Short answer: Resale vs new flat in Bengaluru comes down to cash, time and protection. A resale flat has no GST, you can move in now and you can inspect what you're buying. A new flat has RERA protection, including five years of defect liability, but an under-construction one adds 5% GST and years of waiting.
- GST: 5% on an under-construction flat (1% if affordable), none on a resale or completed flat.
- Stamp duty and registration: about 7.6% of the higher of price and guidance value, either way.
- Waiting costs: rent and pre-EMI interest during construction can outweigh a lower price.
- Compare carpet area, not super built-up. New flats must be sold on RERA carpet area; resale is often quoted on super built-up.
- Protection differs: RERA covers the builder's promises and defects for five years from possession; a resale seller gives you the title and little else.
- Our KEYS check: khata and title, effective carpet cost, years to move in, safety net.
- How do the costs compare?
- Worked example 1: the same ₹1 crore, two routes
- Why compare carpet area?
- Worked example 2: the cheaper flat that isn't
- What protection do you get with each?
- What extra risks come with a resale flat?
- What extra risks come with a new flat?
- Does the loan differ?
- Which works better if you're buying to rent out?
- The KEYS check (our framework)
- Checklist: resale or new
- What mistakes do buyers make?
- What should you do if...
- Method notes and limits
- Frequently asked questions
- Talk it through with acre&key
- Sources
Most Bengaluru buyers end up weighing the same two options: a new flat in a project still being built, or a resale flat they can walk into. The headline price is the least useful number in that comparison. This guide puts the real costs side by side, shows how to compare carpet area, and sets out which risks you take on with each.
How do the costs compare?
| Cost | New, under construction | New, ready (after completion certificate) | Resale |
|---|---|---|---|
| GST | 5% (1% if affordable) | None | None |
| Stamp duty and registration | About 7.6% of higher of price and guidance value | Same | Same |
| TDS (deducted from price, not extra) | 1% if ₹50 lakh or more | Same | Same |
| Brokerage | Usually none | Usually none | Often charged; negotiable |
| Waiting costs | Rent and pre-EMI interest | None | None |
| Repairs or upgrades | Low at first | Low at first | Depends on age |
| Society transfer charges | Not applicable | Not applicable | Ask the association; varies |
GST is 1% only for affordable housing (carpet area up to 60 sq m in a metro and value up to ₹45 lakh). Charges are explained in our full cost guide. The buyer deducts 1% TDS on a purchase of ₹50 lakh or more and deposits it against the seller's PAN; that's part of the price, not on top. If you're the seller, see capital gains tax on selling a flat.
Worked example 1: the same ₹1 crore, two routes
Both flats cost ₹1 crore. The new one is three years from possession; you rent at ₹30,000 a month meanwhile. The resale flat needs ₹4 lakh of repairs, and the broker charges 1%. Illustrative figures.
| Item | New, under construction | Resale |
|---|---|---|
| Price | ₹1,00,00,000 | ₹1,00,00,000 |
| GST at 5% | ₹5,00,000 | None |
| Stamp duty and registration at 7.6% | ₹7,60,000 | ₹7,60,000 |
| Rent for 36 months | ₹10,80,000 | None |
| Brokerage at 1% | None | ₹1,00,000 |
| Repairs | None | ₹4,00,000 |
| Total | ₹1,23,40,000 | ₹1,12,60,000 |
The resale route costs ₹10.8 lakh less here, almost all of it from rent. Add pre-EMI interest on any loan released during construction and the gap widens. Slip possession by a year and it widens again. If you already own the home you live in, the rent line drops out and the gap shrinks to the GST, less the brokerage and repairs.
What you get for the extra: a newer building, current specifications, and RERA's protections. Whether that's worth ₹10.8 lakh depends on the resale flat's age and condition.
Why compare carpet area?
RERA defines carpet area as the usable floor area inside the walls, and new flats must be sold on it. Resale listings are often quoted on super built-up area, which includes a share of corridors, lobbies and amenities. The ratio between the two, called loading, varies by building.
Worked example 2: the cheaper flat that isn't
| New flat | Resale flat | |
|---|---|---|
| Quoted area | 1,300 sq ft super built-up | 1,300 sq ft super built-up |
| Quoted rate | ₹8,000 per sq ft | ₹7,500 per sq ft |
| Price | ₹1,04,00,000 | ₹97,50,000 |
| Carpet area | 1,000 sq ft (RERA agreement) | 950 sq ft (measured) |
| Price per carpet sq ft | ₹10,400 | ₹10,263 |
A ₹500 gap in the quoted rate shrinks to ₹137 per sq ft of usable space. Measure a resale flat yourself, or have an architect do it, and compare per carpet sq ft. Our side-by-side comparison guide has a template.
What protection do you get with each?
New flat, from a registered project:
- Possession delay: interest for every month of delay or a full refund with interest, at your choice, under RERA s.18 (our s.18 guide).
- Defects: structural or workmanship defects reported within five years of possession must be fixed free within 30 days, or you're compensated (RERA s.14(3)).
- Plan changes: two-thirds of allottees must consent to changes in the building plan (s.14(2)).
- Advance cap: no more than 10% before a registered agreement for sale (s.13).
Resale flat:
- RERA's promoter duties sit with the builder, not the seller. If the building is under five years from first possession, the builder's defect liability may still run; check the dates.
- Your protection is mainly the title chain and the sale deed. Disputes with a seller go to civil court.
- You can inspect the flat, the building and how the association runs before paying.
What extra risks come with a resale flat?
- Title chain: every previous sale deed, back to the builder's, must be in order. A gap is a red flag. See our legal checks guide.
