Construction Costs to Rise 3–5% in 2026: JLL

26 Mar 2026 CW Team

The report highlights mixed trends in material costs during 2025. Cement, steel and diesel prices declined by 1–2 per cent, 3–4 per cent and 5–6 per cent respectively, while aluminium and copper recorded sharper increases of 8–9 per cent and 9–10 per cent, driven by global demand and supply chain pressures. For 2026, prices of steel, aluminium and copper are projected to increase moderately by 2–4 per cent, while cement costs remain lower following tax reforms.

A major cost driver is labour. Wages are expected to rise 5–12 per cent after the implementation of the new labour codes in November 2025, which mandate enhanced social security, healthcare benefits and standardised wages. Even in 2025, labour costs rose steadily by 5–6 per cent due to skilled workforce shortages and strong infrastructure demand.

The government’s GST 2.0 reform has provided some relief, reducing cement taxation by 10 per cent, translating into savings of 2–3 per cent for developers and up to 1.5 per cent for homebuyers. However, these gains are likely to be offset by rising labour expenses.

Aditya Desai, Executive Director, PDS, India, JLL, said cost variations across cities are reshaping investment patterns, with Mumbai commanding Rs 4,600–5,200 per sq ft for luxury projects, while Chennai, Bengaluru and Hyderabad remain relatively competitive.

Ashok VS, Head of Cost Management, JLL PDS India, noted that digital adoption and sustainability-focused practices will be key to managing cost pressures while unlocking long-term value.

Despite global uncertainties and energy market disruptions, the sector remains resilient. Stable material costs, supportive policy reforms and continued expansion are expected to sustain growth, with developers focusing on efficiency, technology adoption and workforce formalisation to stay competitive.

Construction costs across asset classes in India are expected to rise by 3–5 per cent in 2026, according to a new report by JLL, reflecting a sector undergoing structural transformation amid regulatory shifts and evolving market dynamics.The report highlights mixed trends in material costs during 2025. Cement, steel and diesel prices declined by 1–2 per cent, 3–4 per cent and 5–6 per cent respectively, while aluminium and copper recorded sharper increases of 8–9 per cent and 9–10 per cent, driven by global demand and supply chain pressures. For 2026, prices of steel, aluminium and copper are projected to increase moderately by 2–4 per cent, while cement costs remain lower following tax reforms.A major cost driver is labour. Wages are expected to rise 5–12 per cent after the implementation of the new labour codes in November 2025, which mandate enhanced social security, healthcare benefits and standardised wages. Even in 2025, labour costs rose steadily by 5–6 per cent due to skilled workforce shortages and strong infrastructure demand.The government’s GST 2.0 reform has provided some relief, reducing cement taxation by 10 per cent, translating into savings of 2–3 per cent for developers and up to 1.5 per cent for homebuyers. However, these gains are likely to be offset by rising labour expenses.Aditya Desai, Executive Director, PDS, India, JLL, said cost variations across cities are reshaping investment patterns, with Mumbai commanding Rs 4,600–5,200 per sq ft for luxury projects, while Chennai, Bengaluru and Hyderabad remain relatively competitive.Ashok VS, Head of Cost Management, JLL PDS India, noted that digital adoption and sustainability-focused practices will be key to managing cost pressures while unlocking long-term value.Despite global uncertainties and energy market disruptions, the sector remains resilient. Stable material costs, supportive policy reforms and continued expansion are expected to sustain growth, with developers focusing on efficiency, technology adoption and workforce formalisation to stay competitive.

Infrastructure Transport

01 Jun 2026

MMRDA advances 250 m on Orange Gate–Marine Drive tunnel

The Mumbai Metropolitan Region Development Authority (MMRDA) has completed 250 m of underground tunnelling for the Orange Gate–Marine Drive Urban Road Tunnel using India’s largest slurry shield tunnel boring machine (TBM) deployed for an urban road project.The project involves twin tunnels extending over 7 km beneath critical transport corridors, including Central Railway, Western Railway and Metro Line 3. The work requires high-precision engineering to navigate densely developed urban infrastructure.Once completed, the tunnel is expected to reduce travel time between Orange Gate and Marin..

Infrastructure Urban

01 Jun 2026

Hindustan Zinc Pays Rs 188.46 Billion in FY26

Hindustan Zinc contributed Rs 188.46 billion to the public exchequer in FY 2025-26, according to its 9th Tax Transparency Report. The contribution, equivalent to 46 per cent of the company’s revenue, included direct and indirect taxes, government royalties, dividends to the Government of India, withholding taxes and other statutory levies.The company’s five-year cumulative contribution to the exchequer stood at Rs 915.72 billion. In FY26, Hindustan Zinc reported revenue of Rs 408.44 billion, EBITDA of Rs 221.62 billion and profit after tax of Rs 138.32 billion. It also achieved its highest..

Infrastructure Urban

01 Jun 2026

World of Concrete India 2026 Opens in Mumbai

Informa Markets in India will host the 12th edition of World of Concrete India 2026 from 3–5 June 2026 at the Bombay Exhibition Centre, Mumbai. The specialised B2B exhibition will bring together manufacturers, suppliers, contractors, developers, architects, consultants, infrastructure companies, project leaders and government stakeholders.The event is expected to feature over 350 brands and more than 18,000 trade professionals. It will cover concrete and cement, dry mortar, precast technologies, formwork, construction chemicals, industrial and commercial flooring, scaffolding, safety solutio..