Greenfield construction costs in India increased marginally by 2-4% in 2024, a slowdown compared to the 6-8% rise seen in 2021-22, according to CBRE South Asia’s "India Construction Cost Trends 2024-25" report. This moderation reflects improved supply chains and stabilising inflation. 

The report noted a decline in material costs, with cement, steel, and aluminium prices falling by 6-8%, 3-5%, and 0-2%, respectively, while paint costs remained steady. However, wood and stone prices rose by 3-6% and 0-2% due to selective demand pressures. Labour costs, on the other hand, increased by 5% due to ongoing workforce shortages, balancing out material savings and keeping overall costs high. 

For 2025, construction costs are expected to rise in line with inflation, with labour costs projected to increase by 6-8% and steel, cement, and fuel prices by 2-4%. Among cities, Mumbai saw the highest fit-out cost rise at 4-6%, followed by Delhi-NCR, Bengaluru, Chennai, Hyderabad, and Pune at 3-4%. 

CBRE India Chairman & CEO Anshuman Magazine highlighted India’s resilience and projected the country to become the world’s third-largest construction market by 2025. Gurjot Bhatia, Managing Director & Head of Project Management Advisory, Asia-Pacific, CBRE, stressed the need for stakeholders to adapt to macroeconomic trends, sustainability demands, and digital advancements for long-term market stability. 

(freepressjournal)