Jun 13, 2023Investments

Cost to Construct a House in India|Tips and Calculation

by Godrej Properties Limited



While most homebuyers prefer ready apartments and villas, there are many who opt to build their own home from scratch. This includes buying the land, designing the house, and constructing it. For many this is a dream come true, however, it involves a lot more planning, especially around finance. Compiled below is a comprehensive guide on house construction costs in India and understanding whether buying an apartment is more cost-effective than building a house.

Construction Cost in India

Major Factors Affecting Home Construction Cost

Below are some of the main factors that can increase or decrease the construction cost:

  • Location of the Land: Depending on whether you buy land in the city, on the outskirts of a city, or in a smaller town or village determines the cost of one of the largest components of house construction costs. The location also determines the cost of labour since you will most likely employ local contractors and labour.
  • House Design: The simplicity or elaborateness of a house is another important factor. The larger and more intricate the design with many rooms, the higher the costs - which include the architect, materials, labour, etc. However, a well-designed house also ensures lesser repair work in the future.
  • Construction Materials: Choosing to use high-quality materials will increase your costs while reducing future repairs. Similarly, if you compromise on the quality of materials, you could reduce costs now but will have to pay later for touch-ups. Moreover, sourcing materials locally is more economical than transporting them over long distances.
  • Labour Cost: Choose a reputed local contractor who hires labour locally. Once again this depends on the location of the house. Labour in small towns is far less expensive and easier on the budget. Follow up regularly with your contractor to ensure the project doesn’t over-shoot the timelines and hence increase costs.

A Few Important Points to Consider While Constructing a House in India

  • Choose your land wisely. Ensure the neighbourhood doesn’t have problems like water logging, etc.
  • Consult a lawyer to ensure your plot has a clear title deed, encumbrance certificate, etc.
  • If your plot is part of a plotted community check if there are any restrictions on construction such as the number of floors, built-up area, etc.
  • Check that your contractor is using the latest construction methods and materials to ensure the quality and timeliness of construction.

Finally, choose each aspect of your house construction project well. Consider inputs from experienced professionals as well as friends and family who have built their own homes and hence can share useful tips.

How to Calculate Home Construction Cost in India?

If you want to know how much costs to build a house, use the simple formula given below. It will help calculate the cost of the construction of a house in India.

Construction cost per square foot = Total construction cost / Total square footage

The total construction cost includes expenses for materials, labour, and overhead. The total square footage encompasses both interior and exterior areas. This calculation provides an estimate of the construction cost per sq ft.

Tips to Reduce House Construction Cost Without Compromising Quality

Proper Planning and Design

Invest time in meticulous planning and design. Assess your needs, optimise layouts, and consider factors like natural lighting and ventilation. Well-thought-out plans minimise rework and ensure efficient use of resources.

Material Selection

Choose materials wisely based on checking construction quality, durability, and cost-effectiveness. Compare prices, explore alternatives, and consider local materials. Cost-effective choices can lower expenses without sacrificing quality.

Efficient Project Management

Hire a professional project manager or contractor for effective cost control. Organised schedules, timely material procurement, and coordination with labourers prevent delays and cost overruns.

Value Engineering

Analyse construction processes to identify cost-reduction opportunities without compromising quality. Collaborate with experts to explore innovative, cost-saving solutions.

Energy Efficiency and Sustainability

Incorporate energy-efficient features like LED lighting, insulation, and efficient ventilation systems. Rainwater harvesting, solar panels, and waste management systems contribute to long-term savings.

Average Cost of Construction in India (2023)

  • Architect: Rs 15,000 onwards
  • Brick wall construction (without RCC): Rs 800 per sq ft
  • Brick wall construction (with RCC): Rs 900 per sq ft
  • Civil work: Rs 1,500 per sq ft
  • Electrician/Plumber: Rs 2,500 per sq ft
  • Raw material cost: Rs 7 lakh onwards

On average, constructing a 1,000 sq ft house in India costs around Rs 12 lakh. Costs may vary based on location, labour availability, raw material quality, and furnishing choices.

Frequently Asked Questions

1. How much does it cost to build a house in India?

Ans: The general formula is: area of plot x construction rate per sq. ft. On average, depending on the location, this could range between or higher of Rs. 12 Lakh to Rs. 50 Lakh.

2. Is there any indirect cost of the construction of a house in India?

Ans: Fees paid to local authorities for acquiring water, gas, and electricity supply are some indirect costs.

Previous Post
Next Post