NEW DELHI: Construction cost for greenfield real estate projects rose 2-4 per cent annually during the last calendar year on higher input rates, according to CBRE. Real estate consultant CBRE on Monday released a report ‘India Construction Cost Trends 2024-25: Navigating Costs in a Transforming Landscape’, showing a marginal 2-4 per cent year-on-year escalation in greenfield construction costs in 2024 compared to 2023.
In 2024, cement, steel, and aluminium costs dipped by 6-8 per cent, 3-5 per cent, and 0-2 per cent, respectively, on an annualised basis, while paint costs remained stable.
However, wood and stone prices rose by 3-6 per cent and 0-2 per cent, respectively, during the year, reflecting selective demand pressures.
“While certain key material costs experienced moderation, persistent shortages in skilled, semi-skilled, and unskilled labour resulted in a 5 per cent average increase in labour expenditures during 2024. This labour cost escalation effectively negated the material cost reductions, thereby sustaining elevated overall construction costs,” CBRE said.
For high rise housing projects (30 floors), the construction cost is Rs 5,500-6,100 per square feet in Delhi-NCR. The cost is Rs 3,100-3,500 for 12-storey buildings.
Anshuman Magazine, Chairman & CEO – India, South-East Asia, Middle East & Africa, CBRE, said, India’s construction sector remains a key pillar of economic growth, poised to become the world’s third-largest market by 2025.
“From impressive skylines in cities to extensive infrastructure projects that connect remote areas of the country, the construction sector serves as a vital foundation for India’s broader economic objectives,” he said.
Stabilising construction costs, rapid urban expansion, and sustained real estate demand foster resilience and new opportunities, Magazine said.
“While workforce shortages present challenges, the sector continues to attract strong investments, driven by sustainability, technology, and high-quality developments,” he added.
