Average Cost of House Construction in India per Square Feet

Have you ever wondered how it seemed easier for our parents to own a house at our age, even with the same income levels we have today? The reason is, that the cost of house construction has increased over the years due to inflation, rising material prices, labor costs, and unaffordable land values. House construction now requires a more detailed understanding of all the factors contributing to the total price per square foot.

In this blog, we’ll break down the cost of house construction in India, helping you understand the complexities of material prices, labor, and regional differences. Most of you might be living in a nuclear family, which also impacts creating a budget as the earning members in a family will be less than joint families. The information you get from this blog will help you make decisions and better manage your budget. While the dream of owning a home isn't impossible, it requires more careful financial planning and other adjustments.

Average House Construction Cost in India

Here’s how you calculate the average house construction cost:

A normal house with good furnishing can go up to an amount of Rs 1500 to 2000 per square foot. You can calculate the house construction cost by multiplying the amount per square foot by sq. ft. of your house. So the construction cost of a 1000 sq ft house will be, 1000*1500 - i.e. around 15 lakhs. 

But this can vary according to the materials used, for example, there are shower sets worth both 50000 and 5000. Though the amount can differ, you can find low-cost high-efficient materials that suit your needs in the market that can help you create the budget according to your capacity. You can hire an architect to help you draw your dream plan in the smartest way possible as they can assist you choose materials that are low-cost and high efficiency. 

Factors that Affect the House Construction Cost in India

Location

So construction costs can vary depending on the region you plan to build a house. The availability of certain materials in the region can affect their price as it has to be imported which can directly impact the Cost of house construction in that area. For example, in a place where bricks are not produced, the cost will be higher. Another factor is the area, whether it is an urban or rural area also matters as metropolitan cities like Mumbai, Delhi, or Bangalore, the cost of construction can range from Rs 2,000 to Rs 4,000 per square foot.

Type of Construction

Ranging from basic houses with standard materials and minimal design elements to luxury homes that use the finest materials and incorporate high-end finishes, smart home technology, and unique architectural designs. The construction types include basic, average, premium, and luxury, each with varying levels of materials, design elements, and costs.

Climate

In regions like Kerala, where there is heavy rainfall and a tropical climate, construction practices are different. For example, homes in Kerala often require sloped roofs to deal with excessive rainwater runoff. A flat roof may also be suggested to accommodate solar panels, but it may need added waterproofing, which can increase costs. Constructing a solid foundation in regions which has higher rainfall requires more labor and materials to prevent water seepage, which increases both time and cost.

Foundation

If the soil in the region is hard, it may be easier and more cost-effective to build the foundation because it offers natural support and stability. In areas with loose soil, additional work is required to strengthen the foundation. This could include using piles or retaining walls, which increases the complexity of construction and, therefore, the cost.

Materials Used

There are tiles available for Rs 1000 per square foot and those available for 100rs square foot. Both might have the same texture and same quality. The cheaper tiles might not come with a guarantee, which means you could face replacement or repair costs later.

Smart Home

Smart home technology is becoming increasingly popular in modern house construction. While these features, such as smart lighting, thermostats, and security systems, can increase the upfront construction costs, they can help save on energy and maintenance costs in the long run. Smart home features can raise your total construction budget, but they provide convenience and energy efficiency. These features can significantly reduce utility bills and enhance the overall value of your home.

Architects Fees

Supposedly the architect fees are 10% of the total construction cost. But this is not what the cost that we see often. Whether it’s a square feet charge or if an architecture company is involved their brand value can also affect the cost of the design charge. 

Labor Costs

In metropolitan areas, where skilled labor is in higher demand, costs are generally much higher than in rural regions. On average, labor costs in India can range from Rs 200 to Rs 450 per square foot depending on the location and project complexity.

Permits and Approvals

Different states have different taxes, permissions, and fees for home construction. These include approval fees for building plans, property tax, and other legal costs. These regulations often increase the total expenditure, especially in urban areas.

Finishing Works

Finishing works like flooring, painting, and tiling are crucial to the overall aesthetic appeal and functionality of your home. However, these costs can also vary widely depending on the materials you choose.

Labour Cost For House Construction Per Sq Ft 

Labor costs vary depending on the region, type of construction, and local market rates.

In conclusion, there are so many elements and factors that affect the house construction cost and thus giving a correct house construction cost is difficult. But the information above will help you determine an estimated amount of what will be. For more details, you can contact contractors or architects near you or hire our professionals!