Average Building Costs Per Sq M for 2023: A Comprehensive Guide
Are you planning a new home construction or considering a renovation project in 2023? Understanding the average building costs per square metre (sq m) is crucial for budgeting and planning. In this guide, we will provide you with the latest cost per sq m rates for 2023 and the factors affecting these costs.
The Impact of 2022 on Construction Prices
2022 has been a wild ride for construction prices. As reported in our last November construction materials report, skyrocketing inflation, rising interest rates and a looming recession have all contributed to a rise in overall construction costs throughout 2022. Increases in individual construction material prices have differed significantly with some individual items increasing by over 60% while others only increasing by roughly 10% in 2022.
Estimated Building Costs Per Sq M for 2023
Based on the latest material prices in the UK and thousands of quotes assembled in late 2022, here are our best estimations for 2023 construction costs per sq m:
Scope of works
Building a new house
Extension (Ground floor)
Extension (First floor)
Factors Affecting Construction Costs Per Sq M
It is important to note that these are rough guidelines in cost. Each project will differ in cost based on a variety of factors such as:
- Location: Construction costs typically vary depending on the location. Urban areas like London with scarce land tend to have higher construction costs, while rural areas with more available land generally have lower costs.
- Type of finishes (specification): The materials used in construction significantly affect the cost per sq m. High-end materials like marble or granite will increase the cost, while more affordable materials like concrete or vinyl will decrease it. A building with high-end finishes will typically have a higher cost per sq m than one with basic finishes.
- Type of Builder: The choice of builder impacts the cost per sq m, with smaller scale builders generally requiring less overhead, while larger, custom builders have higher overhead costs.
Overall, the cost per m2 for construction can vary widely depending on a number of factors. It is important for homeowners and builders to carefully consider these factors and determine a budget that works for their specific project. In general, it is a good idea to get quotes from multiple contractors and compare prices before starting a construction project.
Product Manager at BuildPartner
Tip: Estimating software has come a long way in the last few years, and software such as BuildPartner can help you estimate your project faster and more accurately based on your chosen scope and specification. Our costs take in the latest market trends and rates within your region and breakdown your project costs in seconds.
Try it out free today by clicking here. No credit card required.