PDS

India | 2024

Construction Cost guide

India: 2024 jll.co.in
JLL Cost Management
Table of Contents
Foreward 3

Real Estate in India 4

Construction Outlook Across Sectors 5

Contract Models and Procurement Routes 14

Standard Form of Contract 17

Construction Costs Benchmarking 19

Cost of Key Building Construction Materials across various cities 21

Labour rates in metro cities 22

Trends Analysis 23

Market Intelligence 27

General Considerations for Costing 29

Glossary & Abbreviations 30

About JLL Cost Management India 32

2 | Construction Cost Guide India: 2024

Foreword
In 2023, the Indian real estate construction industry stabilized and continued To understand the outlook for the real estate construction industry in 2024,
to grow throughout the year despite global disruptions. The sector we present JLL’s Construction Cost Guide 2024. This comprehensive report
experienced positive momentum in the second half of the year, leading to offers market insights into cost across various asset classes, strategies,
increased confidence from buyers and investors. The FY 23-24 Union Budget’s procurement models, and market trends for major cities in India. The guide
focus on infrastructure, housing schemes, and affordable housing is expected provides real-time data from six key geographies: Mumbai, Bengaluru,
to drive growth in the Indian real estate sector in 2024, despite higher interest Chennai, Delhi, Hyderabad, and Pune.
rates. The inclusive development and infrastructure & investment priorities
We trust that you will find value in exploring the insights provided regarding
outlined in the budget support the construction sector’s growth.
India’s evolving dynamics in real estate construction costs.
In 2023, supply chain operations faced volatility caused by factors like
inflation, uncertain consumer demand, labor shortages, and disrupted

“
logistics. To manage costs, managers are restructuring operations,
strengthening digital controls, and prioritizing flexibility. Sustainable supply
chains are crucial for branding, attracting talent, and meeting ESG standards. The guide provides real-time
Companies are updating supply chain models with a digital focus. Localizing data from six key geographies:
supplies and diversifying sources across regions help mitigate risks related to Mumbai, Bengaluru, Chennai,
geopolitical factors, transportation costs, and delays.
Delhi, Hyderabad, and Pune.
Construction companies are adopting tools like BIM, prefabrication,
Jipujose James
lean design, and robotics to streamline processes and manage costs. As MD and Head of
India saw the construction of its first 3-D printed public building in Q3 Project & Development Services
India
2023, the adoption of innovative technologies holds potential to reduce
construction timelines.

3 | Construction Cost Guide India: 2024

 Real Estate in India
According to the World Economic Situation and Prospects Report (WESP) for 2024, the projected
global inflation for 2023, estimated at 5.7%, is expected to decrease to 3.9% in 2024. The report
also indicates a slowdown in global GDP growth from an estimated 2.7% in 2023 to 2.4% in
2024, which is still below the pre-pandemic levels of 3%. However, despite this slowdown, India
continues to be the fastest-growing large economy in the world, with a projected growth rate of
6.2% in FY 2024, only slightly lower than the projected 6.3% in 2023, as stated in the WESP Report.

Indian real estate is increasingly becoming an attractive investment avenue due to attractive rental
yields and the potential for further price appreciation amidst market volatility and increasing
inflationary pressures. With the government’s recent focus on infrastructural development through
various schemes, India experienced a significant influx of investments in the first half of 2023.

India remains a promising market for foreign direct investment, thanks to comparatively low
setup costs, improving government support, and the availability of well-qualified professionals.
Investments in data centers in India are expected to rise substantially in the coming years, with
Mumbai leading the sector and Chennai and Hyderabad following suit. The commercial sector
is also expected to maintain its growth momentum, driven by high demand for office spaces,
particularly in technology hubs like Bengaluru.

Maneuvering geopolitical events in a globally interconnected economy and their impact on the
real estate sector is always a challenge, requiring meticulous planning & the implementation of
cost-effective strategies

