Introduction
A lot has changed over the last couple of years- we have seen some truly difficult and, testing times. Nevertheless, with the lockdowns becoming a thing of the past now, markets have started opening up, and people are getting their homes built now more than before with pent-up demand becoming visible. We have also talked about why now is the best time to get your homes built- you can read about it here.
So, what exactly has changed in the last two years? For instance, the COVID 19 pandemic has battered supply chains and as a result, the cost of materials has shot up drastically. Here is a table to show the rise in rates of key construction materials in Indore.
What has changed in the past two years?
| Items | Cost in 2020 | Cost in 2022 | Percentage Increase | Rough Proportion of total construction cost | Effect on new cost of construction |
|---|---|---|---|---|---|
| Steel (Per Ton) | 45000 | 70000 | 55% | 25% | Rs 172/SFT |
| Cement (per bag) | 315 | 375 | 20% | 10% | Rs 25/SFT |
| Bricks (per brick) | 6.5 | 9.5 | 46% | 8% | Rs 46/SFT |
| Tiles (per sqft of a 2*2 tile) | 40 | 55 | 37.5% | 9% | Rs 42/SFT |
| Approx. increase in per SFT. cost of construction- Sum Total | Rs 285/SFT |
So, because of the increase in prices of key construction components, let us analyze how this affects the cost of construction of your house? If we assume that the cost of construction in 2020 was roughly at Rs 1250/SFT- ground up, now with the increase in the prices of key components of construction, the cost of construction in 2022 stands at upwards of Rs 1550/SFT since in the above calculation we have not taken many other items such as plumbing pipes, electrical wire/switchboards, paint, and so on.
Conclusion
In conclusion, if any agency is offering construction costs lower than Rs 1550/SFT, it should definitely be a red flag for you since, in all likelihood, this offer will come at a price- the price of inferior materials being used on-site, lack of adequate supervision during the construction process, and overall inferior quality of works.
Here, the better alternative is to approach the construction of your house as a project, and just like any project, do a comprehensive project budgeting with a detailed Bill of Quantities where you know how much you are paying for what. Each item is listed down and a breakup of cost against the same is provided. At Limpid Construction, we offer a comprehensive project budget instead of just a per SFT. Construction Cost to every client who avails our services.
Author- Sarbojit Dutta
Civil Constructions, Home Interiors & Renovations!
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