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Anarock Research’s survey of India’s top seven housing markets found that the average cost of building a standard-plus residential project increased 34 percent from 2,681 rupees to 3,604 rupees per square foot between 2021 and 2025. Over the same period residential capital values jumped 59 percent from 5,826 rupees to 9,260 rupees per square foot according to the same dataset. That 25-percentage-point spread means only about two-thirds of the home price rise stems from construction expenses with the balance tied to land acquisition developer margins and shifting buyer preferences.
Land values in those seven cities rose between 50 and 120 percent from 2021 through the first half of 2026 according to Anarock Research with compound annual growth rates ranging from 8 to 15 percent. The National Capital Region recorded the steepest land price gains at 70 to 130 percent while Bengaluru followed with increases of 60 to 120 percent. Santhosh Kumar vice-chairman of Anarock Group said land prices in the major cities have risen sharply in the last five years.
Kumar added that higher land acquisition costs complicate both project feasibility and home pricing especially in established corridors where infrastructure improvements cause land values to rise steeply even before a project launch. The Anarock analysis placed roughly one-third of the home price escalation outside construction expenses and directly linked to those land costs plus elevated developer margins. Infrastructure upgrades such as new roads and metro lines have amplified land value appreciation in high-demand pockets across the seven markets.
Cushman & Wakefield’s separate assessment showed 18,158 acres of land transacted across 33 cities and more than 880 deals between 2021 and the first quarter of 2026. Annual transacted acreage climbed from 813 acres in 2021 to 6,181 acres in 2025 according to the consultancy producing a compound annual growth rate of about 66 percent with another 1,194 acres changing hands in early 2026. Residential development absorbed 45 percent of that land volume reflecting sustained housing demand and interest in premium projects.
PropEquity data indicated housing sales in the top nine cities rose 19 percent year on year to 112,458 units in the second quarter of 2026 while new supply expanded 43 percent. Bengaluru posted a 47 percent sales increase to 21,516 units during that period with southern markets overall leading the expansion. Those demand patterns have reinforced the pricing momentum captured in the Anarock research on land and capital values.
JLL figures showed sales of homes priced between 15 million and 30 million rupees surged 58 percent in the first half of 2026 to 51,231 units as buyers moved up the price ladder. That segment along with properties above 10 million rupees accounted for 71 percent of all residential transactions in the period up from 62 percent a year earlier. Developers have responded by emphasising premium and lifestyle-oriented housing to offset elevated land and construction outlays across the major urban centres.
