Constructing a Home vs Buying a Readymade Home – Which is better?


From independent homes to readymade houses – there has been a massive shift in the home buying pattern of Indians. Earlier, most people sought to buy a piece of land to build their home upon. But with steady growth in population as witnessed in the last two decades, there has been a rapid expansion of cities, limiting the land available.

This expansion has led to the proliferation of home loans and apartment culture, with readymade homes taking the Indian real estate market by storm and making self-constructed homes a thing of the past. However, the trend of constructing homes is on the rise again, and many builders are already cashing in on the “Buy a land, and we’ll build you a home” concept.

Wondering which one you should go for? Well, here are pointers to resolve this never-ending debate.


Buying a house is much more convenient than building one. Constructing a home requires a lot of research related to structure and design. Before you even start building, you will have to look for a plot in a suitable location, which has all the necessary places of urban interest like schools, malls, hospitals, and supermarkets in its vicinity.

Also, on average, it takes around eight-nine months to build a house. Ergo, if you’re looking for immediate accommodation, constructing a home may be inconvenient. However, a readymade house or apartment is a ready-to-move-in option.


Naturally, readymade homes are cheaper since building a new home also includes buying a plot. Also, when you’re purchasing a readymade home, you can bring the price down by negotiating for a better offer. A real estate agent can also be consulted if you have trouble negotiating. However, since there’s no third-party involved in constructing a new home, there are no avenues of negotiation.

Moreover, building a new home requires a lot of initial capital, which may force you to take a loan. But since the investment is enormous, it may be difficult for you to clear the home loan eligibility criteria due to the high principal. Nevertheless, many Indian lenders now provide home construction loans, making the process of building a new house financially less punishing.


One of the biggest positives of constructing a house is customization. Unlike ready-to-move-in places, you can customize all the little details of your home according to your preference and taste. You can easily personalize things like interior, fixtures, layout, lights, structure, colour schemes, and even the garden. You can also add areas like a basement or an attic.

On the other hand, readymade houses can be modified, but not drastically. Also, there’s the added renovation expense. Nonetheless, many lenders nowadays provide home renovation loans at attractive home loan interest rates, which can help you handle the refurbishing financials.

The bottom line

There’s no clear winner when choosing between readymade homes or constructing a house. It all depends upon your preferences and ability. If you have sufficient capital, you can build yourself a home. If you desire convenience, then readymade homes are your best options. Also, if you’re looking to fund your purchase with a home loan, don’t forget to plan it using a home loan EMI calculator.

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