Why Are Home Construction Costs Rising? A Deep Dive into Residential Expenses

Dear All,

Our Research & Development Cell has prepared this under the guidance of Mr. Mukesh M. Patel, MD & Knowledge Worker at Neelkanth Group. It is with his express permission that I am posting this presentation on this forum.

I could have posted this presentation on the Real Estate Groups' vertical, but it would possibly be interesting for many people who are keen on understanding how their homes are becoming costlier by the day.

Please note that the figures shown here do not include some of the amounts required in this trade, such as the various system overheads and amounts needed to smoothen or speed up the processes. These components actually amount to as much as Rs. 400 - Rs. 600 per sq. ft. depending on the area, the kind of development, and the connections/affiliations.

This is a pure construction cost analysis for residential constructions and does not include the land cost or any legal costs associated with it.

I hope this proves to be interesting reading for all, even those not directly related to the industry.

Best regards.

Hi, I'll get it done by noon today. Are you related to the real estate industry as well?

Thank you.

Hi Dipali,

This is the first post/information on construction I have come across that is clear to understand and has objectivity. Could you please advise me on the current trends on costs of building/where I can find information in more detail? I need information on construction for residential purposes in Kandivali East, Mumbai, including the legal aspects/fsi, etc., and financial aspects as well (how does one arrange for a loan/financial help), etc.

Thanks,
dipsonee

Hi,

Can you illustrate how the PSF for RCC, etc., has been determined? Because, as per DSR, the rates are in cubic meters. Alternatively, have you used some other method to calculate it?

Thank you.

Dipali,

Good presentation! Could you let me know the present costing per square foot for a G+20 story building? I mean the costing as of today.

Chetan