Many people prefer independent home construction as it allows them to customise their house as per their liking and convenience. However, without proper industry knowledge, most homeowners may often feel hassled over the construction costs. Additionally, several challenges may also arise, varying from cost-escalation to sub-standard construction quality. In this article, 99acres has collated the necessary points to consider while arriving at the average cost of constructing a house in India.
Average cost of construction in India
When it comes to calculating the cost of construction of a house, there are a few costs that can be calculated, such as raw materials, negotiating labour costs, among others. Then, there are factors like market fluctuations, legislative limitations, and location-based charges, which are not in the control of a property owner.
Regardless, a basic understanding of the factors within our scope can help homeowners budget their investments better. The table below shares a brief overview of the initial costs involved.
| Expenses | Average Expenditure for a 1,000 sq ft home |
|---|---|
| Architect | 2%-15% of the total construction cost of the property |
| Brick wall construction (without RCC) | Rs 800 per sq ft |
| Brick wall construction (with RCC) | Rs 900 per sq ft |
| Mivan Shuttering (usually calculated in square meters) | Rs 8,000- Rs 9,000 per sq m |
| Civil work | Rs 1,500 per sq ft |
| Electrician/Plumber (material + labour) | Rs 90- Rs 110 /sq ft |
| Raw material cost | Rs 7 lakh onwards |
Disclaimer: The data has been collected from secondary sources and may vary based on your location.
Cost of construction in top cities
On an average, building a 1,000 sq ft house in India can cost you up to Rs 12 lakh. This may vary depending on the city and factors such as labour availability, supply of raw material and the quality of furnishing. It is important to note that the average cost will be different across the States.
For instance, the cost of constructing a 1,000 sq ft house in Tamil Nadu generally varies between Rs 14 lakh and Rs 16 lakh. On the other hand, the average cost of constructing a house in Noida/ Greater Noida could range between Rs 1 crore and Rs 3 crore for 1000 sq ft. These are, of course, approximate numbers which are subject to change based on fluctuating market conditions.
The prices may also vary based on the civil costs, finishing costs, and the quality of the home you wish to build. Here’s a quick city-wise overview of the approximate construction costs in India across a few top cities-
| City | Average Construction Cost |
|---|---|
| Delhi | Rs 2,700 /sq ft onwards |
| Gurgaon | Rs 1,800 /sq ft onwards |
| Bangalore | Rs 1,800 /sq ft onwards |
| Mumbai | Rs 1,700 /sq ft onwards |
| Noida | Rs 1,500 /sq ft onwards |
| Hyderabad | Rs 1,500 /sq ft onwards |
Source: Secondary
How to calculate construction cost?
Here are some of the parameters that should be considered while calculating construction cost in India:
Plot layout
The first step in constructing a house is the layout of the plot, where an architect or a designer will create a design plan for the designated plot. Generally, the layout drawing would include blueprints for the rooms, kitchen, lavatories, stairs, terrace, balconies, storage area, parking and any other space you wish to add. However, in exchange for the services offered, the architect or the design engineer will charge a fee, which is dependent on the size of the plot.
Also Read: How much does an interior designer cost?
Regulatory laws and norms
The building regulations vary across locations and may increase the project deadline and construction cost. For instance, if your land is in an ecologically sensitive area, you have to approach the municipal body or the gram panchayat under whose jurisdiction your property is located and seek construction permission. This may result in cost overruns and delayed project deadlines.
Also, some cities have strict development rules that should be duly observed to get approvals. For instance, if you are planning to build a two-floor house in Delhi or Mumbai, it is mandatory to have stilt parking.
Civil cost
The civil cost mainly incorporates the cost of raw materials used in the construction of plinths, walls, roofs, boundary walls, parfaits, floor work, and plastering. These materials include bricks, cement, concrete, sand, and Reinforced Cement Concrete (RCC) reinforced steel, among others. However, stating the quantum of raw materials is usually difficult as it is largely dependent on the design of the structure. Shuttering, contractor, and labour charges are also part of the civil cost.
Also Read: Concrete Grade: Different Types of Concrete Used in Construction
Moreover, the types of bricks used also have a role to play. For instance, brick wall construction without RCC column differs from Rs 800 per sq ft to Rs 900 per sq ft. On the contrary, the brick wall construction with RCC column ranges from Rs 900 per sq ft to Rs 1,000 per sq ft.
Lastly, the labour charges make up for a significant portion of house construction cost, and it varies across regions. The labour cost across residential, commercial or industrial projects ranges around Rs 140-200 per sq ft for building a structure.
Costs for tiling, electrical fitting, plumbing, painting and putty, door framing, fabrication, and miscellaneous work like curing, repair, and storage, may range between Rs 70 and Rs 100 per sq ft. The labour cost for preparing the site through earthwork excavation is around Rs 10-Rs 12 per cubic ft. It is imperative to note that the prices mentioned are just estimates to help homeowners arrive at a more accurate construction cost.
