Building Costs Per Square Metre in Free State 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 costs within the Free State province of South Africa 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 (Report P5041.1, April 2025), which tracks building activity through larger municipalities. The report examines two critical phases of construction: the approval of new building plans, which indicates intended investment and future construction activity, and the completion of buildings, which reflects actual realized investment and finished stock.

The key finding for the Free State is a tale of two sectors. While the value of building plans passed remained virtually unchanged from the previous year (R929.56 million vs. R929.54 million in 2024, a 0.0% change), the value of buildings actually completed saw a drastic decline of 30.8%, dropping from R150.37 million in Jan-Apr 2024 to R104.01 million in Jan-Apr 2025. This suggests a significant slowdown in the finalization of construction projects, potentially due to economic pressures, supply chain issues, or a lag between planning and execution.

This guide delves into the cost per square metre (m²) across all major building categories—Residential, Non-residential, and Additions & Alterations—for both planned and completed works. Understanding these metrics is crucial for developers, investors, architects, quantity surveyors, and homeowners to make informed decisions regarding budgeting, feasibility studies, and market analysis within the region.

Section 1: Analysis of Building Plans Passed (Intent to Build)

The “Building Plans Passed” data represents the value, number, and area of plans approved by larger municipalities in the Free State. This is a leading indicator, signalling the intended construction investment and future pipeline of work for the private sector. The total value of plans passed for the first four months of 2025 was R929.56 million.

1.1 Residential Buildings (Plans Passed)

This category includes new residential constructions. The data is further broken down into three sub-types. The total value of planned residential buildings was R445.51 million.

Table 1: Residential Building Plans Passed (Jan-Apr 2025) – Free State
Type of Building	Number	Area (m²)	Value (R’000)	Avg. Cost/Unit (R)	Cost/m² (R)
Dwelling-houses < 80m²	169	7,195	50,282	297,527	6,989
Dwelling-houses >= 80m²	144	34,588	295,538	2,052,347	8,544
Other Residential Buildings*	72	8,462	85,568	1,188,444	10,112
Total/Weighted Average	385	50,245	431,388	1,120,488	8,586

*Other residential buildings include institutions, boarding houses, hostels, and tourism accommodation (hotels, B&Bs, etc.). Note: The “Flats and townhouses” row in the source data had a value but no number or area for Jan-Apr 2025, so it has been excluded from this average calculation. The total value of R445.509m includes this and other minor categories.

Analysis:

Cost Variance: There is a clear gradient in cost per square metre based on building type. Smaller, simpler dwelling houses (<80m²) are the most economical to build, at R6,989/m².
Standard Housing: Larger dwelling houses (>=80m²) have a higher cost per square metre at R8,544/m². This is likely due to higher-quality finishes, more complex designs, and the inclusion of features like multiple bathrooms and garages.
Commercial Residential: Other residential buildings, which are essentially commercial accommodation ventures, are the most expensive per square metre at R10,112/m². This is due to the need for communal facilities, higher specification finishes, compliance with commercial building regulations, and specialized infrastructure like kitchens and laundry facilities.

1.2 Non-Residential Buildings (Plans Passed)

This category covers commercial, industrial, and institutional buildings. The total planned value for this sector was R196.14 million, a significant decrease of 22.6% from the same period in 2024.

Table 2: Non-Residential Building Plans Passed (Jan-Apr 2025) – Free State
Type of Building	Area (m²)	Value (R’000)	Cost/m² (R)
Office and Banking Space	130	1,315	10,115
Shopping Space	7,603	64,726	8,513
Industrial & Warehouse Space	12,431	87,948	7,075
Other Non-residential Buildings*	4,168	42,146	10,114
Total/Weighted Average	24,332	196,135	8,060

*Other non-residential space includes churches, schools, clinics, sports clubs, and hospitals.

Analysis:

Cost Efficiency: Industrial and warehouse space is the most cost-effective to build, at R7,075/m². This is expected, as these structures prioritize large, clear-span spaces, basic finishes, and functional utility over aesthetics.
Retail Cost: Shopping space falls in the middle range at R8,513/m². Costs include customer-facing finishes, lighting, and signage, but are still more utilitarian than offices.
High-Cost Categories: Office space and Other non-residential buildings (which include complex facilities like schools and hospitals) have the highest cost per square metre, both at approximately R10,115/m². These costs are driven by the need for higher-quality materials, extensive electrical and data infrastructure, air conditioning, specialized plumbing, and architectural features.

1.3 Additions and Alterations (Plans Passed)

This category captures spending on expanding or renovating existing structures. It is a vital indicator of maintenance and upgrade investment in the built environment. Notably, this was the only category to show strong growth, with plans passed increasing by 22.7% year-on-year to a total of R287.92 million.

