Is it possible to build a house for Rs 10 Lakh? What compromises must be made?
- Sayanika Das
- May 24
- 7 min read
Building your own home is a dream for almost everyone. However, with rising real estate and construction costs, it is a 'hole in a pocket' situation. Building a house with a minimal budget is difficult, but not impossible. With proper planning, low-range but durable materials, and intelligent construction, we can build a house for Rs. 10 Lakh- but with compromises, of course!. Throughout this article, we are going to talk about how to stretch every rupee, the sacrifices that need to be made, and the role of architects and engineers to finally make it.
Plot Area and Cost
The plot area and the construction cost are directly proportional. In this case, if you own a land, you have rowed the boat! Buying a piece of land and then building a house costs much more. However, if you own one, then building a house in this budget is not critical. If you don't own land:
In rural or semi-urban areas, a piece of land (600-1200 sq ft) may cost Rs. 4-5 lakhs.
Plots in urban areas would exceed the Rs. 10 lakhs budget, so in this case, it would be better if the land is already yours.
Keynote: Owning a piece of land is necessary to build a house within, a10 lakh budget.
Understanding Space Requirements, a must to build a house for Rs. 10 lakh
Limiting within a space is a crucial point for a budget constraint. To keep costs under control, we must understand spacing requirements:
Prioritize essential space only, like one one-bedroom, kitchen, hall, and attached toilet. (1BHK)
Incorporate space-saving designs like open area plans, lofts for storage, and multi-purpose furniture.
Do not exceed the minimum dimension requirement. For example, a typical low-price house can be made within a 300-400 sq ft. area.
Keynote: 1 BHK is sufficient for the nuclear family, or bachelors.
Built-Up Area and Cost Analysis
Let us look at the cost breakdown as per the available area in order to build a house for Rs. 10 Lakh:
Basic construction in rural areas can be done at Rs. 1000-1200/sq ft.
For a minimum of 350 sq ft., Rs. 3.5-4.2 lakhs can be the cost for a basic structure.
The remaining budget of Rs. 5.8-6.5 lakhs can be utilized for finishes, labor, and professionals' fees, etc.
A basic calculation that you can keep in mind for an RCC construction is as per below: Load-bearing structure:
Basic construction cost: 400-650 Rs./sq.ft
Finishes: 400-500 Rs./sq.ft Framed RCC construction:
Basic construction cost: 650-850 Rs./sq.ft.
Finishes: 400- 500 Rs./sq.ft.
A load-bearing structure would be an ideal choice if you are targeting to build a house for Rs. 10 lakh. The total construction cost for a single-floor house can be further broken down in this way: Structure till plinth level: 650 Rs./sq.ft. x 500 sq.ft. = 3.25 lacs Structure till ground floor roof slab: 550 Rs. /sq.ft. x 500 sq.ft. = 2.75 lacs Total Finishing cost including labour: 500 Rs. /sq.ft. x 500 sq.ft = 2.5 lacs
Miscellaneous cost will be 15% of 10 lacs: 1.5 lacs
This will be a ballpark cost bifurcation of the construction cost. If someone focuses and plans, keeping this budget in mind, they would definitely be able to achieve it.
Key Note: The compromises that need to be made in this case are that you cannot get luxury finishes, extra rooms, or high-end furniture. Please note that the costing is generic for an idea and can vary according to your area.
Choosing the Right Construction Methodology
Choosing the right way of construction hampers the costing a lot. Traditional methods may exceed a limited budget; instead, consider:
Load-bearing structures instead of framed RCC for small buildings: Load-bearing structures do not have concrete frame members, such as beams and columns. It has thick walls that take the entire structural load and transfer it to the foundation. Although it has many limitations as compared to a framed structure having columns and beams, since we are discussing a low-budget construction, this is the ideal choice.
Load-bearing structure | Image Source- Civilread Precast panels, compressed earth blocks (CEB), or interlocking bricks to reduce material and labor costs.
CEB House Construction | Image Source- Dirt Cheap Builder
Keynote: Instead of high-end technical methods, go for locally available techniques and materials.
Material Selection
Materials are the main culprit of the rising cost of construction. You must choose materials that will be durable but not high-end. Let us look at the options:
Go for local bricks, fly ash bricks, or stabilized mud blocks.
Fly ash bricks building | Image Source- India Mart Use cement floors instead of tiles, as it will also help in effective cooling during summer.
