What Is The Typical Cost Of Building A House In Mumbai?

Mumbai is one of India’s most expensive cities. As a result, if you want to build a house in the city, you should be aware of the various variables that go into the construction cost. Here is a detailed breakdown of the average cost of building a house in Mumbai.

A house is more than just a structure with concrete walls and a roof. It is a long-term investment. However, with the growing urban population, building a house in a city has become more difficult. Furthermore, COVID-19 has had a neutral to significant impact on market benchmark rates across asset classes, particularly in Mumbai, where construction costs have risen significantly in recent years. According to an industry report, the average cost of building a house in Mumbai is more than 14% higher than in India’s other top six metro cities. Hyderabad and Chennai have the lowest construction costs, with an average of 14% less than Mumbai.

As a result, if you intend to undertake residential construction in Mumbai, you should be aware of the development cost and everything else that goes into building a structure.



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House In Mumbai: Mumbai’s development regulations

According to Section 43 of the Maharashtra Regional and Town Planning Act, 1966, any development activity must be approved by the municipal corporation, municipal council, or Nagar panchayat whose jurisdiction the land is located. Furthermore, the Act states that no authority will grant permission for any development that does not comply with the Regulations and the Mumbai Metropolitan Region Regional Plan, 2016-2036.

 The development restrictions in ecologically sensitive areas under the Coastal Regulation Zones (CRZ) are determined by criteria such as ecological sensitivity, distance from the shoreline, and whether the area is part of a natural park or wildlife zone. Building bye-laws in Mumbai also govern other regulations such as building height, minimum room size, refuge areas, and parking.


The primary costs of constructing a house in Mumbai

The rising cost of land parcels, as well as taxes and government approvals for land surveys and plan approvals, all contribute to the construction cost.

Furthermore, building bye-laws in Mumbai govern other regulations such as building height, minimum room size, refuge areas, and parking.


The primary expenses associated with constructing a house in Mumbai

The rising cost of land parcels, as well as taxes and government approvals for land surveys and plan approvals, all contribute to the construction costs.


House In Mumbai: Layout/floor plan

One of the major factors influencing construction costs is the cost of architectural, structural, and mechanical, electrical, and plumbing (MEP) design. After you’ve decided on the land and studied the regulations, you’ll need to choose a floor plan (either customised or chosen). A floor plan is simply an architectural representation of the house’s layout. It is a visual representation of the connection between spaces. When building a house, a floor plan provides a complete picture of how the house will look once completed. However, this comes at a cost!

 “An interior designer or an architect may charge close to Rs 20,000 for a 1,000 sq ft floor plan, which will only include the basic specifications like a 3D view of the home, external elevations, and area statement depending on the site and need of the client,” 


Raw material costs

The quality of the raw materials used is an important factor in determining construction costs. Raw materials are typically classified into three types:

  •            A Class- Involves the highest quality raw materials for construction, such as bricks, sand, cement, steel, fittings, and fixtures.
  • ·        B Class- Includes reasonably priced raw materials such as bricks, sand, cement, steel, and fittings.
  • ·         C Class- Consists of low-quality bricks, sand, cement, and steel, as well as subpar fittings and fixtures.


Construction and finishing costs

For most people, building a house is a one-time event. As a result, it is preferable to hire an experience architect to complete civil works such as plumbing, tiling, electrical work, flooring, and finishing. Which includes wooden work, grillwork, and painting the house. An architect, on the other hand, may charge 3-5 percent of the project cost. Furthermore, civil works may account for 10-15% of the project cost. While finishing costs may account for 15-20% of the project cost. The cost of raw materials would be determined by Mumbai’s demand and supply trends.

The construction cost in Mumbai, excluding the land cost, is between Rs 3,000 and Rs 3,500 per sq ft for a flat with basic amenities. The primary cost of construction is the cost of raw materials such as cement. Reinforcement steel, structural steel, stones, and labour, among others. The cost of raw materials and transportation accounts for 50-60% of the construction cost, which has nearly doubled in a decade. TMT bars (8mm to 32mm) used in construction have increased by approximately 160 percent. With an average price of Rs 52,000 per metric tonne.


House In Mumbai

In 2011, these TMT bars were available for around Rs 32,000 per metric tonne. Diesel prices in Mumbai have risen more than 200 percent since March 2011. Reaching Rs 96 per litre in August 2022. These have significantly increased the cost of construction.”

The cost of building a house includes. Among other things, the quality of raw materials used, the time of delivery, and legal taxes. Keeping these factors in mind. The construction cost of a 1000 sq ft house in Mumbai can range between Rs 45 lakh and Rs 50 lakh. Also, exercise caution when selecting a contractor. Ensure that the hired professional has extensive experience and strategically designs the space within your budget rather than burning a hole in your pocket.





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Disclaimer: The views of this expressed above are for informational purposes only based on the industry reports & related news stories. Navimumbaihouses.com does not guarantee the accuracy of this article, completeness, or reliability of the information & shall not be held responsible for any action taken based on the published information.
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