4 | Construction Cost Guide India: 2024

Construction
Outlook across
sectors - FY 2024

5 | Construction Cost Guide India: 2024

Commercial
This asset class continues to maintain its dominance new completions have surpassed net absorption, With a notable year-on-year growth of 16 percent,
in the real estate space. Despite sluggishness in the national vacancy rate has only slightly increased the segment witnessed transactions exceeding
the technology sector, space requirements exhibit by 20 basis points quarter-on-quarter to reach 58 million sq ft. Among the cities, Bangalore
stability, and new space demands are replacing 16.8%. However, vacancy rates in core office markets emerged as the leader, accounting for a quarter of
deal closures as the recovery remains on track. across all cities currently remain in the single digits. these transactions, while Delhi NCR and Chennai
The absence of any significant impact from global It is anticipated that net absorption numbers will experienced significant increases in occupier activity,
headwinds on demand highlights the resilience of continue to be strong, keeping the vacancy rate representing approximately one-fifth of the total
India’s office markets. It is expected that the full- range-bound and sticky within the range of 16-18%. transactions. This surge in activity was primarily driven
year estimates for 2023 will be close to the levels by substantial lease agreements signed by co-working,
The impact of favorable manufacturing policies and
seen in 2022. The demand for office space remains BFSI (Banking, Financial Services, and Insurance),
India’s engineering talent is gaining momentum,
positively oriented towards growth and future education, and e-commerce companies.
with the occupier segment emerging as the largest
headcount additions.
contributor to leasing activity in Q3, accounting for The performance of the commercial markets
Bengaluru, Delhi NCR, and Hyderabad are leading an 18.6% share. The office space market in India underscores the strong demand fundamentals and the
in terms of net absorption in the year-to-date 2023, demonstrates the country’s economic resilience, absence of any lasting effects from global headwinds,
accounting for a combined share of 59%. Although as evidenced by its robust performance in Q4 2023. except for some instances of delayed decision-making.

6 | Construction Cost Guide India: 2024

Residential
In 2023, the residential market achieved its strongest sales
since 2010, driven by high demand in the high-end segment.
The premium segment, with homes priced above INR 1.5
crore, made a notable contribution, signaling a growing
preference for larger, upscale homes with superior amenities.
Developers have responded by targeting homeowners
seeking upgrades. Despite rising interest rates and housing
prices, buyer sentiment remained positive, reflecting
confidence in the domestic market. For 2024, residential
sales are projected to reach 300,000-315,000 units, assuming
sustained GDP growth, stable inflation, and a decrease in
home loan interest rates by 40-50 basis points.

The Senior Living sector in India, with a current population

of over 100+ million seniors, offers significant investment
and development potential. While home care services for
seniors have gained popularity, providing a comprehensive
ecosystem comprising medical care, wellness, and social
interaction remains a challenge. In response, tailored senior
living communities are emerging as a favored solution to
meet the unique needs of seniors.

7 | Construction Cost Guide India: 2024

Industrial & Logistics
The logistics and warehousing sector in India has witnessed
significant advancements, transitioning from traditional
godowns to modern automation-assisted warehouses. Supply
chain restructuring has led to improved logistics efficiency,
with a focus on optimizing operations. The government’s
Gati Shakti program, aimed at enhancing infrastructure to
ensure congestion-free logistics, is expected to contribute
to the steady growth of the logistics sector. Additionally, the
warehousing sector is poised to experience increased demand
due to the Production Linked Incentive scheme, which is likely
to boost manufacturing in the country.

With the rapid growth of e-commerce and manufacturing

segments in India, coupled with the expansion of third-party
logistic service providers, the logistics and warehousing
asset class is anticipated to experience steady growth in
the upcoming year.

8 | Construction Cost Guide India: 2024

Hospitality
India’s hospitality industry experienced a notable recovery
in 2023 following the Covid era, driven by various MICE
(Meetings, incentives, Conference and exhibition) events,
including the G20 summit. The resurgence of the hotel
industry can be attributed to the influx of domestic and
international tourists visiting for the ICC 2023 cricket world
cup. Additionally, with the per capita net national income
rising post-Covid, domestic travel within the country has
witnessed an increase. These factors contributed to a
significant growth of 15.1% in Revenue per Available Room
(RevPAR) from July to September (Q3 2023) compared to
the same period last year.

The hospitality industry in India has been experiencing

moderate growth in recent years and continues to grow
steadily at the same pace.

9 | Construction Cost Guide India: 2024

Data Centre
India currently occupies the 13th position globally in the
data center space, with Mumbai holding the majority
share of 45% of the country’s data centers. Chennai is a
distant second with a 14% share. The growth of this asset
class is driven by increasing demands from the IT sector,
the transition of internet and data users from 4G to 5G
networks, the establishment of various global capability
centers in India, and the surge in cash-free (online)
transactions, along with the booming e-commerce sector.

According to the November 2023 Ericsson Mobility Report,

5G penetration in the Indian market was projected to reach
11%. The report also stated that the average data traffic per
smartphone in India, Nepal, and Bhutan is expected to grow
from 31GB per month in 2023 to 75GB per month in 2029.
So far, data center developments have primarily focused on
Tier 1 cities such as Mumbai, Chennai, Bengaluru, and NCR.
As a result, Tier 2 cities remain an untapped market with
significant potential for growth.

