Cost of building a house with land in2023.

The cost of building a house on your own land will depend on various aspects and stages of the project. Building your own home is the dream of many people. But when it comes time to make the project a reality, there are many questions that arise. Having a plot of land is the first step towards construction (and one of the most expensive in the process). Once you have a plot of land, you can hire an architect and start planning.

How to start building a house from scratch

Before starting construction, you should find out whether your plot is urban, suitable for development, or rural. Depending on this, you will be able to carry out a specific project:

• Urban: already ready for construction. It has all the utilities and service installations. This is the perfect option for building a house, as you can start construction immediately after purchase.
• Suitable for development: this is a plot of land that, at a certain point in time and after the appropriate procedures, becomes urban and, therefore, suitable for construction. Transforming it into an urban plot requires additional costs.
• Agricultural: has restrictions depending on the purpose of the housing, the autonomous community, and in some cases, construction is not permitted.

The cost of building a house in 2023

The cost of building housing depends on the type of project (design, materials, construction, finishing, size, etc.). According to data from the portal Autopromotor.info, the cost of building a house on a plot in Spain in 2023, after accounting for engineering work, licenses, expenses for a new construction application, VAT, and other costs, is approximately €2,234.79/m².

Now let's take a look at the factors that influence the cost of building a house.

Type of construction

The construction is one of the factors that affects the final cost and depends on the materials used. According to data from Cronoshare, the average cost of materials for constructing a residential house in 2023 is:

• Steel: the cost of a steel structure is about 95 euros/m2.
• Concrete: the average cost of concrete is about 130 euros/m2.
• Wood: the cost of wood depends on the type and quality. The average price is approximately 195 euros/m2.

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

The average cost of construction for various materials for a residential house with an area of 90 m2 is:

• The reinforced concrete structure costs 18,000 euros.
• The iron structure costs 25,000 euros.
• The wooden structure costs 35,300 euros.
• The brick structure costs 20,000 euros.

Choosing an architect for the project

The cost of architectural services can also vary. It mainly depends on the professional's reputation and the complexity of the project. Fees typically range from 4% to 6% of the construction budget - where the project is detailed, the structure is calculated, engineering systems are designed, and all finishing works are specified, but this percentage is not necessarily adhered to. According to VIP Reformas: "It is difficult to find an architect for custom housing for less than 6,000 euros, with the average cost being 12,000 euros."

The role of the foreman

Site managers deal with the technical aspects of construction. The average cost of a site manager's services ranges from 3,000 to 6,000 euros per project.

Security Coordinator

The salary of a safety coordinator depends on the duration of the construction. It usually amounts to around 4,000 euros.

Site research

Before construction, it is necessary to conduct a series of site investigations to determine its potential and the viability of the project. These include:

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

Expenses and profits of the developer

The developer bases their budget on an analysis of the plans, which is usually 19% higher than the budget for the actual work, as it includes overhead costs (13%) and their profit (6%).

Interior designer

Hiring an interior designer is not mandatory, but many prefer to do so to get help with decorating their home after construction is completed.

Construction insurance

Insurance for construction is usually arranged by the site manager, architect, and developer. The owner must pay guarantee fees for waste disposal and for occupying sidewalks, which, if nothing happens, should be refunded at the end of the construction. This usually amounts to about 1% of the budget, but it also depends on the municipality.

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. This is a percentage of the cost of the work, which varies in each municipality but usually ranges from 3% to 5%. After the construction is completed, there will be the following expenses:

• A fee for the permit for the first occupancy from the municipality, which amounts to about 0.5% to 1% of the budget.
• The conclusion of a purchase and sale agreement for a house before a notary and its registration in the property registry. The fees for the notary and the registrar amount to about 0.5% of the property's value.
• Tax on legally significant acts for the declaration of new construction is 1.5% of the construction cost.
• Registration of utility services for water and electricity and requesting a certificate of suitability for living. The costs for this usually amount to around 500-700 euros.

An example of the cost of building a house on a plot of 68 m2, plus a 12 m2 terrace, is provided by the architecture studio delaVegaCanolasso:

Total cost: 223,135 euros.

What is the cost per square meter of construction in 2023?

“It is currently very difficult to build an individual house for less than 1,900-2,000 euros per square meter. The prices of materials have risen significantly, and there is also a high volume of construction, so there is not much price competition among construction companies,” explains Ignacio de la Vega, an architect at the delaVegaCanolasso studio.

Juan Goni, the founder of Klic Arquitectos, shares the same opinion. "It would be unreasonable to specify an exact number in this context, as the situation varies across Spain. In major cities and resort areas, the rise in material costs and labor shortages have led to new price increases from construction companies over the year, which, according to our projects, we have noticed to be around 50%," he explains.

“This is a phenomenon that originated in construction companies that have a lot of work and higher prices to avoid issues with material costs. If you hire various craftsmen (electricians, plumbers, blacksmiths, carpenters) directly, the prices will be lower. Currently, in Malaga, building a house with good quality costs about 2,000 euros/m2,” adds Goni.

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

If we assume that the average price per square meter in Spain in 2023 is between 1,900 and 2,000 euros/m2, then the cost of building a house with an area of 50 m2 would be 95,000 euros at best.

How to save on building a house

Just like with health, saving money when building a house can become a problem in the future. However, it is possible to reduce some costs and avoid further investments in repairs or renovations by considering certain details. Here are a few points that can help save money when building a house:

• Construction outside the city: Land plots located on the outskirts or in rural areas are significantly cheaper than those in the city center or near cities. If you want to obtain more developed housing, even if it means more commuting, choosing a location outside the city can save you several thousand euros.
• Utilization of natural resources and the site: Fully take advantage of the area where you are building your house. If the building is properly positioned with regard to orientation, you can maximize natural lighting and reduce heating and cooling costs.
• Comparison of budgets: Don't settle for the first budget you receive. Compare offers and study the previous experience of companies. This will help you choose the most effective company.
• Buying materials from professionals or manufacturers: Purchasing materials directly from the manufacturer or wholesaler can save on the markups of intermediaries. However, this will require an investment of time, which may distract you from other aspects of life.
• Choosing quality materials: Using quality materials in the construction and finishing of a house, although it may increase initial costs, will help you avoid or postpone future expenses on repairs or upgrades.
• Energy-saving optimization: Using quality insulation, home automation systems to regulate light and temperature, double-glazed windows, solar panels, heat pumps, fireplaces, air-source heat systems... everything that can improve energy use and consumption is ultimately an investment that will save you a lot of money. However, it may initially cost more.
• Avoid changes during construction: Once construction has started, try not to make changes to the design or materials, as this can increase costs and extend the construction time.