Are you planning to build your dream house without breaking the bank? Then Low Cost Home Construction is the way to go in 2025. A smart, budget-friendly approach is possible through Class B home construction, which offers a balance between durability, comfort, and affordability — perfect for middle-class families in India.
In this blog, we’ll walk you through what’s included, which materials are used, the per sq ft rate, and expert tips to help you save more while still building a strong, beautiful home.

What is Low Cost Home Construction?
Low Cost Home Construction means building a house with smart planning, optimized design, and the right choice of materials — without compromising on safety and basic comfort. It avoids luxury finishes but still uses good quality materials that last.
In India, Class B homes construction fall under this category — homes that are built with solid RCC frames, quality fittings, standard-sized tiles, and functional interiors. These homes are best suited for those who want value for money and modern living standards on a budget.
💰How Much Will It Cost to Build a Budget Home in 2025?
The average construction rate for a Class B home Construction in India this year is approximately:
🔹 ₹1800 per square foot (All-Inclusive)
This rate includes everything from structure to finishing — a great deal for homeowners who want everything managed by a contractor.
👉 Example: For a 1000 sq ft house
Total Cost = ₹1800 x 1000 = ₹18,00,000 (approx.)
This includes slab area, balconies, staircase, gallery, and full finishing.
🧱 What’s Included in ₹1800/sq ft Rate?
Here’s what you’ll get when you opt for a low cost home construction package in this range:
✅ Structural Work
- Steel: FE500 grade TMT bars (TATA, Vizag)
- Concrete: M25 grade
- Cement: OPC for structure, PPC for plaster
- Walls: AAC or Fly-ash blocks (9″ and 5” thick) as drawing
✅ Design & Layout
- Complete house design with structural drawings
- Electrical, plumbing, and furniture layout
- Layout marked on-site with excavation guidance

🏗️ Construction & Finishing Inclusions
🔨 Shuttering & RCC
- Ply shuttering for slab, column & beam (No slurry leakage)
🚿 Bathroom
- Premium fittings (Hindware, Jaguar, Cera) worth up to ₹35,000
- 7 ft high wall tiles @ ₹60/sq ft
- Anti-skid floor tiles
- CPVC plumbing (Finolex, Supreme)
⚡ Electrical
- FRLS wiring (Fire Retardant) – Havells, Polycab
- Switches & sockets from Anchor, Finolex
- Conduits and pipes – Supreme or Precision (Medium Grade)
🚪 Doors, Windows, Flooring & More
🚪 Doors & Windows
- Main Door: 40mm thick solid wood
- Windows: Powder-coated aluminum with 5mm glass
- All internal doors: Flush with laminate finish
🧱 Flooring
- Vitrified tiles @ ₹120/sq ft (2×4 or 3×6 planks)
- Bedroom tiles: ₹80/sq ft
- Terrace tiles: ₹60/sq ft
- Staircase Granite: ₹70/sq ft
- SS railings for balconies & stairs
🎨 Painting & Plaster
- Waterproofed internal and external plaster
- Dr. Fixit or similar chemical coat outside
- POP ceiling in lobby and dining

🍽️ Kitchen Essentials
- Granite countertop @ ₹180/sq ft (Galaxy Black)
- Ceramic wall tiles @ ₹50/sq ft (2 ft high)
- Stainless Steel Sink (SS304 grade)
- Modular kitchen setup (within ₹1,00,000)
- Accessories worth ₹12,000 included (RO, faucet, etc.)
💡 Bonus: Home Automation & Add-ons
- Basic home automation worth ₹25,000 included
(Fan, lights, TV, fridge automation) - Bathroom sanitary fittings included up to ₹35,000
- Waterproofing and anti-termite treatment provided
- Boundary wall, septic tank, and water tank not included in ₹1800/sq ft – calculate these separately
🧮 Extra Costs to Consider
Item | Approx. Cost (₹/sq ft) |
---|---|
Overhead Tank | Extra |
Boundary Wall | Extra |
Septic Tank | Extra |
Parapet Wall | Extra |
Full Terrace Work | ₹60 |
Granite Staircase | ₹80 |
Balcony/SS Railings | ₹200 per rft |

FAQ
Q. What is Class B home construction in India?
A. Class B home construction refers to mid-range quality housing that uses good structural materials, standard finishes, and branded fittings. It is ideal for homeowners seeking durability and comfort at an affordable rate.
Q. How much does it cost per square foot to construct an affordable home in 2025?
A. As of 2025, the average construction cost for a Class B home in India is around ₹1850 per sq ft, which includes both structural work and interior finishing.
Q. What is included in ₹1800 per sq ft construction rate?
A. This rate typically covers structural materials (steel, concrete, cement), internal and external plaster, flooring, electrical wiring, bathroom fittings, modular kitchen (up to ₹1 lakh), painting, and basic home automation.
Q. Are boundary wall, septic tank, and overhead tank included in the standard cost?
A. No, these items are considered extras and are not included in the ₹1800/sq ft rate. You may need to budget an additional ₹200 per sq ft (approx.) for these.
Q. How can I ensure I’m not overpaying a contractor for a Class B home build?
A. Always ask for a detailed quote listing brand names, material grades, and what is included in the price. Comparing it with standard rates like ₹1800/sq ft helps you evaluate fairness and avoid hidden charges.
📝 Final Thoughts
If you’re aiming for low cost home construction in India for 2025, going with a Class B home Construction is a smart decision. For just ₹1800 per sq ft, you can get a well-designed, fully finished, and functional house with reliable materials and branded fittings.
💡 Pro Tip: Always ask for item-wise specifications before signing a contract and compare market rates. A good contractor will give you a detailed breakdown of what’s included.
🔔 Need Help Estimating Your Construction Cost?
Let Limehouse Decor help you with:
Home Design Plans
Material Selection
Contractor Consultation
Cost Estimation
📞 Contact us today for expert advice and transparent pricing!