Real Estate Growth Despite Increased Construction Cost

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The overall stock of developed real estate in India’s leading urban centres would reach 8.2 billion sq. ft. by 2025, therefore, providing employment to approximately 17 million people across the country. Out of six leading cities in India (Chennai, Bengaluru, Hyderabad, Pune, Mumbai and Delhi), Mumbai remains the most expensive. Construction costs in Chennai and Bengaluru are almost on par with Delhi and Pune. Variation in costs could be primarily attributed to different demand levels, proximity to supply centres as well as the efficiency of logistics networks across these cities.
The average cost of construction for a residential apartment in a mid-rise building was pegged at ` 3,125/sq. ft. in Mumbai, and ` 2,750/sq. ft. in Delhi and Pune. In Chennai and Bengaluru, the cost was ` 2,500/sq. ft., while in Hyderabad such an apartment would cost ` 2,375/sq. ft.