Building Costs Per Square Metre in Eastern Cape Province, South Africa: 2025 to 2026 STATSSA P5041.1 Guide

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Executive Summary

This comprehensive analysis provides a detailed breakdown of building construction costs within the Eastern Cape Province for the first four months of 2025 (January – April). The data is sourced exclusively from Statistics South Africa’s Selected Building Statistics of the Private Sector (P5041.1) report for April 2025, specifically Tables 11 and 21. This guide serves as an essential resource for property developers, architects, quantity surveyors, investors, and homeowners seeking to understand current market rates for both planned and completed construction projects.

The report examines two key phases of the building lifecycle: plans passed by municipalities (indicating intent and future investment) and buildings reported as completed (reflecting actualised construction). The analysis reveals a significant divergence between the sectors, with non-residential planned investment surging while the value of completed residential buildings has sharply declined. All costs are presented in South African Rands at current prices, providing a snapshot of the nominal cost environment without adjustment for inflation.

Introduction and Methodology

The Statistics South Africa P5041.1 report is a crucial economic indicator that tracks the performance of the private sector building industry. It collects data from larger municipalities on the number, gross floor area (square metres), and value (R’000) of building plans passed and completed. This article distils this data to calculate the most practical metric for industry professionals: the cost per square metre.

Methodology:
All calculations are based on the cumulative figures for the period January to April 2025 (Jan – Apr 2025) as provided in the attached tables. This cumulative approach provides a more stable and representative average than single-month figures, which can be volatile.

The formula used throughout this analysis is:
Cost per Square Metre (R/m²) = Total Value (R’000) / Total Gross Floor Area (m²)

It is critical to note that the “Number” and “square metres” figures are provided for specific sub-categories but not for the main category totals (e.g., “Total residential buildings”). Therefore, the average cost per square metre for a main category can only be calculated where both value and area data are available for all constituent parts. The “Other” categories often include projects where square metre data is not collected (e.g., internal alterations), making precise aggregation impossible. Our analysis provides calculations for every available line item and offers informed estimates for broader categories where possible.

The report is divided into two main sections, mirroring the structure of the STATSSA publication.

Section 1: Analysis of Building Plans Passed (Future Pipeline)

Table 11, “Building plans passed by larger municipalities,” reflects the value and volume of construction projects that have received official approval from January to April 2025. This data is a leading indicator of future construction activity and investment in the province.

1.1 Residential Buildings (Plans Passed)

This category covers new dwelling units planned for construction. The data is broken down by the size and type of dwelling.

TABLE 1: Residential Building Plans Passed (Jan-Apr 2025)

Type of Building	Number	Area (m²)	Value (R’000)	Cost per m² (R/m²)
Dwelling-houses < 80m²	127	5,395	45,737	8,478
Dwelling-houses > 80m²	150	42,445	368,736	8,687
Flats and Townhouses	114	20,689	164,675	7,959
Other Residential Buildings	–	0	0	–
Category Aggregate	391	68,529	579,148	8,451

Analysis:

Overall Residential Cost: The total value of planned residential buildings is R579,148,000. The total gross floor area for the sub-categories with data is 68,529 m². This results in an average cost of R8,451 per square metre for new residential construction plans in the Eastern Cape.
Small vs. Large Houses: There is a marginal difference in the cost per square metre between small (<80m²) and large (>80m²) houses. Larger houses are slightly more expensive to build per unit area (R8,687/m² vs. R8,478/m²), which could be due to higher-quality finishes, more complex designs, or economies of scale being offset by premium features.
Apartments: Flats and townhouses show the lowest cost per square metre at R7,959/m². This is likely due to economies of scale, standardised designs, and shared structural elements in multi-unit developments.

1.2 Non-Residential Buildings (Plans Passed)

This category encompasses commercial, industrial, and institutional buildings. The data indicates a massive planned investment in this sector.

TABLE 2: Non-Residential Building Plans Passed (Jan-Apr 2025)

Type of Building	Area (m²)	Value (R’000)	Cost per m² (R/m²)
Office and Banking Space	1,918	16,132	8,411
Shopping Space	868	7,823	9,012
Industrial and Warehouse Space	76,658	664,371	8,666
Other Non-Residential Buildings*	6,134	53,442	8,712
Category Total	85,578	741,468	8,664

Analysis:

Surge in Investment: The planned value of non-residential buildings (R741 million) has surpassed that of residential buildings (R579 million), indicating a strong shift in investment towards commercial and industrial projects.
Consistent Cost Rates: The cost per square metre across all non-residential sub-types is remarkably consistent, ranging from R8,411/m² to R9,012/m². The overall average is R8,664 per square metre.
Industrial Dominance: The industrial and warehouse sector dominates in terms of volume (76,658 m²) and value (R664 million), suggesting significant expansion in logistics and manufacturing capacity in the Eastern Cape.

1.3 Additions and Alterations (Plans Passed)

This category includes renovations, extensions, and alterations to existing structures.

TABLE 3: Additions and Alterations Plans Passed (Jan-Apr 2025)

Type of Building	Area (m²)	Value (R’000)	Cost per m² (R/m²)
Dwelling-houses	51,655	442,601	8,567
Other Buildings*	18,084	174,590	9,655
Category Total	69,739	617,391	8,852

Analysis:

High Renovation Activity: The high value (R617 million) and area of alterations indicate a robust market for home improvements and renovations, often a sign that homeowners are choosing to upgrade existing properties rather than build new ones.
Cost of Renovations: The cost per square metre for alterations (R8,852/m²) is higher than for new residential builds. This is typical, as alteration work often involves complex integration with existing structures, unforeseen repairs, and smaller, less efficient project scales.
“Other Buildings” Premium: Alterations to non-residential or other building types (R9,655/m²) are significantly more expensive per square metre than residential alterations, reflecting the specialized nature of commercial retrofits.

