Construction Costs Up 40%, Affordable Housing Falls to 12% in 2025
NEW DELHI: The affordable housing sector in Indian real estate is facing mounting challenges due to rising construction costs, impacting supply and affordability, as per a recent report by Anarock Group. Data reveals that the average construction cost in major Indian cities has surged nearly 40% over the last five years, climbing from ₹2,200 per sq ft in 2021 to about ₹2,800 per sq ft by October 2024. Mumbai, Delhi NCR, and Bengaluru stand out as the priciest markets, with luxury housing construction costs now surpassing ₹5,000 per sq ft. “Construction expenses in metropolitan areas have skyrocketed due to inflation,…