The price per square meterof construction is a quick metric for estimating and comparing costs between projects. It is obtained by dividing the total budget (construction, finishes, licenses, fees, and contingencies) by the built area. Here you will see how to calculate it step by step, what it includes, factors that alter it, and practical examples.
What exactly is the price per square meter of construction?
The price per square meter of construction is the average cost of building each square meter. It is not a fixed value, but rather a reference for comparing budgets, analyzing quality, and making design decisions. It is advisable to update it with recent data and always apply it to the built area, not the usable area.
What should be included in the "total cost" before dividing?
For the calculation to be reliable, the numerator must include all relevant items:
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Structural work: foundations, structure, enclosures.
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Facilities: plumbing, electricity, air conditioning, ventilation, sanitation.
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Finishes: flooring, tiling, carpentry, glass, painting.
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Municipal licenses, fees, and taxes.
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Technical fees: architecture, engineering, construction management, and coordination.
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Earthworks, urbanization, connections.
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Safety and health, quality control, OCT if applicable.
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Auxiliary equipment and logistics (cranes, scaffolding, site hut, access).
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Final cleaning and commissioning.
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Contingencies: reserve 5-10% as a buffer.
If you omit items, the price per square meter will be artificially low and lead to planning errors.
Basic formula for price per square meter
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Total cost = sum of all the above items.
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Built area = total square meters of the project (including elements and areas that can be calculated according to regulations).
Formula:
Price per m² = Total cost ÷ Built area
Basic example:
If the project costs €250,000 and the built area is 200 m², then:
250,000 ÷ 200 = €1,250/m².
Factors that affect the price per square meter
The same program can produce very different results due to the following variables:
| Factor | Impact | Example |
|---|---|---|
| Geographic location | 30-50% differences between regions | In Madrid city it may be higher than in rural areas |
| Type of building | Requirements by use (residential, tertiary, etc.) | A commercial space requires specific facilities. |
| Quality of finishes | From standard to high-end | Marble, home automation, premium woodwork |
| Regulations and efficiency | Insulation/certification requirements | Sustainable building increases initial investment |
| Access and logistics | Difficulty in sourcing and auxiliary means | Narrow street, special crane |
| Topography and terrain | Earthworks, retaining walls | Slope with walls and micropiles |
| Design complexity | Unique geometries and details | Cantilevers, curved ventilated facades |
Therefore, the price per square metershould be treated as a range, not as a single figure.
Approximate prices (Spain)
As a very general guideline:
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Standard construction housing: €800 to €1,800 per square meter
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Medium-high quality: €1,500 to €2,500 per square meter
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Luxury or unique projects: ≥ €2,500/m²
These ranges are always refined with local data and recent cost memory.
Adjustments using correction coefficients
To get closer to a more realistic price per square meter, apply coefficients to the base figure:
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Project complexity: × 1.10 – 1.30
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Finish quality: × 1.10 – 1.60
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Terrain conditions and access: × 0.90–1.40
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Energy efficiency/certifications: × 1.05–1.25 (if the requirement exceeds the minimum standard)
You can combine them by multiplying them together before dividing by the square meters.
Practical step-by-step example
Assumptions:
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Structure + facilities + finishes: €180,000
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Licenses and taxes: €15,000
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Technical fees: €10,000
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Total cost: €205,000
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Built area: 150 m²
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Coefficients: complexity × 1.15; finishes × 1.20
Calculation:
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Base cost = €205,000
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Apply coefficients = 205,000 × 1.15 × 1.20 = €282,900
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Price per m²= 282,900 ÷ 150 = $1,886/m²
That would be the estimated value to compare with actual offers.
How to use the price per square meter to compare quotes
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Standardize the scope: ensure that all budgets include the same items.
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Match specifications: compare specifications and equivalent chapters.
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Separate construction and kitchen/cabinets/equipment: sometimes these are offered separately.
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Distinguish between usable square meters and built square meters: the price per square meteris always calculated based on built square meters.
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Weigh up the time frame and logistical risks: delays and access influence the final cost.
Common mistakes that increase the price per square meter
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Using an incorrectly calculated square meterage (taking usable space instead of built space).
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Forgetting unforeseen events or underestimating licenses and fees.
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Choosing highly complex design solutions without studying their impact.
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Changing specifications during construction without reviewing the overall budget.
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Do not update the price per square meterwith market variations and material availability.
Tips for refining your calculation
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Consult local references (professional associations, price databases, and comparable projects).
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Break down chapters and allocate costs per square meter whenever possible.
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Always add 5-10% for contingencies to the construction budget.
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Review the applicable urban planning and technical regulations before finalizing the design.
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Request at least three quotes from construction companies with similar experience.
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Update the price per square meter if the project is delayed.
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Review official indices to contextualize cost changes (e.g., INE, MITMA).
Quick calculation template
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List all items (construction, installations, finishes, licenses, fees, auxiliary resources, security, cleaning, contingencies).
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Add to obtain the Total Cost (TC).
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Define the built area (S) according to the project.
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Adjust with coefficients (k1, k2, …) if applicable.
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Price per m² = (CT × k1 × k2 × …) ÷ S.
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Compare the result with local references and actual offers.
Frequently asked questions
Does the price per square meter include VAT?
It depends on how you present the calculation. For comparison purposes between budgets, it is common to work without VAT so as not to mix tax rates; but when deciding on your total investment, you should take it into account.
Does the built area include terraces and garages?
It is calculated according to the project criteria and applicable regulations. Some areas may count partially (e.g., covered terraces). To avoid distorting the price per square meter, define and document how those square meters are measured.
Can I use the price per square meter for renovations?
Yes, but with caution. Hidden issues, logistics in inhabited properties, and property protection can drive up costs. In renovation, the price per square meteris useful as a starting point, not as a fixed figure.
Author
Cabana Team
Author information