. Compare Red Bricks vs AAC blocks & labor charges today.){kind=link}
Buying a plot in Hyderabad is just the first step. The real challenge—and the biggest expense—is construction.
If you are planning to build a G+1 (duplex) house in 2026, you might be shocked by the price rise. Cement and steel prices have increased by 15% in the last 12 months.
So, what is the actual cost to build a house in Hyderabad today?
Is it ₹1,800 per sq. ft or ₹2,500 per sq. ft?
In this detailed guide, we break down the Cost of construction in Hyderabad for 2026, including material costs (cement, steel, and sand), labor charges, and the “hidden costs” that contractors often forget to tell you.
Current Construction Cost Per Sq. Ft in Hyderabad (Feb 2026)
Contractors in Hyderabad typically offer three types of “packages.” The quality of materials (flooring, bathroom fittings, wood) changes with each package.
| Construction Package | Cost per Sq. Ft (Built-up Area) | What You Get |
| Class C (Budget) | ₹1,700 – ₹1,900 | Basic vitrified tiles, local sand, Red bricks/Cement blocks, standard bathroom fittings. |
| Class B (Standard) | ₹2,000 – ₹2,300 | Branded tiles (Kajaria/Johnson), River sand, Teak wood main door, Jaquar/Cera fittings. |
| Class A (Premium) | ₹2,500 – ₹3,000+ | Italian marble/Granite, Burma Teak, Kohler/Grohe fittings, False ceiling included. |
Example Calculation:
If you are building a 2,000 sq. ft Duplex house (1000 sq ft ground + 1000 sq ft first floor) with a Standard Package:
- Total Cost = 2,000 sq. ft x ₹2,100 = ₹42,00,000 (42 Lakhs).
Material vs. Labor: Where Does Your Money Go?
A general rule of thumb in Hyderabad construction is the 70:30 Rule.
- 70% of your budget goes to Materials.
- 30% of your budget goes to Labor.
1. Cement & Steel Prices (2026 Market Rates)
- Cement: ₹380 – ₹450 per bag (UltraTech / ACC). You will need approx. 800-1000 bags for a duplex.
- Steel (TMT Bars): ₹65 – ₹75 per kg (Tata Tiscon / Vizag Steel).
- Sand: River sand is expensive (₹2,500 per ton). Many builders now use “Robo Sand” (M-Sand) for plastering to save cost.
2. Bricks (Red vs. AAC Blocks)
- Red Bricks: The traditional choice. Strong but expensive (₹10 – ₹12 per brick).
- AAC Blocks (Cement Bricks): Lightweight and cheaper (₹40 – ₹50 per block). They reduce the load on the building and cool the house faster.
Read More: Can I Get a Home Loan for Gram Panchayat Layout?
The “Hidden Costs” Contractors Don’t Tell You
If your contractor quotes “₹2,000 per sq ft,” do not assume that is the final price. You must pay separately for these items:
- GHMC / Municipality Permissions:
- To start construction, you need a building permit.
- Cost: ₹50,000 to ₹2 Lakhs (depending on plot size and “official” fees).
- Borewell:
- You need water before you start building.
- Cost: ₹1.2 Lakhs to ₹2 Lakhs (depth of 800-1000 ft in areas like Shadnagar/Mokila).
- Temporary Electricity Meter:
- Commercial unit rates apply during construction.
- Compound Wall & Gate:
- Usually NOT included in the sq. ft package. Charged at running feet.
- Elevation (Front Design):
- Basic plastering is free. If you want 3D cuts, tiles, or louvers, it costs extra.
How to Reduce Construction Cost? (Smart Tips)
If your budget is tight, use these tips to save ₹3 – ₹5 Lakhs:
- Use AAC Blocks: They save 15% on structural costs compared to red bricks.
- Go for UPVC Windows: They are cheaper than Teak wood frames and last longer (termite-proof).
- Avoid “Italian Marble”: It looks great but costs ₹300+ per sq ft. Use GVT (Glazed Vitrified Tiles) which look like marble but cost only ₹60-80 per sq ft.
- Contract Labor Only: Instead of giving a “Material Contract” (where the builder buys everything), give a “Labor Contract” (you buy materials). You save the builder’s 15% profit margin on materials.
FAQs
As of Feb 2026, the average construction cost for a standard quality independent house (G+1) in Hyderabad is between ₹2,000 to ₹2,300 per sq. ft. For premium finishes (Italian marble, teak wood), it can go up to ₹2,800+ per sq. ft.
AAC Blocks (Cement bricks) are better for cost-saving and heat insulation. They reduce the structural load and keep the house cooler. Red Bricks are traditional and stronger for load-bearing walls but are currently 30% more expensive and require more cement for plastering.
Yes. A Labor Contract (where you buy materials and pay only for labor) can save you 15% to 20% of the total cost because you avoid paying the builder’s profit margin on materials. However, it requires your full-time supervision to ensure materials aren’t wasted.
The average cost for a 6.5-inch borewell is around ₹1.5 Lakhs to ₹2 Lakhs. This includes drilling (approx. ₹110/ft), casing pipes, and the submersible pump. In rocky areas like Shadnagar, you may hit water at 800-1000 feet.
Cement: ₹380 – ₹440 per bag (Brands: UltraTech, Maha, Bharathi).
Steel (TMT): ₹68,000 – ₹75,000 per ton (Brands: Tata Tiscon, Vizag Steel, JSW). (Note: Prices fluctuate weekly based on market demand.)
Final Verdict: Should You Build or Buy?
Building your own house allows you to control the quality of steel and cement, ensuring the house lasts 50+ years. Builder-made villas often compromise on these hidden materials.
- Estimated Cost for 150 Sq. Yard Plot (G+1): Approx. ₹55 – ₹60 Lakhs (including compound wall & permissions).
Are you planning to construct this year? What is the quote your contractor gave you? Let us know in the comments below!