Building Costs Per Square Metre in KwaZulu Natal Province, South Africa 2025 to 2026: A STATSSA P5041.1 Guide

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Executive Summary

This comprehensive analysis provides a detailed examination of building costs within the KwaZulu-Natal (KZN) province, utilizing the latest official data from Statistics South Africa’s Selected Building Statistics of the Private Sector report (P5041.1) for April 2025. The report offers two critical perspectives on the construction industry: building plans passed (an indicator of future investment and intended construction) and buildings reported as completed (a record of finalized work and actual expenditure). By dissecting the data from both tables, this guide calculates the average cost of building and the crucial cost per square metre for various building categories, including residential, non-residential, and additions/alterations. The figures presented are for the cumulative period from January to April 2025, allowing for a robust comparison against the same period in 2024. The analysis reveals a resilient residential building sector in terms of value, despite a significant drop in the number of units planned, and a stark contrast between the planned non-residential sector and its actual completion rates. This serves as an essential resource for property developers, investors, architects, quantity surveyors, and homeowners seeking to understand current construction economics in KwaZulu-Natal.

Introduction and Methodology

The construction industry is a vital barometer of economic health, reflecting levels of investment, consumer confidence, and development activity. Accurate, timely data is essential for making informed decisions. Statistics South Africa’s P5041.1 report is the premier source for such data, collecting information from larger municipalities on building plans passed and completed.

This article is based exclusively on the two tables provided:

1. Table 14: Building plans passed by larger municipalities at current prices by type of building: KwaZulu-Natal.
2. Table 24: Buildings reported as completed to larger municipalities at current prices by type of building: KwaZulu-Natal.

Methodology of Analysis:
All calculations are derived from the “Jan – Apr 2025” cumulative columns to ensure a meaningful sample size and allow for year-on-year comparison. The key metrics calculated are:

1. Average Cost per Unit: Total Value (R’000) / Number of Units.
2. Average Cost per Square Metre (m²): Total Value (R’000) / Total Area (square metres).

All monetary values are in South African Rand (R), quoted in thousands (R’000). For example, a value of 1,000 represents R1,000,000 (one million Rand). It is critical to note that these are current prices and are not adjusted for inflation.

Section 1: Analysis of Building Plans Passed

Building plans passed represent formal approval for construction to begin and are a leading indicator of future construction activity. They reflect the intent and planned investment in the property market for the upcoming months.

Table 1: Building Plans Passed in KZN (Jan-Apr 2025) – Summary Data

1.1 Residential Buildings – Plans Passed

The data shows a total planned investment of R2.115 billion for residential buildings for the first four months of 2025.

• Dwelling-houses larger than 80m²: This segment dominates, with 258 units planned, encompassing a vast 98,536m² of floor space at a total value of R1.060 billion.
• Other residential buildings (e.g., flats, townhouses): This category leads in the number of units (659) but has a lower total floor area (70,788m²) and value (R797.6 million) compared to larger houses.
• Dwelling-houses smaller than 80m²: This affordable housing segment is notably small, with only 29 units planned, representing a minimal share of the market.

Calculating Residential Building Costs per Square Metre (Plans Passed)

To calculate the cost per square metre, we use the total value and total area for each sub-category.

Table 1.2: Cost per m² – Residential Building Plans (Jan-Apr 2025)

Analysis:

• The average cost per square metre to build a standard house larger than 80m², based on planned costs, is approximately R10,762.
• Smaller sub-80m² houses have a lower average cost per m² of R8,595, which may reflect simpler designs, more basic finishes, or economies of scale on smaller, standardized projects.
• “Other residential buildings” (like apartment blocks) have the highest cost per m² at R11,267. This is likely due to the additional costs associated with multi-story construction, such as elevators, reinforced concrete structures, and common area amenities.
• The overall average cost per square metre for all planned residential buildings is R12,370. This figure is skewed upward by the high-value, high-cost-per-m² “Other residential buildings” category.

1.2 Non-Residential Buildings – Plans Passed

Planned non-residential investment totals R531.2 million, showing strong intended activity, particularly in industrial projects.

• Industrial and Warehouse Space: This is the powerhouse of non-residential plans, with 56,621m² planned at a value of R401.5 million, indicating significant investment in logistics and manufacturing capacity.
• Shopping Space: 7,033m² of new retail space is planned, valued at R63.7 million.
• Office Space: Planned activity is very low at only 899m², suggesting a stagnant or oversupplied office market.

Calculating Non-Residential Building Costs per Square Metre (Plans Passed)

Table 1.3: Cost per m² – Non-Residential Building Plans (Jan-Apr 2025)

Analysis:

• Industrial and warehouse space is the most cost-effective to build, at R7,091 per m², as it typically requires simpler finishes, high-volume spaces, and minimal services compared to other building types.
• Shopping space (retail) comes in at R9,054 per m², reflecting higher-quality finishes, customer-facing facades, and more complex lighting and HVAC systems.
• Other non-residential (e.g., schools, hospitals) has the highest cost at R10,836 per m², which is expected due to specialized fittings, stringent regulatory requirements, and complex mechanical and electrical services.
• The average cost per m² for all planned non-residential buildings is R7,565.

1.3 Additions and Alterations – Plans Passed

This category represents a massive R1.462 billion of planned work, nearly as much as the entire new residential sector. This highlights a strong market for home improvements and upgrades.

• Dwelling-house Alterations: Comprises the bulk of this category (95,136m², R1.042 billion).
• Other Building Alterations: Accounts for 31,981m² and R420.5 million.

