Navigating Rising Costs: India's Construction Sector in 2024

A recent CBRE report highlights a 2-4% increase in greenfield construction costs due to rising labour expenses, despite material costs showing a decline. The construction sector in India is a crucial economic driver with challenges like workforce shortages but continues to attract investment due to sustainability and urban expansion.

The cost of constructing greenfield real estate projects has increased by 2-4% over the past year, attributed to higher input rates, as revealed by CBRE.

CBRE's report, 'India Construction Cost Trends 2024-25', indicates a marginal yearly rise in construction costs from 2023 to 2024, with specific materials like cement, steel, and aluminium witnessing a decrease in costs.

Despite some material cost reductions, labour costs rose by 5% due to shortages, maintaining high overall construction expenses. The sector remains pivotal for India's economy, offering investment opportunities despite these challenges, according to Anshuman Magazine, CEO-India with CBRE.

(With inputs from agencies.)