The Rising Cost of Building Houses in Kerala: Challenges and Solutions

Introduction

As Kerala’s real estate market continues to evolve, homeowners and builders face significant challenges due to the rising cost of constructing houses. Factors such as increased land prices, doubled land taxes, and escalating raw material costs have contributed to this trend. In this comprehensive article, we delve into the intricacies of Kerala’s housing market, explore the key challenges, and propose practical solutions.

Key Challenges

1. Land Prices and Taxes:

• Land Prices: The fair price of land in Kerala has surged by approximately 10% over the past five years. This increase makes it more expensive for individuals to acquire property, especially in prime locations.
• Land Taxes: Homeowners now grapple with doubled land taxes, adding to the financial burden of building a house.

2. Escalating Raw Material Costs:

• Construction Materials: The cost per square foot for construction has risen significantly. In 2016, it was approximately Rs 1,500 per sq ft. Presently, it ranges from Rs 2,300 to Rs 2,500 per sq ft.
• Materials Affected: Iron bars, pipes, wires, plumbing materials, paint, roof sheets, and bricks now cost more than double their previous prices.

3. GST Impact:

• Cement Blocks: The decision to charge higher GST for cement blocks compared to other types of blocks further escalates construction costs.

Solutions

1. Efficient Planning and Design:

• Collaboration with Architects: Homeowners should work closely with architects and engineers during the planning phase. Optimizing space utilization and minimizing wastage can significantly reduce material requirements.
• Smart Design Choices: Thoughtful design choices, such as open layouts and efficient room configurations, can lead to cost savings.

2. Exploring Alternative Materials:

• Eco-Friendly Alternatives: Builders can explore eco-friendly materials that are both cost-effective and sustainable. For instance:
  • Fly Ash Bricks: These are an excellent alternative to conventional bricks, offering cost savings and environmental benefits.
  • Lightweight Steel Frames: Consider using lightweight steel frames for structural elements, as they are durable and recyclable.

3. Government Support and Policy Reforms:

• Land Tax Policies: The government should consider revising land tax policies to ease the burden on homeowners. Progressive tax structures based on property value and size could be explored.
• Subsidies and Incentives: Offering subsidies or incentives for adopting sustainable construction practices can encourage cost-effective choices.

Summary

While the rising cost of building houses in Kerala poses challenges, proactive planning, innovative materials, and government support can help mitigate these issues. By addressing these factors, we can create affordable housing solutions for Kerala’s growing population. Whether in Malappuram, Kochi, or any other part of the state, thoughtful strategies can pave the way for sustainable and accessible housing.