- Khata and tax: the khata should be in the seller's name with property tax paid. Plan for mutation after buying.
- OC status: an older building without an occupancy certificate can cause loan, utility and resale problems (OC and CC explained).
- Existing loan: if the seller has a home loan, the bank holds the original documents. Arrange closure and release at registration.
- Dues: association maintenance, sinking fund and utility arrears. Get a no-dues letter.
- Age: lifts, waterproofing and plumbing wear out. Our answer on older resale flats lists what to inspect.
What extra risks come with a new flat?
- Delay: dates often slip. Check the project's RERA history and quarterly updates (20 questions before buying under construction).
- What gets built: specifications and amenities can differ from the brochure.
- Payment plan and subvention risk: read who pays what, and when.
- Handover quality: snags at possession are common; the five-year defect window helps, but chasing fixes takes effort.
Does the loan differ?
RBI's loan-to-value caps are the same: 90% up to ₹30 lakh, 80% from ₹30 lakh to ₹75 lakh, 75% above ₹75 lakh. Lenders won't fund stamp duty on loans above ₹10 lakh (RBI Master Circular). For new flats, release is tied to construction stages. For resale, the lender values the flat itself, so an older building or missing OC can lower the loan.
Which works better if you're buying to rent out?
A resale flat can earn rent from the month you register it. An under-construction flat earns nothing until possession, and you may be paying pre-EMI interest meanwhile. On a flat renting at ₹30,000 a month, three years of construction is ₹10.8 lakh of rent you don't collect. Against that, a new flat may rent for more once it's ready and need less upkeep in its early years. See our rental yield guide before you assume a number.
The KEYS check (our framework)
- K: Khata and title. For resale, the full chain of deeds, khata and tax in the seller's name. For new, the builder's title declaration on RERA.
- E: Effective carpet cost. Price per carpet sq ft, all-in, including GST where it applies.
- Y: Years to move in. Price the wait in rent and pre-EMI interest, with a buffer for delay.
- S: Safety net. What happens if something goes wrong? RERA for new; title and deed for resale.
Checklist: resale or new
- [ ] All-in cost for both, including GST, charges, rent and repairs
- [ ] Price per carpet sq ft compared
- [ ] Resale: full title chain and khata in the seller's name
- [ ] Resale: OC, no-dues letter and loan closure plan
- [ ] Resale: building age and condition inspected
- [ ] New: RERA registration, completion date and quarterly updates checked
- [ ] New: payment plan and any subvention terms read
- [ ] Guidance value checked on Kaveri (2023 rates still in force)
- [ ] Loan eligibility confirmed for the specific flat
- [ ] Utility transfers planned (BESCOM and BWSSB name transfer)
What mistakes do buyers make?
- Comparing quoted rates without converting to carpet area.
- Ignoring rent and pre-EMI interest when choosing under-construction.
- Skipping the title chain on resale because the building "is old and fine".
- Forgetting the seller's loan and the original documents held by the bank.
- Assuming RERA covers a resale purchase against the seller.
- Not budgeting for repairs in an older flat.
What should you do if...
...you need to move within a year? Resale or a completed new flat. Under-construction timelines don't fit.
...the resale flat has no OC? Check what the lender will fund and what it means for utilities and future sale before going further.
...the new project is already delayed? Check its RERA filings and work out the cost of a further year's wait.
...the seller has an outstanding loan? Agree that part of your payment goes straight to the seller's bank, and that the bank releases the originals at registration.
...the resale price is close to a new flat's? Compare carpet area, age and the cost of waiting, then decide.
...you're unsure about registration-day checks? Get your lawyer to run the registration-day checks with you: originals, EC, khata, tax receipts and the seller's loan release.
Method notes and limits
- GST, duty, LTV and TDS points are from our verified guides and RBI's Master Circular. RERA points are from the Act's text.
- Prices, rent, repairs, brokerage and carpet areas are illustrative.
- Society transfer charges vary by association; we haven't stated an amount.
- We don't name projects, builders or listings.
Lawyer note: Title chains, OC status and sale deeds are legal questions. Have a property lawyer check a resale flat's documents before you pay an advance. CA note: TDS and capital gains points are general information; confirm with your CA.
Frequently asked questions
No. GST applies to under-construction flats sold by a builder. A resale flat, or a new flat sold after the completion certificate, has no GST.
No. In Bengaluru it's about 7.6% of the higher of the price and guidance value in both cases.
It depends on the flat. Compare all-in cost per carpet sq ft, and add rent and pre-EMI interest for an under-construction flat. In our example, resale was ₹10.8 lakh cheaper, mostly because of rent.
Not against the seller. RERA's duties are on the builder. If the building is within five years of first possession, the builder's defect liability may still apply.
The chain of sale deeds back to the builder, the khata and tax receipts in the seller's name, the OC, an encumbrance certificate, a no-dues letter and the seller's loan closure.
Usually, within RBI's limits, but the lender values the flat and may lend less on an older building or one without an OC.
Resale listings often quote super built-up area, which includes common areas. Measure the carpet area and compare per carpet sq ft.
It removes GST and waiting while keeping RERA's defect liability. It often costs more upfront, so compare the all-in numbers.
Sources
- Real Estate (Regulation and Development) Act, 2016, ss. 2(k), 13, 14, 18 (India Code): https://www.indiacode.nic.in/handle/123456789/2158
- RBI, Master Circular on Housing Finance (LTV, stamp duty): https://www.rbi.org.in/Scripts/BS_ViewMasCirculardetails.aspx?id=12824
- Income-tax Act, 2025 (Act 30 of 2025), TDS table, Gazette of India: https://egazette.gov.in/WriteReadData/2025/265620.pdf
