The construction cost of Greenfield Projects costs increased in the country has increased. Due to high input costs, construction expenses have risen by 2 to 4 percent, according to realty consultant CBRE. Details were revealed in the report India Construction Cost Trends 2024-25: Navigating Costs in a Transforming Landscape. Compared to 2023, construction costs for Greenfield projects are expected to increase slightly by 2-4% in 2024.
CBRE Chairman and CEO Anshuman Magazine commented, “Stabilising construction costs, rapid urban expansion, steady real estate demand stability, and the development of new opportunities will continue. Although the sector faces challenges with labour shortages, the industry is still attracting strong investments through stability, technology, and high-quality developments.”
In 2024, the costs of materials have seen notable increases. Cement prices have risen by 6-8%, steel by 3-5%, and aluminum costs have increased by 0-2%. However, paint costs have remained stable. Additionally, wood prices have gone up by 3-6%, while stone prices have increased by 0-2%. Despite some material costs remaining under control, there has been a continuous shortage of skilled, semi-skilled, and unskilled labour, leading to an average increase of 5% in labour costs in 2024, contributing to the overall rise in construction expenses.
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The report also mentioned that for high-rise residential projects (30 floors) in the Delhi-NCR region, construction costs range from Rs 5,500 to Rs 6,100 per square foot. For mid-rise buildings (12 floors), the cost is expected to be between Rs 3,100 to Rs 3,500 per square foot. The construction industry in India is evolving, but managing costs remains a challenge.
CBRE’s Managing Director and Head of Project Management Advisory for Asia-Pacific, Gurjoth Bhatia, stated, “Developers need to stay aligned with the changing material prices, evolving fit-out costs, and increasing focus on stability and technology.”
