The economic slowdown due to the COVID-19 pandemic had a significant impact on the construction sector, which is sensitive to economic disruptions. The cascading effect led to an increase in prices of crucial construction materials which are pushing up overall construction costs. 

At Savills India, we’ve attempted to estimate variations in construction costs for the manufacturing and warehousing sectors with the help of real-time construction cost data and project budgets, as handled by the Project Management Services team of Savills India. The results and insights gained from this exercise have been brought out in the form of this Construction Cost Guide. 

Some of the key highlights:

- Industrial and warehousing space absorption stood at 44 mn sq. ft. in 2021 to include 35.1 mn sq. ft. from Tier I cities and 8.6 mn sq. ft. from Tier II and III cities, driven by a robust growth in the e-commerce and manufacturing sectors and rising demand in emerging Tier I and Tier II cities.   

- India witnessed a fresh supply of 45 mn sq. ft. in 2021 where 36 mn sq. ft. was from Tier I cities and 8.9 mn sq. ft. was from Tier II and III cities.

- Growing demand for warehouse space for manufacturing, e-commerce and organised retail are likely to drive warehousing demand in 2022.

Interested in more? Download our report today!