What Is Construction Cost In Hyderabad 2024

Whether you’re building a residential or commercial property in Hyderabad, it’s essential to have a clear understanding of construction costs. Learn about the average cost of construction, cost per square foot, and key factors to consider in this informative article on construction cost in Hyderabad.

Hyderabad is a rising IT hub and an excellent place for builders to develop and sell real estate. 

Before development in Hyderabad begins, the city’s building permission procedures must be met. 

The Greater Hyderabad Municipal Corporation gives its approval for any new construction in Hyderabad.

All building plans and layouts in Hyderabad required permission. 

All buildings under its jurisdiction are required to obtain permission from the GHMC in accordance with the GHMC law of 1955.

Construction Cost in Hyderabad: Rules And Guidelines

In Hyderabad, the GHMC is a civic organisation that manages construction works. It acts as the neighbourhood inspector to make sure cities have basic amenities. 

Before giving permission various aspects are taken into account, including the building’s height, proximity to landmarks, historic structures, water bodies, and pipelines carrying oil or gas. 

• Your building plan and layout must follow all applicable standards and laws. 
• There is a huge chance for real estate developers for new development in Hyderabad with the launch of the country’s first-ever easy online building permit system, by Telangana’s TS-bPASS.
• As demanded by Minister KT Rama Rao on Sept 14, 2020, it is a single-window system that provides a single application form for acquiring multiple NOCs in order to simplify regulations and processes for obtaining building permits. 
• The developer will save time by using this process, which issues building permits in just 21 days. 
• Prior to the new construction in Hyderabad, developers required NOCs separately from various departments such as fire services, revenue department, traffic police, irrigation, Airport authority and national monument authority. 
• This process used to take long periods, using a “single-window system” a single application form process becomes simpler for those seeking GHMC building permission in Hyderabad for the construction of apartments, standalone homes and villas. 

Factors That Can Affect Construction Cost In Hyderabad

The cost of construction in Hyderabad can vary depending on a variety of factors. It is essential to consider these factors when planning a construction project to ensure that it is completed within budget. 

Here are factors that affect construction cost in Hyderabad.

Labour Costs

The cost of labour is a significant factor in determining the overall construction cost. 

The cost of skilled and unskilled labour varies from region to region, and it can also depend on the type of work being performed. 

In Hyderabad, the labour cost may be lower than in other cities due to the availability of a large workforce.

On an average of 15 % of labour costs, you can count in the total budget of construction cost in Hyderabad. 

Material Cost 

The cost of materials can vary depending on the type of construction project. 

The cost of materials such as cement, steel, bricks, and sand can fluctuate based on supply and demand, transportation costs, and other factors. 

Hyderabad has a thriving construction materials industry, which can keep the cost of materials lower than in other regions.

If you order materials in bulk you can get a discount of around 8-10%. 

Permits

The cost of permits and other regulatory requirements can add to the overall cost of a construction project. 

In Hyderabad, the cost of permits can be relatively lower than in other cities in India, which can make it an attractive location for construction projects.

Initially, approximately Rs 10,000 requires to pay for licences or for building permits. 

Location Cost 

The location of a construction project can have a significant impact on the overall cost. 

Selecting the right location and plot is the 1st step towards saving construction costs. 

The cost of land, transportation, and other factors can vary depending on the location. Hyderabad has a relatively lower cost of land and a well-developed transportation infrastructure, which can make it an attractive location for construction projects.

Invest in plots a little bit farther from the local road if you want to lower plot costs to match your expected cost for constructing a house. 

The price of plots near the main road is higher than those further away since they are regarded as excellent real estate.

Other Factors such as

• Project Size: Larger construction projects may require more resources, which can increase the overall cost.
• Design Complexity: The complexity of the design can affect the cost of construction. More complex designs may require specialized materials and labour, which can increase the overall cost.
• Timeline: The timeline for completing a construction project can also impact the cost. Projects with shorter timelines may require more resources and labour, which can increase the overall cost.

Cost Of Construction In Hyderabad For Residential Vs Commercial

The cost of construction in Hyderabad can vary depending on the type of building, whether it is residential or commercial. 

Generally, the cost of construction for commercial buildings is higher than that of residential buildings due to their larger size, complexity, and specialized requirements. 

Here is a breakdown of the cost of construction for residential vs. commercial buildings in Hyderabad:

Residential Building Construction Cost 

The cost of constructing a residential building in Hyderabad can vary depending on the size, quality of materials used, and location. 

