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Cost to build a house

·14 min read

November 11, 2020, ZEXPRWIRE, The construction of a new house always brings many doubts and one of the main ones is related to the price. If you have considered building your own house, one of the first things you are probably going to ask yourself is: How much does it cost to build a house?

What does it cost to build a house?

It is not an easy question to answer, but from Skymarketing we are going to give you some examples to know what the price is for new construction or for expansion of the existing house.

Building a house is an expensive and complex process. That is why there are a series of steps that we do not have to take lightly.

No more risks can be taken than anticipated. Everything has to be rolled so that our budget does not deviate or go off the original due to errors in design, construction, etc.

Nor should we ignore the problems that may prevent the completion of the work due to bureaucratic, legal or other issues.

We leave you with an example taken from a construction and execution project.

The budget for the construction of a house can be very variable, but here you can get an idea for when you go to speak with your architect.

As a general rule, when we talk about the price for building a house , the experts refer to prices per square meter built, with taxes and licenses already added in the final budget.

Calculate your budget to build your ideal house

Indicate the square meters of the house and press the button ‘Calculate my budget’

M2 of the house …

Your budget is:

VAT included. Approximate budget.


The final budget is divided into the following expenditure items, necessary for the completion of the work. We are also going to show you the steps to build a house .

Budget of material execution

The material execution budget includes all the costs of executing each of the expense items that appear in the project measurements.

This budget is highly variable and depends on factors such as the surface of the house, the surface of public and private urbanization, the quality of materials and finishes, the complexity of the construction, the characteristics of the land and the quality of the construction company.

Cost per square meter to build a house

An approximate value of the material execution budget for a single-family home is € 750-900 / m2 built of home.

If we want superior qualities or build on difficult terrain from the topographical point of view, the price will increase. Take advantage and request a budget without obligation from this page .

Builder expenses and benefits

If you want to hire a construction company, you should know that this type of company is responsible for the construction of the house. They start from the study of the plans and measurements of the project and, from there, they prepare the contract budget , which is usually 19% higher than the material execution budget. Reasons: includes general expenses (13%) and builder’s profit (6%).

A builder would take care of: Foundations and structure, rooms and wall and floor coverings; lacquered doors, frames and custom cabinets; roof, chimney (optional), facade and insulation, general plumbing installation, general electrical installation, aluminum windows with RPT, power outlets in rooms, antennas and telephone, etc.

Taxes: self-promotion of homes. The VAT that is applied in new self-promotion works is 10% of the contract budget.

Total price to construct the formation of a house?

One of the facets that defines the value of any construction is its structure. In this sense, it is not convenient to skimp on efforts, much less resources, when we talk about the construction of the structure of a house.

Today the types of materials most used for this type of issue are:

Concrete: It is a very resistant and effective material. It also resists fire quite well, a great advantage for the structure of a house, since it can be a way to reduce the risk of fire.

Wood: Wooden structures also have many advantages. This material favors thermal insulation. On the other hand, they are often left uncoated, as they are aesthetically attractive.

Steel: Structures built with this material tend to be cheaper and install relatively quickly.

In any case, it must be taken into account that the structure of a house includes both the foundations, the framework of beams, the pillars, the floors, etc. As is logical, if we take into account all these aspects, the final budget will be higher.

Technical fees

Terrain studies

Topographic survey: obtain the precise geometry of the ground on which the house is to be built.

Geotechnical survey: gives us the characteristics of the terrain and serves to design an adequate foundation.

Basic and execution project

The architect’s fees for the drafting of the basic and execution project vary depending on two factors: the complexity and surface of the house.

For this reason, the fees are usually around 4-6% of the material execution budget. Therefore, we can say that the fees of an architect for a single-family home amount to between 4% and 6% of the material execution budget, although sometimes percentages higher than 15% can be established.

However, this is only an estimate and it should be specified that currently there are no scales that establish or can offer guide prices for this type of service.

This means that it is very difficult to establish the cost of an architect’s fees and that it can vary greatly from one case to another.

