Building Smarter: Construction Cost Insights

Our latest report, Building Smarter: Construction Cost Insights| 2025, presents a comprehensive analysis of construction cost trends across India's key real estate sectors.

Key highlights:

- Between 2023 and 2025, construction cost escalation varied significantly – malls recorded the highest increase at 13.9%, while general manufacturing saw the lowest at 3.8%. 

- Based on a survey of 597 hotels across 150 cities, the average hotel development cost stands at INR 1.36 crore per key, with fit-out costs emerging as the primary cost differentiator across positioning tiers. 

- Office sector development costs rose 7.0%, driven largely by a sharp 20-22% increase in MEP costs reflecting higher tenant fit-out specifications. 

- Residential construction costs rose across segments — affordable at 11.1%, mid-end at 11.9%, and luxury at 12.8% - with Mumbai consistently recording the highest escalation.

- Grade-A warehousing costs saw a moderate 5.8% increase, while general manufacturing remained the most stable at 3.8%.

There’s a whole lot more in our report. Download it today!