Industry Analysis

The construction inflation rate was 0.87 per cent in Q4-2024. Notable, Q4 2024 recorded a decline (-0.80%) from Q3 2024, signaling a contraction in construction costs. There were general declines in the indices of material, labour, equipment, and Transport, Fuels and Lubricants in Q4-2024. The indices of quarry products, cement and hardcore decreased by 3.90, 1.94 and 2.40 per cent, respectively. Additionally, the indices of steel reinforcement bars, ballast and graded crushed stones decreased by 1.97 per cent and 2.37 per cent, respectively. The Building Cost Index decreased by 0.89 per cent, to 118.77 in Q4 2024, indicating a decline in building-related costs. Building Cost material indices decreased by 1.59 per cent from 124.29 in Q3 2024 to 122.32 in Q4 2024. The building equipment costs indices declined from 101.16 to 100.86.

The Civil Engineering Cost Index decreased by 0.75 per cent to 120.52 in Q4- 2024. Across the four categories—materials, equipment, transport, fuel, and labor—there was a marginal decline in costs between Q3 2024 and Q4 2024. The Civil engineering material indices declined by 0.36 per cent, from 131.29 in Q3 2024 to 130.82 in Q4 2024. Further, the Civil engineering equipment cost indices decreased by 0.81 per cent to 110.69 in Q4 2024, while Transport, Fuel and Lubricants index fell from 119.93 in Q3 2024 to 118.70 in Q4 2024.