While housing units in a gated community offer a plethora of amenities and facilities, they are generally not tailor-made. Therefore, many people prefer independent home constructions as it allows them to customise their abode as per their liking and convenience. However, the development of a house involves particular challenges. It requires immense patience and detailed construction estimates to avoid mismanagement of funds.
Generally, homeowners are either unaware or negligent about the development cost. Consequently, several challenges may arise, varying from cost-escalation to sub-standard construction quality. To help with the process, 99acres has collated the necessary points to consider while arriving at the average cost of constructing a house in India.
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Cost of basem*nt construction in India
The rules laid by the government prohibit individuals from utilising the basem*nt for residential purposes. However, a basem*nt, the space built below a property, may be used for commercial activities, parking or as a storage area. If you are planning to build a basem*nt and need a cost estimate, the table below might give you an idea.
| Material | Cost |
|---|---|
| Steel | Rs. 1,40,000 |
| Cement | Rs. 1,30,000 |
| Bricks | Rs. 90,000 |
| Stone | Rs. 50,000 |
| Sand | Rs. 50,000 |
| 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. 60,000 |
| Electrical work | Rs. 50,000 |
| Flooring | Rs. 50,000 |
| Painting | Rs. 50,000 |
| Boundary wall and main gate | Rs. 20,000 |
| Other expenses | Rs. 60,000 |
| Total Cost | Rs. 10,00,000 |
Note- These prices are applicable for basem*nt construction of a 1,000 sq ft property with standard construction quality. They are approximate figures and may not be exact.
Cost of bathroom/toilet construction in India
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, including the space, quality of materials, sanitaryware and types of fittings. However, an estimated cost is provided below-
| Jobs | Cost |
|---|---|
| Plumbing | Labour and material cost = Rs 25,000 approx |
| Tiling | Labour and material cost = Rs 160 per sq ft approx |
| Sanitaryware | Washbasin and wall-mounted commodes may cost around Rs 15,000 |
| Santiary 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 |
Cost of constructing a room in India
The exact cost of constructing a room cannot be calculated; however, the example below will provide you with an estimated estimate of the construction cost.
Suppose the dimension of the room is 10x10; then the following cost can be expected-
| 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.
Therefore, the above calculation makes the total construction cost Rs 1,08,500, out of which 60 percent will be 65,100. This makes the total construction cost as Rs 1,73,600, including all necessary expenses.
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How do you calculate construction costs?
Plot layout
The first step in constructing a house is the layout of the plot. Here, an architect or a designer creates a design plan for the designated plot. Generally, a layout drawing includes the rooms, kitchen, lavatories, stairs, terrace, balconies, storage area, parking and any other space you may wish to add. However, in exchange for the services offered, the architect or the design engineer charges a fee, which is dependent on the size of the plot.
For instance, if the plot size is 1,000 sq ft, the architect may charge between Rs 15,000 and Rs 20,000. However, the rates may differ across locations, albeit marginally.
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 location, 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, it is crucial to have stilt parking. In case your building plan does not have this provision, the municipal body would reject the plan.
According to Rituraj Verma, Partner, Nisus Finance, “The construction cost of a house mainly depends on two things - civil work and the finishing work. While the civil work includes the structure of the house, the finishing work entails doors, windows, wooden cupboards, flooring, roofing, wall designs, and painting.
Holistically, the construction costs vary from Rs 1,000 sq ft to Rs 5,000 per sq ft, depending upon the city and construction site.
Civil cost
The civil cost majorly incorporates the cost of raw materials used in the construction of plinth, walls, roof, boundary wall, parfait, floor work and plastering. The raw materials majorly 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 largely depends on the design of the structure. Moreover, shuttering, contractor, and labour charges are also a part of the civil cost.
Note - Hire a contractor with experience in the field of construction. Civil construction involves several challenges, and there could be a situation where the contractor is required to take prompt decisions. Thus, the experience would make things easier and hassle-free.
Typically, the cost of 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.
The labour charges make up a significant portion of home 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; however, it is around Rs 70-100 for finishing assignments like tiling, electrical fitting, plumbing, painting and putty, door framing and fabrication, and miscellaneous work like curing, repair, and storage. The labour cost for preparing the site through earthwork excavation is around Rs 10-12 per cubic ft. It is imperative to note that the prices mentioned are to provide an estimate to help arrive at a more accurate construction cost.
