1、India Construction Creating ResilienceCBRE RESEARCHREPORTCost TrendsDECEMBER 2022ContentsIntroductionChapter 2What does it mean for construction costs?Chapter 4Movement in office fit-out costsChapter 6AnnexureChapter 1 Navigating amid uncertaintyChapter 3How input material prices impact overall cost

2、s?Chapter 5 Outlook remains positive01051726020921IntroductionAfter agriculture and retail,the construction industry is the largest employment generator in India and hence is a crucial indicator of the state of the economy.1 With linkages to industries such as cement,steel,chemicals,paints,tiles,etc

3、.,the construction industry also has a strong connection to the real estate sector.Further,with the country having the potential to become the third largest construction market globally in terms of size by the end of 20222,the industry has been high on the governments reforms and development agenda.

4、Although the construction sector continues to recover from pandemic-related challenges,the resulting impact over the past two years has altered many of the typical approaches that were used earlier to manage construction cost practices.With this report,CBRE Research has elucidated how a confluence o

5、f events have impacted key input construction materials and how macroeconomic factors are likely to impact overall construction costs.1 Periodic Labour Force Survey,MosPI2 India Brand Equity FoundationSource:CBRE Research,Q3 2022;Oxford Economics;Ministry of Statistics&Programme Implementation(MoSPI

6、)FIGURE 1:Snapshot of the Indian construction industryContributes to 8%of the countrys total GDPOne of the largestemployers in thecountryRising foreign direct investmentGreater adoption of ESG,technology and wellnessDirect linkages with commercial real estateIndirect linkages with morethan 250+ancil