10 | Construction Cost Guide India: 2024

Infrastructure
The Indian economy is currently experiencing growth in infrastructure spending. the expansion of national highways, the modernization of railway stations, the
According to the CRISIL Infrastructure Yearbook 2023, infrastructure investments construction of new airports, and enhancements to port infrastructure. The objective
are projected to double by 2030, with a significant emphasis on green was to enhance connectivity and facilitate smoother movement of goods and people.
investments. Similar to India’s economic growth story, the infrastructure sector is
The Smart Cities Mission continued to drive urban infrastructure development,
expected to continue to expand in the coming years.
with an emphasis on creating sustainable and technologically advanced cities.
The Union Budget for 2023-24 underscored a strong commitment to Multiple smart city projects were implemented, integrating elements such as smart
infrastructure development, with increased allocations and investments. The transportation systems, efficient waste management, digital connectivity, and
government aimed to improve connectivity, modernize existing infrastructure, renewable energy solutions.
and initiate new projects across various sectors, including roads, railways,
Overall, the infrastructure sector in India is witnessing substantial growth, supported
airports, ports, and urban infrastructure.
by government initiatives, increased investments, and a focus on sustainable and
Significant investments and attention were directed towards the transport technologically advanced development. This development trajectory is set to create
sector, encompassing roads, railways, airports, and ports. These efforts included opportunities for both domestic and international investors in the coming years.

11
11 | Construction Cost Guide India: 2024
Health Care & Life Science
In the Union Budget FY 23-24, the Ministry of Health and Family
Welfare has been allocated INR 89,155 Cr, representing a 13%
increase compared to the funds allocated in 2022-23. Of the
allocated funds, 3% is designated for health research, while
97% is allocated towards health and family welfare. One of
the objectives is to establish new nursing colleges co-located
with 157 recently established medical colleges. The budget
also witnessed a 20% increase in allocation to the Ministry of
Ayush. This sector is expected to gain momentum with special
allocations for setting up medical education institutions.

The growth of the healthcare and life sciences sector has

resulted in an increased demand for healthcare facilities,
leading to the construction and expansion of hospitals, clinics,
specialized treatment centers, and research laboratories. Real
estate developers are catering to this demand by investing in
healthcare infrastructure.

India’s pharmaceutical industry continues to be a significant

global player, manufacturing and exporting a wide range of
generic drugs. The country places increased emphasis on
biotechnology and biopharmaceuticals, with investments
focused on research, development, and manufacturing
capabilities in these sectors.

12 | Construction Cost Guide India: 2024

Educational
In the Union Budget FY 23-24, the budget allocation for the
Department of School Education and Literacy witnessed a
15.6% increase compared to the previous year. Additionally,
a special fund of INR 4000 Cr was reserved to uplift 14,500
government schools. The Department for Higher Education
also experienced an 8% increase in their allocation as
compared to the previous year.

The overall funding for the education sector increased by

8% in the budget, indicating a significant focus on improving
educational infrastructure. These measures demonstrate the
government’s commitment to enhancing the quality of school
education and expanding educational opportunities. The
increased allocation is expected to lead to improvements in
educational infrastructure and growth in this space.

13
13 | Construction Cost Guide India: 2024
Contract Models
and Procurement
Routes
The selection of a procurement strategy is crucial
in determining the success of a project. It has far-
reaching implications on risk allocation, project and
cost management, design strategy, and contractor
engagement. The associated legal contracts also
play a role in risk allocation. Furthermore, the choice
of contract model significantly impacts the project’s
timeline and overall cost.

14 | Construction Cost Guide India: 2024

Conventional Design Build Contract Management Contracting

This method is widely known and understood in In this type of contract, detailed design and A Management contractor is appointed based on an
India as a method for procuring construction works. construction are both undertaken by a single agreed fee, with the intention that the Management
It requires a complete design before obtaining contractor in return for a lump sum price. This method contractor will manage several trade packages which
tenders, which are usually based on bills of quantities has many hybrids but in essence, it utilizes the are tendered on an individual basis. The Management
or detailed specifications and drawings to give contractors’ input into the design process. Using a clear Contractor enters a contract with the successful trade
a complete picture of the project scope. When set of “Employer’s Requirements”, the contractor can contractors providing a single point responsibility to
tendering, the client can either agree to enter into understand and develop the design better than the the Client. Design consultants appointed by the Client
a Lump Sum contract to give price and program traditional approach identified above and therefore generally overlap with the construction allowing
certainty, or a re-measurable contract, where the can price it for taking the design responsibility, together an earlier start on site. Early appointment of a
final price is agreed upon at the end of the works, with its associated risks. Where a concept design is management contractor may allow the client, to help
based on the rates set out in the Bill of Quantities prepared by a design team employed directly by the improve the buildability and packaging of proposals
and the actual amount of materials. This traditional client before the contractor is appointed (as is normally as they develop. It is typically best suited to larger,
approach is known for achieving a high level of the case), the design can be ‘novated’ to the contractor. more complex, or time-sensitive projects which may
competitive tendering which allows overall quality This approach integrates the design and construction also require considerable flexibility to incorporate
control, but overall project programs can be longer as process, provides for a single point responsibility, and change during the design and construction stages.
a fully complete design is required from the Client’s can lead to shorter overall project times as the design This approach does not typically achieve price and
independent design consultants. overlaps with elements of construction. program certainty before starting onsite