Types of paint used for wall painting
Finishing cost
As mentioned above, finishing work comprises doors, windows, wooden work, electric fitting, sanitary fittings, pop work and grillwork. The finishing cost usually varies from Rs 500 per sq ft to Rs 3,000 per sq ft, subject to the amenities involved.
Normal finishing work with grey flooring starts from Rs 500 per sq ft and goes up to 700 per sq ft. However, medium finish work that includes tiles or local wooden floor work ranges from Rs 1,000 per sq ft to 1,200 per sq ft. In case you prefer premium finishing along with teakwood floor then the cost may differ from Rs 1,500 per sq ft to Rs 3,000 per sq ft.Kuntal Vyas Aggrawal, Director, Resaiki
Moreover, finishing costs also involve labour, such as electrician, plumber, tile mason, carpenter, painter and polisher. Largely, the construction cost of a house is the cost of civil work, along with the finishing costs. Therefore, the average construction cost of a 1,000 sq ft home may differ from about Rs 1,300 per sq ft to Rs 5,000 per sq ft, shares Kuntal.
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.
False ceiling Price in India (per sq ft)
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.
- Factor in the Goods & Services Tax while calculating the construction cost. 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. You can consider a time frame of 30-50 years.
- Consult multiple contractors and get estimates before hiring anyone. This would help you to understand the market rates and 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.
Types of construction raw materials and their costs
The construction raw materials are divided into three classes, i.e. C, B, and A.
- C Class: Involves construction with low-grade bricks/sand, cheapest fixtures, and low-quality cement gradesand steel. Usually, it takes around Rs 7-8 lakh to construct a C-class house measuring 1,000 sq ft.
- B Class: Such type of construction 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: Such type of construction 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.
Furthermore, 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 the 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. Experts advise keeping the flexibility of 15-20 percent of the overall construction cost for any unpredictable circ*mstances in the process. Also, homeowners must take the Goods and Services Tax (GST) on construction materials into account, while calculating their costs.
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. A well-designed house with proper planning can save money in the long run. It's essential to work with an experienced architect to create a design that is both aesthetically pleasing and budget-friendly.
Quality of Materials
The quality of materials used in construction can significantly impact the cost. Using high-quality materials may cost more upfront, but they can save money in the long run by 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 labor and materials.
Labor
The cost of labor can vary based on location and demand. In some areas, skilled labor may be scarce, leading to higher labor costs. It's essential to work with a reputable contractor who has access to skilled labor at a reasonable price.
How to select a plot for home construction?
While an estimated construction cost is an important factor that helps gauge the necessary investment for the project, another equally crucial parameter is the selection of plot for the home.
It is one of the first steps in arriving at the average cost of construction, as plot-related information helps to understand the built-up and carpet areas of the project.
Industry experts recommend that the suitable plot must have the supporting title deed and encumbrance certificates, and utility bills from the previous owner. Also, the buyer must duly scrutinise the category of land the plot falls into, whether agricultural or non-agricultural. To use the land for residential construction, a change of land use clearance will be required. Further, the buyer must have a clear knowledge of the plot’s Floor Area Ratio (FAR) to ensure adherence to the prevailing building norms.
Impact of macro factors on construction costs
The COVID-19 pandemic and the Ukraine-Russia crisis have significantly escalated the construction costs in India. 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. With crude oil going up to USD 96 per barrel, the cost of transportation has been a key factor in the rising cost of construction in India.
Although the process of home construction may seem lengthy, involving minute planning of costs and resources, it is highly recommended to break down the requisites of home construction to avoid unforeseen expenses during the actual project execution.
The process of constructing a house may seem like a lengthy process, requiring immense physical and mental bandwidth. However, this may work wonders for homeowners who wish to live in a space designed as per their needs and requirements. Also, with scrutiny of raw materials and prices on a regular basis, your home is likely to have excellent quality and require lesser repair work in the long run. Nonetheless, it is recommended to seek professional assistance to ensure that each step of the construction is performed appropriately, without any lapses.