On average, the cost of construction for a basic residential building with standard quality materials can range from Rs 1000 to Rs 2000 per square foot. 

However, the cost can increase significantly for higher-end residential buildings that require premium materials, design complexity, or specialized features.

Commercial Building Construction Cost

The cost of constructing a commercial building in Hyderabad can be significantly higher than that of a residential building. 

The cost can change depending on the type of commercial building, such as an office building, retail space, or a hospital. 

On average, the cost of construction for a basic commercial building with standard quality materials can range from Rs 2500 to Rs 3500 per square foot. 

However, the cost can increase significantly for more complex commercial buildings that require specialized features, such as ventilation, security systems, and specialized equipment.

What Is Construction Cost Per Square Foot In Hyderabad

The construction cost per square foot in Hyderabad may differ depending on several factors, such as the property’s type, quality of materials used, and location.

For residential buildings, the cost of construction per square foot ranges from the average of Rs 1550 to Rs 2050 for a standard quality construction project. 

The cost can increase significantly for higher-end residential buildings that require premium materials, design complexity, or specialized features.

Here is an avg construction cost in Hyderabad per sq ft.

Cost Of Construction In Hyderabad To Other Cities In India

The cost of construction in Hyderabad is relatively lower compared to other cities in India.

• The average construction cost per square foot in Mumbai ranges from Rs 2000- Rs 4000.
• The construction cost in Delhi is relatively higher than in Hyderabad. The average cost per square foot for construction in Delhi ranges from Rs 2700 to Rs 3500.
• The average cost per square foot for construction in Bangalore ranges from Rs 1700 to Rs 2700.
• The cost of construction in Chennai is similar to Hyderabad. The average cost per square foot for construction in Chennai ranges from Rs 1500 to Rs 3000.
• The cost of construction in Kolkata is slightly lower than in Hyderabad. The average cost per square foot for construction in Kolkata ranges from Rs 1200 to Rs 2500.

Factors That Influence Construction Cost In Hyderabad

Several factors can influence the construction cost in Hyderabad, including the economy, technology, and government policies.

Let’s discuss each factor in more detail:

Economy: The state of the economy can significantly impact the construction cost in Hyderabad. When the economy is booming, the demand for construction increases, leading to a rise in material and labour costs. Similarly, during an economic downturn, the demand for construction decreases, leading to a drop in prices.

Technology: The use of advanced technology in construction can improve efficiency, reduce construction time, and lower the cost of construction. For example, the use of pre-fabricated materials can reduce the time and labour required for construction, thereby reducing the overall cost.

Utilising cutting-edge construction technologies, such as BIM (Building Information Modelling) and green housing, can speed up construction while lowering costs and errors.

Government Policies: Government policies can also influence the construction cost in Hyderabad. For instance, regulations and permits can add to the cost of construction. Additionally, tax policies and subsidies can either incentivize or disincentivize construction activities, which can impact the overall cost.

How To Reduce Construction Cost In Hyderabad?

Reducing construction costs in Hyderabad can be a challenging task, but there are several ways to achieve it.

Here are some ways to reduce construction costs in Hyderabad:

• Plan and Design Efficiently: A well-planned and efficient design can significantly reduce construction costs by optimizing space utilization, minimizing waste, and reducing the need for excess materials.
• Use Sustainable Materials: Using sustainable materials such as recycled materials and energy-efficient equipment can reduce the need for costly repairs and maintenance, and lower energy costs, thereby reducing construction costs in the long run.
• Optimize Resource Utilization: By optimizing resource utilization, builders can reduce waste and minimize the need for expensive materials. For example, using pre-fabricated materials can reduce labour costs and shorten construction time.
• Choose the Right Location: The location of the construction project can significantly impact the cost. Therefore, selecting the right location with lower land prices and labour costs can reduce construction costs.
• Negotiate with Suppliers: Negotiating with suppliers for lower prices on materials and equipment can significantly reduce construction costs.
• Utilize Technology: Utilizing advanced technology such as Building Information Modeling (BIM) and other construction management software can improve efficiency, reduce labour costs, and minimize material wastage.
• Hire Experienced Professionals: Hiring experienced professionals, such as architects and contractors, can help to optimize the construction process, identify cost-saving opportunities, and reduce the risk of errors and rework.

In conclusion, reducing construction costs in Hyderabad requires careful planning, efficient design, and strategic decision-making. By adopting these measures, builders and developers can reduce costs without compromising on quality or safety.

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