15 | Construction Cost Guide India: 2024

EPCM (Engineering, Procurement Engineer, Procure and Flex-Opex Contracts
Construction Management) Construct (EPC)
It is a formal agreement whereby a client In this model, the contractor is obliged to deliver Flex-Opex contracts, also known as flexible operating
engages the services of an EPCM contractor to a complete facility to the client who needs only to expense contracts, enable businesses to dynamically
oversee and manage all aspects of a project. turnkey to start operating the facility. Hence, EPC adjust operating costs based on changing conditions.
The contractor brings expertise in engineering, contracts are sometimes called turnkey construction Unlike fixed-cost contracts, Flex-Opex contracts
procurement, and construction management to contracts. In addition to delivering a complete allow for flexible expense adjustments in response
provide comprehensive support throughout the facility, the contractor must deliver that facility for to fluctuations in demand or economic factors. This
project’s lifecycle. a guaranteed price by a guaranteed date, and it provides businesses with the ability to scale expenses
must perform to the specified level meeting Clients up or down as needed, making it particularly
The client retains the primary responsibility for
functional requirement. valuable in industries with variable revenue streams
project governance and holds direct relationships
or changing business needs. Flex-Opex contracts
with subcontractors and vendors. The EPCM
can apply to various operational areas, such as
contractor ensures that project objectives are met
technology infrastructure, equipment leasing, or
by offering diligent supervision and coordination
facilities management. The specific terms and
of the various projects.elements.
conditions of Flex-Opex contracts are negotiated
based on the unique requirements and goals of the
business and the service provider.

16 | Construction Cost Guide India: 2024

Standard Form
of Contract
A standard form contract is a pre-drafted contract that
is used repeatedly, usually with only a few changes
made each time it is used. These types of contracts
are often used in situations where the same type
of agreement is entered into frequently. Terms and
conditions of standard forms are agreed upon by
representatives of various construction professionals.
Hence, it is balanced and fair to all parties. It is
important to carefully read and understand a standard
form of a contract before signing it.

17 | Construction Cost Guide India: 2024

Advantages of using standard form contracts: The standard form of construction
contracts is typically issued by
professional organizations and
Time-saving Legal certainty
industry associations.
Ready-to-use standard form Drafted by legal professionals and
contracts save time and reviewed by experts, standard
Some examples include:
effort compared to drafting form contracts are enforceable
contracts from scratch and carry fewer errors or 1. American Institute of architects (AIA)
for each project. ambiguities, reducing legal fees.
2. Consensus Documents

3. Engineering News-Record (ENR)

Consistency Risk management
4. International Federation of
Standard form contracts Standard form contracts
Consulting Engineers (FIDIC)
ensure consistent terms and typically include provisions for
conditions across projects, risk management and dispute 5. JCT Contract: Joint
reducing confusion and resolution, mitigating potential contracts Tribunal (JCT)
minimizing disputes. delays and cost overruns.
6. NEC Contract: New
engineering contract (NEC)

Industry recognition Proven track record 7. ICE Contract: Institution of Civil

Widely recognized in the With a successful history of use Engineers (ICE)
construction industry, standard in various projects, standard
form contracts are more readily form contracts instill confidence 8. Central Public Works
accepted and understood by in parties due to their familiarity Department (CPWD)
project stakeholders. and reliability.
9. Indian Institute of Architects (IIA)

18 | Construction Cost Guide India: 2024

Construction
costs
benchmarking
Understanding and comparing costs is key to
enhancing the overall financial performance of
organizations. This guide shall guide you to make
informed decisions about your next project as well
as your wider real estate portfolio.

Note: The construction cost for the respective

categories is the average costing of Q4 2023.