Calculating Additions and Alterations Costs per Square Metre (Plans Passed)

Table 1.4: Cost per m² – Additions & Alterations Plans (Jan-Apr 2025)

Analysis:

• Alterations and additions work is significantly more expensive per square metre than new build work. The average cost for house alterations is R10,947/m², which is higher than the cost for new build houses (~R10,762/m²). This is due to the inherent inefficiencies of renovation work, such as demolition, working around existing structures, and matching existing materials.
• Alterations to “other buildings” (commercial/residential) are even more expensive at R13,149/m², reflecting the complexity of upgrading commercial systems and spaces.

Section 2: Analysis of Buildings Completed

Buildings reported as completed reflect the actual work finished and paid for during the period. This data is a lagging indicator, showing what has been built, often from plans passed in previous periods. The figures can differ significantly from plans passed due to project delays, cost overruns, or cancellations.

Table 2: Buildings Completed in KZN (Jan-Apr 2025) – Summary Data

2.1 Residential Buildings – Completed

The total value of completed residential buildings was R1.250 billion, which is 41% less than the value of plans passed (R2.115bn), indicating a pipeline of ongoing projects not yet completed.

• Dwelling-houses larger than 80m²: 209 units were completed, with a total area of 64,004m² and a value of R738.5 million.
• Other residential buildings: A surprisingly high number of units were completed (345), with a value of R465.9 million, suggesting a strong focus on multi-unit development completions in this period.

Calculating Residential Building Costs per Square Metre (Completed)

Table 2.2: Cost per m² – Residential Buildings Completed (Jan-Apr 2025)

Analysis:

• The actual average cost per square metre for completed large houses is R11,538, which is approximately 7% higher than the planned cost of R10,762/m². This difference is expected and can be attributed to construction inflation, unforeseen costs, and upgrades during the building process.
• The cost for completed small houses is R11,380/m², significantly higher (32%) than the planned rate, though the sample size is very small.
• The overall average cost per square metre for all completed residential buildings is R11,322.

2.2 Non-Residential Buildings – Completed

The completion value for non-residential buildings was R588.3 million, which is 11% higher than the planned value, suggesting the completion of large projects that were planned in earlier periods.

• Industrial and Warehouse Space: Dominates completions with 59,215m² completed, valued at R375.2 million.
• Shopping Space: 10,044m² of retail space was completed.
• Office Space: 6,750m² was completed, a much higher figure than the plans passed, indicating the finalization of older projects.

Calculating Non-Residential Building Costs per Square Metre (Completed)

Table 2.3: Cost per m² – Non-Residential Buildings Completed (Jan-Apr 2025)

Analysis:

• The actual cost per m² for completed industrial space (R6,335) is 11% lower than planned, which could indicate efficient project execution or a prevalence of simpler, spec-built warehouses.
• Completed office and shopping space costs (R11,000/m² and R10,482/m² respectively) are vastly higher than their planned counterparts, likely reflecting the completion of specific, high-spec projects that were initiated some time ago.
• The overall average cost per m² for completed non-residential buildings is R7,397.

2.3 Additions and Alterations – Completed

Completed alterations work was valued at R475.8 million, only a third of the value of plans passed (R1.462bn), confirming that this type of work is planned well in advance of execution.

Calculating Additions and Alterations Costs per Square Metre (Completed)

Table 2.4: Cost per m² – Additions & Alterations Completed (Jan-Apr 2025)

Analysis:

• The cost per m² for completed alterations to houses is R11,238, which is 3% higher than the planned rate, aligning with the trend of actual costs slightly exceeding planned budgets.
• The overall average is R11,442/m², solidifying the conclusion that alteration work is consistently more expensive per square metre than new construction.

Section 3: Comparative Analysis and Conclusion

3.1 Plans vs. Reality: A Summary of Cost per m²

Table 3.1: Summary of Average Cost per Square Metre (R)

Key Takeaways:

1. Residential Market Dynamics: The planned data suggests a market focusing on higher-value, larger homes and apartment complexes. The higher actual cost per m² for houses confirms typical construction cost inflation between planning and completion.
2. Industrial Boom: Both planned and completed data show immense activity in the industrial and warehouse sector, which is a positive sign for the KZN economy, given the province’s role as a logistics hub. The lower actual cost per m² suggests this sector is achieving efficiencies.
3. Volatile Commercial Sector: The massive variance in office and retail costs between plans and completions indicates a project-specific market rather than a broad trend. The low level of new office plans points to a continued weak outlook for this sub-sector.
4. Thriving Renovation Market: The enormous value of plans for additions and alterations (R1.46bn) signifies a robust market for upgrading existing properties. The high and stable cost per m² highlights the premium nature of renovation work.

3.2 Conclusion

The STATSSA P5041.1 data for January to April 2025 paints a picture of a construction industry in KwaZulu-Natal that is active yet undergoing significant change. The residential sector shows strength in value, particularly in larger homes and multi-unit developments, though the number of smaller, affordable units remains concerningly low. The industrial sector is a clear standout, driving non-residential investment. The alterations market is a massive and often overlooked component of the industry.

For anyone involved in building—from homeowners planning an extension to developers scoping a new mall—this data provides the essential benchmark for 2025/2026 construction costs in KZN. The key figure for budgeting a new home is approximately R11,500 per square metre, while planning for renovations should be budgeted at a premium of over R11,400 per square metre. These figures, derived from actual completed costs, provide a more reliable foundation for financial planning than planned estimates. As the economic environment evolves, monitoring subsequent releases of the P5041.1 report will be crucial for tracking the trajectory of these building costs.