Illuminating resilience, innovation and sustainable growth

2024 is set to be a year of significant global political and economic change. With roughly half the world’s population casting ballots in local, regional, legislative and presidential elections alongside ongoing global tensions, there is a cautious note to investor confidence.

India’s economy continues to demonstrate resilience with steady gross domestic product (GDP) growth, stabilised inflation and encouraging industrial outputs. The outlook for the Indian economy largely remains positive, although reliant upon steady global economic conditions and the resolution of ongoing geopolitical tensions.

The construction industry in India also shows resilience. Although there was some slowing in the first half of the fiscal year due to the national elections, the economic stability seen post-election appears to be spurring growth.

However, the real estate and construction sectors are navigating a dynamic landscape. Whilst there are significant improvements compared to the volatility faced in the last fiscal year, commodities price fluctuations continue and rising labour costs influence construction costs, particularly as skilled labour shortages persist.

Our forecasts suggest a slight uptick in construction costs in the latter half of FY2025, but significant increases are not expected as long as there is a de-escalation of the ongoing Middle Eastern tensions.

Digitalisation remains a key trend in the market, with the Indian construction industry embracing innovations ranging from real-time data analytics to automation. These innovations bring efficiencies to project programmes and costs and help overcome labour challenges.

India is also emerging as a global leader in green construction. Targets to achieve net zero emissions by 2070 are reshaping how projects are planned and delivered, and there is an emphasis on reducing embodied carbon.

This report provides an in-depth review of current market trends, cost dynamics and insights gathered through our in-house intelligence and recent industry survey. It gives a view of the opportunities and risks in the market, illuminating a path to success in the built environment.