How much does it cost to build a house if you already own the land?

In this guide, we analyze how much it costs to build a house when you already own the land, what factors influence the budget, and why having a good architecture firm in Madrid makes all the difference.

The terrain: a key starting point

If you already own land, you are well on your way. This stage is usually the most expensive or complex in terms of searching, negotiating, and paperwork. However, building on your own land does not mean that the rest of the project will be easy or cheap.

The reality is that, even if the cost of the land has already been settled, the price of building a home depends on multiple factors: design, materials, technicians, licenses, exterior work, etc. That is why it is essential to have a clear vision from the outset and to rely on professionals who can plan the entire process with precision.

What influences the cost of construction?

The final cost of building a house on your own land will depend on variables such as:

• Built area (usable and total square meters)

   

• Number of floors and complexity of design

   

• Type of structure, foundation, and roof

   

• Material qualities and finishes

   

• Technical fees (architect, quantity surveyor, engineers)

   

• Procedures, licenses, and municipal fees

   

• Connections to utilities (water, electricity, sanitation, telecommunications)

   

• Exterior works: fencing, accesses, gardens, swimming pool, garage, etc.

   

Each of these items can significantly affect the final budget. That is why building a standard house in an established urban area is not the same as building a custom home on a plot of land far from the city.

Approximate price range per square meter

Although the cost varies depending on location and quality, in general terms, building a new single-family home usually ranges between:

• €1,200 and €1,800 per square meter: basic or standard finishes.

   

• €1,800 to €2,500 per square meter: average quality, careful design, and energy efficiency.

   

• Over €2,500 per square meter: custom architecture, premium materials, sustainable solutions, advanced home automation, etc.

   

For example, a 120 m² house with average quality finishes can cost between €220,000 and €280,000, not including a swimming pool, landscaping, or garage. VAT, licenses, and possible technical contingencies would need to be added to this.

Additional costs that are often overlooked

When building a house, it is common to focus solely on the construction work, but there are other items that also impact the budget:

Technical fees

Having a good architecture firm in Madrid guarantees a well-designed, efficient project that complies with regulations. Architecture fees usually represent between 6% and 10% of the construction budget. Added to this are construction management, safety coordination, and other technical services.

Municipal licenses and fees

The major works license, the ICIO (Tax on Construction, Installations, and Works), urban planning fees, and the public road occupancy fee are mandatory and vary depending on the municipality.

Services and connections

If the land is not fully developed, you will have to bear the costs of connecting to the electricity, drinking water, sanitation, gas, and telecommunications networks. This work can be expensive, especially if the public network is far away.

Geotechnical and topographical survey

Both studies are mandatory for drafting the basic project. The first determines the resistance of the terrain; the second, the actual geometry of the plot.

Project execution and coordination

A house cannot be built with just an idea: it requires complete technical documentation, regulatory justification, structural and installation calculations, and monitoring during construction.

The importance of having a good architecture firm in Madrid

Beyond meeting technical and legal requirements, working with an architectural firm in Madrid has clear advantages:

• Knowledge of local planning and regulations

   

• Experience in dealing with local councils in the Community of Madrid

   

• Ability to optimize the design according to the terrain, orientation, and your needs

   

• Comprehensive consulting: from initial design to final delivery

   

• Budget control from the project stage to avoid cost overruns

   

A good architecture firm not only designs, but also accompanies you every step of the way: licensing, construction management, selection of a construction company, quality control, and final delivery.

Is it cheaper to build or buy a house?

It depends on the type of house you are looking for, but if you already own the land, building can be more economical than buying a finished home in certain areas of Madrid. In addition, you can completely customize the design, choose materials, optimize spaces, and adapt it to your lifestyle.

However, you should bear in mind that the process can take between 12 and 18 months from the drafting of the project to the completion of the work.

Tips for saving money on construction without compromising quality

1. Functional design: avoid complex shapes or unnecessary volumes.

    

2. Distribution efficiency: fewer hallways, more usable space.

    

3. Structural simplicityChoosing common construction systems reduces costs.

    

4. Mid-range materialsToday, there are attractive and durable finishes available at a good price.

    

5. Compare construction estimates: always with clear and complete measurements.

    

6. Detailed planningThe more clearly defined the project is, the less improvisation there will be on site.

    

What if I want to include a pool, porch, or garden?

These items are considered "exterior work" and are not included in the base cost. A simple swimming pool can cost between €15,000 and €30,000. A covered porch or pergola also requires foundations and a structure. Landscaping (lawn, irrigation, trees, outdoor lighting) can add an additional 5-10% to the total budget.

That is why it is essential to decide from the outset which elements you want to include in the construction phase and which ones to leave for later.

Conclusion: Build safely and without surprises

Owning the land is a great advantage, but building a house requires planning, technical vision, and financial control. Every decision, from the design to the choice of materials, influences the final budget.

That's why having an architectural firm in Madrid that understands your objectives, designs efficiently, and accompanies you at every stage is the best investment you can make.

Do you have land and want to build your house? Let's talk.

Cabana Studio helps you turn your plot of land into a unique, functional home full of personality. From the preliminary design to the construction management, we accompany you so that your house is exactly as you imagined it: without surprises, with design, with quality, and within your budget.