1.4 Summary of Building Plans Passed

The total value of all building plans passed in the first four months of 2025 was R1,938 million. The data reveals a construction pipeline heavily weighted towards non-residential and alteration projects, with a relatively conservative but steady flow of new residential plans. The average cost per square metre for all planned works is approximately R8,600.

Section 2: Analysis of Buildings Reported as Completed (Actualised Construction)

Table 21, “Buildings reported as completed,” provides data on projects that were finalised between January and April 2025. This reflects the actual work done and money spent during this period, offering a reality check against the plans passed in previous periods.

2.1 Residential Buildings (Completed)

This data shows what was actually built, as opposed to what was planned.

TABLE 4: Residential Buildings Completed (Jan-Apr 2025)

Type of Building	Number	Area (m²)	Value (R’000)	Cost per m² (R/m²)
Dwelling-houses < 80m²	237	9,267	71,017	7,662
Dwelling-houses > 80m²	40	12,577	107,709	8,565
Flats and Townhouses	5	518	4,490	8,668
Other Residential Buildings*	–	4,514	39,455	8,742
Category Total	282	26,876	223,061	8,300

Analysis:

Sharp Decline in Completions: The total value of completed residential buildings (R223 million) is less than half the value of plans passed (R579 million) for the same period. This indicates a significant pipeline lag or projects being delayed or cancelled.
Cost per m² Comparison: The average cost per square metre for completed homes is R8,300, which is slightly lower than the planned rate of ~R8,450. This could be due to the completion of projects that were planned in a period with lower material costs, or a focus on completing more cost-effective builds.
Volume Shift: The majority of completions are in the small house category (<80m²), which aligns with their lower cost per square metre and potentially shorter build times.

2.2 Non-Residential Buildings (Completed)

This reflects the commercial and industrial buildings that were finished in the period.

TABLE 5: Non-Residential Buildings Completed (Jan-Apr 2025)

Type of Building	Area (m²)	Value (R’000)	Cost per m² (R/m²)
Office and Banking Space	609	5,221	8,573
Shopping Space	12,824	107,439	8,377
Industrial and Warehouse Space	1,771	15,349	8,667
Other Non-Residential Buildings*	3,582	32,764	9,147
Category Total	18,786	160,773	8,558

Analysis:

High-Value Completions: The completion of shopping space, notably a single project of 12,824m² valued at R107 million, dominates this category. Its cost per square metre (R8,377) is competitive.
Cost Consistency: Similar to the plans, the cost per square metre for completed non-residential buildings is consistent, averaging R8,558/m².
Pipeline Indicator: The value of completed non-residential buildings (R161 million) is far less than the plans passed (R741 million), suggesting a massive pipeline of industrial and commercial projects that will be completed in the coming months.

2.3 Additions and Alterations (Completed)

This category reflects renovations and extensions that were finished in the period.

TABLE 6: Additions and Alterations Completed (Jan-Apr 2025)

Type of Building	Area (m²)	Value (R’000)	Cost per m² (R/m²)
Dwelling-houses	23,364	199,250	8,526
Other Buildings*	14,255	132,257	9,280
Category Total	37,619	331,507	8,812

Analysis:

Significant Completed Value: Despite a decline from the previous year, alterations still represent a significant portion of completed work (R332 million).
High Cost of Renovations: The cost per square metre for completed alterations is high at R8,812, confirming the trend seen in the plans data that renovation work is more expensive per unit area than new construction.

2.4 Summary of Buildings Completed

The total value of all buildings completed in the first four months of 2025 was R715 million. This is drastically lower than the R1,938 million in plans passed, highlighting the time lag in the construction cycle. The data shows a market where completions are currently dominated by alterations and a few large non-residential projects, while the residential new-build sector has seen a notable contraction in completed value compared to the previous year.

Conclusion and Implications

The STATSSA P5041.1 data for the Eastern Cape paints a picture of a bifurcated construction market in early 2025:

Robust Future Pipeline: The high value of plans passed, particularly in the non-residential (R741m) and alterations (R617m) sectors, points to strong future activity and confidence in certain segments of the market, especially industrial and commercial development.
Challenged Residential Completions: The sharp year-on-year decline in the value of completed residential buildings (-46.5%) is a serious concern. It suggests constraints such as rising material costs, higher interest rates, logistical delays, or a pullback in developer funding are impacting the delivery of new housing stock.
Cost per Square Metre Benchmark: For budgeting and feasibility studies, industry professionals can use the following average cost per square metre benchmarks derived from completed buildings in the Eastern Cape:
- New Residential Construction: R8,300 – R8,600/m²
- New Non-Residential Construction: R8,550 – R8,650/m²
- Additions and Alterations: R8,800 – R9,200/m²

These figures provide a critical baseline for estimating project costs, though it is essential to remember that these are averages and final costs will vary based on location, design complexity, material specifications, and market conditions at the time of construction.

The significant disparity between the ambitious plans passed and the subdued completions will be a key area to watch in subsequent STATSSA reports to see if the planned investment successfully translates into completed built environment assets for the Eastern Cape province.

Source: All data and calculations are derived from Statistics South Africa’s P5041.1 report “Selected building statistics of the private sector, April 2025”, Tables 11 and 21. This article is an independent analysis and is not affiliated with or endorsed by Statistics South Africa.