FAQ: How Much Down Payment Do I Need for an Under-Construction Property?

The down payment for an under-construction property depends on the payment plan you choose. There are three common structures, each with a different upfront commitment.

Under a down payment plan (DPP), you pay 90–95% upfront and the balance at possession. This typically comes with the largest discount — often 8–12% off the base price — because the builder receives most of the money immediately. It's ideal for investors with surplus capital who want the lowest entry price.

Under a construction-linked plan (CLP), you pay 10–15% at booking and the rest in installments tied to construction milestones. Your upfront outflow is minimal, but you pay the full price over time without a discount.

Under a subvention plan, you pay 10–25% at booking and nothing more until possession. This is the lowest upfront commitment and carries zero interest during construction.

For most investors, the question isn't just 'how much down payment' but 'which plan optimizes my ROI on invested capital.' A lower down payment with a longer deferral period generally produces a higher ROI, because your money at risk is smaller while the appreciation accrues on the full property value.

Beyond the down payment, budget for stamp duty (4–8% depending on state), GST (1% for affordable housing, 5% for regular under-construction), and registration charges. These add 7–12% to the property price.

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