Mindful planning and budgeting are the key factors when you decide to build a new home. Several things can influence the cost of construction and this blog from the contractor’s desk can help you to make informed decisions without emptying your pocket. It will not only help you to know the influencing factors that decide cost of construction but it also ensures proper allocation of funds at different steps of making your dream home. Let’s delev into the details to know the cost influencing factors and how they can increase expenses-

Location: The location of the house plays an important role in determining the average construction cost in Bangalore. For example, if you have bought land at a high price or it is in a posh area due to available facilities and a popular neighbourhood, you may have to pay more. On top of that, building materials, permits, and labour costs vary at different locations and can cost you more. Planning with thorough research can help you to find a suitable location for your home within your budget.

Building materials: The choice of building material used for your home can impact the overall cost of construction per square foot in Bangalore. Some top-notch classy materials like hardwood flooring, granite or marble countertops and custom cabinetry can dig your pocket. On the other hand, prefabricated cabinets, vinyl flooring and laminate countertops are more affordable yet durable alternatives. Apart from these options, you can explore recycled and sustainable materials with the help of building contractors who can help you not only to save money but also building an eco-friendly home.

The Size And Design Of The House:

The size and design of the house is one of the cost-influencing factors. The larger the house, the more building materials will be used from the foundation to the roof. Spending bucks on intricate design will add more to the construction cost per square feet in Bangalore. Hence, contractors suggest choosing the features which are essential for your lifestyle to keep the cost down. For example, a well-planned layout and functionality of your home will help in space optimization by reducing unwanted square footage. It will ultimately cut down construction expenses.

Time of Construction: The given timeline for your construction process impacts building costs as well. So, if you want a quick turnaround, you need to invest more in labour and materials to elevate the process. Similarly, choosing summertime for your construction process can increase the cost. Adding more to this, unforeseen delays cause higher investment with lower returns. Some other issues like obtaining building permits and bad weather can stretch project deadlines which on the other hand can increase the expenses. Hence, it is important to discuss with the professionals to gauge the potential time constraints and plan accordingly to eliminate financial burden.

Choice of Labour and Contractors: Just like the time given for the construction process, the cost of labour and constructor involvement is decided by the location and size of your building. You will need to hire an architect, contractor or other professionals for a top-notch construction process that includes high-rise buildings and apartments. However, paying fees to all these people involved in the construction process will add to home-building costs. Hence, don’t forget to research and compare the quotes and services from different constructors before putting down the papers.

Unforeseen Causes That Can Raise The Cost Of Construction:

When you decide to invest in a construction project, a lot of factors we have just learned above can influence the cost. However, more such factors can throw off construction cost estimations and plans, which can turn the construction project into a tricky one to deal with. Well, fret not, even after the rise in construction costs, professionals will always come up with a solution to keep construction work at the optimal level. Before that, let’s know the causes which can raise construction costs-

1. Shortage of skilled labour: There is a lack of skilled labour in the construction industry, which has driven up the cost. Since construction projects are in demand due to increased habilitation, the available number of trained professionals sometimes can’t work at their own pace. This in turn, has made the labour market more competitive resulting in raised salaries and a limited pool of individuals.
   
2. Low supply of materials: The rise of construction costs due to the shortage of materials is one of the concerning factors the construction industry is facing. Building materials like concrete, steel and lumber are such high in demand that contractors sometimes find it difficult to supply them. Issues like demand for these materials from other industries, supply chain disruption due to the pandemic and trading factors like import and tariff restrictions can lower the supply of building materials. This eventually results in a price hike.

According to recent studies, 97% of the companies that deal with materials like steel, concrete and lumber expect high material pricing in coming years. Eventually, contractors will face a higher cost while arranging raw materials and supplies, which will impact the cost anyway.

• Inflation across the globe: The construction industry around the world couldn’t escape inflation, which affected the cost of building materials, equipment and labour. With the increased inputs, the cost of construction projects has also increased. Moreover, transportation of goods has become expensive due to inflationary pressure on fuel prices. Adding more to this, inflation has caused higher interest rates, which in turn made it difficult for the contractors to lend money for their projects.

Strategies To Reduce Construction Costs:

Many contractors and developers face questions from owners about how to make cost reduction possible. Whereas it is important to reduce cost, it should never come at the expense of the overall quality of the construction process. Proper planning, innovative approaches and smart strategies can lower expenses besides ensuring the desired result without compromising functionality, aesthetics and safety. Here are the key steps to ensure low cost house construction in Bangalore.

