Sudden increase in House construction costs in Pakistan in 2021
Year 2021 has been a good year for construction sector that witnessed sharp upwards trend. This happened after the Imran Khan led government announced real estate/construction amnesty back in 2020. Investors and developers started various real estate and construction related projects and genuine buyers specially from overseas took great interest in this sector that resulted in economic activity. Although this process as a whole had a positive impact on the economy but there were various challenges faced such as:
- Demand and supply gap was created for various construction materials
- Skilled labor/manpower issue was faced
- Scaffolding and shuttering witnessed severe shortage in market
- Material prices increase
However there were many positives that happened but some highlights are:
- New jobs were generated
- More opportunities for labor and skilled personals
- More activities in construction material related suppliers/vendors
- Local tile manufactures witnessed more quality entrants
Lets get back to our topic of increase in construction costs in 2021, those who are our regular followers/subscribers must know that we have been uploading yearly Grey structure cost videos from 2017 – 2020, however Latest grey structure cost 2021 video or article was not posted on our official youtube channel and blogs section of our website though we had various requests, the main reason for not uploading Latest grey structure cost 2021 is the material price fluctuation on weekly basis. It is not possible to make a detailed video until the prices get stable for some time. However we will do a brief comparison of current grey structure cost with last year’s cost. If you go through our 2020 grey structure cost video we mentioned that the figure was around 1400-1450 Rs/sqft, currently this figure has gone up-to 1700-1750 Rs/sqft which is really alarming that only in last 3-4 months, material prices have gone so much upwards that the overall grey structure cost witnessed 20% increase. The cost was more or less almost same uptil Feb-March this year, it all happened suddenly in last 3 months when main material items such as Bricks, steel, cement and plumbing items witnessed sharp increase. Below we will do an item by item comparison to see Latest grey structure cost 2021:
Construction contract type: Labor rate contract
Construction grade: A grade compliance to all technical & engineering specifications
Sample project
10 Marla house construction cost (250 sq.yd)
Covered area 3400 sq.ft including
- Ground floor,
- first floor and
- rooftop mumty.
YEAR 2020
Item wise per square foot cost calculations
Bricks 296 Rs/sq.ft
Calculation:
245 Rs x 3400 sq.ft=1006400 Rs
Brick price =11.5 Rs per piece
Quantity =1006400/11.5 = 87513 bricks
Crush 67 Rs/sq.ft
Calculation:
67 Rs x 3400 sq.ft=227800 Rs
Crush price =78 Rs per c.ft
Quantity =227800/78 = 2920 c.ft
Cement 175 Rs/sq.ft
Calculation:
175 Rs x 3400 sq.ft=595000 Rs
Cement price =540 Rs/50kg bag
Quantity =595000/540 = 1101 bags
Steel 227 Rs/sq.ft
Calculation:
227 Rs x 3400 sq.ft=771800 Rs
Steel price =115 Rs/kg or 115000 Rs/ton
Quantity =771800/115 = 6711 kg or 6.7 tons
Sand 45 Rs/sq.ft
Calculation:
45 Rs x 3400 sq.ft=153000 Rs
Sand price =32 Rs/c.ft
Quantity =153000/32 = 4781 c.ft
Labor contractor 325 Rs/sq.ft
Calculation:
325 Rs x 3400 sq.ft = 1105000 Rs
Steel fixer 13 Rs/sq.ft
Calculation:
13 Rs x 3400 sq.ft = 44200 Rs
Plumbing contractor 18 Rs/sq.ft
Calculation:
18 Rs x 3400 sq.ft = 61200 Rs
Electric contractor 15 Rs/sq.ft
Calculation:
15 Rs x 3400 sq.ft = 51000 Rs
Other items
Electricity items 35 Rs/sq.ft
Calculation:
35 Rs x 3400 sq.ft= 119000 Rs
Electric items include complete uPVC conduit (pipes) required in walls, slabs, underground etc. It also includes complete switch boards internal boxes fittings required for standard Chinese fittings. Main DB (Distribution boxes) are also included in these figures for ground and first floor. Electric conduit witnessed a sharp increase in prices in 2019 as compared to 2018.
