The housing market of India is witnessing a new pricing trend, one that defies the traditional preferences of homebuyers. According to a recent report by the Magicbricks, a real estate platform, the under-construction (UC) homes are seeing a price jump that far outpaces that of ready-to-move (RTM) properties across key metro cities of India.
The pattern, varying across major metros, reflects a shift where homebuyers are redefining their notion of affordability and value for money when it comes to property purchases.
Before we divulge into the reasons behind this change let’s look at the city-wise pricing trend.
Delhi: In the national capital, the average price of a ready-to-move apartment currently stands at Rs 18,698 per square feet while under-construction homes’ prices have climbed to Rs 25,921 per sq. ft.
As for the Delhi-NCR (National Capital Region), the trends are quite similar. For instance, in Gurugram, the average price of UC apartments stands at Rs 17,185 per sq. ft., in comparison to RTM properties which cost Rs 14,617 per sq. ft.
Mumbai: The financial capital of India, Mumbai, considered one of the costliest realty markets of the country is witnessing a similar trend. Here the under-construction property prices have seen a 33.4 per cent jump in Q1 2025, with prices around Rs 32,371 per sq. ft. This is more than the RTM home prices which currently stand at Rs 28,935 per sq. ft.
This signals a shift in market dynamics, indicating that the appreciation of existing properties is not keeping pace with the prices of new properties.
As the market evolves, the interplay between shifting buyer preferences, affordability challenges, and the rise of emerging markets will reshape the real estate landscape.
What is driving this shift?
The report attributes this shift in rising prices of under-construction properties over RTM homes to two key factors:
Changing Buyer Preferences: Such a trend is a direct reflection of changing buyer preferences. Evolving buyer's choices now include a readiness to pay a premium for contemporary designs, good layouts, and high-quality construction fittings, the report notes.
Strong Homeownership Sentiment: The second reason is attributed to a growing ‘homeownership sentiment’ among buyers in the post-pandemic era. The increasing cost of raw materials has spiked construction expenses which translated into higher price appreciation for the UC properties.
These key factors are now making the new developments more expensive than ready-to-move homes, the report notes.
As prices of residential housing have continued to surge in recent years, the choices for homebuyers have been thin. “Early investment in under-construction projects could offer long-term value and capital appreciation for buyers and investors alike,” the report points.
