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 Magicbricks.
In Delhi, the average price of a ready-to-move apartment stands at Rs 18,698 per sq. ft. In contrast, the price of under-construction homes has surged to Rs 25,921 per sq. ft. A similar pattern is evident in Gurugram, where the average price of UC homes has reached Rs 17,185 per sq. ft., significantly higher than the price of RTM properties, which is Rs 14,617 per sq. ft.
Even Mumbai, India’s costliest real estate market, has followed suit. Under- construction property prices jumped 33.4% YoY in Q1 2025, reaching Rs 32,371 per sq. ft., compared to RTM home prices at Rs 28,935 per sq. ft.
The rising prices of under-construction homes can be attributed to two key factors. First, evolving buyer preferences have paid homebuyers a premium for contemporary designs, superior layouts, and high-quality construction and fittings. Second, strong post-pandemic homeownership sentiment and increasing raw material costs have driven up construction expenses, resulting in higher price appreciation for under-construction properties. These factors reshape the market, making new developments more expensive than ready-to-move homes.
With residential property prices rising, early investment in under-construction (UC) projects presents a promising opportunity for buyers and investors seeking long-term value and capital appreciation. According to the report, the average price per square foot (psf) for ready-to-move (RM) properties is generally higher compared to UC properties across various cities.
For instance, in Ahmedabad, RM properties are priced at Rs 6900 psf, whereas UC properties are priced at Rs 5431 psf. Similarly, in cities like Delhi, the gap is significant, with RM properties priced at Rs 18698 psf, compared to Rs 25921 psf for UC properties. This price difference highlights the potential for capital gains as the value of under-construction properties appreciates upon completion, making them an attractive option for those looking to maximise long-term returns.
