An expert guide on how the price of a house is determined

Owning a house is considered a valuable asset for many individuals and is seen as a significant investment. With the steady rise of the real estate in India, and a vast population turning towards urban and semi-urban cities for professional reasons, owning a house has become a requirement, if not a necessity. Owning a house requires meticulous planning as there is a considerable financial investment. There are multiple factors that go in determining the cost of the house apart from the cost of construction and such factors are dependent on various aspects. In this guide, we take a look at all the possible factors that go in deciding the cost of a house and have simplified the information that helps you understand the nuances and assists you in making a sound financial decision.

People generally talk about the cost of constructing a house in terms of cost per square feet. However, looking at the variations of construction technology which can be adopted, it has become very difficult to generalise the costs in specific terms. Though the average per square feet cost of construction ranges between Rs. 1600 to Rs. 2500 in India, the actual cost will vary depending on various factors. The cost of a house includes various components, which vary depending on the location of the site, design and materials etc. The relative share of each component in the overall cost of construction varies so widely that it is almost impossible to state deterministically not only the overall cost of construction but also the relative share of each component of cost. However, it is importan...