India Construction Costs Surge Sharply, With Retail and Luxury Housing Bearing the Highest Pressure
- brg_news_room
- 9 hours ago
- 1 min read
INDIA: In India, construction costs have risen significantly, with retail, luxury housing and premium real estate segments facing the steepest increases. According to industry analysis, mall construction costs have surged by around 13.9% over the past two years, while luxury housing costs have increased by about 12.8%, driven by higher design complexity, rising material prices and expensive mechanical, electrical and plumbing (MEP) systems.
Developers are also under pressure from inflation, supply chain disruptions, labour shortages and tighter regulations, which are affecting project viability and margins. Mid-market and affordable housing have also seen notable cost increases, although at a relatively lower pace. Despite strong long-term demand, rising costs are expected to continue challenging affordability and slowing new project launches, particularly in high-value segments.
Source: Whalesbook