Plumbing items 70 Rs/sq.ft
Calculation:
70 Rs x 3400 sq.ft= 238000 Rs
Plumbing items include complete PPRC pipes and its fittings such as elbows, bends, T’s etc required for water and gas connections. It also includes complete uPVC piping for sewerage and drain systems. It also includes a typical and standard 400 gallons plastic overhead water tank with GI (steel) pipes fitting. Plumbing conduit witnessed a sharp increase in prices in 2019 as compared to 2018.
Earth fill/Bharti 26 Rs/sq.ft
Calculation:
26 Rs x 3400 sq.ft= 88400 Rs
Earthfill considered in this costing is for a normal plot that is around 2 ft deep from road level and after completion of foundations till DPC requires maximum of 6ft deep earthfill. Incase of less earthfill this figure can go down.
Brick Tile 12 Rs/sq.ft
Calculation:
12 Rs x 3400 sq.ft= 40800 Rs
Brick tile is required during the process of water proofing and finishing the floor of roofs. Brick tile considered in this cost is up to 10 Rs/bricktile.
Guard Salary 22 Rs/sq.ft
Calculation:
22 Rs x 3400 sq.ft= 74800 Rs
Guard salary has been considered on basis of 15000 Rs/month for a tenure of 5 months maximum.
Brick Ballast/Rorhi/Gravel 14 Rs/sq.ft
Calculation:
14 Rs x 3400 sq.ft= 47600 Rs
Bitumen 5 Rs/sq.ft
Calculation:
5 Rs x 3400 sq.ft= 17000 Rs
Polythene sheet 4 Rs/sq.ft
Calculation:
4 Rs x 3400 sq.ft= 13600 Rs
Mud 4 Rs/sq.ft
Calculation:
4 Rs x 3400 sq.ft= 13600 Rs
Chips Aggregate 5 Rs/sq.ft
Calculation:
5 Rs x 3400 sq.ft= 17000 Rs
Taxes 6 Rs/sq.ft
Calculation:
6 Rs x 3400 sq.ft= 20400 Rs
Electricity bills 7 Rs/sq.ft
Calculation:
7 Rs x 3400 sq.ft= 23800 Rs
Water boring 6 Rs/sq.ft
Calculation:
6 Rs x 3400 sq.ft= 20400 Rs
Anti termite spray 7 Rs/sq.ft
Calculation:
7 Rs x 3400 sq.ft= 23800 Rs
Random expenditures 15 Rs/sq.ft
Calculation:
15 Rs x 3400 sq.ft= 51000 Rs
Total Grey structure cost in 2020
Rs 1419 per sqft
YEAR 2021
Item wise per square foot cost calculations
Bricks 360 Rs/sq.ft
Calculation:
360 Rs x 3400 sq.ft=1,224,000 Rs
Brick price =14 Rs per piece
Quantity = Same
Crush 67 Rs/sq.ft
Calculation:
67 Rs x 3400 sq.ft=227800 Rs
Crush price =78 Rs per c.ft
Quantity = Same
Cement 220 Rs/sq.ft
Calculation:
220 Rs x 3400 sq.ft=748,000 Rs
Cement price =680 Rs/50kg bag
Quantity = Same
Steel 339 Rs/sq.ft
Calculation:
339 Rs x 3400 sq.ft=1,152,600 Rs
Steel price =172 Rs/kg or 172000 Rs/ton
Quantity = Same
Sand 45 Rs/sq.ft
Calculation:
45 Rs x 3400 sq.ft=153000 Rs
Sand price =32 Rs/c.ft
Quantity = Same
Labor contractor 350 Rs/sq.ft
Calculation:
350 Rs x 3400 sq.ft = 1,190,000 Rs
Steel fixer 15 Rs/sq.ft
Calculation:
15 Rs x 3400 sq.ft = 51000 Rs
Plumbing contractor 20 Rs/sq.ft
Calculation:
20 Rs x 3400 sq.ft = 68000 Rs
Electric contractor 20 Rs/sq.ft
Calculation:
20 Rs x 3400 sq.ft = 68000 Rs
Other items
Electricity items 45 Rs/sq.ft
Calculation:
45 Rs x 3400 sq.ft= 153000 Rs
Electric items include complete uPVC conduit (pipes) required in walls, slabs, underground etc. It also includes complete switch boards internal boxes fittings required for standard Chinese fittings. Main DB (Distribution boxes) are also included in these figures for ground and first floor. Electric conduit witnessed a sharp increase in prices in 2021 as compared to 2019-20.
