Real Estate Crunch: Rising Construction Costs Challenge Industry
Construction costs in India's real estate sector are expected to rise by 3-5% due to higher input prices, including labor and materials. Regulatory changes and global demand pressures contribute to cost increases. Industry experts highlight the potential impact on project economics and seek cost optimization strategies.
- Country:
- India
India's real estate sector braces for a 3-5% increase in construction costs this year, driven by escalating input prices, including labor and materials, according to JLL India's recent report.
The 'Construction Cost Guide, India - 2026' highlights diverging trends in material costs, with cement, steel, and diesel prices seeing a slight decline, while aluminium and copper costs surge due to global demand pressures and supply chain issues.
Regulatory changes, including the new labor code and GST amendments, coupled with skilled labor shortages, are likely to push costs upward, impacting project economics. Industry leaders stress the importance of cost optimization to manage these challenges.
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