19 | Construction Cost Guide India: 2024

Construction Cost for Various Asset Classes (INR/Sft)

Building Type Key Consideration Bangalore Chennai Delhi Hyderabad Mumbai Pune
High Rise Luxury Apartments Floors: 30+ 4,020 to 4,700 4,000 to 4,650 4,100 to 4,800 4,000 to 4,700 4,250 to 5,000 4,050 to 4,750
Residential Mid Rise Luxury Apartments Floors: 15+ 2,600 to 3,000 2,550 to 2,950 2,650 to 3,050 2,600 to 3,000 2,750 to 3,200 2,650 to 3,050
Standard /Affordable Apartments Floors: 5 to 12 2,240 to 2,600 2,200 to 2,550 2,300 to 2,650 2,250 to 2,600 2,350 to 2,750 2,250 to 2,650

High Rise Floors: 12+ 3,450 to 4,200 3,100 to 4,150 3,500 to 4,300 3,100 to 4,200 3,650 to 4,450 3,500 to 4,250
Commercial
Medium Rise Floors: 8 to 12 2,850 to 3,500 2,800 to 3,450 2,850 to 3,550 2,850 to 3,500 3,000 to 3,700 2,900 to 3,550

Retail Malls Floors: 3 to 6 3,850 to 4,500 3,800 to 4,450 3,950 to 4,600 3,850 to 4,500 4,100 to 4,750 3,900 to 4,550

Heavy Industrial NA 4,350 to 5,100 4,300 to 5,050 4,450 to 5,200 4,350 to 5,100 4,600 to 5,400 4,400 to 5,150
Industrial Light/Medium Industrial NA 2,900 to 3,400 2,850 to 3,350 2,950 to 3,450 2,900 to 3,400 3,050 to 3,600 2,950 to 3,450
Warehouse NA 1,850 to 2,200 1,850 to 2,200 1,900 to 2,250 1,850 to 2,200 1,950 to 2,350 1,850 to 2,200

5 Star / Resort Varies 10,500 to 13,800 11,400 to 13,650 11,750 to 14,100 11,500 to 13,800 12,200 to 14,650 11,600 to 13,950
5 Star 100+ Keys 7,750 to 9,300 7,650 to 9,200 7,900 to 9,500 7,750 to 9,300 8,200 to 9,850 7,850 to 9,400
Hotel*
4 Star 100+ Keys 5,500 to 6,600 5,450 to 6,550 5,600 to 6,750 5,500 to 6,600 5,850 to 7,000 5,550 to 6,650
3 Star Budget 100+ Keys 4,800 to 5,800 4,750 to 5,750 4,900 to 5,900 4,800 to 5,800 5,100 to 6,150 4,850 to 5,850

Health** Hospital Floors: 5 to10 4,800 to 5,600 4,750 to 5,550 4,900 to 5,700 4,800 to 5,600 5,100 to 5,950 4,850 to 5,650

University Campus 4,400 to 5,100 4,350 to 5,050 4,500 to 5,200 4,400 to 5,100 4,650 to 5,400 4,450 to 5,150
Education
School Floors: 3 to 5 3,400 to 4,000 3,350 to 3,950 3,450 to 4,100 3,400 to 4,000 3,600 to 4,250 3,450 to 4,050

Occupier Campus CA: 3,00,000+ 8,600 to 9,900 8,500 to 9,800 8,750 to 10,100 8,600 to 9,900 9,100 to 10,500 8,700 to 10,000
Office Fit out-High CA: 50,000+ 5,500 to 6,400 5,450 to 6,350 5,600 to 6,550 5,500 to 6,400 5,850 to 6,800 5,550 to 6,450
Fit -
Out*** Fit out-Medium CA: 30,000+ 3,800 to 4,400 3,750 to 4,350 3,900 to 4,500 3,800 to 4,400 4,050 to 4,650 3,850 to 4,450
Fit out-Basic CA: 20,000+ 3,150 to 3,700 3,100 to 3,650 3,200 to 3,750 3,150 to 3,700 3,350 to 3,900 3,200 to 3,750

Others Multi-Level Parking Floors: 3+ 1,650 to 1,900 1,650 to 1,900 1,700 to 1,950 1,650 to 1,900 1,750 to 2,000 1,650 to 1,900

*including FF&E **Excluding FF&E and medical equipment ***Cost based on Carpet Area

20 | Construction Cost Guide India: 2024

Cost of Key Building Construction Materials across various cities
Below are key building construction material prices for various cities as of December 2023

Description UoM Bengaluru Chennai Delhi Hyderabad Mumbai Pune

Cement Grade 53 INR/Bag 295 285 280 275 w310 300

Reinforcement INR/MT 56,500 54,500 55,500 56,900 52,000 51,500

Steel
Structural steel INR/MT 68,500 67,500 62,000 69,500 67,500 64,500

Aluminium INR/Kg 189 189 189 189 189 189

Metals Stainless steel (302) INR/Kg 230 230 230 230 230 230

Copper INR/Kg 706 706 706 706 706 706

Marble INR/Sft 250-650 250-650 250-650 250-650 250-650 250-650

Stone Granite INR/Sft 150-250 150-250 150-250 150-250 150-250 150-250

Kota INR/Sft 50-100 80-100 25-80 75-95 40-100 35-85

Wood Plywood 12mm thick INR/Sft 50-70 50-70 50-70 50-70 50-70 50-70

8mm INR/Sft 120-170 120-170 120-170 120-170 120-170 120-170

Clear
Glass 6mm INR/Sft 90-120 90-120 90-120 90-120 90-120 90-120

Paints Emulsion INR/Ltr 170-220 140-350 125-300 180-250 130-350 110-300

CPVC 50-100 mm SDR 11 INR/m 650-2600 650-2600 650-2600 650-2600 650-2800 650-2800

