Under Construction vs. OC Ready Homes in MMR

The world has grappled with a global health crisis in the last two years. Just like any sector, real estate was badly impacted by COVID-19 in India. According to Hindustan Times, despite the pandemic, real estate developers were able to finish the construction of approximately 70,490 homes in MMR (Mumbai Metropolitan Region) in 2021. MMR is deemed to be one of the most expensive and premium real estate markets in India. 

If anything, this pandemic has made people acknowledge the significance of owning a home as opposed to living on rent. Owning your own home is connected to a strong sense of security and safety as we live in uncertain times. Nevertheless, when it comes to purchasing a home, should property seekers opt for OC ready-to-move-in homes or houses that are under construction? 

Let’s look at some of the pros and cons of under-construction as well as OC ready-to-move-in homes that come into play when potential homebuyers make a decision on purchasing a home:


OC-ready homes in Mumbai can easily be possessed by the purchaser. But under-construction apartments are not ready at the time when the customer books the flat. Such homes are booked when they are still being built and are only handed over to the buyer after the construction is over. The duration of the construction could fluctuate from a couple of months to many years, which is contingent upon the time when the apartment is booked. 

Typically, the receipt of the Occupation Certificate (OC) by the concerned authority is believed to be a significant factor when it comes to the status of flats in Mumbai. Once the OC is received, the tower or the apartment is considered to be available and ready to move in. Until then, it is looked at as a UC property. 

Fear of the Unknown 

With under-construction flats in Mumbai, there is uncertainty on whether the big gamble will pay off. This is a major reason that discourages homebuyers from perusing under-construction properties. Owing to the increasing cases of delays pertaining to construction by developers and many housing projects stuck in limbo, a number of buyers believe that purchasing a UC house is too risky. 

The money paid by the homebuyer when the booking was made, stamp duty charges, registration fee, down payment, and other levies are at risk if the developer is unable to finish the project within the proposed timeline. Moreover, the reputation of developers and their previous track record when it comes to project deliveries is deemed to be a key determining factor for buyers to purchase a UC home in that specific project. But you do not encounter this risk when it comes to OC-ready homes. 

Value of the Home 

If price is a major factor, then the UC homes for sale in Mumbai are generally rated approximately 3-5% lower as compared to ready-to-move-in homes. However, this difference tends to differ from developer to developer. The sale value for OC-ready homes is always on the higher side and more expensive than under-construction apartments. It is dependent on a plethora of factors including the kind of property, locality, and the demand-supply dynamic existing in the vicinity. 

Convenience of Arranging Payment 

One of the major benefits of purchasing a UC Flat for sale in MMR is the availability of a convenient payment option. Since the apartment is not fully ready while purchasing it, it is not mandatory for the payment to be completed immediately. 

As a buyer, you will have the choice to complete payment in pre-defined intervals until the building is finished and the home is ready to be possessed. This provides buyers with the flexibility to arrange their finances accordingly. But with OC-ready homes, you are not given the opportunity to properly plan out your payments and are required to pay the full amount when purchasing the home. 

If you have decided on which path to choose when buying your dream home, IndexTap has an extensive array of OC-ready as well as under-construction apartments that will suit your preferences. 

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