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Your complete guide to house construction costs

  • Interior Design
Jul 30, 2024
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Learn about home construction costs in India and how to calculate it

Above Home Construction Cost

Owning a home provides stability, security, and a sense of pride. Constructing a home allows you to customise your home design and create a space that reflects your lifestyle and preferences. However, before you start planning your home design, you must have a clear understanding of the expenses. By making informed decisions, you can create your dream home within your budget. 

How to Calculate Home Construction Cost in India?

The cost of construction varies depending on various factors. However, here are a few guidelines you can follow to calculate the cost to build a house:

1 - Measure the total area of the house in square feet.

2 - Get the cost per square foot for materials and labour.

3 - Multiply the total area by the cost per square foot to get the construction cost.

4 - Add any additional expenses such as permits, taxes, and fees to the construction cost.

Construction Cost = Total Area × Cost per sq ft + Additional Expenses

Now, let us illustrate this with an example of a 1,000 sq ft home:

  • Total Area of Construction: 1,000 sq ft
  • Cost per sq ft for Materials and Labor: ₹1,500
  • Additional Expenses (Permits, Taxes, etc.): ₹1,00,000


Calculation:

Construction Cost = Total Area (1000 sq ft) × Cost per sq ft (₹1500) + Additional Expenses (₹1,00,000)

                    = 1000 sq ft × ₹1500/sq ft + ₹1,00,000

                    = ₹15,00,000 + ₹1,00,000

                    = ₹16,00,000

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So, the estimated 1000 sq ft house construction cost in India would be ₹16,00,000.

*Please Note: The provided example serves as a simplified illustration and does not reflect current market rates. 

 

 

Home Construction Cost per Square Foot

The home construction cost per square foot refers to the average expense incurred for building each square foot of a property. This cost includes materials, labour, permits, and additional expenses such as utilities and taxes. Homeowners and builders use ‘construction cost per square feet’ as a fundamental metric for estimating the total construction budget.


 

Factors to Consider While Calculating House Construction Costs in India

Here is a list of factors you should consider when calculating the cost to build a house in India:

  • Plot Size: Larger plots require more materials and labour, which can increase costs. Additionally, irregular-shaped plots might need extra effort for construction and impact the overall construction cost. If it is a steep or uneven terrain, the cost can go higher as additional site preparation is required.

  • Location: Material and labour costs vary by region. Easy site access can save on transportation expenses. Moreover, proximity to suppliers and markets can influence material prices and availability.

  • Design Complexity: Features like intricate architectural elements, complex floor plans, or unique structural requirements will add to the construction budget.

  • Material Quality: High-quality materials last longer but will increase your construction cost per sq feet. Cheaper materials may save money upfront but could require more maintenance and may damage quickly.

  • Labour Rates: Experienced and skilled contractors will quote a higher construction cost per sq feet. However, skilled labour can ensure better productivity and efficiency. By completing tasks more quickly, the experts can help reduce overall expenses.
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  • Construction Methods: Modern techniques like prefabrication may be more cost-effective. Evaluate various construction methods based on factors such as speed of construction, labour requirements, and material efficiency to determine the most economical approach.

  • Utilities: Installing utilities like water, electricity, and sewage systems adds to construction expenses. Also, consider the cost of extending utility lines to the construction site if required and any additional infrastructure requirements, such as drainage systems or wastewater treatment facilities.

Key Raw Materials and their Price to Construct a House in India

Here is a building material calculation for a 1000sq ft house.
 

Materials Cost

Current Market Rate

Required Materials for 1000 Sqft House

1000 sq ft House Construction Cost

Cement

Rs.400-420/bag

400 bags

1,68,000.00

Steel TMT bars

Rs.80/Kg

3000 Kg (3 Tons)

2,40,000.00

M-Sand

Rs.3000-3500/unit

20-24 units

60,000.00

P-Sand

Rs.3800/unit

6-8 units

30,400.00

20mm Aggregate

Rs.2500-3500/unit

14-15 units

37,500.00

40mm Aggregate

Rs.2000-3000/unit

4-5 units

8,000.00

Gravel

Rs.1500-1800/unit

26 units

46,800.00

Bricks

Rs.10.50/Chamber Brick

20000-22000 Numbers

2,31,000.00

 

 

*This estimate does not include GST.

*The prices may vary depending on your location

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Tips to Reduce the House Construction Cost without Compromising the Quality

If you have budget constraints, here are a few simple tips to ensure a low cost house construction without compromising quality:
 

  • Material Selection: Choose cost-effective yet durable materials for construction. Research alternatives to expensive materials and explore locally available options to cut down on transportation costs.

  • Bulk Purchases: Buying materials in bulk can often lead to discounts from suppliers. Coordinate with your contractor to take advantage of bulk pricing and reduce house construction costs per square foot.

  • Site Selection: Choose a well-oriented plot that minimises the need for extensive excavation and site preparation. This will reduce associated costs and construction time.
  • Modular Construction: Explore modular construction techniques that allow the prefabrication of components in a controlled factory environment. This method can lead to faster construction timelines and lower labour costs on-site.

  • Waste Management: Waste produced during construction should be reused carefully. This will reduce the expenses on raw materials. Additionally, reusing materials minimise disposal costs and environmental impact.

  • Open-floor Design: An open-floor design not only looks appealing but can also help in reducing your construction cost. By eliminating the number of walls, you can cut down on raw material and labour costs.
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Frequently Asked Questions on House Construction Cost

 

1. How to calculate construction cost per square feet?

To determine the construction cost per sq ft for a project, you need to divide the total construction cost by the total area of the plot (in square feet).

For instance, if your plot area is 1,500 square feet and the estimate cost to build the house is ₹30,00,000, the calculation would be as follows:
 

Total construction cost / Plot area (in square feet) = Construction Cost per sq ft

              = ₹30,00,000 / 1,500 sq ft

              = ₹2,000/sq ft

So, the construction cost per sq ft would be ₹2,000/sq ft.


 

2. What is the average cost to construct a house in India?

The average home construction price in India varies depending on factors such as location, size, quality of materials, and labour costs. However, as a rough estimate, the construction cost typically ranges from ₹1000 to ₹3000 per square foot. This means that for a standard 1500 square foot house, the total construction cost could be anywhere from ₹15 lakhs to ₹45 lakhs. It is crucial to note that this is just a general estimate, and the actual home construction price may vary based on individual project requirements and market conditions.


 

3. How can I ensure proper installation of stair lighting?

To ensure proper installation of stair lighting in your interior design, start by carefully planning the layout and placement of lights to provide adequate illumination while maintaining safety. Use fixtures specifically designed for stair lighting and ensure they are installed securely to withstand foot traffic. Wiring should be done by a qualified electrician following local building codes to prevent hazards. Test the lighting system thoroughly to ensure it functions correctly and lights up your interior design.

 

 

How can Beautiful Homes Help You with Your Home Construction Costs?

Beautiful Homes can assist you with your home construction project. We believe in transparency and share all the charges associated with the construction project beforehand. Our experts not only provide an estimated home construction price but also the charges of each service separately for your understanding. Additionally, we provide valuable insights, tips, and resources to ensure low-cost house construction. Contact us online today for a house construction quotation or visit our store to consult an expert. Our stores are available in almost all cities, including Mumbai, Delhi, Amritsar, Ernakulam, Raipur, Ooty, Pune, Ahmedabad, Hyderabad, Bangalore, Kolkata, and Chennai.

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