Table 3: Additions & Alterations Plans Passed (Jan-Apr 2025) – Free State
Type of Building	Area (m²)	Value (R’000)	Cost/m² (R)
Dwelling-houses	21,990	191,248	8,696
Other Buildings*	10,940	96,673	8,837
Total/Weighted Average	32,930	287,921	8,744

*Other buildings include other residential, non-residential, and internal alterations (for which no area is collected).

Analysis:

The cost per square metre for additions and alterations (R8,744) is higher than for new build residential houses. This is a common phenomenon, as renovation work often involves complex integration with existing structures, dealing with unforeseen issues, and smaller, more customized jobs that don’t benefit from the economies of scale present in new developments.

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

The “Buildings Completed” data reflects the value and scale of projects that were actually finalized and signed off during the period. This data is crucial for understanding the actual supply of new built stock entering the market. The dramatic 30.8% decline in the total value of completions (to R104.01 million) is the most significant story in the Free State’s construction sector for this period.

2.1 Residential Buildings (Completed)

The value of completed residential buildings saw an increase (32.6%), but this was based on a very low base from the previous year and a small number of units.

Table 4: Residential Buildings Completed (Jan-Apr 2025) – Free State
Type of Building	Number	Area (m²)	Value (R’000)	Avg. Cost/Unit (R)	Cost/m² (R)
Dwelling-houses < 80m²	5	287	2,802	560,400	9,763
Dwelling-houses >= 80m²	36	8,232	75,199	2,088,861	9,135
Other Residential Buildings*	23	1,984	20,062	872,261	10,112
Total/Weighted Average	64	10,503	98,063	1,532,234	9,338

Analysis:

The cost per square metre for completed buildings is consistently higher than for planned buildings across all categories. For example, large dwelling houses cost R9,135/m² to complete vs. R8,544/m² in plans.
This discrepancy is expected and normal. It accounts for cost escalations during construction, unforeseen expenses, variations orders, and potential underestimations in the initial planning phase.
The average cost per square metre for all completed residential buildings was R9,338.

2.2 Non-Residential Buildings (Completed)

The data for completed non-residential buildings in Jan-Apr 2025 shows no activity in offices, shopping, industrial, or other non-residential spaces. The only value recorded (R3,562 for “Total non-residential”) appears to be a minor administrative entry with no associated area, making a cost/m² calculation impossible. This indicates a complete absence of new non-residential building completions reported by larger municipalities in the Free State during this period, highlighting a major stagnation in commercial and institutional construction delivery.

2.3 Additions and Alterations (Completed)

Completions in the additions and alterations sector experienced a catastrophic collapse of -92.0%, falling from R72.79 million in 2024 to just R5.84 million in 2025.

Table 5: Additions & Alterations Completed (Jan-Apr 2025) – Free State
Type of Building	Area (m²)	Value (R’000)	Cost/m² (R)
Dwelling-houses	871	5,844	6,710
Other Buildings*	0	0	N/A
Total/Weighted Average	871	5,844	6,710

*No completions were reported for “Other buildings”.

Analysis:

The cost per square metre for completed alterations (R6,710) is significantly lower than the planned rate (R8,744). This suggests that the few projects that were completed were smaller, less complex jobs, or that initial plan values were not representative of the final, simpler scope of work that was executed.

Section 3: Conclusion and Summary of Key Findings

The analysis of the STATSSA P5041.1 data for the Free State reveals a provincial construction sector facing significant headwinds in 2025.

Plans vs. Completions Gap: There is a massive divergence between intention and reality. While planning activity (as measured by plans passed) has held steady, completion activity has plummeted by over 30%. This suggests severe constraints in the execution phase, potentially related to financing difficulties, rising material costs, skilled labour shortages, or economic uncertainty causing delays and cancellations.
Residential Cost Benchmarks:
- New Build Planning: The average cost to plan a new house in the Free State is approximately R8,500 – R9,000/m², with variations based on size and type.
- New Build Completion: The average cost to complete a new house is higher, at approximately R9,300 – R9,800/m², reflecting inevitable cost overruns and variations.
- Renovation Cost: Budgeting for renovations should be based on a higher rate of R8,700 – R8,800/m² for planning, though actual completed costs can vary wildly based on project scope.
Non-Residential Stagnation: The complete lack of reported non-residential building completions is a major red flag for the province’s economic development and investment appeal, indicating a pause in commercial and industrial expansion.
Sectoral Shift: The growth in plans for additions and alterations (+22.7%) alongside a decline in new residential plans suggests a market trend towards upgrading existing properties rather than undertaking new builds, possibly due to economic pressure or a saturated market.

Recommendation: For anyone involved in the built environment in the Free State—from homeowners and developers to contractors and investors—this data underscores the critical importance of rigorous budgeting and contingency planning. Using the cost/m² figures provided here as a baseline is essential, but a minimum contingency of 10-15% should be added to planned figures to account for the consistent rise in costs seen between approval and completion. Close monitoring of the market throughout 2026 will be essential to see if these concerning trends continue or if the sector begins to recover.