+
Construction Costs Rise 11% in 2024, Driven by Labour Expenses
Cement

Construction Costs Rise 11% in 2024, Driven by Labour Expenses

The cost of construction in India increased by 11% over the past year, primarily driven by a 25% rise in labour expenses, according to Colliers India. While prices of key materials like cement dropped by 15% and steel saw a marginal 1% decrease, the surge in labour costs stretched construction budgets across sectors.

“Labour, which constitutes over a quarter of construction costs, has seen significant inflation due to the demand for skilled workers and associated training and compliance costs,” said Badal Yagnik, CEO of Colliers India.

The residential segment experienced the sharpest cost escalation due to a growing focus on quality construction and demand for gated communities. Meanwhile, commercial and industrial real estate remained resilient, with 37 million square feet of office space and 22 million square feet of warehousing space completed in the first nine months of 2024.

“Despite rising costs, investments in automation and training are helping developers address manpower challenges and streamline project timelines,” said Vimal Nadar, senior director at Colliers India.

With labour costs continuing to influence overall construction expenses, developers are exploring strategies to optimize operations and mitigate rising costs.

The cost of construction in India increased by 11% over the past year, primarily driven by a 25% rise in labour expenses, according to Colliers India. While prices of key materials like cement dropped by 15% and steel saw a marginal 1% decrease, the surge in labour costs stretched construction budgets across sectors. “Labour, which constitutes over a quarter of construction costs, has seen significant inflation due to the demand for skilled workers and associated training and compliance costs,” said Badal Yagnik, CEO of Colliers India. The residential segment experienced the sharpest cost escalation due to a growing focus on quality construction and demand for gated communities. Meanwhile, commercial and industrial real estate remained resilient, with 37 million square feet of office space and 22 million square feet of warehousing space completed in the first nine months of 2024. “Despite rising costs, investments in automation and training are helping developers address manpower challenges and streamline project timelines,” said Vimal Nadar, senior director at Colliers India. With labour costs continuing to influence overall construction expenses, developers are exploring strategies to optimize operations and mitigate rising costs.

Next Story
Real Estate

County Group Sells Rs 16 Billion Flats in Ghaziabad

Real estate developer County Group has sold 500 luxury apartments for Rs 16 billion in the first phase of its newly launched residential project, Jade County, located along NH24 in Ghaziabad. The announcement was made on Saturday following a surge in demand for premium homes in the Delhi-NCR region.The flats, priced between Rs 25 million and Rs 60 million, were fully sold out shortly after the phase one launch. This phase spans a developable area of 1.5 million square feet.In June, County Group had announced an investment of Rs 18 billion to develop the Jade County project, which will comprise..

Next Story
Real Estate

Brigade Eyes Over Rs 10 Billion From Bengaluru Project

Real estate firm Brigade Enterprises announced on Monday that it is targeting revenue of over Rs 10 billion from its newly launched residential project in Bengaluru. The development, named Brigade Avalon, is located on Whitefield Main Road and spans 4.36 acres.The project will comprise 206 apartments, with a total development area of 640,000 square feet. Brigade Enterprises confirmed the revenue potential exceeds Rs 10 billion, reflecting strong demand in the Whitefield micro-market.“Whitefield is a high-priority micro-market for us,” said Pavitra Shankar, Managing Director of Brigade Ente..

Next Story
Real Estate

DataforIndia Co-Founder Buys Rs 1.13 Billion Delhi Plot

Akhil Wable, co-founder of DataforIndia, has purchased a property in Delhi’s upscale Vasant Vihar for Rs 1.13 billion. The 1,280-square yard plot was acquired from Eleannt Enterprises, with the deal registered on 25 June 2025, according to official sale deed records.DataforIndia is a public platform that aims to expand understanding of India through accessible, research-backed data and visual insights on socio-economic issues.Eleannt Enterprises had itself bought the same Vasant Vihar plot earlier this year for Rs 950 million, highlighting the locality’s robust demand and limited land avai..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?