Home Construction Cost in Hyderabad (2026): Phase-Wise Breakdown & Calculator

Hyderabad’s real estate market is experiencing an unprecedented boom. With rapid infrastructure development spreading from the traditional IT corridors of Gachibowli and Hitec City to emerging residential hubs like Tellapur, Mokila, Kompally, and Adibatla, thousands of families are investing in plots to build their dream independent homes or luxury villas.

But as you transition from buying a plot to planning the build, the crucial question arises: "How much will it cost to build a house in Hyderabad in 2026?"

Construction costs have evolved due to fluctuating material prices (such as steel and cement), local labor demands, and shifting municipal guidelines under HMDA and GHMC. Relying on outdated ballpark figures can lead to incomplete projects or massive debt. To build successfully, you need a meticulous, phase-wise financial breakdown.

In this comprehensive guide, we will explore the real construction cost per square foot in Hyderabad, provide a detailed phase-by-phase cost analysis, and outline the ideal payment milestones to keep your contractor accountable.

The Average Construction Cost per Sq. Ft. in Hyderabad (2026)

In Hyderabad, construction costs are generally calculated based on the "built-up area" (or slab area), which includes your carpet area, wall thicknesses, balconies, and staircases.

Based on current 2026 market rates, turnkey construction in Hyderabad generally falls into three main brackets:

• Basic / Economy Finish: ₹1,600 – ₹1,800 per sq. ft.

  • Best for: Budget homes, rental portions, or G+1 properties in peri-urban areas.

  • Includes: Standard cement (Grade 43/53), basic vitrified tiles, aluminum sliding windows, standard wiring, local M-Sand (manufactured sand), and budget bathroom fixtures.

• Standard / Mid-Range Finish: ₹1,900 – ₹2,400 per sq. ft.

  • Best for: Comfortable family duplexes and premium independent homes.

  • Includes: High-grade TMT steel, high-quality red clay bricks or AAC (Autoclaved Aerated Concrete) blocks, premium double-charged vitrified tiles, teak wood for the main door frame, UPVC windows, and branded modular kitchens.

• Premium / Luxury Finish: ₹2,500 – ₹3,500+ per sq. ft.

  • Best for: High-end villas in gated communities or affluent neighborhoods like Jubilee Hills or Kokapet.

  • Includes: Italian marble flooring, 100% teakwood doors, VRV air conditioning setups, smart home automation, Kohler/Jaguar premium fittings, and elaborate elevation designs.

Pro Tip: Want a precise estimate based on your specific plot dimensions in Hyderabad? Try our highly accurate home cost calculator for an in-depth, free analysis of your budget.

Phase-Wise Construction Cost Breakdown & Payment Milestones

Linking your payments strictly to project milestones is the only way to safeguard your investment. Never pay large lump sums upfront. Here is the data-backed phase-wise breakdown for building a home in Hyderabad.

Phase 1: Architecture, TS-bPASS Approvals & Site Preparation (Cost: 5% - 8%)

Every successful build starts with flawless planning and legal clearances.

• What it includes: 2D floor plans, 3D elevations, structural engineering drawings, soil testing, and municipal approvals.

• Hyderabad Context: Telangana’s TS-bPASS (Telangana State Building Permission Approval and Self-Certification System) has streamlined approvals, but fees vary heavily depending on whether your plot is under GHMC, HMDA, or local gram panchayat limits. You will also need temporary electricity and water setup.

• Actionable Step: A well-optimized design maximizes natural light and ventilation while adhering strictly to local bylaws. Start your project right and hire architects who have a deep understanding of Hyderabad’s zoning laws and Vastu principles.

• Payment Milestone: Pay when initial designs are approved by you, and the final structural drawings and TS-bPASS certificates are in hand.

Phase 2: Excavation and Foundation (Cost: 10% - 15%)

Anchoring your home to the ground safely.

• What it includes: Earthwork excavation, anti-termite treatment, PCC bed, footings, and plinth beam construction.

• Hyderabad Context: Hyderabad sits on the Deccan Plateau, known for its hard, rocky terrain. If your plot in areas like Banjara Hills, Manikonda, or Khajaguda requires deep rock-cutting or blasting, excavation costs can surge.

