Due to the unprecedented increase in construction costs in the housing sector, the prices of houses in big cities have increased drastically. According to real estate consultant Colliers India, due to the cost of building materials and labor costs, the average construction cost of housing projects has increased by 39 percent in the last four years. According to the data of Colliers India, the average construction cost in Premium Housing Projects was Rs 2000 per square foot in october 2020, which increased to Rs 2200 per square foot in october 2021, Rs 2300 per square foot in october 2022, Rs 2500 per square foot in october 2023 and increased to Rs 2780 per square foot in october 2024. That is, the construction cost has increased by Rs 780 per square foot in the last four years.
According to Colliers India, this is the average construction cost of a 15-floor Grade A residential building and this cost is of tier-1 cities. According to the data, the average cost of construction of housing projects has increased by 11 percent in the last one year. Due to a major increase in labor cost as well as the increase in the prices of construction materials like sand, brick, glass, wood, the construction of houses has become expensive. Although there has been a slight increase in the prices of construction materials like cement, steel, copper and aluminum. But due to a 25 percent increase in labor cost in one year, a major increase in construction cost has been seen.
Badal Yagnik, CEO of Colliers India, said, last year the increase in the prices of major construction materials has been minor, but the construction cost has increased due to the increase in labor cost. The share of labor cost in the construction cost of housing projects is close to 25 percent. Anarock said in its report that there has been a huge jump in property prices in India. Especially in the top 7 cities of the country, the price of average houses has increased by 23 percent to Rs 1.23 crore in the first half of the financial year 2024-25, which was Rs 1 crore in the first half of the last financial year. That is, the average price of houses has increased by Rs 23 lakh. The price of houses in delhi NCR has increased by 55 percent on an annual basis. It has increased by 44 percent in Bengaluru. The price of houses has also increased in Hyderabad, Chennai, pune and Kolkata.
click and follow Indiaherald WhatsApp channel