Plumbing* GI pipes- 50m to 100mm C class INR/m 500-1,900 580-1,550 450-1,500 700-2301 790-1,810 790-1,810

UPVC- 32- 100 mm INR/m 210-1,100 230-1,600 150-1,300 480-2,300 225-1,465 225-1,035

*Rates considered are without project discount

Source: As per JLL internal database. All rates are supply rates and excluding GST for Dec 2023 and for guidance only. Metal prices are referred from LME. Transportation and any other abnormal costs are excluded.
Labour rates in metro cities
The construction industry in India is a crucial driver of economic growth,
992
INR/Day 915 832
relying heavily on the workforce. With urbanization and increased
infrastructure demand, the sector has grown to around 71 million employees
INR/Day
INR/Day 751
INR/Day
in FY2023, up from 63.98 million the previous year. However, this expansion
has primarily been in unskilled labor, exacerbating the shortage of skilled
workers. Insufficient vocational training institutions impede skill development.
As construction extends to non-metropolitan and rural areas, the supply-
demand gap is expected to narrow, stabilizing the labor market and reducing
Highly Skilled Skilled Semi-Skilled Unskilled wage disparities. Labor rates have risen by an average of 6% annually over the
Source: The above rates as per minimum wage plus VDA order issued by Chief Labour Commissioner with effect from 1st Oct’2023. past three years, impacting construction costs by approximately 2%.

22 | Construction Cost Guide India: 2024

Trends
analysis

23 | Construction Cost Guide India: 2024

3-year Quarterly rate trends for Cement and Reinforcement Steel

8,000 35%
7,130 7,100
7,050
7,000 30% 29%
28% 30%
6,000 5,920 5,960 5,795
6,000 5,500 5,755 5,713 5,699 5,500
25%
Cement (INR/MT)
5,000
20%
Cement (% Change)
Cement 4,000
15%
3,000
Source: As per JLL Internal Database. Rates
8% 8% 10%
2,000 are exclusive of GST for Grade 53 (OPC) and
5% 9% 5% 4% 4% 5% for guidance only. All rates are averaged
1,000 5% for metro cities (Mumbai, Delhi, Bangalore,
Chennai, Hyderabad & Pune). Percentage
change w.r.t to Q1 2021
- 0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2021 2022 2023

80,000 66,900 20%

70,000 18%
61,500 62,300 15%
60,000 60,500 60,717 58,829
60,000 56,467 57,050 56,265
9% 52,310 53,781 Steel (INR/MT)
10% 10%
50,000 8%
7% 4.2% Steel (% Change)
Steel 40,000 6% 5%

30,000 0% -0.4%
1% 0% Source: As per JLL Internal Database. Rates
20,000 -5%
are exclusive of GST for TMT Rebar Fe 500/ 550
and for guidance only. All rates are averaged
-7% -5%
10,000 for metro cities (Mumbai, Delhi, Bangalore,
Chennai, Hyderabad & Pune). Percentage
- -10% change w.r.t to Q1 2021
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2021 2022 2023

24 | Construction Cost Guide India: 2024

3-year Quarterly rate trends for Concrete and Diesel

6,000 5,650 5,620 5,675 5,553 5%

5,450 5,367 5,358
5,250 5,186 5,211
0.4%
5,000 4,750 -2% 0%
0% -4% 4,550
-1%
4,000 -7% -5% Concrete (INR/MT)
-5% -5%
Concrete (INR/MT)
Concrete 3,000 -8% -8% -10%

2,000 -15% Source: As per JLL Internal Database. Rates

are basic rates of concrete exclusive of GST
-16%
for M25, M30, M35 Grade average rates and for
1,000 -19% -20% guidance only. All rates are averaged for metro
cities (Mumbai, Delhi, Bangalore, Chennai,
Hyderabad & Pune). Percentage change
0 25%
w.r.t to Q1 2021
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2021 2022 2023

