New Launch - India Real Estate Report 2026.

What is a Soft Cost in construction?

Soft Cost in Construction are non-physical expenses not directly tied to building construction including architectural fees, permits, legal fees, insurance, financing costs, and project management typically 20-40% of total project costs.

Examples Included

  • Architectural and engineering fees
  • Building permits and impact fees
  • Legal and accounting expenses
  • Financing interest and loan fees

Comparison

  • Contrast with hard construction costs
  • Expensed before construction begins
  • Continue throughout project duration
  • Not visible in completed building

Soft costs are non-physical construction expenses including fees, permits, legal, insurance, and financing not directly tied to building typically 20-40% of total project costs.

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