Hyderabad, one of India’s fastest-growing metropolitan cities, has become a prime location for residential development. With its robust infrastructure, tech-driven employment market, and relatively affordable living standards, many individuals are exploring property investments here. But before laying the first brick, it’s crucial to understand the construction cost per sq. ft. in Hyderabad, including materials, labour, and other influencing factors. This knowledge is especially critical for first-time homeowners who may be financing their projects through a home loan.

This guide breaks down the cost of building a house in Hyderabad, helping you plan your construction journey with greater financial clarity.

Factors Influencing House Construction Costs in Hyderabad

The house construction cost in Hyderabad can vary significantly based on several interlinked factors:

1. Location and Locality

Land costs differ across localities. While areas like Gachibowli, Madhapur, and Kondapur are costlier, the outskirts like Shadnagar or Adibatla offer more budget-friendly options. Labour and transport costs also rise with distance from central hubs.

2. Type of Construction

RCC-framed (Reinforced Cement Concrete) structures are standard for urban homes. However, opting for load-bearing walls or pre-fabricated technology can influence the budget.

3. Soil Type and Foundation Requirements

Areas with loose soil require deeper foundations, increasing costs. Conversely, rocky terrain may reduce foundation expenses but increase excavation costs.

4. Design Complexity

Contemporary architectural designs, double-height ceilings, and smart home integrations raise both material and labour costs.

5. Contractor vs Self-Managed Project

Hiring a professional contractor adds to the budget through service fees but typically ensures better planning, timely completion, and quality control. On the other hand, managing the construction yourself may cut costs but demands substantial time and expertise.

Average Cost of Construction per Sq. Ft. in Hyderabad

The cost of house construction in Hyderabad typically ranges between INR 1,400 to INR 2,000 per square foot, depending on the location, type of construction, quality of materials, and design complexity. For premium construction or villas in upscale areas like Banjara Hills or Jubilee Hills, the cost can go beyond INR 3,500 per square foot.
To calculate the total cost, you must consider:

• Built-up area (in square feet)
• Quality of materials used (standard vs premium)
• Contractor fees
• Government approvals and fees
• Utility connections and additional amenities

For example, constructing a 2,000 sq. ft. home in a mid-range area using standard materials may cost around INR 35–40 lakhs. For high-end finishes, the figure could be closer to INR 70 lakhs.
It is prudent to use a home loan eligibility calculator to estimate your borrowing capacity before finalising the budget for your project.

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Types of Construction Costs

There are two major categories:

1. Hard Costs

These refer to tangible, construction-related expenses:

• Materials (cement, steel, bricks, sand, etc.)
  
• Labour
  
• Equipment and machinery
  
• Plumbing and electrical systems

2. Soft Costs

These include planning, legal, and administrative expenses:

• Architect and engineer fees
  
• Land registration charges
  
• Government approvals
  
• Utility connection fees (electricity, water, sewage)

Soft costs generally account for 10–20% of the total construction budget, depending on the project’s scale and location.

Cost of Materials in Hyderabad

Commonly required materials include cement, steel, bricks, sand, gravel, tiles, wood, plumbing fixtures, and electrical fittings. Prices for these materials can vary based on quality, brand, market demand, and seasonal availability. Additionally, transportation costs and the distance from suppliers can influence the final cost of materials in different parts of the city. All of these factors play a significant role in determining the overall cost of house construction in Hyderabad.

Labour Costs in Hyderabad

Labour generally makes up nearly 30–40% of the house construction cost in Hyderabad. It includes:

• Masonry and carpentry
  
• Plumbing and electrical work
  
• Tiling and painting
  
• Roofing and finishing

Costs can vary depending on the availability of workers and the level of skill required for the project. Skilled professionals such as electricians, plumbers, and carpenters typically charge higher rates than general or unskilled labourers. Regional demand, project timelines, and the complexity of work can also affect labour charges.

Note: Hiring experienced labour may improve quality and reduce material wastage, even if their daily rate is higher.

*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 own home in Hyderabad gives you greater control over design, quality, and location – and often offers better value than purchasing a ready-to-move apartment. However, it also requires careful planning, accurate budgeting, and active supervision throughout the construction process.
If you're considering building and need financial support, SMFG Grihashakti offers home loans of up to INR 1 crore* to help make your dream home a reality. Use our home loan EMI calculator to estimate your monthly instalments and apply online to enjoy competitive interest rates and flexible repayment tenures.