Construction management

It consists of three trained professionals:

  • Construction manager (architect)

  • Execution Director (Rigger)

  • Health and Safety Coordinator (Rigger)

The architect and surveyor’s fees for construction management depend on the complexity and surface of the house, and they are usually around 2-3% of the material execution budget each.

The VAT applied to technical fees is 21% of the fee budget.

Municipal license

In general, from propertynews find two types of rates that vary depending on each municipality.

Urban license fee

This license aims to control the adequacy of the project to what is established in municipal regulations. It can be around 1-2% of the material execution budget.

Tax on buildings, installations and works

It is a permit to start the work. Around 4% of the budget for material execution.

To obtain the work permit, the construction and demolition waste management bond must be deposited.

New construction deed

At the end of the work, the deeds have to be notarized and registered in the Property Registry.

Notary and registrar fees are stipulated by fees set by law. The sum of both is around 0.5% of the property’s value.

Certificate of occupancy

It serves for the Autonomous Community to verify compliance with the habitability conditions of the home.

High supplies

The most common is to have about 200 euros for each supply: water, electricity, gas and telecommunications.

Financial expenses

If bank financing is needed, you have to add the appraisal expenses (€ 300-400), the notary and registration expenses (0.5% of the mortgage liability), the Tax on documented legal acts (1-1.5% of the mortgage liability), the opening commission (0-1% of the loan amount) and the bank interests that depend on the conditions of subscription of the mortgage.

Site cleaning, house furnishing and decoration

Now that we have our new house, we will have to clean it after the work. The same occurs with furniture and decoration, which can represent an average of 10% of the initial budget for the execution of the work.

Continuing with the previous example, and to answer the question “How much does it cost to build a house?”, We can conclude that, as an approximate figure, in the case of a 120 m2 single-family home, the price for its construction would be around € 168,000 .

If the house has land, we may want to build a pool. In this article we cover in depth how to build a swimming pool .

Prices in the construction of houses

When building a house we can choose a multitude of designs and types of architecture. The latest fashions in house construction show us a series of clear trends, which we detail below, along with an average price according to the type of architecture of the house.

Prefabricated house construction

Prefabricated houses are an interesting option when you want to build a house and that the process does not take long.

The main advantage of this type of construction is that its price is lowered by 30% compared to new construction houses (not prefabricated). Manufactured homes are made of materials as diverse as concrete, steel, or wood.

This price can be achieved because they are homes that are assembled in factories and are turnkey, where it is not necessary to design them. We save on lifting the entire structure, but the groundwork is yet needed. For its construction the same permits and legal requirements are needed.

If you are looking for a budget for the construction of a prefabricated house , at Blue world city we put you in contact with up to 4 construction companies in your area.

The wooden houses have lower prices than buildings and, as usual, the companies responsible for the project offer turnkey projects.

Many homeowners are looking to build or build a new plant in their home. This article can also serve as a reference since many of the necessary procedures for new construction are necessary to build on an already built plant.

Modern architecture house construction

If we choose to build the house outside of the city or urban core, there are fewer restrictions on the design. We can opt for more modern styles on the facade and exteriors.

The main characteristics of this type of housing are the use of spaces, the latest fashion furniture, large windows, innovative access systems, microcement, concrete and neutral colors.

On the other hand, we can find competitive prices for modern architecture houses according to the province or place of construction.

Rustic house construction

Defined, more classic and “lifelong” styles prevail in this type of home. They are houses that withstand the passage of time very well, since their design is timeless. By contrast, by using higher quality materials, prices tend to exceed the national average price.

The chalets would be an example of this type of construction. The prices to build a villa follow the same rules as for other types of houses, as we will need licenses, an architect, etc.

Construction of ecological houses

Ecological houses use materials such as wood, marble or glass to minimize the impact on the environment. Apart from being ecological, this type of house is very energy efficient and has excellent energy consumption rates. You can read more information about this type of house in our article on ecological houses .

The average price of these ecological buildings is approximately € 150,000 for houses of 80 square meters.

