What is the Cost of House Construction in India?

Do you own a plot and are looking for Construction your own house? Then the first question that might have hit your mind is how much it costs to construct my own house.

If you are confused with different contractors quoting differently and don’t know really which one to believe in, then you are at the right place. In this blog we will discuss the various aspects like how to arrive at the total cost of house construction, what are the factors that might influence the cost of construction and give you a House Construction Cost Calculator where you can calculate the approximate cost for your house construction.

Please note this blog is targeted to answer questions of individual house constructions so we might not have covered aspects that influence cost in high rise construction such as height of structure, shape of the building, type of formwork used etc.,

Cost of House Construction

The cost of house construction in India typically starts from Rs. 1349/- per sqft. That means a 1000 sqft of house will cost 13,49,000/- to construct. This cost may vary depending on the finishing materials you choose. 

Individual house construction involves lot of complex construction activities but in small quantities. 

So it is highly difficult to prepare a Bill of Quantities and arrive at rates individually. 

The commonly used way to calculate the cost of construction is to arrive at an approximate unit rate for construction and multiply it by the build-up area.


Cost of construction = Build-up area X Unit rate for construction

What Constitutes Cost of Construction

1. Area of Construction (or Build Up Area)

The cost of construction depends on Build up area (or Area of construction). Area of construction is not the plot area. It is the total slab area that is constructed.

buildup area of house construction

Say, if you are constructing a 3 Floor building (G+2) with 1000 sqft floor plate area on each floor, then the total build-up area of the building will be counted as follows:

Build-up area = 3 X 1000 sqft = 3000 sqft

If you are planning for stilt parking, then obtain the cost of stilt parking separately (since no finishing is required) or use of factor of 0.7 while calculating build-up area.

Stilt car parking

Suppose in the above case if we are considering the ground floor as stilt parking, then the build-up area would be 2.7 X 1000 = 2700 sqft.

2. unit Rate of Construction (Rate per Sqft)

The Unit rate of construction usually depends on what specifications you choose. Although some might call it as quality of construction we wouldn’t prefer using that term.

Quality of construction is not about just choosing the best of all materials in the market but by achieving the required degree of standard by using the materials available and by employing the best practices.

So what do we mean when we say specifications of construction?

Specifications mostly mean the types and brands of materials you choose for construction.

Say you are planning to get flooring done for you house. There are variety of materials available in the market you can choose from.

You can go with a simple concrete flooring or go with vitrified tile flooring or with marble flooring. Now the rates for construction of each of these types of flooring varies.

Vitrified tiles are available from Rs. 30 – Rs .150 per sqft in the market

Indian Granite might cost you between Rs. 80 – Rs. 500 per sqft and above also.

Italian granite might cost you anywhere between Rs. 250 – Rs. 2000 and above also.

Now it might be hard for you to understand what these types/brands of materials that are used in construction. So we would like to simply them for you.

We have created a House Construction packages section. Here we have given 3 packages (Silver, Gold & Platinum) and shown how the cost varies depending on specifications/brands you choose in as much detail as possible. You may refer to these packages to understand how construction cost varies depending on specifications.

Why to finalize the basic cost of materials and not just the brands Used?

Many might have wondered why fix the basic cost of materials like tiles, bathroom fixtures etc., when the brands of these materials are finalized.

Let’s consider a brand like Jaguar. There are a number of series of materials available in jaguar for same kinds of materials.

Jaguar Sanitary ware Series

In each of those series, the size, shape, design and cost of similar fittings (say table top counter as shown in below case) varies drastically.

Cost difference in Jaguar Wash Basins from 2 different series

Likewise many series of materials with varying prices are also available in electrical wires, switches, sockets, bathroom fittings, Painting etc., So it is always advisable not just to finalize the brands used in construction but also the basic rates of materials used.

If there is any difference in the landed cost of all the materials from the base cost. This will help removing any uncertainty in obtaining quotes for House Construction from contractors.

Here is an example for you to understand:

Say while agreeing on house construction with your contractor, you have agreed for a lump sum amount of Rs. 12,000/- (per bathroom) for all the fittings and fixtures from Jaguar Brand. While construction, say you have selected the following materials from Jaguar Brand.

Wall Hung WC (Continental Series) – Rs. 5,720/-

Metropole Concealed Flush Valve with Plate – Rs. 2,775/-

Table Top Basin (Continental Series) – Rs. 1,925/-

Pillar Cock (Continental Series) – Rs. 560/-

Wall Mixer (Continental Series) – Rs. 2,400/-

Overhead Shower – Rs. 1,650/-

Hand shower (health faucet or Jet spray) – Rs. 700/-

The total amount for fittings in this case would be Rs. 15,730/-. You will have 2 options, one pay Rs. 3,730/- apart from the agreed amount of Rs. 12,000/- per bathroom or choose fittings according to the price. You may go with brands like hindware which costs 15-20% less as compared to Jaguar or choose change your fittings like going with Floor mounted WC with tank. This will reduce the cost of the fixture by more than 30% (Considering the combined cost of Wall hung WC and Concealed Flush Valve).

By finalising on the basic prices of materials, you can always keep a check on the house construction costs and remove any uncertainty while comparing quotes from multiple contractors.

How to Calculate the Cost of Construction In Your Case

Now that you have understood how the cost of construction varies, you can talk to few contractors and get quotes from them for your house construction project.

You may refer our House Construction Packages which shows how costs varies depending on the specifications you choose.

Alternatively, you can use our House Construction Calculator if you want to arrive at a customised costing based on the specifications you have finalised.