India, March 24 -- Construction costs for real estate projects are expected to rise by 3-5% across asset classes in 2026, driven by higher input costs, including labour, which may increase by 5-12% following the implementation of the new labour code in November 2025, according to JLL's Construction Cost Guide, India - 2026 released on March 24.In 2025, material costs presented a mixed picture with divergent trends across categories. Cement, steel and diesel prices showed a mild decrease of 1-2%, 3-4% and 5-6%, while aluminium and copper costs experienced more significant increases of 8-9% and 9-10% respectively, driven by global demand pressures and supply chain dynamics, it said.

Labour costs are experiencing the most consistent upward ...