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A new trend in India's real estate market shows under-construction (UC) homes are now more expensive than ready-to-move (RTM) properties in major cities. A report by Magicbricks highlights that in Delhi, UC homes cost Rs 25,921 per sq. ft., surpassing RTM prices at Rs 18,698 per sq. ft. Similar trends are seen in Gurugram and Mumbai. This shift is driven by rising construction costs and evolving buyer preferences for modern designs, better layouts, and high-quality fittings. With increasing demand, cost pressures, and rising raw material prices, under-construction properties are now seen as valuable investments, offering higher capital appreciation and long-term financial benefits.
A major shift in India's real estate market shows under-construction (UC) homes are now more expensive than ready-to-move (RTM) properties in major cities. According to the latest report from Magicbricks, this trend is especially noticeable in metros like Delhi, Gurugram, and Mumbai. Advertisement
In Delhi, the average price of a ready-to-move apartment is Rs 18,698 per square foot, but under-construction homes are now priced significantly higher at Rs 25,921 per square foot. A similar pattern is evident in Gurugram, where UC homes cost Rs 17,185 per square foot, surpassing RTM property prices of Rs 14,617 per square foot.
Mumbai, which has the highest real estate prices in India, has also followed this trend. Prices of under-construction properties surged by 33.4% year-on-year in Q1 2025, reaching Rs 32,371 per square foot, compared to Rs 28,935 per square foot for ready-to-move homes.
Under-construction homes are becoming more expensive primarily due to changing buyer preferences. Modern homebuyers are willing to pay a premium for properties that offer contemporary designs, better layouts, and high-quality construction. New developments often feature superior amenities and advanced fittings, making them more attractive than older, ready-to-move properties. As a result, demand for these homes has increased, contributing to their higher prices.
Another key factor driving up prices is the rising cost of construction. The prices of raw materials such as steel and cement have increased significantly, adding to the overall cost of building new homes. Additionally, the strong demand for homeownership after the pandemic has further fuelled price growth. As construction expenses rise, developers are passing on these costs to buyers, making under-construction properties more expensive.
Despite this trend, the overall pricing pattern varies across different cities. In some locations, ready-to-move homes still cost more. For instance, in Ahmedabad, RTM properties are priced at Rs 6,900 per square foot, whereas under-construction properties cost Rs 5,431 per square foot.
However, in cities like Delhi, where UC homes are priced much higher than RTM homes, buyers see the potential for capital appreciation. Investing early in under-construction projects could offer significant long-term returns, as property values tend to rise once construction is complete.
With property prices climbing, this shift highlights a new opportunity for investors and homebuyers looking to maximise value in India's real estate market.
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