Beyond price per square foot: evaluating the real value of a home
A framework for separating visible expense from lasting spatial and construction value.
- Written by
- The MIYAAR studio
- Published
- Last reviewed
- Reading time
- 6 minutes
Rate per square foot is a ratio derived after scope and specification are fixed — it is an output, not an input. Comparing two builders on rate alone compares their exclusion lists, not their buildings. The lower rate usually reflects a smaller promise rather than better value.
A client comparing three proposals for the same house will often receive rates that differ by 30 to 40 per cent. The natural conclusion is that one builder is expensive and another is efficient. Almost always, the real explanation is that the three documents describe three different buildings.
What a rate quietly excludes
The following are commonly outside a headline residential rate in Bengaluru, and each is capable of moving a project total by lakhs:
- Soil conditions, excavation in rock, and any foundation redesign that follows
- Compound wall, gates, driveway, drainage and external development
- Statutory approvals, deposits, betterment charges and sanction costs
- Electrical load sanction, transformer, backup power and stabilisation
- Water treatment, sump, rainwater harvesting and STP where mandated
- Kitchen appliances, wardrobes, loose furniture and window treatments
- Landscape, irrigation and external lighting
- Escalation on long-lead imported items
None of these are unreasonable exclusions. They become a problem only when one proposal excludes them silently and another includes them, and the two are then compared on a single number.
The four questions that reveal true cost
- 01What is explicitly excluded? Ask for the exclusions list as a document in its own right.
- 02Which lines are provisional sums? A provisional sum is a placeholder, not a price, and it will be reconciled upward far more often than downward.
- 03What is the specification against each BOQ line? Or equivalent is where a comparable quote stops being comparable.
- 04How are changes priced? A rate agreed in advance for variations is worth more than a lower headline rate with no change mechanism.
Where money is well spent and poorly spent
| Spend that lasts | Spend that dates |
|---|---|
| Structure, waterproofing, drainage | Feature walls and applied ornament |
| Orientation, shading, ventilation | Fashionable fixture finishes |
| Window and door systems | Ceiling profiles and cove lighting |
| Electrical and plumbing quality | Trend-led material choices |
| Bespoke joinery and storage | Oversized entertainment rooms |
| Daylight and proportion | Anything requiring a specialist to maintain |
The left column is largely invisible in photographs and almost entirely responsible for how a house performs over twenty years. The right column photographs beautifully and is the first thing that looks dated.
The cost that never appears in any quote
Delay. A project that overruns by six months carries rent or alternative accommodation, extended finance, and inflation on everything not yet procured. It rarely appears as a line item, and it is frequently the largest single overrun on a residential project.
The cheapest quote and the lowest final cost are seldom the same document.
Questions this raises
