Construction Cost Guide, India: 2023
This guide is a powerful tool designed to help you understand the market trends, construction cost of real estate assets across major markets of India.
The Indian real estate sector is expected to continue its growth trend in 2023, despite the higher interest rates. The developers are increasingly embracing tools like Building Information Modeling (BIM), prefabrication, lean design, and the use of robotics to streamline the construction process, project costs and manage timelines.
Thus, to understand what is in store for the real estate construction industry in 2023, we are pleased to introduce to you JLL’s Construction Cost Guide. This report is an insight into various methodologies being adopted by the developers to plan their costs better, development strategies, procurement models, and the way forward. The real-time data captured in this report is from 6 major geographies of the country - Mumbai, Bengaluru, Chennai, Delhi, Hyderabad, and Pune.
Construction cost indices for various cities
JLL has made an exhaustive effort to benchmark quarterly construction cost indices variations across various Indian cities - Bangalore cost in Q4 2019 being the baseline at 100. The indices are based on the evaluation of awarded work orders in the given quarters. JLL adopted a methodology to derive the cost indices by comparing the prices of the most commonly used items on a weighted average basis in various cities.
The growth pattern saw a significant upsurge by end of 2022 enabling positive prospects for 2023. India continues to be a lucrative market for foreign direct investments due to comparatively low setting-up costs, improved government support and availability of well-qualified professionals.