100 95.99 97.30 30%

92.36 92.15 92.77 92.67 92.67 92.66 92.64
89.40
90 83.72
78.52 24% 25%
80
22%
70 Diesel Price (INR/MT)
20%
60
14% Diesel (% Change)
Diesel 50 18% 17% 18% 18% 18% 18% 18% 15%
40
10% Source: Ministry of Petroleum and Natural Gas
30 7% and for guidance only. All rates are averaged
20 for metro cities (Mumbai, Delhi, Bangalore,
5% Chennai, Hyderabad & Pune). Percentage
10 0% change w.r.t to Q1 2021
- 0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2021 2022 2023

25 | Construction Cost Guide India: 2024

3-year Quarterly rate trends for Aluminium and Copper

2,46,800
3,00,000 70%

1,56,450 2,29,318
2,03,385

2,01,272
60%

1,98,463
1,94,445
2,50,000

1,88,500

1,88,127
1,86,200

1,83,837
1,80,514
50%

1,56,450
2,00,000 58% Aluminium (INR/MT)
47% 40%
Aluminium (% Change)
Aluminium 1,50,000
29%
24% 30%
30%
1,00,000 27% Source: LME. Rates are exclusive of GST
15% 20% and for guidance only. Percentage change
19% 20% 20%
18% w.r.t to Q1 2021
50,000 10%
0%
0 0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2021 2022 2023

7,66,500
7,45,000
9,00,000 15%

7,37,504
7,37,077
7,18,925
7,07,750

7,01,206
7,00,553

6,89,284
6,92,850

6,50,976
8,00,000

6,35,307
7,00,000 10%
8% 11%
6% 6%
6,00,000 Copper (INR/MT)
5%
5,00,000 Copper (% Change)
Copper 4,00,000 2%
4% 1.2%
1.1% 0%
3,00,000 0% -0.5% Source: LME. Rates are exclusive of GST
and for guidance only. Percentage change
2,00,000 -5% w.r.t to Q1 2021

1,00,000 -6%
-8%
- -10%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2021 2022 2023

26 | Construction Cost Guide India: 2024

Market Intelligence
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.

Construction Cost Indices

160 160

128 135 129 128 128 129 128

140 124 127 127 140
121
117 117
120 120
101
100 100

80 80

60 60

40 40

20 20

- -
04-2019 Q4-2020 Q1-2021 Q2-2021 Q3-2021 Q4-2021 Q1-2022 Q2-2022 Q3-2022 Q4-2022 Q1-2023 Q2-2023 Q3-2023 Q4-2023

Source: JLL Internal Cost Benchmarking Data Base Bengaluru Chennai Delhi Hyderabad Mumbai Pune Average

27 | Construction Cost Guide India: 2024

Wholesale Price Index for all commodities
156 155.4
154
154 153.2 152.9 152.5 152.5 152.9
151.9 152.1 152.1
152 151.5 151.6
150.7 150.9 151 151.1
150.5
150 149.4
148.9
148

146

144
Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 April-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 (P)
Source: Office of Economic Advisor

Y-o-Y Increase % - CPI and WPI Annual Average Historic Conversion Rate (USD to INR)
800.0
700.0
82.6
7.5% 600.0 78.6
6.2% 6.9%
6.2% 5.8% 500.0 74.5
5.1% 5.6% 4.7% 5.0%
4.4% 4.5% 74.1
4.8% 3.9% 400.0
70.4
300.0 68.4
1.4%
-0.3% 0.3% 200.0 65.1
-0.8% -0.5% -0.5%
67.2
Jan-23 Feb-23 Mar-23 April-23 May-23 Jun-23 Jul-23
-1.2% Aug-23 Sep-23 Oct-23 Nov-23 100.0 64.1
- 61.0
-3.6% -4.2%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

WPI CPI Increase Decrease Total

Source: WPI as observed from values published by the Office of the Economic Advisor. CPI as observed from values published by FRED Source: XE Currency (Over the last few months, the USD has steadily risen against INR)
(Federal Reserve Economic Data)

28 | Construction Cost Guide India: 2024

General considerations for Costing
• The Cost/Sft represents the average of the competitive tender
prices as of Q4 2023. Further assumptions include: Office fit-out Projects – Specifications explained
• The warm shell cost for commercial, retail, and hospitality
inclusive of common area finishes. High
• The warm shell cost is exclusive of Demolition of existing
Specification
buildings, tenant fit-out, FF&E (furniture, fitting, and Emphasises top-
Medium
equipment), OS&E unless otherwise specified, Cost quality finishes and Specification
escalation, professional fees, land, finance, approvals where space improvements. Features upgraded
Basic
applicable & contingency. Increased efforts lighting, cabling Specification
spent on aesthetics and design. Uses
• The warm shell cost is exclusive of taxes, consultant fees, Designed to be low cost,
and detail design. average quality
land acquisition, project financing cost, project-specific site with a simple aesthetic.
materials and details. Finishes focus on
conditions, and site abnormality.
function. Space contains
• All costs are deemed to include contractor overheads, margins, basic technology.
direct/indirect expenses, labour insurance, and site overheads.

