India Construction Cost Trends 2024-25: Navigating Costs in a Transforming Landscape

With India's construction sector projected to become the world's third-largest market by 2025, a strategic evaluation of construction cost dynamics is essential.

The latest edition of CBRE Research's annual flagship 'India Construction Cost' report indicates a 2-4% year-over-year escalation in greenfield construction costs in 2024. This is a notable deviation from the 6-8% cost increases witnessed in 2021-22 and reflects the impact of reducing supply chain bottlenecks and stabilising inflationary pressures.

Y-o-Y percent change in greenfield construction costs across asset classes (2021-2024)

The subsequent data illustrates the percentage variation in key construction material prices (Q4 2023 vs. Q4 2024):

Other critical insights captured in the report include:

• The cost of developing greenfield projects across segments such as residential buildings, offices, warehouses, shopping malls, etc. 
• The ripple effect of macroeconomic trends on the cost of input materials.
• The impact of the evolving built environment landscape on fit-out costs.
• The increasing integration of technology and its long-term impact on construction costs.

To gain valuable insights into the movement of construction costs across sectors and cities in India, please click the download button.