How much does it cost to build a home in Tamil Nadu?

Planning for a dream house can be challenging when you do not have an idea about house construction estimate. An in-depth idea about the cost of building a home can help you plan accordingly.

Here, in this blog, we are trying to give you an overall idea about the factors that need to be considered to estimate the cost of a house.

Before we talk about the factors that affect the overall cost, one should remember a basic fact. The price of a home majorly depended on two main aspects: The location of the house and cost per square foot to build a house in that area, and the total square foot of the house.

Types of Houses

There are 3 types of homes that are typically built :-

  1. Traditional homes
  2. Modular homes
  3. House developer homes

Custom/traditional Houses

Custom homes give you the freedom to get home that meets your need and aesthetic requirements. The options are unlimited, and as a consequence, it is hard to estimate the value of a 1, 2, 3, or 4 bedroom custom house. Because it depends on what you are looking for. In most of the cases, custom homes are both money and time-consuming.

                                                                                                        Traditional house construction

If you are looking to build a standard budget-friendly house then here is how the cost might look like in Bangalore, Chennai and Coimbatore:


Note: The above cost involves the following things:- Designing, Construction, structure, foundation, flooring, door, windows, plastering, electrical work, plumbing work, painting, bathroom, compound wall.


You have the freedom of designing your dream house.


Cost is comparatively much higher than all other options.

It takes at-least 6 month time to finish the construction

Modular & prefabricated Houses

It is also called ready-made homes in India. A modular & prefabricated home usually have all the needed facilities and modern amenities one may need to have a comfortable life. Customers do not get the freedom to design the home the way they want. These homes cost almost 20% less than the traditional house construction cost. Generally, these homes are constructed off-site or better to say, apart from the structure many other features get prepared off-site.

Modular House construction
                                                                                                        Modular House construction
                                                                                                   GFRG Panel House Construction


  • Comparatively lower price.
  • Take less time to build.Typically it takes around 3-4 months


  • Customization option is less when compared to traditional house construction.

Developers and Home Builders

Building development or house development is all about a high degree of customization. Developments are estimated depending on the scale of changes. Housing developments are more inexpensive than custom homes. Choosing this option can save you up to 15% when compared to traditional houses.


  • You can customize it at a high level.
  • Comparatively cheaper than custom houses.


  • Have to abide by the floor plans

The Major Factors That Affects the Construction Cost


The construction cost is directly related to the location of the house. If the home is site in an urban area, or metro cities or a prime location with market, school, railway station nearby, then the price will be comparatively higher than a house in the countryside.


Generally, house construction costs are calculated in square feet. The larger the size of the house in terms of area, the lesser will be the price per square feet.

The Land Excavation

This cost includes the excavation part for laying the foundation. The following factor affects the cost:-

  • Type of work ( clearing, grubbing, digging etc)
  • Amount of soil to be removed
  • Time of the year (summer, rainy, cold seasons)
 Foundation & Framing

Foundation comes next to the excavation. It holds the house and framing gives it the shape and divide the rooms as well. Framing can include common metal works, too.

Foundation cost will vary based on the following types:-

  • Concrete Slab – The cheapest option among foundation type. Requires low maintenance
  • Pier & Beam – Best option to protect your home from flood
  • Crawl Space
  • Basement

Framing work will depend upon:-

  • Amount of carpentry work
  • Size of house
  • Basement option – If you choose to have a basement cost will go up significantly

Construction cost hugely depends on the material, being used in the construction. The material cost will vary as per the size and type of the house. All these factors are interrelated. If you are building a home in the countryside where materials are not readily available, then also the cost will vary. Typically 60% of the overall cost of the project goes in procuring materials.

Labor Cost

Labor costs differ according to the size and intricacy of your home. Custom-Built and big houses involve a higher labor cost than standard modular homes. Professionals like Architect,interior designer typically charges in area per square feet or may take a certain percentage of the overall cost of the construction project. Typically 40% of overall cost of the project cost goes in Labor charges.

If you plan to hire an interior designer, he/she will charge you 5% to 15% of the total budget for your interiors or Rs 50-400/sq.ft


Additional Features or Amenities

Major system cost includes plumbing and electrical costs mainly. Quality and quantity of the products being used decide the price.


The price will vary depending on the stories of the building or house. Naturally, a three-storied building will be costlier than the two-storied one. In terms of cost per square feet rate will be the same for each story or floor.


Exterior finishing comprises outer walls, roofing and installing doors and windows. The quantity and nature of exterior appearance, doors, and windows will affect this cost.

Interior finishing can include drywall, insulation, painting, interior trim, appliances, lighting, and flooring.

We have tried to talk about all the significant factors that can primarily affect the house construction cost. The cost can fluctuate depending on a few other factors such as the number of stories, roof type, design features, and finishes. If you are willing to add something extra to your dream house, it will also add some additional cost. Developing your dream building is the liability of the professionals, but it is always a good idea to have an estimation.

OLS Construction is Chennai’s leading house-building contractor. If you’d rather skip the blog and get expert advice right away, feel free to reach out to us.

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