Construction cost index

The Gleeds’ cost indices have been derived from an extensive exercise of mapping costs across various Indian cities.

The following methodology was adopted to derive the indices:

1. A basket of items comprising the most used materials in construction, labour and consumables was established. These goods have been identified and known to demonstrate the inflation and dynamic nature of those typically used in the construction sector. Approximate individual quantities within the items were taken to represent the standard type of commercial buildings. Appropriate weightings were given to each item and based on the weighted average method, a base index was calculated.
2. December 2019 has been considered as the best representation of costs before the uncertainty of the pandemic. The base city taken for calculation of the index is Bangalore.
3. Cost movement for different cities across similar timelines has been mapped.

The Gleeds’ construction cost indices showcase the variations in the overall costs of building projects in the construction hotspots of the country to understand their unique pattern of resource consumption.

Factoring in the commodity price movements discussed earlier in the report, the cost indices saw an uptick from the start of FY2025, after which seasonal factor-related slumps were visible.