What many first-time homebuyers don't realize is that the property’s listed price is only the beginning. Then comes all the other costs.
So, let’s break it down – what are those not so evident costs.
Stamp Duty and Registration Fees (5–7%) - Every state in India mandates stamp duty and registration charges. On average, stamp duty runs between 5% and 7%, with registration fees around 1% of property value. For instance, in Maharashtra, stamp duty in cities like Mumbai and Pune is roughly 6–7% inclusive of cess and surcharges.
GST on Under Construction Homes (1–5%)- Under construction properties attract GST of 1% for affordable housing and 5% for premium homes. Ready-to-move units are exempt. A Rs. 1 crore under-construction apartment would incur Rs. 5 lakhs in GST.
Interior and Furnishing Expenses (Rs. 5–15 lakhs) - Even semi-furnished units require extensive interiors. Budget-end finishes can cost Rs. 4–6 lakhs per 1,000 sq ft, while mid to premium finish can go up to Rs. 10–12 lakhs or more.
Society Deposits and Parking (Rs. 1–5 lakhs) - Housing societies often require maintenance deposits and parking fees upfront. Premium societies may charge Rs. 2–5 lakhs as a long-term deposit for a 2 BHK, while parking charges may range from Rs. 1–5 lakhs depending on location.
Legal Fees, Loan Processing, and Brokerage - Legal due diligence, documentation, loan processing (0.5–1% of loan), and brokerage (1–2%) add further costs often amounting to a few lakh rupees.
Real Cost Examples by Property Value
Let’s see how actual costs stack up in Tier-1 cities:
Rs. 50 lakhs home: Stamp duty & registration (6%) Rs. 3 lakhs + GST (1%) Rs. 50,000 + interiors of Rs. 5 lakhs + society deposits & parking Rs. 1 lakhs + legal/brokerage Rs. 50,000
Actual Cost = Rs. 60 lakh (20% extra)
Rs. 80 lakhs home: Stamp duty & registration (6%) Rs. 4.8 lakhs + GST (5%) Rs. 4 lakhs + interiors of Rs. 7-10 lakhs + deposits /parking of Rs. 2-3 lakhs + legal /brokerage of Rs. 1-2 lakhs
Actual Cost = Rs. 95 lakhs (18-20% extra)
Rs. 1 crore home: Stamp duty & registration (6%) Rs. 6 lakh + GST (5%) Rs. 5 lakhs + interiors of Rs. 10 lakhs + deposits/parking of Rs. 2–3 lakhs + legal/brokerage of Rs. 2 lakhs
Actual Cost = Rs. 1.25 crore (25% extra)
Rs. 2 crore home: Stamp duty & registration of (6%) Rs. 12 lakhs + GST (5%) Rs. 10 lakhs + interiors of Rs. 15 lakhs + deposits/parking of Rs. 3 lakhs + legal/brokerage of Rs. 4 lakhs
Actual Cost = Rs. 2.44 crore (22% extra)
Buy Smart, Plan Fully
- Buffer in 20–30% above listed price when setting your home budget—essential for a smooth purchase experience.
- Phase your interiors spending: start with essentials, delay luxury touches to manage cash flow efficiently.
- Negotiate PLC, parking, and deposit charges upfront—developers may be flexible.
- Shop around for brokers, lawyers, and loan options, and collect written quotes for comparison.
A property’s list price is just the beginning. Only by unpacking the layers of statutory taxes, GST, interiors, society charges, fees, and optional extras can buyers truly see the real cost of home ownership. Empowered by this awareness, advance savings, and negotiation strategies, homebuyers can unlock their dream with financial confidence, not surprises.
