The cost of building a home on your own lot in 2023.

Find out the cost of building a house on your own plot depending on the various aspects and stages of the project. Building your own home is a dream for many people. But when it comes time to make the project a reality, there are a lot of things to consider. The first step in building a house is to have a plot (and also one of the most expensive processes). Once it is acquired, you can hire an architect and start planning.

How to start building a house from scratch.

The first thing you need to know before you start building is whether your plot is urban, prepared for construction, or rural. Depending on this, a particular project will be carried out:

Urban:

The plot is ready for construction. It has all communications, services and infrastructure. It is ideal for building a house, as after buying it you can start building immediately.

Prepared for construction:

At a certain point and after appropriate actions, this plot becomes urban and therefore suitable for construction. Turning it into an urban site will require additional costs.

Rural:

There are restrictions depending on the purpose of the residential property, the self-contained community in which it is located, and in some places construction is not permitted.

How much does it cost to build a house in 2023? The cost of building a residential house depends on the type of project (design, materials, construction, finishes, size, etc.). According to information from Autopromotor.info, the price of building a house on a plot of land in Spain in 2023, after taking into account the costs of design and licenses, energy consumption, application for new construction, VAT, etc., is about 2234.79 euros per square meter.

Now, what are the factors that affect the cost of building a home?

Types of structures.

The construction is one of the factors that influence the final price and depends on the materials used. According to data from Cronoshare, the average price of materials for house construction in 2023 is as follows:

• Steel:The cost of the steel structure is approximately 95 euros per square meter.
• Concrete:The average cost of concrete is 130 euros per square meter.
• Tree:The cost of wood depends on its type and quality. Speaking of the average price, it is 195 euros per square meter.

It is worth noting that this price only applies to the structure. If additional work is included (foundation, beams, etc.), the cost will increase. According to Cronoshare, the estimated price for building the structure of a house, including the cost of the foundation, can range from 300 to 400 euros per square meter.

The average price of construction for various materials for a house with an area of 90 square meters is:

• Type of construction
• The approximate price for a house with an area of 90 square meters.
• A frame made of grid concrete
• 18,000 euros
• Reinforced concrete slab
• 22000 euros
• Metal structure
• 25,000 euros
• Wooden structure
• 35,300 euros
• Wall structure
• 20,000 euros

The selected architect for the project. The price for the architect also varies greatly. It mainly depends on the specialist's prestige and the complexity of the project. Fees typically range from 4% to 6% of the project budget - where the project is detailed, the structure is calculated, communications are planned, and all finishes are specified, but they can differ.

VIP Reformas claims that "it's hard to find an architect for a private house for less than 6000 euros, and the average cost is 12,000 euros."

The role of an engineer. An engineer deals with the technical aspects of construction. The average cost of an engineer's work ranges from 3,000 to 6,000 euros per project.

Security coordinator. The salary of a security coordinator depends on the length of employment. It usually amounts to around 4000 euros.

Site research. Before starting construction, it is necessary to conduct a series of site investigations to determine the potential and feasibility of the project. Among them:

• Topographic survey:Determines the geometry of the plot where the house will be built. The cost ranges from 250 to 400 euros.
• Geotechnical investigation:It shows the soil characteristics and helps to develop an appropriate foundation. The average cost is 725 euros.

Expenses and income of a construction company.

Interior designer. Hiring an interior designer is not mandatory, but many people do it to help them with decorating their home at the end of construction. There is no fixed price, but the average cost is likely between 50 and 100 euros per hour.

Construction insurance. Construction insurance is usually carried out by an engineer, architect, and construction company. The owner must pay for the guarantee obligations for waste management and for the occupation of sidewalks, which should be returned at the end of the work if there are no issues. This usually amounts to about 1% of the budget, but it can also vary depending on the city.

Taxes and fees for building a house. Before starting construction, it is necessary to pay the construction tax, installation, and work fees (ICIO) as well as the municipal fees for the area where the housing will be built. Typically, this is a percentage of the project budget, which varies in each city, but generally ranges from 3% to 5%.

After the construction is completed, there will be the following expenses:

• Fee for the first occupancya fee charged by the municipality, which ranges from 0.5% to 1% of the budget.
• House registration at the notary's officeand his registration in the registration chamber. The fees for the notary and the registrar amount to about 0.5% of the house's value.
• Fee for legal acts related to the application for new construction1.5% of the cost of work on the new construction.
• Connection of utility services for water and electricityand also obtaining a residence certificate. It usually costs around 500-700 euros.

An example of the cost of building a house if you have a plot of land. The architectural studio delaVegaCanolasso provides the following estimate for a house with an area of 68 square meters plus a 12 square meter terrace.

To this cost, it is necessary to add expenses for licenses and permits, which depend on the autonomous community where the property is located.

How much does a square meter cost in 2023?

“Currently, it is very difficult to build a private house for less than 1900-2000 euros per square meter. Moreover, the prices of all materials have increased, and we are in a period of significant construction, so there is not much price competition among construction companies,” says Ignacio de la Vega, an architect at the delaVegaCanolasso studio.

In the same vein, Juan Goni, the founder of Klic Arquitectos, expresses, "Providing an exact figure in this regard is risky, as the situation is not the same throughout Spain. In large capitals and coastal areas, the rise in material prices and the shortage of labor have led to new increases in construction costs from construction companies over the year, which we are observing in our projects, close to 50%," he explains.

“This phenomenon is more related to construction companies that have a lot of work and they raise their prices to avoid issues with rising material costs. If you hire industry specialists directly (electricians, plumbers, blacksmiths, carpenters...), the price increase will be less. Currently, in Malaga, building a house with good quality costs about 2000 euros per square meter,” adds Goni.

How much does it cost to build a house with an area of 50 m2 in Spain?

Assuming that the average price per square meter in Spain in 2023 is between 1900 and 2000 euros, the cost of building a 50-square-meter house would be 95,000 euros at best.

How to save on building a house

Just like with health, cutting costs when building a residential house can create problems in the future. However, it is possible to reduce some expenses and prevent future costs for repairs or improvements by considering certain details. Here are a few tips to help you save when building a house:

• Building outside the city: Plots located on the outskirts or in rural areas are significantly cheaper than land in the city center or near urban areas. If you want to get better-prepared housing, even if it means a longer commute, choosing a location on the outskirts can help save a few thousand euros.
• Utilization of natural resources and landscape: Make the most of the features of the site where your house is being built. Construct the building with the right orientation to take full advantage of natural lighting, thereby saving on heating and cooling costs.
• Comparison of budgets: Don't settle for the first budget you receive. Compare offers and review their previous work history. This will help you choose the most effective company.
• Buying materials from specialized suppliers or manufacturers: Purchasing materials directly from the manufacturer or in bulk can save on the markups of intermediaries. However, this will require time investment, which may distract from other aspects of life.
• Choosing quality materials: Using high-quality materials for the construction and finishing of a house, although it may increase initial costs, will postpone or eliminate future expenses for repairs or improvements.
• Focus on energy efficiency: Use quality insulation, smart home systems to regulate lighting and temperature, well-insulated windows, solar panels, heat pumps, fireplaces, air-to-water heat pumps, etc. Anything that can improve energy efficiency and consumption will save you a lot of money in the long run. However, the initial costs may be higher.
• Avoid changes during construction: Once construction has started, avoid changes in design or materials, as this can increase costs and extend the construction time.