Skip to main content Skip to footer

Construction costs up 28% since pre-pandemic levels; however remain stable since March 2022

CCR 1536

Costs of key construction materials declined 8% since March 22


INDIA, 15 December 2022 – As of November 2022, cost of construction has increased 28% higher than pre-pandemic (November 2021) levels but continues to be stable, compared to March 2022. The costs of key construction materials have jumped 32% in a span of three years, affecting margins and operational schedule of construction companies. The government’s efforts such as reducing exports and cutting import duties have kept raw material costs in check over the last few months.

Cost of construction (INR/sq ft)

Rising Construction Cost

 As of March 2022, construction costs rose 10-12% YoY, owing to a 20% increase in key material costs. Key construction materials such as Cement, Steel, Aluminium, Copper saw a significant increase, along with fuel and labour costs due to geopolitical issues, inflation etc. This created a challenge for developers who were facing high debt and liquidity concerns.

However, by November 2022, overall costs of key construction materials (Steel, Cement, Aluminium and Copper) declined by 8%, as compared to March 2022. Aluminium registered highest decline of 55%, followed by Steel at 6% decline. However, Cement and Copper costs increased by 9% and 3% respectively along with labour costs. This, coupled with decreased fuel costs have kept overall construction costs stable since March 2022.

“Costs of key construction materials are likely to remain volatile for next few months due to uncertainties created by geo-political issues, persistent lockdowns in China and a probable global recession. Prices of key construction materials will hinge on multiple factors including global economic situation, inflation rates and supply constraints. Therefore, developers are likely to push new launches till the input prices further decline, as any further surge in the cost of construction materials would impact the timely delivery of ongoing projects and disrupt their cashflows resulting in increase in housing prices.”

said Ramesh Nair, Chief Executive Officer, India and Managing Director, Market Development, Asia, Colliers.

“Developers are planning their projects well in advance, and aiming timely project completions to cater to the surging demand. They are increasingly adopting Just-In-Case approach to store the materials well in advance to avoid supply bottlenecks and unexpected price hikes,”

said Jatin Shah, Chief Technical Officer, India & Managing Director, Technical Due Diligence, Colliers.

“Residential prices have been on the rise, increasing 6% YoY in Q3 2022, led by a combination of increased input costs and robust demand. Looking ahead, prices may be more or less stable for some quarters as the market is now seeing increasing interest rates. At the same time, some investor-markets with continued demand may continue to see some increase in prices. In the industrial sector, rents can see an upward movement led by robust demand and high costs,”

said Vimal Nadar, Senior Director and Head of Research, India, Colliers.


Media Contact:

Sukanya Dasgupta

Head, Marketing and Communications| India

+91 9811867682

Riddhi Vira

Manager, Public Relations | India

+91 9619776362


About Colliers

Colliers (NASDAQ, TSX: CIGI) is a leading diversified professional services and investment management company. With operations in 63 countries, our 18,000 enterprising professionals work collaboratively to provide expert real estate and investment advice to clients. For more than 27 years, our experienced leadership with significant inside ownership has delivered compound annual investment returns of approximately 20% for shareholders. With annual revenues of $4.6 billion and $92 billion of assets under management, Colliers maximizes the potential of property and real assets to accelerate the success of our clients, our investors, and our people

Related Experts

Argenio Antao

Chief Operating Officer | India


Argenio Antao is an accomplished, passionate and highly motivated multi-disciplinary professional with over 30 years of extensive domestic and international experience, Having begun his career by taking leadership on projects and with his ability to find and implement solutions by thinking out-of-the- box, he has grown to take on greater challenges through developing innovative solutions and implementation strategies

As the Chief Operating Officer for Project Management Services, India, he has the overall responsibility for the technology, policies, systems and procedures in India. He also leads the Health and Safety as well as the Quality verticals across all projects.

His success in the workplace is a result of his strong passion and ability to lead and motivate the team to go beyond their perceived capabilities, through providing strategic vision and engaging them to always look at the bigger picture.

View expert

Jatin Shah

Chief Technical Officer | India & Managing Director

Technical Due Diligence


Jatin is a seasoned real estate professional with over 20 years of experience.  Jatin has managed entire aspect of project lifecycle development in multiple Projects executed for Investors, Occupiers and for Developers across India. Jatin has also been part of projects executed in Malaysia, Rwanda and Serbia (when in Synergy).

With domain expertise of design, procurement, cost and overall development he has collaborated and lead teams to provide value-add suggestions and inputs to Developer's.   Sharing his expertise, knowledge and leadership skills across multiple Projects, Clients have benefitted through the suggestions made by Jatin on cost, time and buildability. His capability as a real estate professional is common industry knowledge.

As Managing Director (Technical Due Diligence), Jatin is responsible for overall growth and developing long terms and short-term strategies for business to remain profitable and to ensure culture of Client satisfaction and expanding Client base to accelerate success. His key responsibility includes supporting Chairman, Colliers India on all technical aspects of India's business and effective collaboration across all service lines.

Jatin leads a highly expereiced and dedicated team to provide Due Diligence services for leading financial institutes to provide unbiased techno-commercial advice to investors, lenders and occupiers; for them to take informed decisions. Team under Jatin has completed technical due diligence of 300+ projects  across asset classes such as commercial, land, retail, residential, warehousing and logistics, and hotels.

View expert

Vimal Nadar

Senior Director


Mumbai (Corporate Office)

Vimal has a cumulative of about 14 years post qualification (as a Chartered Accountant) experience and recently joined Colliers as the Head of Research. He is responsible for leading and managing India Research operations. He will focus on thought leadership though timely and insightful content to support business growth while elevating the brand  value of the company. Prior to this, he led research thought leadership at JLL and Cushman & Wakefield. He began his professional career with Crisil; business research and consulting being his core areas of work. His areas of expertise include business assessment, demand-supply analysis, market entry strategy, strategic road mapping, etc in sectors such as Real estate, Cement, BFSI and other sub-sectors within the infrastructure domain. 

View expert

Vaishnavi Bala

General Manager



Nearly 5 years of experience in the domain of Business Research & Analysis. Prior to Research services, was a financial journalist for leading publications.

View expert

Pallavi Kukdolkar

Assistant Manager



She is an Urban Planner and Real Estate Professional with strong academic background. She has 4 years experience in real estate research and consulting. Her key competencies include research based strategic consulting, feasibility study, preparing market research reports, retail strategy, design conceptualization & tenant mix. With over 4 years of experience in the sector, she has been part of a constant market recce and have attuned herself with a comprehensive understanding of core real estate asset classes mainly retail and commercial office space. She has worked on various bespoke assignments enabling the clients to gauge a prospective strategy and its implementation. 

View expert