To build a house in Kerala, you need more than just a rough estimate. With cement and steel prices fluctuating, labour shortages in certain regions, and increasing municipal approval fees, the overall construction cost can vary widely, even within the same district.

Most people start by searching for construction cost per sq ft in Kerala, but the actual figure depends on multiple factors such as plot location, house size, design complexity, and finishing preferences.
In this blog post, we’ll break down what you can expect to spend, what drives those costs, and how a home loan can help turn your plans into reality.

Factors Influencing Construction Costs in Kerala

The building construction cost in Kerala varies depending on several essential factors:

• Location: Urban areas like Kochi or Thiruvananthapuram usually cost more than smaller towns due to higher land values, labour rates, and material transport costs.
• Plot Condition: Sloped or uneven land can increase costs due to extra foundation work.
  
• Design Complexity: Simple layouts are more economical, while multi-storey or architect-designed modern homes require higher budgets.
  
• Material Quality: Premium tiles, fittings, and woodwork can significantly raise the total cost.
  
• Labour Charges: Rates vary based on skill availability and seasonal demand in your region.
  
• Government Fees: Kerala has seen a rise in construction costs in recent years due to higher application and quarry charges.

These factors directly affect the cost of constructing a house in Kerala, so it’s important to get local quotes before starting your project.
Using tools like a home loan eligibility calculator can also help you plan your budget more accurately. It gives you an estimate of the maximum loan amount you may qualify for, allowing you to align your construction plans with realistic financing options and avoid overextending your budget.

Average Cost  of Construction Per Square Foot in Kerala

Based on current market estimates:

• Basic Quality: INR 1,800 to INR 2,200 per sq ft
• Mid-Range Quality: INR 2,300 to INR 2,800 per sq ft
• Premium Quality: INR 2,900 to INR 3,500+ per sq ft

For example, for a 1,500 sq ft home built with mid-to-premium quality materials, your total home construction cost in Kerala could be around INR 50 lakhs. This estimate also accounts for typical expenses for approvals, professional fees, and basic external works.

Types of Construction Costs

Here’s a quick breakdown of the different cost categories that make up the full construction cost in Kerala:

• Material Cost: Cement, steel, bricks, sand, tiles, etc.
  
• Labour Charges: Masons, carpenters, plumbers, electricians, and daily wage workers.
  
• Government Approvals: Plan approvals, electricity, water, and sewerage connections.
• Contractor Fees: A flat fee or a percentage of the total construction cost charged by builders.
  
• Extra Work: Compound walls, borewells, sumps, and gates.
  
• Interior Work: Not always included in basic construction, such as false ceilings, wardrobes, modular kitchens, etc.

Cost of Materials  in Kerala

Here are the general costs of materials you can expect based on the current trends:

• Cement: INR 320 to 450 per 50kg bag
• Steel: INR 45 to 55 per kg
• M-Sand: INR 3,000 to 3,500 per unit
• P-Sand: INR 3,800 per unit
• Aggregates (20mm/40mm): INR 1,200 to 2,200 per ton
• Bricks/Blocks: INR 6 to 12 per piece
• Tiles: INR 60 to 200 per sq ft; Granite: INR 150 to 400; Marble: INR 250 to 600
• Painting: Interior: INR 15 to 30 per sq ft; Exterior: INR 20 to 45 per sq ft
• Electrical & Plumbing: INR 200 to 350 per sq ft combined

These rates vary across districts and suppliers, with higher quarry fees and transportation costs often contributing to cost escalation.

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Labour  Costs in Kerala

Labour charges form a major component of house construction cost in Kerala:

• Masons: INR 900 to 1,200/day
• Carpenters: INR 1,000 to 1,400/day
• Electricians/Plumbers: INR 1,000 to 1,600/day
• General labourers: INR 750 to 1,000/day

Urban areas such as Ernakulam and Thiruvananthapuram typically see higher wage rates due to skilled labour shortages, especially during peak construction months.
*Please note that all costs mentioned in this article are indicative and can vary based on market conditions, location, and individual project requirements.

Conclusion

Building your dream home in Kerala involves careful planning, precise budgeting, and the right financing. From fluctuating material prices to varying labour rates across districts, multiple factors influence the final cost. By combining local cost estimates with tools like a home loan EMI calculator and an eligibility calculator, you can better plan your finances and ensure your budget stays on track.
With an SMFG Grihashakti home construction loan, you can finance up to 90%* of your project budget, with competitive interest rates starting at 10%* per annum. Check your eligibility and apply online with minimal documentation to start building your home.