This is how much it takes to build a single-family home. We add up the costs

The passing half of the year is a good time to attempt to forecast the costs of building houses. The situation on the residential construction market is still not the easiest, and the number of building permits issued is far from the record results from the pandemic. The current year is shaping up to be one of the weakest for single-family construction. Fortunately, according to experts from Extradom.pl, there are many indications that the industry will finally emerge from the crisis.

The text was prepared using quarterly Sekocenbud bulletins. The amounts presented in the text do not include VAT, because each investor has individual possibilities to deduct tax and use reliefs.

How much will it cost to build a house in the second quarter of 2024?

The construction costs of houses in the second quarter of 2024 were prepared on the example of a single-family house made of silicate blocks, with a single-car garage and a usable area of ​​151.6 m2.².

– It is worth emphasizing that this is a large house. There is a growing interest among investors in much smaller houses – buildings with a usable area of ​​80-100 m are increasingly chosen². The trends we observe on Extradom.pl show that in 2024, these types of houses will be the most popular – claims Wojciech Rynkowski from Extradom.pl.

The data provided in the rest of the article is for informational purposes only. It does not include costs related to the purchase of a plot, its development or the installation of utility connections. It is worth remembering that each construction has its specifics resulting from the soil and climatic conditions, which directly affects the costs of individual works.

Where is it most expensive and cheapest to build houses in the country?

The highest costs of building single-family houses are consistently observed in Warsaw. This is such a specific area that it has even been separated in Sekocenbud’s cost reports.

– And due to the specificity of the capital, I usually omit it in my analyses, although it is certainly worth noting that building a square meter of a house in the second quarter of 2024 costs almost PLN 5,900 here – adds the expert from Extradom.pl.

The competition for the title of the cheapest province in Poland includes Lublin, Łódź and – interestingly – Wielkopolska. In these regions, we can still build a house quite cheaply, but the most favorable prices for investors are in Lubuskie, where a square meter of a built house costs PLN 5,316 – the lowest price in the country.

The most expensive is of course in Mazowieckie, where the price per square meter is over 400 PLN higher and amounts to 5,732 PLN. It is also expensive in Małopolska and Lower Silesia – there prices oscillate around 5,630 PLN.

It was in Małopolska that the year-on-year increase in construction costs was closest to the national average – it amounted to 5.54% with an average of 5.55%. It will therefore be an excellent example to present changes in annual terms.

The numbers below show costs for Q2 2023 and Q2 2024. The data shows changes in terms of amounts and percentages. I made all calculations based on Sekocenbud price lists for a single-family house with an area of ​​100 m², popular among individual investors.

How much will it cost to build the body of the house?

The first stage of construction is the ground zero. The work here includes:

• earthworks

• foundations

• underground walls

• insulation of foundations and underground walls.

The cost of the zero state in Q2 2023 was PLN 39,205, and in Q2 2024 PLN 41,357. This is an increase of PLN 2,152, or 5.49 percent. This is one of the changes closest to the average and the inflation level.

The shell stage (open stage) traditionally absorbs the most funds due to the amount of necessary materials and the wide range of necessary works. This stage of construction includes:

• walls above ground

• ceilings, vaults, stairs, landings

• roof – structure

• roof – covering

• substrates and channels inside the building

• insulation of the above-ground

• leveling layers under floors.

The cost of the shell (open) state in the second quarter of 2023 was 184,772 PLN. In turn, in the second quarter of 2024 it was 194,015 PLN – this time the change was PLN 9,243, or 5.00%. This is the second highest increase in terms of amount.

Interior finishing – costs

Finished interior this is an equally expensive stage. Here the work includes:

• plasters and facings

• windows and external doors

• internal doors and windows

• partition walls in dry technologies

• painting works

• floors

• other interior finishing works.

The cost of the interior finishing works amounted to 154,261 PLN in the second quarter of 2023 and 163,721 PLN in the second quarter of 2024. The change is PLN 9,460, which is 6.13%. This is the largest increase in amount and one of the largest in percentage terms, and its level still oscillates close to the level of inflation.

External Finish This is the last stage that must be completed before the building is completed. During this time, the following are carried out:

• elevations

• various external works.

Cost of external finishing works in Q2 2023 is 65,049 PLNand 70,391 PLN in the second quarter of 2024. In this case, the change is PLN 5,342, or as much as 8.21%. Here, exceptionally, growth is significantly higher than inflation.

Construction of a 100 m2 building in the Małopolska province²excluding internal installation work, cost an average of PLN 443,108 in Q2 2023 and PLN 469,295 in Q2 2024. The change therefore amounted to PLN 26,187, which is a difference of 5.91%.

