- Most global markets will see cost increases between 2% and 6%.
- Need for stronger risk allowances and scenario forecasting as policy and market conditions evolve
- Labour shortages, supply chains, energy costs, policy change and geopolitics are creating risks that are harder to predict.
New Delhi, 04 February 2026
Construction costs globally are set to rise by 2.4% in 2026, but growing uncertainty is the real challenge to project delivery.
The findings are captured in ‘Construction in 2026: Where Certainty Comes from Agility’ a new report published by Currie & Brown, a world-leading provider of cost management, project management and advisory services.
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REGIONAL ANALYSIS
India’s construction market remains resilient, supported by sustained infrastructure investment, urban growth, and strong demand across industrial and commercial sectors. However, capacity constraints and shifting market conditions are increasing pressure on project costs and delivery timelines.
Cost trends are being shaped by labour availability, energy volatility, evolving compliance requirements, and ongoing supply chain uncertainty, alongside wider geopolitical influences. At the same time, the industry is moving toward more sustainable practices, greater digital adoption, and faster delivery models. This makes early-stage planning, procurement strategy, and proactive risk management essential for clients and stakeholders.
Satyakumar Shetty, COO India at Currie & Brown , said:
“India remains one of the world’s busiest and most competitive construction markets, but the factors influencing costs are changing quickly. Cost increases are no longer driven by materials alone; they are being shaped by labor availability, fluctuating energy prices, evolving regulations, and broader geopolitical uncertainty.
For clients, this underlines the importance of having clear cost insight and planning to safeguard project delivery and achieve lasting value”
The global outlook
In most countries, construction costs are forecast to rise between 2% and 6%, supported by steady demand across infrastructure, healthcare, technology and industrial sectors. A small number of markets sit outside this range. In China, costs are expected to remain flat. This has weighted down the global average. In Japan, escalation could reach 10% to 12%, due to labour shortages and material pressures. These outliers highlight how local market conditions can impact costs.
But moderate cost growth does not mean a simple delivery environment. Labour shortages, shifting trade tariffs, supply chain disruption, energy price volatility, climate events, conflict and policy change are all affecting construction markets. These risks are increasingly connected. A shift in one area can quickly create problems in another.
Alan Manuel, Group Chief Executive Officer at Currie & Brown, said:
“In 2026, we’re predicting moderate cost escalation across most markets. But the real challenge comes from how quickly this picture can change.
“This volatile environment means that resilience is more important than ever. And that resilience comes from planning for change early. That means using data to test options, using technology to spot pressure sooner, and being clear about what must be fixed and what needs to stay flexible.”
Certainty comes from agility
In 2026, the most successful organisations will be those that act earlier, understand where pressure is likely to build, and keep flexibility where it matters most.
With cost increases remaining moderate across most markets but uncertainty rising, the challenge is less about predicting the market and more about staying in control as conditions change. In that environment, certainty comes from agility.
How organisations can deliver with confidence in 2026
The report sets out practical steps organisations can take to stay in control and reduce cost risk, even in uncertain conditions:
- Set a realistic starting point early. Use current market data to test cost, programme and risk assumptions against real conditions and comparable projects.
- Plan for a small number of outcomes. Look at a few credible scenarios, then decide what to lock in early and where to stay flexible.
- Check labour and market capacity by location and phase. If skills or resources are tight, adjust scope, sequencing or procurement before plans are locked in.
- Make key decisions sooner. Confirm phasing, requirements and long-lead items earlier to reduce exposure later.
- Use technology to spot pressure earlier. Focus on tools that improve visibility, shorten decision cycles, and support faster, clearer choices.
About the research
The figures within the report have been extrapolated from regional sources that reflect escalation and growth cost at the time of publication in February 2026. No assurances are given that any future results or events will be consistent with any views, forecasts, advice, anticipations or expectations within the report.
Please see below for regional cost escalation statistics.
| Country | Construction Cost Escalation | Economic Growth Forecast |
| Australia | 5-8% | 2.1% |
| China | 0% | 4.8% |
| France | 3% | 1% |
| Germany | 2-3% | 0.8% |
| Hong Kong | 0%-1% | 2.9% |
| India | 4.5-5.5% | 6.2%-6.5% |
| Ireland | 4-6% | 3.1% |
| Italy | 2%-3% | 0.8% |
| Japan | 10-12% | 1.1% |
| Kingdom of Saudi Arabia | 4% | 4%-4.6% |
| Malaysia | 3% | 4%-4.5% |
| Mexico | 4.5% – 6% | 2% |
| Peru | 4.5–5.5% | 2.7–2.8% |
| Singapore | 5-7% | 1%-3% |
| Spain | 1.6% | 2.2% |
| Taiwan | 4%-6% | 3.7-4% |
| Thailand | 3 – 5 % | 1.7% |
| UK | 3.6% | 1.5% |
| United Arab Emirates | 3% | 5% |
| United States | 4% | 1.7% |
About Currie & Brown
Currie & Brown is a world-leading project management, cost management and advisory services firm. We help clients deliver with certainty across every sector and stage of the project lifecycle.
From early strategy to final delivery, we bring clarity and confidence to complex decisions. Our role is to ensure that buildings and infrastructure are well planned, future-ready, and built to perform.
With more than 70 offices worldwide, including London, Dubai, Riyadh, Hong Kong, Mumbai, New York and Shanghai, we combine global expertise with local insight. Currie & Brown is proud to be part of the Sidara collaborative.