• The Construction costs serve only as a guide for preliminary

cost appraisals and budgets; all buildings are assumed with
appropriate allowance for basements & are built on the ground
with normal soil conditions.
Note: Construction Cost for all assett classes is on BUA except Office fit out
cost which is considered on Carpet area. For commercial Asset class BUA/
SBA considered at 1.4 and that for Residential Projects is 1.25 on an average.

29 | Construction Cost Guide India: 2024

Glossary & abbreviations
• Gross Domestic Product (GDP) Abbreviations
GDP is the total monetary or market value of all the finished goods and services • BUA: Built-up area • MEP: Mechanical,
produced within a country’s borders in a specific time period. As a broad Electrical and Plumbing
• CA: Carpet area
measure of overall domestic production, it functions as a comprehensive • MT: Metric tonne
• Cum: Cubic Metre
scorecard of the country’s economic health. Though GDP is usually calculated
• MRICS: Member of the Royal Institution
on an annual basis, it can be calculated on a quarterly basis as well. • FF&E: Furniture,
of Chartered Surveyors.
Fixtures & Equipment
• Wholesale Price Index (WPI)
• OS&E: Operating Supplies & Equipments
• GST: Goods and Services Tax
WPI measures the changes in the prices of goods sold and traded in bulk by
• Sft: Square foot
wholesale businesses to other businesses. • INR: Indian National Rupee
• Sqmm: Square millimetre
• INR to USD exchange rate • LME: London Metal Exchange
An exchange rate is the value of one nation’s currency versus the currency of • TMT: Thermo Mechnically Treated
• Ltr: Litre
another nation or economic zone. For example, how many U.S. dollars does it • USD: United States Dollar
• M: Linear metre
take to buy one rupee.

30 | Construction Cost Guide India: 2024

About JLL Cost Management India
Cost Management at JLL is a blend of technical expertise, collaborative working and commercial
understanding. We deliver more than just a project. We build business outcomes - the long term goals • End to end Cost Management
in every new building, fit-out or design. From consulting and capital management through design and
construction, we bring life cycle perspective to every project. Transforming the spaces where people live, • Cost Planning and Feasibility
work and play to ensure you realise your broader ambitions and business goals. • Cost Benchmarking

• Procurement &
Tender Management

• Value Engineering
Design
Feasibility Development Procurement Construction Post-Contract • Bills of Quantities
Preparation/Validation

• Contract Advisory

• Cost Risk Management

• Cash flow Forecasting

100+ 1450 17 offices • Change Management

Cost Managers Project Managers in 11 Cities
• Cost Audits

Our Cost Management experts are experienced across a wide array of sectors, covering: offices, retail, • BIM Measures
industrial and logistics, public sector, health, education, residential and hotels

32 | Construction Cost Guide India: 2024

 jll.co.in

Business Contacts About JLL

Ashok VS, MRICS Aditya Desai For over 200 years, JLL (NYSE: JLL), a leading global commercial real
Senior Director & Head- Cost Management Executive Director & Head of Investor Services estate and investment management company, has helped clients buy,
Project & Development Service Project & Development Service build, occupy, manage and invest in a variety of commercial, industrial,
[email protected] [email protected] hotel, residential and retail properties. A Fortune 500 company® with
annual revenue of $20.8 billion and operations in over 80 countries
around the world, our more than 106,000 employees bring the power of
Prabakaran Durai Dhanya S Jacob Tharakan, PMP
a global platform combined with local expertise. Driven by our purpose
[email protected] [email protected]
to shape the future of real estate for a better world, we help our clients,
people and communities SEE A BRIGHTER WAYSM. JLL is the brand name,
Tejas Kalaskar and a registered trademark, of Jones Lang LaSalle Incorporated. For
[email protected] further information, visit jll.com

Design

Sunita Rajeev
Director Design
Marketing
[email protected]

This report has been prepared solely for information purposes and does not necessarily purport to be a complete analysis of the topics discussed, which are inherently unpredictable. It has been based on
sources we believe to be reliable, but we have not independently verified those sources and we do not guarantee that the information in the report is accurate or complete. Any views expressed in the report
reflect our judgment at this date and are subject to change without notice. Statements that are forward-looking involve known and unknown risks and uncertainties that may cause future realities to be
materially different from those implied by such forward-looking statements. Advice we give to clients in particular situations may differ from the views expressed in this report. No investment or other business
decisions should be made based solely on the views expressed in this report.

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