NEW DELHI: The average cost of construction is estimated to have increased by up to 11% over the past year. Average cement prices have seen a steep decline of 15%, while average steel prices have witnessed a marginal 1% decrease over the last 12 months, according to Colliers.
The cumulative effect of rise in the prices of four key construction materials including cement, steel, copper and aluminum have been relatively low. Badal Yagnik, CEO, Colliers India said, “While rise in prices of key construction materials was relatively modest over the last year, labour costs have been driving the overall cost of construction upward. With labour accounting for more than one-fourth of overall construction cost, a 25% annual rise in labour costs has stretched construction budgets and impacted operational expenses. Moreover, the need for skilled labour and the associated costs for training, safety and regulatory compliance further adds to spiraling labour costs.” Said
As of October 2024, cost of construction in the residential segment saw an estimated 11% increase year-on-year.
|
Construction cost
|
YoY change
|
2 - year change
|
5 - year change
|
|
component
|
(vs Oct 2023)
|
(vs Oct 2022)
|
(vs Oct 2019)
|
|
Steel
|
-1%
|
-9%
|
57%
|
|
Cement
|
-15%
|
-25%
|
30%
|
|
Copper
|
19%
|
26%
|
91%
|
|
Aluminum
|
5%
|
7%
|
57%
|
|
Labour
|
25%
|
80%
|
150%
|
Read more at: https://realty.economictimes.indiatimes.com/news/infrastructure/cost-of-construction-rises-up-to-11-annually-in-2024-across-real-estate-segments-colliers/115414044
Source: https://realty.economictimes.indiatimes.com/