When setting a budget to build your house, you must first calculate different costs towards raw materials, labour, and other factors in India. Include parameters such as plot size and taxation.
Many people prefer building an independent house as it allows them to customise it per their requirements and liking. Such flexibility is unavailable to those who buy a flat or home in a gated community.
First, it would be good to have a knowledge of the costs involved in building an independent house. Here is what to know beforehand when calculating an estimated construction cost of your house.
What is the current average cost of construction in India?
While calculating the construction costs, you should consider many aspects such as labour costs, raw material costs, location-based charades, and so on. House owners need to take these factors into consideration.
The table shows the significant expenses a house owner should calculate to determine an estimated overall construction cost.
| Expenses | Average cost of construction for a 1,000 sq ft home |
| Architect’s fee | The fee is generally between 2% to 15 % of the total construction cost. |
| Brick wall construction (with no RCC) | Rs 800 per sq ft |
| Brick wall construction (including RCC) | Rs 900 per sq ft |
| Mivan Shuttering (sq, m.) | Rs 8,000- Rs 9,000 per sq m |
| Civil work | Rs 1,500 per sq ft |
| Hiring an electrician/plumber (material + labour) | Rs 90- Rs 110 /sq ft |
| Raw material cost | Rs 7 lakh onwards |
What are city-wise variations of average construction costs in India?
The average cost of building a 1,000 sq ft house in India is Rs 12 lakh. The cost varies city-wise due to differences in labor supply, availability of raw materials, and furnishing quality. That is why the average construction cost in Tamil Nadu for a 1000 sq ft house is Rs 14 lakh to Rs 16 lakh, while it goes up to Rs 1-3 Cr. in Noida/Greater Noida.
The overall costs will also vary due to different civil and finishing costs, as well as the quality of the house. Here is an estimate of the city-wise construction cost in major 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 |
How are construction costs of homes calculated in India?
The formula to calculate the construction cost in India is per square cost of construction = total construction cost/total square footage.
Here is an example of the cost calculation.
| Total Construction Cost | Rs 1,000,000 |
| Total area available | 1200 sq ft |
| Per square foot cost of construction | Rs 1,000,000/1200 = Rs 833.33/ sq ft |
Factors to consider while calculating the cost
Here are the factors to include while calculating the cost:
Layout of the plot
The plot layout matters the most when calculating the overall construction cost of a house. The layout includes the rooms, kitchen, terrace, laboratories, stairs, storage area, balconies, etc. If you hire architect or such service providers, their cost would also be included in the layout of the plot.
Different local laws
Laws related to house construction vary depending on localities. For instance, if you intend to build a house in an ecologically sensitive area, the cost will go higher due to permission grans and formality fulfilments from local authorities. That may also delay the project.
In some cities such as Delhi and Mumbai, you must buy a parking site if you build a two-floor house, increasing the overall construction cost. The civil work is the house’s structure and finishing work, including the cost of doors, windows, flooring according to the Floor Space Index, roofing, wall designs, and more.
Cost of raw materials
Raw materials are the key ingredients to build a house. So, include the cost of raw materials such as bricks, concrete, sand, RCC [ Reinforced Cement Concrete], to the overall cost as well.
However, the cost of raw materials will depend on the quantity and size of the house. So, costs will vary depending on the requirements whether you’re building a house or a residential society.
Labour cost
Do not forget to calculate labour costs. In India, labour costs vary from Rs 140 to 200 per sq ft to build a structure. There are many labour costs involved in the construction of a house. These include costs for plumbing, electrical fitting, painting and putty, fabrication, door framing, and many other such works. The estimated costs for such works range from Rs 70 to Rs 100 per sq ft, while labour cost for preparing the site ranges from Rs 10 to Rs 12 per cubic ft.
Finishing cost
The finishing cost of doors, windows, electric fittings, wooden flooring, grillwork, sanitary fittings, etc., is a big factor in calculating the construction cost. Such cost will range from Rs 500 to Rs 3,000 per sq ft.
Additional costs
There are some extra costs to include in the estimated overall construction costs. These additional costs are usually made towards design changes that are part of the construction of a house. Any increase in raw material prices will also increase the house construction costs. Then, there are some challenges in getting the permit that can escalate the costs. So, consider having a 10 to 15 percent additional budget.
Cost of different raw materials in India for construction
Here is an estimate of different raw materials for construction purposes in India. The prices are per 1000 sq ft. be reminded that the prices aren’t the exact amount but an estimated figure.
| 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 or architect) | Rs. 30,000 |
| Door and window fittings | Rs. 60,000 |
| Shuttering and framework | Rs. 30,000 |
| Plumbing and sanitation work | Rs. 100- Rs 110 /sq ft |
| Electrical work | Rs 90- Rs 100 /sq ft |
| Flooring work | Rs. 55 /sq ft |
| Painting work | Rs. 50,000 – Rs 1,00,000 |
| Boundary wall and main gate | Rs. 20,000 – Rs 50,000 |
| Other miscellaneous costs | Rs. 60,000 |
How much does basement construction cost in India?
Note that basements are for commercial purposes, not residential use. So, you can use the space below a property only for utility, general store, and parking.
