What determines a house's building cost? What is worth knowing before you design

The price per square metre is a misleading figure on its own. We show which factors really shape the final cost of a build, and where you can consciously save without compromising quality.

"How much does a square metre of house cost?" is the most frequently asked, and perhaps the least well-answerable, question. In reality, the final cost of a build is shaped by many factors, largely independent of one another.

Technology and choice of materials

CLT and traditional brick-and-concrete technology work with different cost structures: one has a higher share of factory preparation, the other more on-site labour time. On top of that, the quality of the finishes, the windows/doors and the building services can also cause large variation at the same floor area.

The effect of size and floor plan

It is not only the floor area that matters, but the simplicity of the floor plan too. A broken-up building with many corners can have a wall surface and roof structure an order of magnitude more complex — and more expensive — than a compact, simple form with the same square metres.

Two houses with the same floor area can differ significantly in price if one has a compact floor plan and the other is broken up by many projections and bespoke roof shapes.

The form of contracting matters too

With many smaller contractors hired independently of one another, the risk of coordination errors and delays rises, which also affects the final total. General contracting keeps this risk in one pair of hands, which is why it often gives a more predictable outcome over the long run.

Where is it worth consciously saving?

  • A compact floor plan — this is the most cost-effective decision, and it takes nothing away from comfort.
  • A good insulating envelope — the extra upfront cost pays for itself in running costs within years.
  • Phasing the interior finishes — the structure and the services cannot be postponed, but the quality of the finishes can still be upgraded later.

The most important piece of advice: cost planning has to start at the drawing board, not during construction — that way a good idea does not turn into an expensive surprise later on.

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