Finishing cost
Finishing comprises doors, windows, wooden flooring, electric fittings, sanitary fittings, pop work and grillwork. The cost usually varies from Rs 500 per sq ft to Rs 3,000 per sq ft, subject to the amenities involved.
Moreover, finishing costs also involve labour charges for electricians, plumbers, tile masons, carpenters, painters and polishers. Largely, the construction cost of a house is the cost of civil work, along with the finishing costs.
In most cases, construction cost estimates are provided by architects, contractors, or other specialist estimating firms. However, when it comes to self-estimation, an essential factor is the quality of materials used for the construction.
Contingencies
When calculating the construction cost of a house, it is crucial to set a budget for contingencies, undermined expenses or potential budget overhaul. This proactive approach will help you feel prepared and in control, even if scenarios like the ones mentioned below occur-
- Design changes
- Hike in price of materials
- Permit challenges
Keeping a 10 to 15 percent additional budget for contingencies allows you to be financially prepared in case any unforeseen circumstance arises during construction.
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Average cost of raw materials
If you are planning to build a home in India and need a cost estimate, the table below might give you an idea.
| Material | Cost |
|---|---|
| Steel | Rs. 80 /kg |
| Cement | Rs. 400 /bag |
| Bricks | Rs. 10 /chamber brick |
| Stone/ gravel | Rs. 1,500- Rs 1,800 /unit |
| (Manufactured) M-Sand | Rs. 3,000 – Rs 3,500 /unit |
| (Plastering Manufactured) P-Sand | Rs 3,800 /unit |
| Woodwork (material) | Rs 2,00,000 onwards for a 3 BHK |
| Water | Rs. 10,000 |
| Excavation | Rs. 40,000 |
| Labour for concrete | Rs. 80,000 |
| Design fee (engineer/architect) | Rs. 30,000 |
| Door and window | Rs. 60,000 |
| Shuttering and framework | Rs. 30,000 |
| Plumbing and sanitation | Rs. 100- Rs 110 /sq ft |
| Electrical work | Rs 90- Rs 100 /sq ft |
| Flooring | Rs. 55 /sq ft |
| Painting | Rs. 50,000 – Rs 1,00,000 |
| Boundary wall and main gate | Rs. 20,000 – Rs 50,000 |
| Other miscellaneous expenses | Rs. 60,000 |
Note- These prices are applicable for construction of a 1,000 sq ft property with standard construction quality. They are approximate figures and may not be exact.
Also read: Tile price in India
Types of raw materials and their costs
The raw construction materials are generally divided into three classes, i.e. C, B, and A.
- C Class: Involves construction with low-grade bricks/sand, cheap fixtures, and low-quality cement grades and steel. Usually, it takes around Rs 7-8 lakh to construct a C-class house measuring 1,000 sq ft.
- B Class: Involves medium-quality raw materials, ranging from cement to steel and fixtures and fittings. Contrary to C class, a house measuring 1,000 sq ft built with B class materials would take Rs 10-11 lakh to complete.
- A Class: Involves using the best resource quality, and therefore, the cost of constructing a house measuring 1,000 sq ft, may vary between Rs 15 lakh and Rs 25 lakh.
Further, the construction cost may also be influenced by external factors, such as:
- Construction delays owing to the non-professional attitude of the contractor, labour strikes, or holidays
- Increased rental costs of the building equipment
- Inefficient use of equipment that results in overhead costs
- A rise in the material prices
- A rise in labour charges
Though the situations mentioned above may or may not arise, it is always better to be prepared for unforeseen challenges and plan a budget accordingly to ensure a hassle-free construction process.
Average cost of basement construction
The rules laid by the government prohibit individuals from utilising the basement for residential purposes. However, the space built below a property can be used for commercial activities, parking, utility or as a general storage area.
The per square foot cost for the construction of a basement may vary between Rs 1,500 and Rs 3,000 per sq ft. This may include charges for waterproofing measures like DPC Construction, excavation and foundation work, etc. Once again, this is just a rough estimate and the actual pricing will vary based on the waterproofing techniques, materials used and more.
Average cost of bathroom/toilet construction
The cost of bathroom construction in India would vary as per the state of your house and the charges applicable for raw materials. The total cost of constructing a bathroom would depend on some aspects like the space, quality of materials, sanitary ware and types of fittings. However, an estimated cost is provided below-
| Jobs | Cost |
|---|---|
| Plumbing | Rs 25,000 approx |
| Tiling | Rs 160 per sq ft approx |
| Sanitary ware | Washbasin and wall-mounted commodes may cost around Rs 15,000 |
| Sanitary fixtures | Facets, showers, and drains together may cost around Rs 18,000 |
| Electricals | Ceiling points or electrical wall is approximately Rs 150 to Rs 200 per running foot |
| Paint | Emulsion paint is approximately Rs 35 per sq ft |
| Miscellaneous | Keep a budget of at least Rs 20,000 for extra expenses |
Average cost of constructing a room
Deriving the exact cost of constructing a room can be difficult since there are a lot of dynamic parameters involved; however, the example below can help you with an estimate of the construction cost.
