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Building home in Mumbai costliest at Rs 3,125 per sq ft, says report

Delhi and Pune came a close second in average cost of construction at Rs 2,750 per sq ft, followed by Chennai and Bengaluru at Rs 2,500 sq ft

Press Trust of India  |  Mumbai 

real estate, real estate in Mumbai
The report said that among the six leading cities in India, Mumbai remains the most expensive

Cost of construction for a residential in a mid-rise building in the city is the highest among the top urban centres in the country at Rs 3,125 per sq ft, according to a report.

and came a close second in average cost of construction at Rs 2,750 per sq ft, followed by Chennai and Bengaluru at Rs 2,500 sq ft, and at Rs 2,375 sq ft, property consultancy said in its report.

"Among the six leading cities in India, remains the most expensive," the report said, adding the variation in costs could be primarily attributed to different demand levels, proximity to supply centres as well as the efficiency of across these cities.

Moreover, engineering costs too vary in accordance to the region, it said.

The report also said that with the implementation of GST stabilising the cost of construction, the overall stock of in the country's leading urban centres will reach 8.2 billion sq ft by 2025 and provide employment to about 17 million people.

This is despite the rise in prices of and The report claims the prices of to have nearly tripled in the past 16 years, while the cost of more than doubling between April 2005 and November 2017.

"The implementation of GST has come as a breather for the industry. Aimed at introducing country-wide uniform taxation, GST has enabled builders to source materials from only registered suppliers in a transparent manner," said Anshuman Magazine, chairman, and South East Asia,

He further said the rising demand for as well as infrastructure development is expected to propel the construction industry towards a growth trajectory.

"Already, the implementation of the GST has impacted the cost of raw materials and streamlined inter-state and import taxes, giving the industry a major boost," he added.

The report, however, highlighted that the industry needs to overcome the shortage of quality contractors who can complete projects within stipulated time periods.

First Published: Tue, September 11 2018. 19:35 IST
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