Mumbai: Buying a home in India’s biggest cities has become more expensive, with housing prices rising by up to 59 percent between 2021 and 2025, according to ANAROCK Research.
Across the top seven cities, the average residential price climbed from about Rs 5,826 per square foot in 2021 to nearly Rs 9,260 in 2025. The steep increase means buyers may now need a larger budget than four years earlier.
Construction expenses rise
Rising construction costs have played a role in pushing up home prices. The average cost of building a house increased from roughly Rs 2,681 per square foot in 2021 to around Rs 3,640 in 2025.
Several inputs became costlier during the period. Prices of thermomechanically treated, or TMT, steel rose by about 20 percent, while logistics and fuel expenses increased by 15 percent to 20 percent.
The cost of tiles, glass and hardware climbed by around 8 percent to 12 percent. Electrical and plumbing expenses also rose by as much as 13 percent, adding pressure on developers and homebuilders.
Land prices record sharp gains
Land has become another major cost driver. Prices in leading cities jumped by about 50 percent to 120 percent over the past five years, with some markets reporting sharper increases.
The National Capital Region recorded a rise of up to 130 percent, while Bengaluru saw land values increase by as much as 120 percent. Improved infrastructure and strong demand for well-connected neighbourhoods have supported this surge.
What buyers should consider?
Higher land, material, labour, transport and financing costs are steadily making home ownership less affordable. Developers pass a substantial part of these increases to customers through higher selling prices.
Prospective buyers should compare property prices across locations, assess construction expenses and calculate loan affordability before committing. Interest rates, down payments and long-term repayments must also be weighed carefully to avoid stretching household finances.
