Lowest Construction Costs of All Metropolitans in Hyderabad
According to a research report published by Jones Lang LaSalle (JLL) – a global commercial real estate services company, Hyderabad has the lowest construction costs out of the top 6 major metro cities of India (Mumbai, New Delhi, Bengaluru, Chennai, Pune and Hyderabad) and Mumbai has the highest construction costs of any city in India.
The report suggests the gap in cost of construction in the cities can be attributed to significantly higher cost of elementary construction raw material like sand, stones, cement, and structural/reinforcement steel in Mumbai & Delhi. The construction costs in Hyderabad are at an average 14% lower than construction costs in Mumbai. So for an estimated Rs. 1 crore construction project in Mumbai (excluding land cost) will only cost about Rs. 80 – 85 lakh in Hyderabad. The money saved can be spent towards beautification or reinvestment in new projects.
Indications from the report point towards the differences in construction costs between Mumbai & Hyderabad for different types of building vary between 8 to 30%. A luxury high-rise apartment/flat (30+ floors) in Mumbai requires a construction cost of around Rs. 5.625 per sq. ft. while a similar property would require a construction cost of abot Rs. 4,275 per sq. ft. which is nearly 25% less than that required in Mumbai. Mumbai also requires about 10% more investment to build such a property when compared to other cities like New Delhi, Bengaluru & Chennai.
Construction costs for a high rise commercial buildings with 12 floors or more in Mumbai is estimated at Rs. 3,875 per sq. ft. while it is estimated to be Rs. 2,945 per sq. ft. in Hyderabad, Rs. 3,410 per sq. ft. in New Delhi, Rs. 3,379 per sq. ft. in Pune, Rs. 3,038 per sq. ft. in Chennai and Rs. 3,100 per sq. ft. in Bengaluru.
Average standard apartments (approx. 8 to 12 floors) require a construction cost of Rs. 1,900 per sq. ft. in Hyderabad while a similar project will need an expense of Rs. 2,375 per sq. ft in Mumbai – a 20% difference in the construction costs of standard apartments in Hyderabad & Mumbai. The rest of the metro cities fill the region of 20% difference in construction costs between Mumbai & Hyderabad.
The trend observed in the real estate industry is that the construction costs have been rising for the past few years and will continue to be on the rise, this will become one of the key factors that influence the decisions made by commercial or private investors to optimize expenditure. Managing costs and thoughtful expenditure is key to construction on a budget while building a quality & functional project.
The critical impact has been on services, like imported items which cannot be sourced due to the current travel restrictions between countries. Also, limited availability of resources at the local sources have impacted services and driven costs up as builders are forced to buy from the first available source at higher rates.
Competitive pricing, all-time low interest rates & flexible loan policies have been driving up the demand in real estate market post lockdown with recovery rate up to 90%. The biggest driving factor has been the increased emotional/sentimental value of owning a home. The demand for residential plots is on the rise and with construction costs rising too, individuals & commercial investors will be looking to take up construction activity before construction costs peak too high.
Now that you know the situation of the real estate industry, it might be tempting to invest and build your dream home. The beginning of your dream is within your reach, with KFortune – browse through the plots we have an offer and pick your fancy at KFortune-Projects with the added benefit of having the lowest construction costs of any metropolitan city in India.