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 Energy

15 Apr 2026

TEXMiN Signs MoUs, Announces Startup Funding at IInvenTiv 2026

TEXMiN IIT (ISM) Dhanbad has announced a series of strategic industry collaborations and startup incubation funding during IInvenTiv 2026, aimed at strengthening India’s mining and deep-tech innovation ecosystem. TEXMiN functions as the Technology Translation Research Park (TTRP) supported by the Department of Science and Technology (DST), Government of India.The announcements were made at the inaugural ceremony of IInvenTiv 2026, the Ministry of Education’s flagship R&D fair being hosted at IIT (ISM) Dhanbad. The event brought together academic institutions, startups, investors, indus..

Infrastructure Urban

15 Apr 2026

IEEMA Launches ELECRAMA 2027, World’s Largest Electrical Show

Indian Electrical & Electronics Manufacturers’ Association (IEEMA) has officially announced the 17th edition of ELECRAMA, billed as the world’s largest electrical show. ELECRAMA 2027 will be held from February 20 to February 24, 2027 at India Expo Mart, Greater Noida, Delhi. The upcoming edition will be organised under the theme “Harnessing the power of ‘I’.”According to IEEMA, the theme highlights multiple dimensions including India’s growing global capabilities, intelligence-led innovation, industry impact, immersive stakeholder experiences, knowledge-driven insights throug..

Infrastructure Urban

15 Apr 2026

Action TESA Launches OrnaMatte Range with Durable Matte Surface Finishes

Action TESA has introduced OrnaMatte, a new range of performance-driven matte finishes aimed at enhancing modern interior surfaces with a balance of aesthetics and durability. The company, known for engineered panel products including MDF, HDHMR, Boilo and particle boards, said the offering aligns with evolving consumer demand for contemporary yet long-lasting furniture and interior solutions.The company noted that in the Indian market, surface finish selection is often influenced by architects, interior designers and peer recommendations, rather than personal preference alone. Interior design..