+
Cost of construction rose by 10-12% over last year: Report
Real Estate

Cost of construction rose by 10-12% over last year: Report

According to a report, developers’ average cost of construction has increased by 10-12% due to high input costs and supply constraints over the last one year.

The cost of construction materials like cement and steel increased by 20% as of March 2022. The developers have been largely affected by the surging price after recovering from the Covid-19 pandemic.

CEO and Managing Director at Market Development, Asia, Colliers, Ramesh Nair, told the media that due to the rising cost of construction materials, the developers would have to increase prices as construction materials constitute 2/3rd of the construction share.

He said that the price surge would affect the developers in affordable and mid-term segments, operating on low margins. The wholesale price inflation (WPI) and material cost have witnessed a surge. The construction costs can grow by 8-9% extra by December 2022.

The residential projects in the affordable and mid-term housing segment have lower margins. The major input cost can affect the developer and end-users.

Chief Operating Officer (COO) at Colliers India, Argenio Antao, said that developers are facing high costs but are cautious in increasing the price for end-users. The government could provide lower import duty as a form of relief to developers.

Managing Director of Trehan Group, Saransh Trehan, said that the prices of steel and cement had increased sharply in the last two years. Steel prices have increased by 100%, while cement prices by over 30%. Prices of other materials, including aluminium, electric wires, paints, stones, etc., have increased by over 50% in two years. The price hike in construction materials has increased construction cost per sq ft.

However, Grade-A developers might withstand the price hike due to its dynamic demand. Small developers might enter into a joint development agreement to face the price hike.

Image Source

Also read: Ways to deal with the current construction materials prices hike

According to a report, developers’ average cost of construction has increased by 10-12% due to high input costs and supply constraints over the last one year. The cost of construction materials like cement and steel increased by 20% as of March 2022. The developers have been largely affected by the surging price after recovering from the Covid-19 pandemic. CEO and Managing Director at Market Development, Asia, Colliers, Ramesh Nair, told the media that due to the rising cost of construction materials, the developers would have to increase prices as construction materials constitute 2/3rd of the construction share. He said that the price surge would affect the developers in affordable and mid-term segments, operating on low margins. The wholesale price inflation (WPI) and material cost have witnessed a surge. The construction costs can grow by 8-9% extra by December 2022. The residential projects in the affordable and mid-term housing segment have lower margins. The major input cost can affect the developer and end-users. Chief Operating Officer (COO) at Colliers India, Argenio Antao, said that developers are facing high costs but are cautious in increasing the price for end-users. The government could provide lower import duty as a form of relief to developers. Managing Director of Trehan Group, Saransh Trehan, said that the prices of steel and cement had increased sharply in the last two years. Steel prices have increased by 100%, while cement prices by over 30%. Prices of other materials, including aluminium, electric wires, paints, stones, etc., have increased by over 50% in two years. The price hike in construction materials has increased construction cost per sq ft. However, Grade-A developers might withstand the price hike due to its dynamic demand. Small developers might enter into a joint development agreement to face the price hike. Image Source Also read: Ways to deal with the current construction materials prices hike

Next Story
Real Estate

Heena Lalwani Buys Rs 1.13 Billion Juhu Apartment

Heena Lalwani, promoter of Aatman Innovations Private Limited, has purchased a luxury apartment worth Rs 1.13 billion in Mumbai’s upscale Juhu locality, according to property registration documents accessed by Zapkey.com.The 9,862 sq ft apartment, located on the 10th floor of Lodha Developers’ Avalon Tower, was acquired at Rs 115,000 per sq ft and comes with five car parking spaces. The deal, registered on 18 August 2025, also included the payment of Rs 68 million in stamp duty and a Rs 30,000 registration fee.Lodha Developers did not respond to queries regarding the transaction, while the..

Next Story
Real Estate

Godrej Buys KPHB Land for Rs 7 Billion in E-Auction

An acre of prime land in Kukatpally Housing Board (KPHB), Hyderabad, was auctioned for Rs 7 billion, with the Telangana Housing Board generating Rs 5.47 billion from the sale of 7.8 acres through e-auction on 20 August 2025.The auction notification was issued last month, attracting bids from Godrej Properties, Aurobindo Realty, Prestige Estates, and Ashoka Builders, according to Board vice-chairman V.P. Gautham. With an offset price of Rs 4 billion per acre, the three-hour auction saw 46 bid increases, before Godrej Properties acquired the land.Revenue generated from the auction will be utilis..

Next Story
Real Estate

HMDA to Auction 93 Prime Plots in September

The Hyderabad Metropolitan Development Authority (HMDA) is preparing to conduct a three-day auction of prime open plots across Hyderabad, Rangareddy, and Medchal-Malkajgiri districts this September.According to official reports, the e-auction will take place on 17, 18, and 19 September, offering 93 plots. Of these, 70 are located in the Bachupally HMDA layout, with the remainder spread across Turkayamjal, Kokapet, Poppalguda, Chandanagar, Bairagiguda, Gandi Maisamma, Suraram, Medipally, and Bachupally village.The highest upset price has been fixed at Rs 175,000 per square yard for a land parce..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?