Construction costs in Mumbai are greater than pre-pandemic levels but remain consistent as compared to March 2022. It is rising by 28% as of November 2022 and 32% over the course of three years for major building materials. Check out the article to get insights on Construction cost in Mumbai.
- What Is The Construction Cost In Mumbai?
- Construction Cost Per Square Foot In Mumbai
- How Do You Calculate Construction Cost In Mumbai?
- Various Costs Associated with Construction Costs in Mumbai
- Impact of Various Factors On Construction Cost in Mumbai?
- How to Reduce Construction Cost in Mumbai?
What Is The Construction Cost In Mumbai?
Living in the housing society is like having many facilities and tone of amenities which is a good thing and is a dream come true for many individuals. But generally, they are not created to custom.
As a result, independent home constructions are more popular since they provide residents with the freedom to design their homes any way they see fit.
However, building a house has unique difficulties. One of these major challenges is tackling the cost of construction associated with building a house.
The overall expenditures involved in developing a constructed property, such as a building, include construction costs.
The complexity, different circumstances and price fluctuation decide the overall construction cost in Mumbai.
Construction Cost Per Square Foot In Mumbai
An industry analysis claims that the construction cost in Mumbai is an average of almost 14% higher than the costs in India’s other top 6 major metropolitan areas.
The lowest-ranked cities include Hyderabad and Chennai, where the average construction cost is 14% less than in Mumbai.
The average Construction Cost in Mumbai Per Square Foot is given below,
|Type of Construction||Basic Quality||Good Quality||Best Quality|
|Average Area||1000 sq ft||1000 sq ft||1000 sq ft|
|Estimate For Construction||Rs 17,00,000||Rs 18,50,000||Rs 21,00,000|
|Construction Cost Per Sq ft in Mumbai||Rs 1700||Rs 1850||Rs 2100|
For the commercial building, the construction cost in Mumbai per square ft is an average of Rs 1200.
How Do You Calculate Construction Cost In Mumbai?
Construction cost in Mumbai can be calculated by following the formula,
Cost of Construction = Area of land or plot x Construction rate per sq ft.
Various Costs Associated with Construction Costs in Mumbai
One of the most expensive cities in India is Mumbai. So, if you want to construct a home in a city, you need to be aware of all the numerous factors that affect how much it will cost to build.
Cost of Land
For building a house in Mumbai the first step is to purchase ideal land at a preferable location in the city.
Cost of Layout, Design and Planning
This cost includes various factors as once you purchased land you required a plan and layout to construct a house and for that, you will require an architect.
An architect will design the structure and floor plan of your property.
One of the key elements affecting the cost of construction is the cost of the MEP (mechanical, electrical, and plumbing) design, which includes architectural, structural, and MEP costs.
Labour cost covers the estimated cost of labour for building a structure made of reinforced cement concrete (RCC), as well as for brickwork, plastering, and other finishing tasks, and for exterior development (like a compound wall, hardscaping, & landscaping).
Raw Materials Cost
Cement, Sand, steel, aggregate, Blocks, bricks, tiles, paint and other finishing materials are among the materials that must be purchased.
The selection of raw materials’ quality plays a significant role in determining the cost of construction. Generally, raw materials are separated into three groups:
- A Class: Involves the finest building supplies, including bricks, sandstone, cement, steel, fittings, and fixtures.
- B Class: Consists of cost-effective raw materials like steel, cement, sand, and bricks.
- C Class: Consists of subpar steel, sand, cement, and bricks as well as fittings and fixtures.
Cost of Civil Work
For most people, building a home is a one-time process. In order to finish the civil works, such as plumbing, tiles, electrical works, flooring, and finishing, which entails wooden works, grillwork, and painting the house, it would be preferable to consult an expert architect.
An architect may, however, bill 3-5% of the project cost.
Additionally, civil works could cost between 10 and 15% of the total project cost.
Cost of Regulatory Norms and Laws
Different areas have different building codes, which could lengthen project timelines and raise construction costs.
For example, if your property lies in an extremely sensitive area, you must get construction approval from the municipal agency or gramme panchayat that has jurisdiction over your property. Cost overruns and postponed project deadlines could come from this.
Additionally, in order to receive permission, severe development regulations in some localities must be followed.
For instance, stilt parking is essential if you’re going to build a two-story home in Delhi. If this clause is missing from your building plan, the municipal authority will reject it.
Cost of Finishing
In Construction cost in Mumbai, the finishing cost of your property includes various factors from interiors, furniture and exterior designing.
The house finishing costs could account for 15% to 20% of the total cost. The price of raw materials will depend on Mumbai’s supply and demand patterns.
Impact of Various Factors On Construction Cost in Mumbai?
Various factors impact construction cost in Mumbai.
- COVID-19 has had a neutral to large effect on market standard rates across all property sectors.
- A considerable cost impact of 5-6% has been experienced by existing greenfield & interior fit-out projects, particularly as a result of procurement issues that may have caused sellers to negotiate higher pricing from previously accessible sources.
- Additionally, there has been a rise in the costs of security (quarantine facilities, sanitation, thermal scanner installation, etc.), as well as the cost of specialised labour and other factors.
- The Goods & Services Tax (GST) may stabilise construction costs, according to the report. By the end of 2025, the developed real estate stock in the nation’s biggest cities will likely reach 8.2 billion square feet, employing nearly 17 million people.
How to Reduce Construction Cost in Mumbai?
You can follow the below tips to reduce Construction cost in Mumbai.
- Buy Material from nearby. Choose materials that are readily available locally, whether it be cement, bricks & blocks, windows and doors, tiles, bathroom fixtures, or pipes. You’ll spend far less on transportation.
- Take a long perspective. Use high-quality building materials to reduce the need for ongoing repairs and maintenance. Future cost savings can also be achieved by using greener alternatives. You can think of a time period of 30 to 50 years.
- Before choosing a contractor, consult with several and obtain quotations. You would have a better understanding of market prices and your own negotiating position as a result. If you are sourcing the building supplies, you can reduce labour costs by hiring fewer or more individuals at once.
|What are the types of construction costs?
In a construction of a project, there are four different types of costs for homeowners: direct, indirect, fixed, & variable costs.
|What is the standard cost of construction per sq ft?
A 1,000-square-foot residence can cost between Rs. 1,300 – Rs. 5,000 to construct on average.
|What is the construction cost of a flat in Mumbai?
The average construction cost of a flat in Mumbai can start from Rs 1700 to Rs 2000 per sq ft.
|Is land expensive in Mumbai?
According to recent real estate reports the country’s most expensive real estate market continues to be in Mumbai.