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It is difficult to specify an exact amount given the number of variables involved in construction; and building a house from scratch requires not only patience but proper planning, resource and adequate financing.

Q: How should I start?


Before all else, you must determine a budget to build your house. Whether you borrow from your bank or already have funds, you have to know what your budget allows in terms of design and location of your home.

Having a rough idea in mind can help you choose a location, which is one of the biggest costs. Consultants can advise you on what you can expect to be able to build. Always keep a buffer of 10-15% of your budget as an extra fund, in case unseen events or expenses occur.

Payment plan

You can choose to pay cash or look for loan options from the bank. If you borrow from the bank, you will need to pay a monthly mortgage bill. Make sure you have at least 12 months’ bills saved up, otherwise a mere monthly salary or income may put you under great stress.

Hire a contractor

Check with local realtors to be referred to good contractors that have the financial ability to take the project. They should have a good reputation, and it might help to interview some of their former customers.

Q: What should be the average cost?

A: Besides construction costs such as raw materials and labor cost, you will need to keep taxes and insurance in mind, which you will need to pay before you commit to buying. Depending on local rules, you may require a permit and contribute the builders’ insurance.

On average, a budget of BDT 5,000,000 – 7,000,000 for a 2,000 square-foot house is what you need to keep in mind. This, however, does not include interior works, the figure also highly depends on the contractor you hire for the project. There are however other factors that can have an impact on the cost:

  • – The location
  • – Land costs in the area
  • – Square footage of the property
  • – Materials
  • – Architectural design

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