This is slightly above inflation in the analyzed period, which certainly results from the fact that the production of many construction materials is energy-intensive – cement, lime and steel are good examples. This is also confirmed by the monthly price dynamics reports published by the PSB group. In annual terms, cement, among others, has increased in price the most, and it is essential on every construction site.

How much will we have to spend on installations inside the building in mid-2024?

Once the construction of the house structure is complete, we can begin installation work inside.

Installations which the house is already equipped with at this stage are:

• plumbing

• sewage installation

• gas installation.

The cost of works in the second quarter of 2023 was 23,442 PLN. In the second quarter of 2024 it was 24,371 PLNwhich gives a difference at the level PLN 929, or 3.96%. It is worth noting that, with one exception, year-on-year increases in internal installation costs were below the level of inflation.

Warm traditionally only one item:

• central heating installation.

The cost of these works in the second quarter of 2023 is 25 106 PLN. In In the second quarter of 2024 it was 26,132 PLN, That is 1,026 PLN difference. This gives an increase of 4.09%.

Ventilation techniques also include only one item:

·mechanical ventilation.

The cost of execution in Q2 2023 22,358 PLN and accordingly 22,140 PLN in the second quarter of 2024. Here we note a difference of –218 PLN, or -0.98%. This is the only decrease in costs in the list. Although it is small in terms of amount, it should definitely please future investors, especially since last year it was one of the fastest growing items in the cost estimate.

Electrical power installations this time they were the clear leader in growth. Work related to electrical work at home includes the necessary:

• switchboards

• lighting installations

• Plug socket installations

• lightning protection and grounding installations.

The installation cost is accordingly 19,053 PLN in the second quarter of 2023 and 20 691 in the second quarter of 2024. In this item of the cost estimate we have a change of PLN 1,638, or as much as 8.60 percent. This is by far the largest annual increase on the list, significantly higher than inflation.

Telecommunication and information technology installations include:

·alarm, surveillance and signalling installations

·structural installations.

In the overall construction budget, this is a very small amount, just 1,173 PLN in the second quarter of 2023. In turn, in the second quarter of 2024, this was the cost 1,195 PLN. The change is 22 PLN, or 1.88%.

In the second quarter of 2023, a sample house with an area of ​​100 m² built in the Małopolska province, equipped with a complete set of installations, cost the investor PLN 534,240. In the second quarter of 2024, it was PLN 568,824, which gives us an additional PLN 29,584 and 5.54 percent in percentage terms.

Taking into account the cost of a square meter of usable floor space of the house, this is an increase of almost PLN 296 – from PLN 5,342/m² in Q2 2023 to PLN 5,638/m² in the second quarter of 2024.

The increase in the cost of building a house in mid-2024 in Małopolska was very close to the level of inflation. Additionally, the small number of building permits issued means that there is moderate competition on the market and it is relatively easy to find specialists or buy materials at attractive prices. This makes it a good time to build a house.

What kind of houses are Poles most likely to build today?

– Looking at the statistics, one can come to the conclusion that Poles love small, simple houses with a gable roof. These are usually single-storey buildings with a usable area of ​​80-100 m²in which we will find a living room and two or three rooms. Unfortunately, in most cases it is a love of reason, not choice. This is visible, for example, in the number of investors who want to save money and give up the garage – they constitute almost half of those buying projects at Extradom.pl.

He explains that the reason for such decisions is probably the exorbitant prices of apartments and the persistently high interest rates on mortgages. In addition, the decreasing number of large and multi-generational families means that small houses are gaining popularity.

How much will a square meter of a single-family home cost at the end of 2024?

– In my opinion, the costs of building houses this year will grow much slower than the prices of apartments in the largest cities. Taking into account the specifics of individual provinces, the increases will oscillate from about 6% to 10-12% in the whole of 2024.

The range of increases is determined on the one hand by the forecast inflation rate for this year, which is higher than half of the forecast increase in housing prices in Poland’s largest cities. This means that the net price of a square meter of a single-family house at the end of 2024 in individual regions will range from PLN 5,500 to around PLN 6,000. The highest prices will remain in Warsaw and, in my opinion, this year they will exceed the barrier of PLN 6,000 per square meter.

– It may seem like a lot, but studio apartments in Warsaw are now priced at over twenty thousand zlotys per square meter. Today, building your own house is a very interesting option, which will additionally provide you with your own garden and Saturday breakfast or afternoon coffee on the terrace – sums up Rynkowski from Extradom.pl.