• Payment Milestone: Release funds in two stages: after excavation and PCC casting, and upon completion of the plinth beam and backfilling.

Phase 3: The Superstructure – RCC & Brickwork (Cost: 25% - 30%)

The most resource-intensive phase, where your house takes its physical shape.

• What it includes: Casting columns, beams, RCC roof slabs, and masonry work (building the walls).

• Hyderabad Context: Unlike many other cities that have fully transitioned to concrete blocks, Hyderabad still has a very strong preference for traditional Red Clay Bricks due to their thermal insulation properties (crucial for Hyderabad's hot summers). However, contractors are increasingly suggesting AAC blocks for G+2 and above structures to reduce the dead weight.

• Payment Milestone: Pay in increments as each floor's slab is cast, and release the final portion when all brickwork is completed.

Phase 4: Plastering, Plumbing & Electrical Rough-ins (Cost: 12% - 15%)

The internal veins of your house are laid down here.

• What it includes: Internal and external plastering, chasing walls to lay PVC electrical conduits, and installing CPVC/SWR plumbing pipes.

• Hyderabad Context: Due to the scarcity of natural river sand (Godavari sand), most high-quality constructions in Hyderabad now use double-washed Robo Sand (M-Sand) for concreting and specialized plastering sand (P-Sand) for smooth wall finishes.

• Payment Milestone: Pay when all electrical pipes are laid, plumbing lines are pressure-tested for leaks, and external wall plastering is complete.

Phase 5: Flooring, Doors & Windows (Cost: 15% - 18%)

Transitioning from a construction site to a polished structure.

• What it includes: Flooring installation (tiles/marble/granite), fixing door frames, hanging door shutters, and installing window frames and glass.

• Hyderabad Context: Telangana is a hub for high-quality, affordable granites (like Black Pearl or Tan Brown). Homeowners often leverage these local granites for staircases, kitchen counters, and window sills to achieve a premium look at a lower cost compared to other states.

• Payment Milestone: Pay a material advance upon delivery of tiles/wood/windows to the site, and the remaining balance after full installation.

Phase 6: Painting, Fixtures & Final Finishes (Cost: 10% - 12%)

The aesthetic culmination of your hard work.

• What it includes: Application of wall putty, interior/exterior painting, installation of electrical switchboards, light fittings, and bathroom sanitaryware.

• Payment Milestone: Pay upon completion of the primer coat. Hold back a retention amount (usually 2-5% of the total project cost) until the final coat of paint is done and all plumbing/electrical fixtures are tested and working perfectly.

Phase 7: Interior Design & Woodwork (Variable Cost)

Note: Interiors are generally budgeted separately from the core turnkey construction rate.

• What it includes: Custom wardrobes, modular kitchens, false ceilings, TV units, and bespoke furniture.

• Actionable Step: Transform your newly built house into a breathtaking home. Connect with top professionals and hire interior designers who can craft functional, aesthetic spaces tailored to your family's lifestyle.

3 Hidden Costs of Construction in Hyderabad to Watch Out For

To avoid last-minute financial stress, factor these additional costs into your total budget:

1. Borewell & HMWSSB Connections: Relying on Manjeera water (HMWSSB) alone is often insufficient. Digging a borewell in Hyderabad can be tricky due to the rocky water tables. Expect to spend ₹1,50,000 to ₹3,50,000 for a deep borewell, submersible pump, and an underground RCC water sump.

2. TS-bPASS & Impact Fees: Depending on the size of your plot and the width of the approach road, municipal impact fees, betterment charges, and NALA (land conversion) taxes can add up to several lakhs.

3. Elevation Complexities: If you opt for modern, complex elevations featuring CNC-cut metal screens, HPL (High-Pressure Laminate) sheets, or extensive stonework, contractors will charge this outside the standard per-sq-ft rate.

Conclusion: Build Smart, Budget Better

Building a house in Hyderabad in 2026 is an incredible milestone, whether you are constructing a duplex in Tellapur or an investment property in Medchal. Controlling your costs starts with accurate data, a deep understanding of local material availability, and a strict phase-wise payment schedule.

Do not leave your dream home's budget to guesswork. Empower your planning phase today use the Member of Architecture home cost calculator for a detailed, free, and completely customized cost analysis of your upcoming Hyderabad project!