Building a basement in India may cost between Rs 1,500 and Rs 3,000 per sq ft. This cost includes DPC construction excavation, foundational work, and other waterproofing measures. The cost also will depend on the waterproofing techniques and materials used.
How much does bathroom/toilet construction cost in India?
Your state of house and raw materials prices will largely determine the cost of the bathroom/toilet construction. Factors such as space, sanity ware, types of fittings, and other raw materials will be crucial to the overall construction cost of a bathroom/ toilet.
Still, here is an estimate of these costs for varied bathroom/toilet construction jobs:
| Type of work | Cost |
| Plumbing | Rs 25,000 approx. |
| Tiling | Rs 160 per sq ft approx. |
| Sanitary ware | The cost of washbasin and wall-mounted commodes is around Rs 15,000 |
| Sanitary fixtures | Sanitary fixtures, such as faucets, drains, and showers, may cost around Rs 18,000 |
| Electricals | The cost of electrical walls or ceiling points is around Rs 150 to Rs 200 per running foot |
| Paint | Emulsion paint will cost around Rs 35 per sq ft |
| Miscellaneous | Set aside an additional Rs 20,000 for unforeseen expenses |
What is the average cost of a room construction in India?
It is difficult to calculate the exact cost of a room construction in India due to the different parameters involved.
Here is an example of the costs of building a 10×10 room in India.
| Construction work | Cost |
| Foundation | For the foundation size 4″*4′ with 4 ft depth, the cost of soil excavation would be around Rs 2900 (Rs 400/ m3) |
| Brickwork | Brickwork will cost around Rs 46,000 and includes bricks, sand, and cement bags. |
| Other costs | Other costs of Rs 20,000 include concrete for wall beams, RCC slab, and plinth beam |
| Reinforcement | Reinforcement costs are around Rs 24,000 for RCC slab along with column beam, labour, steel, etc. |
Additional charges will include plastering, PCC flooring, putty painting, sanitation, tile flooring, and electrical fittings. The cost of such works will be around 60 percent of the overall construction expense of just one room.
Tips to minimize construction costs
You can follow these crucial tips to reduce your home construction costs in India:
- Get material from the local market: One of the sure-shot ways to reduce your construction cost is to source the raw materials from the local market. That will save transportation costs from other cities. So, buy bricks, blocks, windows, tiles, pipes, bathroom fittings, and other materials locally.
- Include GST: Remember to include GST on construction materials when calculating the costs. There is abound 28 percent tax policy on construction materials.
- Use quality material: Good material is a one-time investment that saves future repair and maintenance charges. In the long run, your overall construction cost decreases if there is a minimum need to spend on repairs.
- Consult multiple contractors: Compare the costs of construction charged by different contractors and get their quotes or estimates. That helps us understand the current market costs. Use your bargaining power.
- Choose well-trained labour: Ensure the labour you hire is well-trained so they work professionally without wasting time. Such labour will help reduce your overall construction cost.
- Plan well: Plan your house construction well in advance and practice recycling to reduce wastage. You should also research some helpful construction practices to reduce the costs.
What are the major types of raw construction materials, and how much do they cost?
There are various types of raw construction materials. But these can be categorized into three sections—A, B, and C.
- A Class: This is the highest category, where the best quality raw materials are used to construct a house. Therefore, a house construction cost per 1000 sq ft will cost you between Rs 15 lakh and Rs 25 lakh.
- B Class: This construction materials class uses medium-quality raw materials. Its costs around Rs 10-11 lakh.
- C Class: The cost of low-quality raw bricks, cement, cheap fixtures, etc. The costs for 1000 sq ft house may cost you between 7 to 8 lakh.
Tips to select a plot for home construction
Now that you know the costs involved in constructing a house, it will be good to know how to choose the right plot for home building.
Industry experts say you should choose a plot with a title deed, utility bills from any previous owner, and an encumbrance certificate.
Ensure that you know the category of the plot land. Is it agricultural or non-agricultural land? You will need approval regarding land use if you want to use agricultural land to construct a house. For already built home, you need to initiate home inspection before getting into a final deed.
Also, know about the Floor Area Ratio of the plot to ensure that it adheres to the building norms set by the government.
What are the macro factors influencing construction costs?
Besides the reasons mentioned above, many other macro factors can escalate the construction cost of a house in India. For instance, the COVID-19 pandemic was an unseen factor in those times and later on.
Currently, the Russia-Ukrain war and Israel-Hamas war can also indirectly impact the cost of raw materials and increase construction costs. This has increased fuel prices and expensive input materials such as stone, cement, steel, and plywood. Prices of crude oil have increased substantially due to international factors, leading to increased house construction costs in India.
So, these are the key aspects you should pay attention to while estimating your house construction costs in India. Choosing the right builder is also helpful in acquiring land. Jashn Realty and many other builders can be considered for the same purposes.
Wrapping Up
The construction cost of a house in India depends on various factors, including fluctuating prices of raw materials such as cement and steel. GST, Labor availability, locality, plot area, designing and planning, and other factors are key in determining the construction cost.