Plumbing items 85 Rs/sq.ft
Calculation:
85 Rs x 3400 sq.ft= 289000 Rs
Plumbing items include complete PPRC pipes and its fittings such as elbows, bends, T’s etc required for water and gas connections. It also includes complete uPVC piping for sewerage and drain systems. It also includes a typical and standard 400 gallons plastic overhead water tank with GI (steel) pipes fitting. Plumbing conduit witnessed a sharp increase in prices in 2021 as compared to 2019-20.
Earth fill/Bharti 26 Rs/sq.ft
Calculation:
26 Rs x 3400 sq.ft= 88400 Rs
Earthfill considered in this costing is for a normal plot that is around 2 ft deep from road level and after completion of foundations till DPC requires maximum of 6ft deep earthfill. Incase of less earthfill this figure can go down.
Brick Tile 12 Rs/sq.ft
Calculation:
12 Rs x 3400 sq.ft= 40800 Rs
Brick tile is required during the process of water proofing and finishing the floor of roofs. Brick tile considered in this cost is up to 10 Rs/bricktile.
Guard Salary 25 Rs/sq.ft
Calculation:
25 Rs x 3400 sq.ft= 85000 Rs
Guard salary has been considered on basis of 17000 Rs/month for a tenure of 5 months maximum.
Brick Ballast/Rorhi/Gravel 14 Rs/sq.ft
Calculation:
14 Rs x 3400 sq.ft= 47600 Rs
Bitumen 5 Rs/sq.ft
Calculation:
5 Rs x 3400 sq.ft= 17000 Rs
Polythene sheet 5 Rs/sq.ft
Calculation:
5 Rs x 3400 sq.ft= 17000 Rs
Mud 4 Rs/sq.ft
Calculation:
4 Rs x 3400 sq.ft= 13600 Rs
Chips Aggregate 5 Rs/sq.ft
Calculation:
5 Rs x 3400 sq.ft= 17000 Rs
Taxes 6 Rs/sq.ft
Calculation:
6 Rs x 3400 sq.ft= 20400 Rs
Electricity bills 10 Rs/sq.ft
Calculation:
10 Rs x 3400 sq.ft= 34000 Rs
Water boring 6 Rs/sq.ft
Calculation:
6 Rs x 3400 sq.ft= 20400 Rs
Anti termite spray 15 Rs/sq.ft
Calculation:
15 Rs x 3400 sq.ft= 51000 Rs
Random expenditures 20 Rs/sq.ft
Calculation:
20 Rs x 3400 sq.ft= 68000 Rs
Total Grey structure cost in 2021
Rs 1719 per sqft
Disclaimer:
-Possible ±5% Variation is possible in cost shown in video
-Rates applicable on Brick structures only
-Add Rs 150-200 for frame structure construction
-Skills required to achieve this cost:
-Past construction experience
-Quality & honest labor
-Labor management skills
-Quality, timely & cost effective material procurement
-Factors such as construction inexperience, unusual
covered areas, frequent wear & tears, fraudulent labor
etc can effect this cost figure
-Hire professional company which will add a figure of 200 Rs/sq.ft
minimum as margin.
Thanks, what about construction cost idea for one Kanal and two Kanal House?
I have built a 3000sqft house +1 house , and I have used 7.5 ton steel in the house.
salam, baqool apke 250 sqyd g+1 house ke liye sirf 7 ton steel kese possible hai…mere khayal se kam se kam 12 ton steel use hona chahiye
If your house is built on frame structure method, then definitely 7 ton will not be enough. But since our articles and cost videos are based on standard brick structure construction, hence this amount of steel is more than enough for a 10 marla house.