India, Sept. 4 -- Housing prices across India's top seven cities have skyrocketed twice as fast as construction costs over the last five years, according to a report released by ANAROCK, a real estate consultancy. The report said that between 2021 and 2025, the average cost to construct a standard-plus residential project increased by 34% (a 6.9% CAGR), moving from Rs.2,681 per sq ft to Rs.3,604 per sq ft.

In the same period, average residential capital values surged by 59% (a 12% CAGR), jumping from Rs.5,826 per sq ft to Rs.9,260 per sq ft.

This staggering 25% divergence signals an urgent affordability crisis for homebuyers and a severe margin threat for developers, the report said.

According to the report, this indicated a clear, wid...