1. Streamline planning and design process: When you sit with professionals and optimise the planning and design process, it becomes easy to eliminate unnecessary complexities and reduce construction costs. For example, the amount of material for a simpler layout with less intricate details reduces the construction time and expenses.
   
2. Cost-effective Standard Materials: Homeowners should choose materials which are durable and cost-efficient. The use of quality cement, steel, brick, stone, aggregate and sand plays a vital role in building a strong structure with a sturdy base. It may seem costly at the initial phase, but standard materials reduce the need for repairs and maintenance in future.
   
3. Invest in Skilled Workers: Your overall construction budget will be highly influenced by the choice of worker. Whereas skilled workers reduce costs in the long run by strategically using resources and time, inexperienced ones fail to maintain quality and cause unnecessary delays adding more expenses. 
   
4. Ensure Streamlined Operation Using Technology: The use of technologies can reduce the construction cost per sqft in Bangalore. For example, 3D printing, Building Information Modelling, Drones, Virtual and Augmented Reality and prefabrication are some automated processes that foster efficiency, cost-effectiveness and sustainability. These technologies allow accurate visualization of the entire construction process and help to find potential issues besides maximising cost-cutting efforts.
   
5. Maximise The Use Of Resources With Minimal Wastage: Construction cost reduction becomes easy when waste production is reduced. Since inefficient use of materials causes over-ordering and miscalculating quantities, it increases expenses. So, it is important to properly handle materials and ensure their proper storage to keep materials in good condition for a longer period.
   
6. Proper Resource Utilization:  When it comes to minimizing the construction cost without compromising on quality, efficient utilization of resources is necessary. Equipment, labour, materials and stakeholders must be managed strategically to cut unnecessary expenses.

For example, ordering materials in bulk often comes with attractive discounts. However, bulk purchasing is only beneficial when materials are stored safely without any risk. Apart from this, the prefabrication of materials significantly reduces labour costs due to off-site construction and on-site assembly of different components to finish the construction work quickly with the least possible waste production.

• Smart Negotiation With Contractors And Suppliers: Effective negotiation with suppliers and contractors can impact the construction cost significantly. Hence, you should build strong relationships with the builders and contractors besides maintaining proper communication. It will make acquisition of raw materials in bulk with better pricing and favourable payment terms.

• Take Preapproved Home Loans: Before you plan a low-budget home construction without compromising on quality, the first thing you have to ensure prior estimation with proper planning. It is recommended to take a pre-approved home loan. However before you make a final estimate, count the interiors as well. The cost of flooring, plumbing, heating, cooling, painting and furniture installation will give you an idea of the loan amount that would be sufficient for you. If you want to get an idea of how much building a home can cost you, then talk to contractors about your requirements and finally keep an emergency fund ready for unforeseen expenses.

• Track the Flow of Budget: It becomes easy to budget your homebuilding expenses with a budget tracker. It works like a ledger, where you can keep track of all the monetary transactions ensuring a few things as listed below-

• Apart from the initial cost estimation, keep an emergency fund ready, which would be at least 10-15% of the budget you have made.
• Regularly keep track of how your cost is distributed and ensure no surprises from there.

1. Reduce Square Footage: Small and cosy rooms can slash the construction cost dramatically, and you have to reduce the square footage of the entire home for this. Besides, if you choose to build separate living spaces upward instead of outward, then your cost to construct duplex house in Bangalore will be less than other homeowners.

1. Opt For A Simple Roof System: The roof of your home involves expensive materials and labour that can dig your pocket if not planned strategically. Simpler and inexpensive roof structures are found to have single rigid line with a shallow pitch, whereas the complicated roof structure comes with a steeper pitch and looks visually interesting.

While summing it up, building your dream home takes a lot of consideration from choosing the materials to investing in labour and strategically planning different corners of your home. To reduce the budget in the initial phase, invest in only necessary items and upgrade other areas like the bathroom, floor and kitchen later with intricate details.

Adding to this, last-minute changes in design materials can take a toll on your budget. Hence, before the construction process of your building starts, research and compare the properties properly. No matter if it is 600 or 1200 sq ft house construction cost in Bangalore you are trying to estimate, ask for a structural drawing of planned construction from contractors. Lastly, remember not to confuse low-cost houses with low-quality houses. It is all about the right strategy and expertise which can help to build your dream home without taking a toll on your budget.

FAQs 

1. What is the average construction cost per square foot in Bangalore? 

₹1,500 – ₹3,500 

2. How much does it cost to construct a 600 square feet house in Bangalore? 

₹9,00,000 – ₹21,00,000 

3. What factors affect construction costs in Bangalore? 

Location, land cost, materials, labor, design, and government regulations.