If you are planning on buying a pre-construction property, there’s a very good chance that you will see a clause in the ‘Promise to Buy and Sell’ agreement stating that there could be a price increment over the value of the property. Although, the clause mentions the possibility of a price drop as well, this is a very unlikely scenario.

In most cases, the price will be increased up to 3% of the total value of the property. The developer will usually attribute the price increment to reasons such as price changes in construction materials, salary, insurance policies and bank financing, among others.

Something to keep in mind when buying a pre-construction property.