Buying A Home Gets Costlier, Housing Prices Jump Up To 59% Across India’s Top Seven Cities

Mumbai is among India's most expensive cities to purchase a home, with property prices surging by up to 59 percent between 2021 and 2025, according to ANAROCK Research. The average residential price increased from roughly Rs 5,826 per square foot in 2021 to nearly Rs 9,260 in 2025. This dramatic rise may necessitate a more substantial budget for buyers compared to previous years.

Construction expenses have also seen a significant increase, with the average cost of building a house rising from around Rs 2,681 per square foot in 2021 to about Rs 3,640 in 2025. Several factors, including the cost of thermomechanically treated steel, logistics and fuel expenses, tiles, glass, hardware, electrical and plumbing, and land, have contributed to the higher construction costs.

Land prices have also experienced sharp gains, with prices in leading cities increasing by 50 percent to 120 percent over the past five years. The National Capital Region saw a rise of up to 130 percent, while Bengaluru experienced a surge of up to 120 percent. Prospective buyers should consider these rising costs when deciding to purchase a home, as developers are likely to pass on these higher expenses to customers through increased selling prices.