Under-Construction Property in Kerala for NRIs 2026 | RERA Guide

Under-construction properties offer NRIs lower entry prices, flexible payment schedules, and the opportunity to customise interiors. With RERA (Real Estate Regulatory Authority) now mandatory in Kerala, buyer protection has significantly improved. This guide covers everything NRIs need to know before booking an under-construction property.

Advantages of Under-Construction Property

• Lower price: Typically 10–25% cheaper than ready-to-move units
• Flexible payments: Construction-linked payment plans spread over 2–4 years
• Customisation: Choose interiors, fittings, and layout modifications
• Capital appreciation: Price appreciation during construction period
• RERA protection: Mandatory registration ensures delivery accountability

Risks & How to Mitigate Them

• Delivery delay: Check builder’s track record — RERA mandates penalty for delays
• Quality issues: Inspect construction quality at each stage
• Builder insolvency: Verify builder’s financial health and RERA escrow compliance
• GST liability: 5% GST on under-construction units (no GST on ready-to-move)
• No rental income: No income until possession — plan EMI accordingly

RERA Checklist for NRI Buyers

• ✓ Verify RERA registration number on K-RERA website
• ✓ Check project completion date and extension history
• ✓ Verify 70% escrow account compliance
• ✓ Review sale agreement for RERA-mandated clauses
• ✓ Check builder’s past project delivery record
• ✓ Verify land title and building plan approval

Finance Options

• NRI Construction Loan — disbursed in stages linked to construction
• NRI Home Loan up to ₹10 Crores
• Loan Against Property — use existing property as collateral