Overview
- Anarock’s analysis published Monday, Sept. 7, 2026 found residential sale prices across India’s top seven cities rose 59% from 2021 to 2025 while measured construction costs rose 34% over the same period.
- Land values, which are not included in construction-cost measures, climbed roughly 50–120% through H1 2026 with the National Capital Region and Bengaluru among the largest increases.
- Geopolitical tensions in the Middle East have pushed up key inputs and added an estimated 8–10% to construction costs by raising steel prices, fuel-linked transport costs, imported finishing-material prices and building-services costs.
- MEP costs — mechanical, electrical and plumbing work — rose more than 17% between 2023 and 2025 and made up about 22% of total construction costs in 2025 as modern projects use more technical systems.
- Developers face margin pressure on already-sold projects that cannot be fully repriced, which will likely worsen affordability for mid- and affordable buyers and could prompt delayed launches, lower specifications or a shift toward higher-margin locations.