Investing in an under-construction apartment in Bangalore offers flexibility not just in terms of payment plans and capital appreciation, but also in transferability. Many buyers choose to sell or transfer their under-construction property before the project is completed, making it a strategic exit option for investors.
Can you sell an under-construction apartment?
Yes. An under-construction apartment can be sold, transferred, or assigned to another buyer before the execution of the final Sale Deed. However, most developers include a lock-in period of 18 to 24 months before such transfers are allowed. This ensures project stability while still giving investors an eventual exit route.
What are the transfer costs?
Developers typically levy a transfer or assignment fee, which can vary depending on the project. In Bangalore, this ranges from ₹200 to ₹500 per sq.ft., and in some premium developments, it can go up to 5% of the total sale consideration. These charges are usually detailed under the Assignment section of the Agreement for Sale.
Pro-tips for Investors
- If you are buying a property primarily for investment and future resale, plan ahead:
- Negotiate transfer charges upfront with the builder at the time of booking.
- Always read the Assignment clause carefully in the Agreement for Sale to understand lock-in timelines and applicable fees.
- Factor in transfer costs while calculating your expected ROI, as high fees can significantly reduce your profit margins.
By being aware of the transfer process, lock-in period, and associated costs, buyers and investors can make informed decisions and maximise their returns from under-construction property investments in Bangalore.
