered at a future date. RTM offers instant usability, whereas UC often comes with a lower price and higher appreciation potential.
2. Which is better for investment in Mumbai in 2025 - Ready-to-Move or Under-construction properties?
It depends on your goals. If you want immediate rental income or plan to move in soon, RTM is ideal. If you're looking for long-term capital growth and can wait for possession, UC properties - especially in growth corridors can offer better returns.
3. Are there tax benefits for both RTM and UC properties?
Yes, both offer tax benefits under Sections 24(b) and 80C of the Income Tax Act. However, deductions on interest for UC properties can only be claimed after possession, and in five equal installments.
4. Is GST applicable on both types of properties?
No. GST is applicable only on under-construction properties (5% or 1% for affordable housing). Ready-to-move properties with an Occupancy Certificate (OC) are exempt from GST.
5. What are the risks of buying an under-construction property?
The main risks include project delays, changes in layout or specifications, and potential issues with the developer's financial stability. Always check the project's RERA registration and the builder's track record.
6. Can I get a home loan for both RTM and UC properties?
Yes, banks and financial institutions offer home loans for both types. However, disbursement for UC properties is usually done in stages based on construction progress.
7. How do I decide which option is right for me?
Consider your financial readiness, investment horizon, and risk tolerance. If you need a home soon or want rental income, go for RTM. If you can wait and want better appreciation, UC might be the smarter choice.
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