India’s Greenfield Construction Costs Rise 2-4% in 2024: CBRE Report
ECONOMY & POLICY

India’s Greenfield Construction Costs Rise 2-4% in 2024: CBRE Report

Greenfield construction costs in India increased marginally by 2-4% in 2024, a slowdown compared to the 6-8% rise seen in 2021-22, according to CBRE South Asia’s "India Construction Cost Trends 2024-25" report. This moderation reflects improved supply chains and stabilising inflation. 

The report noted a decline in material costs, with cement, steel, and aluminium prices falling by 6-8%, 3-5%, and 0-2%, respectively, while paint costs remained steady. However, wood and stone prices rose by 3-6% and 0-2% due to selective demand pressures. Labour costs, on the other hand, increased by 5% due to ongoing workforce shortages, balancing out material savings and keeping overall costs high. 

For 2025, construction costs are expected to rise in line with inflation, with labour costs projected to increase by 6-8% and steel, cement, and fuel prices by 2-4%. Among cities, Mumbai saw the highest fit-out cost rise at 4-6%, followed by Delhi-NCR, Bengaluru, Chennai, Hyderabad, and Pune at 3-4%. 

CBRE India Chairman & CEO Anshuman Magazine highlighted India’s resilience and projected the country to become the world’s third-largest construction market by 2025. Gurjot Bhatia, Managing Director & Head of Project Management Advisory, Asia-Pacific, CBRE, stressed the need for stakeholders to adapt to macroeconomic trends, sustainability demands, and digital advancements for long-term market stability. 

(freepressjournal)  

Greenfield construction costs in India increased marginally by 2-4% in 2024, a slowdown compared to the 6-8% rise seen in 2021-22, according to CBRE South Asia’s India Construction Cost Trends 2024-25 report. This moderation reflects improved supply chains and stabilising inflation. The report noted a decline in material costs, with cement, steel, and aluminium prices falling by 6-8%, 3-5%, and 0-2%, respectively, while paint costs remained steady. However, wood and stone prices rose by 3-6% and 0-2% due to selective demand pressures. Labour costs, on the other hand, increased by 5% due to ongoing workforce shortages, balancing out material savings and keeping overall costs high. For 2025, construction costs are expected to rise in line with inflation, with labour costs projected to increase by 6-8% and steel, cement, and fuel prices by 2-4%. Among cities, Mumbai saw the highest fit-out cost rise at 4-6%, followed by Delhi-NCR, Bengaluru, Chennai, Hyderabad, and Pune at 3-4%. CBRE India Chairman & CEO Anshuman Magazine highlighted India’s resilience and projected the country to become the world’s third-largest construction market by 2025. Gurjot Bhatia, Managing Director & Head of Project Management Advisory, Asia-Pacific, CBRE, stressed the need for stakeholders to adapt to macroeconomic trends, sustainability demands, and digital advancements for long-term market stability. (freepressjournal)  

Next Story
Real Estate

Bennet & Bernard Unveil Dutch-Inspired ‘Casa El Toledo’ in Goa

Bennet & Bernard Group, Goa’s leading luxury real estate developer, has launched its newest project, Casa El Toledo, in Assagao. The enclave features 18 ultra-luxury 4 BHK Dutch-style villas blending European charm with tropical elegance. Each villa includes a private pool, double-height ceilings, open courtyards, alfresco dining areas, and English-inspired landscaping. The interiors are curated by noted Dutch designer Kelly Marie.   Reflecting the grandeur of the Dutch Golden Age, Casa El Toledo harmonises heritage aesthetics with modern sensibilities. Expansive interiors flow..

Next Story
Equipment

Godrej Delivers Heaviest Ecolaire Surface Condenser to US Project

Godrej Enterprises Group’s Process Equipment business has manufactured and delivered its heaviest Ecolaire® Surface Condenser to date, weighing nearly 450 metric tonnes, for a power-generation project in the United States. The project, powered by natural gas and partly designed for hydrogen compatibility, marks another step in advancing clean energy systems. Produced at the company’s GreenCo-certified Dahej facility in Gujarat, the equipment demonstrates India’s growing engineering capabilities and reinforces Godrej’s ‘Make in India for the World’ vision.  Hussain S..

Next Story
Infrastructure Energy

India, Brazil Discuss Energy Ties And Oil Investments

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri held discussions with Celso Luis Nunes Amorim, Special Advisor to the President of Brazil, and senior Brazilian officials to strengthen bilateral cooperation in the oil, gas, and energy transition sectors. The talks took place during a dinner hosted by Kenneth H da Nobrega, Ambassador of Brazil to India, at his residence in New Delhi.Mr Puri said the meeting focused on Indian investments in Brazil’s oil and gas sector, as well as expanding collaboration in energy transition and biofuels. “The enriching conversation revolved ar..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?