Investing in under-construction villas in Hyderabad is an exciting step towards owning a modern, well-located home with state-of-the-art amenities. While the base price may seem appealing, buyers should be aware of hidden costs that can affect the overall budget. These include charges for land development, registration, legal documentation, interior fittings, and maintenance of shared facilities.
Being informed about these expenses helps ensure transparency and prevents surprises during construction or possession. By understanding the full financial picture, buyers can plan effectively and enjoy their dream villa without unexpected financial strain.
Goods and Services Tax (GST)
One of the primary hidden costs in under-construction villas is the Goods and Services Tax (GST). For residential properties, a 5% GST is applicable, which is not applicable to ready-to-move-in properties. This tax is calculated on the total value of the property, including the cost of land and construction. It’s essential to verify whether the quoted price includes GST to avoid unexpected expenses.
Registration and Stamp Duty Fees
Upon purchasing property, buyers are required to pay registration and stamp duty fees. In Telangana, stamp duty typically ranges between 5% to 7% of the property’s market value, while registration charges are around 0.5%. Additional administrative fees may apply for paperwork processing. These charges are mandatory and must be factored into the overall cost of purchasing a villa.
Legal and Due Diligence Costs
Ensuring the legal clarity of a property is crucial. Legal verification charges should be included in the budget, as they depend on the property’s title and past ownership. Services such as title verification, obtaining an Encumbrance Certificate (EC), and hiring a licensed surveyor for boundary confirmation are essential steps in the due diligence process.
Development and Infrastructure Charges
Developers may levy charges for utilities and infrastructure development within the project. These fees cover expenses for water connections, electricity supply, and road maintenance. It’s advisable to inquire about these charges upfront to avoid surprises during the construction phase.
Maintenance and Association Fees
Many under-construction villas are part of gated communities that offer shared amenities such as landscaped gardens, security services, and recreational facilities. Buyers are typically required to pay maintenance charges to cover the upkeep of these common areas. Additionally, association membership fees may be applicable, contributing to the overall cost of ownership.
Escalation Charges
Construction projects may face delays or cost overruns due to various factors. Builders often include escalation clauses in contracts, allowing them to increase prices if the cost of materials or labour rises. It’s crucial to review the contract terms to understand the extent of such clauses and their potential impact on the final price.
Preferential Location Charges (PLC)
Certain villas within a project may be priced higher due to their location within the development. For instance, corner plots, garden-facing units, or those on higher floors may attract additional charges. These Preferential Location Charges can significantly increase the overall cost and should be clarified with the developer before making a decision.
Floor Rise Charges
In multi-storey villa projects, units located on higher floors may incur additional charges known as floor rise charges. These fees compensate for the advantages of elevated views and reduced noise levels. It’s essential to assess whether the benefits of a higher floor justify the additional cost.
Utility Connection Fees
Substantial costs can arise when arranging connections for utilities such as water and electricity. In some cases, developers may not have pre-arranged these services, requiring buyers to handle the process independently. It’s advisable to inquire about the status of utility connections and any associated costs before proceeding with the purchase.
Property Tax and Municipal Levies
Once the villa is constructed, owners are liable for annual property taxes levied by the municipal corporation. These taxes are determined according to the value and location of the property. Additionally, betterment charges may be applicable if the local government undertakes infrastructure improvements in the area.
Why Casagrand Villas in Hyderabad are Worth Every Investment
At Casagrand, we know that buying a home is one of the most important decisions you make, and understanding the hidden costs is just as crucial as recognising the advantages. Our under-construction villas in Hyderabad are designed to offer exceptional value while keeping buyers informed every step of the way.
- Modern Amenities: Casagrand villas come with premium facilities such as clubhouses, swimming pools, landscaped gardens, and fitness centres. While these amenities may add to the overall investment, they significantly enhance lifestyle quality, making the hidden costs worthwhile.
- Strategic Locations: Many hidden costs in real estate arise from accessibility or future development challenges. Casagrand carefully chooses rapidly developing areas near IT hubs, schools, and healthcare facilities, ensuring convenience and long-term value, reducing unexpected expenses related to relocation or daily travel.
- Customisation Options: While customisation during the construction phase may involve additional costs, Casagrand provides transparent pricing and options, allowing buyers to personalise layouts and finishes without surprises, turning potential hidden costs into planned upgrades.
- Potential for Capital Appreciation: Investing early in Casagrand villas can lead to significant capital gains. Even when accounting for hidden costs, the long-term appreciation of strategically located properties makes it a financially sound decision.
Get Transparency on Additional Expenses
Investing in under-construction villas in Hyderabad is a step towards owning a modern, well-located home with premium amenities. Buyers should be aware of hidden costs such as registration, legal fees, interior fittings, and maintenance of shared facilities.
At this stage, Casagrand ensures transparency by highlighting additional expenses like Preferential Location Charges (PLC) for premium plots, as well as water, electricity, and security costs. Being informed about these charges allows buyers to plan effectively and avoid surprises during construction or possession. With a clear understanding of the full financial picture, residents can enjoy their dream villa confidently and stress-free.
