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, India’s leading real estate platform.

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

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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.

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.

Source: Magicbricks Research

Commenting on the report, Ashish Agarwal, Director, AU Real Estate, said, “The rising preference for under-construction properties reflects the evolving aspirations of homebuyers who value modern designs, superior layouts, high-quality construction, modern living amenities, recreational & and social facilities like modern clubs, which are part of new age living. As developers, we see this trend as a positive indicator of growing trust in new projects and the long-term appreciation potential they offer. Investing in under-construction homes not only ensures access to contemporary living spaces but also positions buyers to benefit from future value growth, making it a win-win for homeowners and investors alike.”

Santosh Agarwal, CFO & Executive Director of Alpha Corp Development Limited, said, “The price premium that under-construction homes are commanding today signals a structural shift in buyer mindset. We’re seeing customers move beyond the need for immediate possession and instead prioritise modern layouts, future-ready amenities, and quality-driven developments. This trend is also being fuelled by rising construction costs and growing confidence in developers with a strong track record. The market is maturing as the buyers are willing to wait when they see value.

For investors, early-stage entry into under-construction projects offers stronger upside potential through capital appreciation. “For end-users, it’s about securing a home that’s better aligned with evolving lifestyle expectations. For developers, this reinforces the responsibility to maintain transparency, deliver on time, and build with a visionary outlook. Because today’s buyer is not just looking at the price — they’re looking at the promise of building the future,” Agarwal added.

Robin Mangla, President, M3M India, said, “The growing preference for under-construction homes signals a positive transformation in the real estate market. Homebuyers today are choosing future-ready homes that offer modern architecture, flexible payment plans, and the latest in smart living amenities. These projects allow buyers to customize interiors, enjoy early-bird pricing benefits, and be part of integrated communities. With 42% of buyers opting for new launches in 2024, the trend clearly shows a shift in confidence toward reputed developers and long-term investment value. This momentum reflects a vibrant future, where under-construction homes are not just purchases, but lifestyle-driven, future-proof investments.”