I see this happen way to often, usually by new investors and consultants. They have googled or maybe even talked to some builders on cost per square foot and put that in their budgeting line and than designed the Taj Mahal!
Here is a visual this ….

And this…

Both examples do not cost the same per square foot to build. You know you would pay more for image number 2 so you can see it is worth more, but will it be enough more to pay the increase cost of construction? Sometime the answer is yes if it is a high-end neighbourhood or desirable amenities near by.

Sometimes the answer is no which is why you see a lot of developments building something more like image number one. There is a lot of variables to consider in development and with experience and the right team around you it can be calculated decision. With out the right experience is can be expensive guesses.