{"id":35925,"date":"2026-09-04T14:14:56","date_gmt":"2026-09-04T08:44:56","guid":{"rendered":"https:\/\/petrolnews.in\/live\/india-home-prices-surge-59-vs-34-construction-cost-hike\/"},"modified":"2026-09-04T14:14:56","modified_gmt":"2026-09-04T08:44:56","slug":"india-home-prices-surge-59-vs-34-construction-cost-hike","status":"publish","type":"post","link":"https:\/\/petrolnews.in\/live\/india-home-prices-surge-59-vs-34-construction-cost-hike\/","title":{"rendered":"India Home Prices Surge 59% vs 34% Construction Cost Hike"},"content":{"rendered":"

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Home prices in India\u2019s top seven cities rose much faster than construction costs between 2021 and 2025. According to Anarock, construction costs increased 34% during the period, while average home prices rose 59%. Rising land prices were a key factor behind the gap.<\/p>\n

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Construction cost rises to \u20b93,604 per sq ft<\/strong><\/span><\/p>\n

The average construction cost increased from about \u20b92,681 per sq ft in 2021 to about \u20b93,604 per sq ft in 2025.<\/p>\n

Premium construction costs rose from about \u20b93,861 to \u20b95,370 per sq ft during the same period, an increase of 39%.<\/p>\n

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In comparison, the average selling price of homes increased from about \u20b95,826 to \u20b99,260 per sq ft, a 59% rise.<\/p>\n

\n\n\n\n\n\n\n
Cost\/price<\/td>\n2021<\/td>\n2025<\/td>\nIncrease<\/td>\n<\/tr>\n
Construction cost<\/td>\n\u20b92,681\/sq ft<\/td>\n\u20b93,604\/sq ft<\/td>\n34%<\/td>\n<\/tr>\n
Premium construction cost<\/td>\n\u20b93,861\/sq ft<\/td>\n\u20b95,370\/sq ft<\/td>\n39%<\/td>\n<\/tr>\n
Home selling price<\/td>\n\u20b95,826\/sq ft<\/td>\n\u20b99,260\/sq ft<\/td>\n59%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

Source: Anarock Research<\/em><\/p>\n

Land prices rise 50-120% in top cities<\/strong><\/span><\/p>\n

Land prices have increased sharply across the top seven cities. Between 2021 and the first half of 2026, land prices rose by 50-120%.<\/p>\n

In the National Capital Region (NCR), land prices increased by 70-130%. In Bengaluru, the rise was between 60% and 120%.<\/p>\n

Land costs are not included in the construction cost figures. The rise in land prices has therefore widened the gap between the cost of building a home and its selling price.<\/p>\n

Infrastructure and demand also push prices<\/strong><\/span><\/p>\n

Anarock Group vice-chairman Santosh Kumar said infrastructure development, demand and supply, location premiums and developers\u2019 pricing have contributed to higher home prices.<\/p>\n

The difference between construction costs and selling prices is therefore not linked to construction expenses alone. Land prices and location-related factors have also played a role.<\/p>\n

Middle East tensions add to construction costs<\/strong><\/span><\/p>\n

Construction costs also faced additional pressure from tensions in the Middle East between March and July.<\/p>\n

Steel prices increased by about 20%. Fuel and site logistics costs rose by 15-20%, putting further pressure on construction expenses.<\/p>\n

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Home prices in India\u2019s top seven cities rose much faster than construction costs between 2021 and 2025. According to Anarock, construction costs increased 34% during the period, while average home prices rose 59%. Rising land prices were a key factor behind the gap. Construction cost rises to \u20b93,604 per sq ft The average construction cost…<\/p>\n","protected":false},"author":2,"featured_media":35926,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[2],"tags":[33013,33010,33009,33014,33008,33012,33011,33015],"class_list":["post-35925","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-nation","tag-anarock-report","tag-construction-costs","tag-home-prices","tag-housing-sector","tag-india-real-estate","tag-land-prices","tag-property-market","tag-real-estate-trends"],"_links":{"self":[{"href":"https:\/\/petrolnews.in\/live\/wp-json\/wp\/v2\/posts\/35925","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/petrolnews.in\/live\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/petrolnews.in\/live\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/petrolnews.in\/live\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/petrolnews.in\/live\/wp-json\/wp\/v2\/comments?post=35925"}],"version-history":[{"count":0,"href":"https:\/\/petrolnews.in\/live\/wp-json\/wp\/v2\/posts\/35925\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/petrolnews.in\/live\/wp-json\/wp\/v2\/media\/35926"}],"wp:attachment":[{"href":"https:\/\/petrolnews.in\/live\/wp-json\/wp\/v2\/media?parent=35925"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/petrolnews.in\/live\/wp-json\/wp\/v2\/categories?post=35925"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/petrolnews.in\/live\/wp-json\/wp\/v2\/tags?post=35925"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}