Reuse wood and windows from old structures instead of buying brand-new ones.
Use corrugated sheet roofs or Mangalore tiles instead of concrete slabs.
Keynote: Since material costs are always fluctuating, sourcing locally is the best way.
Labor and Contractor Cost Analysis
Workers' fees add up to the budget. Look at these important points that we are going to discuss:
Labor charges generally form 25-30% of the total cost, however, the exact costing will vary from area to area.
Hiring a contractor will ensure smooth operation and better quality, however, it adds to the budget.
Labor-only contracts with owner supervision reduce costs and help owners take charge of the construction.
Keynote: In this case, time has to be compromised, as the owner has to take full responsibility for the construction.
Choice of Finishes
A building feels at home with what it is inside! However, a warm interior doesn't mean luxurious elements. Let us look at the options:
Brick walls are a trendy design. So, instead of plaster or paint, keep the brick walls exposed as it is for a few parts, making it an accent wall. This reduces the cost and highlights the interior.
For floors: Use cement oxide flooring or red oxide finish. If expert mason not available, then only go with locally manufactured tiles (within a range of 30-35 Rs./sq.ft.)
Use basic fittings for plumbing and electricity that are necessities, instead of luxurious ones. Go with locally manufactured products if possible.
Use wallpapers instead of paint as painting with various colors spikes up the budget.
Wallpapers in wall design | Image Source- Design Cafe
At last, if there is a chance of remaining budget, use that for decorative small lights because, from an interior point of view, small warm lights give a luxurious feeling to the room.
Keynote: For decoration, elements do not need to be polished; raw materials can add to the aesthetic when used creatively. Try to give a rustic feel to the environment and the space.
Budget Breakdown
It is not possible to cost down specifically because material and labor fees vary from place to place. Let us look at the generic breakdown for a good amount of study:
Component | Approx. Cost (Rs.) | Notes |
Structure (Walls, Roof, Foundation) | Rs. 3.5-4 lakhs | Using budget methods |
Doors, Windows | Rs. 60,000-80,000 | Basic or recycled |
Electrical and Plumbing | Rs. 80,000-1 lakh | Basic setup |
Flooring and Wall Finishes | Rs. 1-1.2 lakhs | Cement finish, tile in wet areas only |
Bathroom and Kitchen Fixtures | Rs. 70,000-1 lakh | Basic fixtures only |
Labor | Rs. 1.5-2 lakhs | Owner-supervised and labor-only contracts |
Architect/Engineer Fees | Rs. 30,000-50,000 | Or local technicians |
Miscellaneous | Rs. 50,000 | Transport, contingency, approvals |
Miscellaneous Cost Considerations
You may think this is a negligible cost; however, miscellaneous costs always creep up into the budget, and we cannot compromise them.
Legal and approval charges (local body, Panchayat fees) are non-negotiable.
Transport cost for the materials.
Tools and safety equipment charges.
Water and electricity bills during construction
Contingency (5-10% of the budget)
Design Type and Style
Design is a non-negotiable element. However, it doesn't need to be expensive. Let us look at the options that we curated for you:
Compact Form- Rectangle/Square provides fewer walls and better load distribution.
Flat Roofs are easier to construct and look elegant.
Simple facades and no ornamentation are the key.
Passive design, such as windows for cross-ventilation and shaded areas, is a must.
Key Note: Minimalist, vernacular, mud-houses, and eco-cottages are low in cost and currently trending in design.
Role of an Architect and Civil Engineer
As we talked earlier, a professional may add up the budget, but it is worth extra pennies. Look at what we mean:
An architect ensures an aesthetic, functional, and space-optimized plan.
A civil engineer ensures a safe structure and smooth operation.
Both help prevent cost overruns and avoid design mistakes. In any case, if a design error happens under your supervision, that rectification would cost more. So, professionals are worth it.
Keynote: Many architects provide budget packages or also help in design making and guide self-built houses.
Conclusion
You may think that these are theoretical concepts; however, with proper execution, you can actually build a house for Rs. 10 lakhs. Summarizing all the points:
You must own land for proper budget distribution throughout construction.
Building a compact and functional home instead of a large houses.
Work with minimal finishes, self-supervise, or involve contractors with a low-budget package.
Choose cost-effective and practical design and materials.
Understand that compromises are necessary for budget constraints.
With the right mindset, skilled expertise, and smart construction, your dream home with a budget of Rs. 10 lakhs can become a reality.
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