The GST Factor Most Buyers Miss
India's GST regime treats under-construction residential properties as a taxable supply. The applicable rate for affordable housing is 1% and for other residential properties 5% — without input tax credit. On a ₹2.5 Cr luxury apartment, 5% GST adds ₹12.5L to the outflow. This is not reflected in the advertised 'agreement value' but is payable at registration.
Ready-to-move properties with Occupancy Certificate (OC) or Completion Certificate (CC) are categorically exempt from GST. This means a ₹2.5 Cr ready-to-move apartment has no GST liability — making the real effective price difference with an under-construction option smaller than the headline discount suggests.
PIKORUA's View for 2026 Buyers
In the current market, we see a clear dichotomy: ready-to-move inventory in prime western Ahmedabad (Sindhubhavan Road, Bodakdev, Iscon Ambli Road) is tight — fewer than 50 genuine luxury units available across these corridors at any time. Under-construction supply is more abundant, but from developers of varying credibility.
For self-use buyers who are currently renting, ready-to-move is almost always the right choice — the rent + EMI double burden during construction typically costs more than the GST saving on a new launch. For pure investors with no housing urgency, a credible developer's new launch in a supply-constrained corridor (like Iscon Ambli Road) can still deliver superior IRR despite GST.
