CBRE South Asia study estimates material costs increased by 5-7 percent during the third quarter of 2022 . Material costs increased by 5-7 percent during the third quarter of 2022 .
In a study released on Thursday, leading real estate consulting firm CBRE South Asia estimated that material costs increased by 5-7 percent during the third quarter of 2022, owing to reduced production as a result of the pandemic and higher international shipping costs as a result of supply chain bottlenecks.In the report, the average construction cost of greenfield infrastructure projects increased by 8-10 percent and reinforcement steel prices by about 20 per cent year on year.According to the CBRE study, market stability is likely to persist in 2023 as a result of continued high inflation, a threat of a slowdown in developed economies, and geopolitical instability-related challenges.Overall input costs will be determined in 2023 by fuel price fluctuations.
In the near future, construction demand is projected to be strong.We expect a relatively stable outlook for the Indian economy, with the possibility of a slowdown; however, substantial pent-up demand for new construction, including government infrastructure projects, is expected to largely sustain construction activity in India, according to Anshuman Magazine, Chairman and CEO of CBRE, India, South-East Asia, Middle East, and Africa, adding that construction demand is expected to continue strong in the short term due to the substantial pent-up demand for new construction.