Steps when planning the building of a home

As we said before, in the construction of a house you have to take into account some steps that must be followed and planned in advance to ensure the best price and the best quality in the building process. We tell you everything below:

Construction feasibility

Before buying the land we have to make sure that it is viable in terms of urban regulations for house construction. We can contact an architect and it must be in writing based on municipal ordinances.

It is necessary to take into account the peculiarities that the adjacent communities of owners demand and if the land is suitable or not for building. The finest choice is to do a geotechnical study of the terrain.

Another very important point is to check the availability of the supply of basic services: natural gas, electricity and water supply. Also important, but to a lesser extent, would be Internet access (ADSL or fiber) and access to housing through paved roads.

We will have to choose the architectural style of the house and this will influence the final price of the budget. And the choice of land is also key since if the land is not flat, it will have to be leveled and the price of the house will increase.


This is one of the starting points when starting the construction of a house, whether it is a new construction, extension or reform. A construction project should reflect some basic points:

  • Location, number of floors, elevation.

  • Structure type.

  • House plans.

  • Materials used in construction.

  • How many people will inhabit the house?

  • Maximum budget.

  • Necessary licenses and permits.

With the construction project, the execution project is prepared, which must be finalized before starting the works. It must have all the important details of the housing facilities, structures, foundations, etc.

Budget to build a house


All future homeowners have wondered how much it costs to build a house; the house they have devised.

The budget to build a house must incorporate all the elements related to construction including the professional fees of the interveners, rental of machinery, materials, labor, rubble containers or any other aspect. It should also include license or permit fees and associated taxes.

Tip: Closed prices must appear in the final budget to avoid surprises such as an unjustified price increase in the middle of the work.

Construction monitoring

With the beginning and execution of the works, we recommend some tips so that everything goes in order and without surprises:

Maintain fluid communication with the architect (partial work calls are important).

Know at all times the progress in the form of meters built, materials used and their cost.

Ask for delivery notes to verify prices.

Permissions and licenses

This point is best left in the hands of the architects and surveyors, since they know the local regulations and associated taxes in all phases of construction of the house.

How much do licenses and permits cost to build a house?

It is usually around 5% of the cost of the material execution budget of the house.

Search for professionals and companies

The most important professional that we must count on when building a home is the architect . Your work is essential and we have to spare no effort in your search.

We continue with another professional who would be the second in order of importance. In this case we are talking about the builder , who is in charge of lifting the work from the plans.

If we follow the architect’s advice, we can have a trustworthy builder or at least know if the builder is trustworthy (as long as the architect is).

From here, we can choose the rest of the professionals involved in the work: plumbers, carpenters , gardeners, painters, etc.

We can also leave this selection in the hands of the builder, which will sometimes be an essential requirement for hiring.

And if you are looking to do a comprehensive reform of a house, you can ask for a budget and find out how much a comprehensive reform costs so that you have alternatives if you think it is better to buy an old home and reform.

Terms to know about house construction

Technical Building Code: The Technical Building Code (CTE) is the main set of regulations that regulate the construction of buildings in the national territory.

  • Energy certification : Document that verifies the general consumption standard of the home.

  • Land price: Average price per square meter depending on municipalities or areas.

  • Certificate of habitability : Permit that certifies that the house is habitable in accordance with current urban regulations.

  • Quantity surveyor or technical architect : He deals with the drawing of partial plans, arrangement of materials and economic terms in the construction of buildings. He is a certified technician.

How much do we save by being a self-promoter compared to a real estate developer?

We can save and avoid the costs of the real estate developer if we make the purchase of the plot ourselves.

You can eliminate the 20% profit that a real estate developer would apply from the final price of the house if we do that task ourselves.

On average, being a self-promoter has a saving of 20% compared to the “usual” purchase through a real estate developer, so building your own house is a good option . But you have to have knowledge, money saved and time to make the arrangements with the different construction companies that would intervene in the work.

(Syndicated press content is neither written, edited or endorsed by ED Times)