The cost of construction is important as it decides the property prices. The cost of construction keeps changing and therefore significantly affects property prices. This article gives details about the types of cost of construction, the calculation of construction cost per sq ft, and estimates of construction cost per sq ft.
Page Contents
What Is The Cost Of Construction In India?
Building a house includes certain direct and indirect costs of construction. These costs vary in different states according to availability and demand.
The cost of construction is known as the long-term investment of your home. Hence, it is essential to decide the raw materials accordingly.
You should know about the development cost of a building and the cost of the construction structure in detail before you head into constructing your dream house of yours.
Elements Of Cost Of Construction In India
There are two elements of the construction cost of the house which are civil work and finishing work. The civil work includes the costs of the structure of the house. The finishing cost includes fixing fixtures, doors, windows, roofing, flooring, wooden cupboards, paintings, and wall designs.
The construction cost might vary from Rs 1,000 to 5,000 per sqft depending on the city and construction site.
Civil Cost
This cost includes the cost of raw materials which are used in the construction of plinths, walls, roof, floor work, and plastering.
Raw materials like bricks, cement, concrete, sand, steel, etc. Contractor charges and labour charges are also included in the civil cost.
Finishing Cost
The finishing cost includes doors, wooden work, windows, sanitary fitting, grillwork, and electric fitting. The cost of finishing work varies from Rs 500 to 3000 per sqft subject to amenities involved.
Types Of Raw Materials & Their Cost
The types of raw materials are divided into three categories which are provided in the below points:
- A class: The best quality raw materials are provided under this category. The cost of these raw materials ranges from Rs 15 lakhs to 25 lakhs for a 1000 sq ft.
- B class: Medium-quality raw materials are provided under this category which will include cement, steel, fixtures & fittings. The cost of raw materials for 1000 sq ft would cost between Rs 10 lakhs to 11 lakhs.
- C class: Under this category, low-quality raw materials are provided. Cheap quality bricks, sand, and other materials would cost between Rs 7 to 8 lakhs for 1000 sq ft.
However, the cost of the raw materials can also vary due to some external factors like the following:
- Delay in construction due to the unprofessional behaviour of labour, and contractor.
- Strikes or long holidays
- Increase in the rental cost of the construction equipment
- Not using the equipment to its full potential can increase overhead cost
- Increase in material price and labour charge
How To Calculate The Cost Of Construction Per Square Ft In India
It is important for you to know the construction rate around your area and know how to calculate the construction rate.
The construction rate per sqft depends on the availability of the raw material in that area. Hence, the construction rate per sqft in urban areas is higher due to competitive pricing, and in rural areas, the price is lower.
However, if the raw material availability in the rural area is less, then the transportation cost of raw material will increase the construction rate per sqft.
For example:
If the average cost of construction is around Rs 800 to 1200 per sq. ft.
This can be easily separated into the following categories:
Normal quality construction = Rs 800 per sqft
Medium quality construction = Rs 1000 per sqft
High quality construction = Rs 1200 – 1500 per sqft
The construction work is planned to be done for 900 sqft with medium-quality construction materials per sqft.
= 900*1000 = Rs 9,00,000 (including material and labour cost)
In the construction cost, there will be 60% of the material cost, 30% labour cost, and 10% construction profit.
Estimate The Cost Of Construction Per Square Ft
The estimated cost of construction per sqft will include the local market construction rate per sqft
| S no. | Material | % | Amount |
| 1 | Cement | 10 | 90,000 |
| 2 | Steel | 15 | 1,35,000 |
| 3 | Sand | 8 | 72,000 |
| 4 | Gravel | 4 | 36,000 |
| 5 | Finishing | 9.5 | 85,500 |
| Colour | |||
| Tiles | |||
| Bricks | |||
| 6 | Fittings | 13.5 | 1,21,500 |
| Windows | |||
| Doors | |||
| Plumbing | |||
| Electrical | |||
| Sanitary | |||
| 7 | Material Cost | 60 | 5,40,000 |
| 8 | Labour Cost | 30 | 2,70,000 |
| 9 | Engineers Cost | 10 | 90,000 |
| Total Construction Cost | 9,00,000 | ||
FAQS
| Q1: How much does it cost to built a 1000 sqft house in India?
Ans: If you are using normal quality or class B raw materials for building a 1000 sqft house in India. Then the construction cost will be around Rs 1000 to 1100 per sqft. Hence, the total construction cost will be between 10 lakhs to 11 lakhs. Similarly, if you use class A raw materials then the cost will be anywhere between 1500 to 2500 per sqft. The total construction cost will be between 15 lakhs to 25 lakhs. |
| Q2: How is construction cost calculated?
Ans: Cost of construction = Area of plot * Construction rate per sqft. The cost of construction materials like cement, steel, colour, windows, and finishing. |
| Q3: What is the labour rate in construction in Mumbai?
Ans: Currently, the labour rate in construction in Mumbai is around Rs 1,90,600 per year. |
| Q4: How much is labour per sqft?
Ans: In India, the labour rate per sqft is around Rs 210 to 300. |
| Q5: How many types of raw material costs are there in the construction process?
Ans: There are three types or classes of raw material qualities depending on their rate. The three classes are A class, B class, and C class. |
