On an average, there was a 9.26 percent to 10.44 percent increase in construction costs for Grade A warehousing and 7.72 percent and 8.68 percent for general manufacturing in the last two years
Mumbai and Kolkata saw the highest construction costs at Rs 2,115 per sq.ft. for grade-A warehousing space and Rs 3,295 per sq.ft. for a general manufacturing facility. This was followed by Pune which saw the costs at Rs 2,100 and Rs 3,265 per sq ft, respectively, according to a Savills India report titled ‘Construction Cost Guide’.
Construction costs have increased due to rising material prices such as crude oil, steel, aluminum, cement, labour, equipment rental costs, and costs of plumbing and fixtures. Additionally, COVID-19 has caused a significant shift in construction costs, resulting in slightly higher material costs and supply chain disruptions.
Source: Money Control News