Let's say, the dimension of the room is 10x10; the following cost in this case can be expected as-
| Tasks involved | Cost |
|---|---|
| Foundation | If the foundation size is 4"*4' with 4 ft depth, soil excavation would cost around Rs 2900 ( Rs 400/ m3) |
| Brickwork | Around Rs 46,000 including bricks, cement bags and sand |
| Other costs | Approximately Rs 20,000 including concrete for wall beams, RCC slab and plinth beam |
| Reinforcement | Keep aside Rs 24,000 for reinforcement work like RCC slab and column beam. This will also include labour and steel cost. |
Note- Additional charges such as plastering, tile flooring, putty painting, PCC flooring, plumbing, water, santisation, and electrical fitting would be around 60 percent of the total construction cost of one room.
Also Read: Types of paint used for wall painting
Factors influencing the cost of construction
Here are some of the essential factors that can influence the cost of constructing a house in India.
Design and planning
Design and planning are crucial factors that influence the cost of construction of a house. For example, a well-designed house with proper planning can save you money in the long run. It is also essential to work with an experienced architect to create a design that is both aesthetically pleasing and budget-friendly.
Size of the house
Size also plays a significant role in determining the construction cost of a house in India. A house with larger floor area will attract more costs in comparison to a smaller house. If you plan to build a new floor on the existing property, the construction cost will increase by a significant extent.
Quality of materials
The quality of materials used in construction can significantly impact the cost. While using high-quality materials may cost more upfront, they can be cost-effective in the long run, reducing maintenance costs and increasing the lifespan of the property.
Location
Location is an important factor that influences the cost of construction. Constructing a house in a metropolitan city can cost more than constructing a house in a smaller town. Additionally, location also impacts the availability and cost of labour and materials.
Labour
The cost of labour can vary based on location and demand. In some areas, skilled labour may be scarce, leading to higher costs. It's essential to work with a reputable contractor who has access to skilled labour at a reasonable price.
Taxes
The Goods and Services Tax (GST) on raw construction material also impacts the construction cost of a house in India. You can consult an architect or a contractor for a cost estimate beforehand.
Government regulations
Government norms and regulations significantly impact the residential construction cost per sq ft in India. The best way to maintain regulations is to keep up with market changes or consult industry experts.
Approvals and permits
Getting the mandatory permits and approvals from the concerned authorities encompasses administrative charges and a project’s potential delay, both of which can impact the expected completion and budget of a home.
Building code
A legal requirement to fulfil during the construction of a house is to adhere to the local building codes and rules, failing to which can lead to potential fines and cost modifications.
Environmental adherence
Environmental laws may make specific materials and practices mandatory, especially for projects located close to ecologically sensitive places or water bodies that can potentially impact the construction cost.
How to reduce construction costs?
Here are a few tips that can be helpful in reducing the overall construction cost in India:
- Source material locally
Be it cement, bricks and blocks, doors and windows, tiles, bathroom fittings or pipes- opt for locally available material. You will save a lot on transportation costs.
- Goods & Services Tax
Factor in the GST on construction materials. Generally, building materials attract around 28 percent taxation, which can shoot up your overall construction cost.
- Think long-term
Use good quality building materials to avoid frequent repair and maintenance costs. You can also use greener alternatives to save costs in the future.
- Get a second opinion
Consult multiple contractors and get estimates before hiring anyone. This would help you to understand the market rates and the bargaining power you hold. If you are providing the construction material, you can control the labour cost by employing fewer or multiple people at a time.
- Choose your labour well
Try optimising labour scheduling and make sure the labour engaged in house construction is well-trained to avoid chances of rework.
- Plan well
Do proper planning and engage in recycling practices to reduce wastage during construction. Additionally, research construction practices, such as Building Information Modeling (BIM), to improve efficiency and minimise errors.
Impact of macro factors on construction costs
The COVID-19 pandemic and the Ukraine-Russia crisis have significantly escalated construction costs in India in the past. Rising fuel prices, shortage of construction labour and expensive crucial input materials, such as steel, cement, stone, and plywood material, have contributed to an increase of up to 25 percent in the average cost of constructing a house in India at the time. With crude oil going up to USD 96 per barrel, the cost of transportation was also a key factor behind the rising cost of construction in India.
To sum up, although the entire process may seem lengthy, minute planning involving the cost of constructing a house in India can work wonders for homebuyers. It is highly recommended that the requisites of home construction be broken down to avoid unforeseen expenses during the actual project execution. Professional assistance to ensure that each step of the construction is performed appropriately can also be sought for more impactful decision-making.
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