Residential property prices across India’s top seven cities have increased significantly faster than construction costs over the past four years, according to data from Anarock Research & Advisory.
Between 2021 and 2025, average residential construction costs in the premium segment increased by 39%, rising from approximately ₹3,861 to ₹5,370 per sq ft.
During the same period, average residential capital values climbed from ₹5,826 to ₹9,260 per sq ft, marking a 59% increase and an annualized growth rate of around 12%.
The widening gap suggests that the rise in housing prices cannot be attributed to construction costs alone. Land values, developer margins, demand-supply conditions and broader market dynamics are playing an increasingly important role in determining residential property prices.
For the real estate industry, the numbers highlight an important distinction: the cost of building a home and the price at which that home is ultimately sold are being shaped by very different forces.
- Buildonomics Staff
