Cost of construction rises up to 11% annually in 2024 across real estate segments
Prices of key materials like steel and aluminum have relatively stabilized in 2024. Rising construction cost has primarily been on account of labour cost surge, at about 25% YoY in the private sector. Volatilities in construction material prices and labour cost pressures are likely to push overall construction cost upward, albeit at a slower pace. Over the last one-year, average cost of construction is estimated to have risen up to 11%, mainly due to a significant surge in labour costs coupled with a moderate price increase in construction materials like sand, brick, glass, wood etc. Notably, the cumulative effect of rise in the prices of four key construction materials including cement, steel, copper and aluminum have been relatively low. In fact, average cement prices have seen a steep decline of 15%, while average steel prices have witnessed a ma
