Ready-to-move vs under-construction apartments in Bengaluru

In Bengaluru, under-construction flats offer phased payments and 35–45% returns, while ready-to-move units give immediate rental yields

The Bengaluru real estate market continues to see a sharp divide between Ready-to-Move (RTM) and Under-Construction (UC) apartments, each appealing to different buyer segments. Surveys by Knight Frank show that nearly 71% of Bengaluru buyers prefer UC properties, with Gen Z leading at 73%, followed by Millennials at 68% and Gen X at 64%.

Cost Considerations

RTM apartments command premium pricing in emerging areas like North Bengaluru, ranging between ₹8,000–₹12,000 per sq. ft due to immediate availability. Buyers must pay full stamp duty upfront (₹5–6 lakh on a ₹1 crore flat) along with registration charges, though GST is exempt. UC properties, on the other hand, allow phased payments, reducing initial expenses by 25–40%. However, delays are common—about 20% of projects in Bengaluru face postponements of 6–18 months, which can increase overall costs by around 12%.

Profitability and Returns

UC apartments are showing stronger appreciation trends, delivering 12–18% annual growth in suburbs like Sarjapur, compared to RTM’s 6–10%. Investors in UC projects often target 30–50% returns over three years, though delays can erode margins. RTM apartments, meanwhile, provide immediate rental yields of 3.5–4.5%, translating to ₹35,000–₹45,000 per month for a 3BHK in Hebbal, making them attractive for NRIs and short-term investors.

Appreciation Hotspots

Between 2023–2026, UC projects are outperforming RTM across Bengaluru’s growth corridors:

•  Sarjapur Road: UC 45% vs RTM 28%

•  Whitefield: UC 38% vs RTM 22%

•  Hebbal: UC 35% vs RTM 20%

•  Yelahanka: UC 32% vs RTM 18%

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Risks and Guidance

RTM apartments offer certainty with no construction delays, making them ideal for families and passive income seekers. UC projects, while riskier due to developer insolvency or inflation, remain attractive for long-term investors seeking higher appreciation. Experts advise factoring in at least a 15% leeway for UC delays and choosing RERA-compliant projects to mitigate risks.

Conclusion

In Bengaluru’s 2026 market, UC apartments dominate profitability with 35–45% returns, especially in metro-linked corridors like Sarjapur and North Bengaluru. RTM units, though costlier upfront, deliver stable rental yields and immediate possession. The choice ultimately depends on whether buyers prioritize cash flow security or long-term capital growth.

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