Research shows that building luxury residential apartments in high-rise buildings in Mumbai costs around Rs 5,625 per square foot. In comparison, the construction cost for houses in Hyderabad is approximately Rs 4,275 per square foot. Mumbai’s construction costs are estimated to be about 10 percent higher than other major cities like Bengaluru, Pune, New Delhi, and Chennai.
Hyderabad stands out for its affordable low-cost house construction compared to other major cities in India. It is 14 percent more economical than Mumbai, which is known for its high construction costs.
For medium-rise commercial buildings, the expenses vary depending on the city. In Mumbai, it typically costs about Rs 3,250 per square foot, while in Delhi, the cost is approximately Rs 2,860 per square foot. Hyderabad offers a cost advantage with construction expenses averaging around Rs 2,470 per square foot for similar properties.
The increasing cost of living is an important factor in real estate decisions. Many companies are reassessing their property choices to optimize their spending. While the impact of rising construction costs in Hyderabad is still debated, it is clear that construction expenses are increasing. Understanding and managing these costs are crucial for staying within budget and delivering high-quality and cost-effective projects.
Prospective property buyers in Hyderabad should expect higher property prices than before. The prices of construction materials in Hyderabad have increased, especially after the pandemic. Limited production capacity and supply shortages have led to significant price increases for essential construction materials like cement, steel, solid blocks, nails, binding wires, and plywood. As a result, the overall costs of both commercial and residential properties in Hyderabad are rising.
