Under-construction homes now costlier than ready-to-move properties

India’s real estate market is witnessing a new pricing trend, with under-construction (UC) homes now outpacing the prices of ready-to-move (RTM) properties across major metros, according to the latest insights from real estate platform Magicbricks.

In Delhi, the average price of a ready-to-move apartment stands at ₹18,698 per sq. ft., while under-construction homes have surged to ₹25,921 per sq. ft. A similar pattern is evident in Gurugram, where average price of under-construction homes has reached ₹17,185 per sq. ft., significantly higher than ready-to-move properties at ₹14,617 per sq. ft., the report said.

Even Mumbai, India’s costliest real estate market, has followed suit. Under-construction property prices jumped 33.4% year-on-year in Q1 2025, reaching ₹32,371 per sq. ft., compared to ready-to-move home prices at ₹28,935 per sq. ft., said Magicbricks.

“The rising prices of under-construction homes can be attributed to two key factors. First, evolving buyer preferences have led homebuyers to pay a premium for contemporary designs, superior layouts, and high-quality construction and fittings. Second, strong post-pandemic homeownership sentiment, combined with increasing raw material costs, has driven up construction expenses, resulting in higher price appreciation for under-construction properties. These factors are reshaping the market, making new developments more expensive than ready-to-move homes,” said Magicbricks.

With residential prices continuing to climb, early investment in under-construction projects could offer long-term value and capital appreciation for buyers and investors alike, it said.

However, the report comes days after Anarock said that skyrocketing residential prices have slowed the Indian housing market’s bull run in the first quarter of calendar year 2025.

The year's first quarter saw sales drop 28% across the top 7 cities against the same period in 2024, shows Anarock data. Around 93,280 units were sold in Q1 2025 in the top 7 cities, in sharp contrast to all-time high sales of over 1.30 lakh units in Q1 2024.

Delhi-NCR saw a 20% decline in sales from approximately 15,650 units in Q1 2024 to around 12,520 units in Q1 2025. Mumbai Metropolitan Region (MMR) saw the highest housing sales with about 31,610 units in Q1 2025, a decline of 26% over Q1 2024 when around 42,920 units were sold.

Bengaluru saw sales of 15,000 units sold in Q1 2025, a 16% decline compared with Q1 2024 when 17,790 units were sold. Hyderabad saw about 10,100 units sold in Q1 2025, a 49% decline over Q1 2024 when around 19,660 units were sold.

Pune saw 16,100 units sold in Q1 2025, decreasing by 30% over Q1 2024 when 22,990 units were sold. Chennai saw 4,050 units sold in Q1 2025 – a 26% decline over Q1 2024 when 5,510 units were sold. Kolkata also saw sales decline by 31% – from 5,650 units in Q1 2024 to 3,900 units in Q1 2025.