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

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Executive Summary

This in-depth analysis provides a critical examination of building costs within the Limpopo province of South Africa, utilizing the latest official data from Statistics South Africa’s (STATSSA) April 2025 P5041.1 report. The report offers two distinct lenses through which to view the construction sector: building plans passed, which signal future investment intent and developer confidence, and buildings reported as completed, which reflect the realized cost of finished construction projects.

The data paints a picture of a construction sector in Limpopo that is experiencing a significant contraction in planned investment but reveals intriguing nuances in actual execution. The total value of building plans passed saw a sharp 19.9% year-on-year decline, with residential plans down 15.1% and non-residential plans plummeting by 36.0%. This suggests a cautious approach from developers and investors in early 2025.

However, the story of completed buildings is different. The value of completed residential buildings saw a modest increase, and the cost efficiency of construction in Limpopo is a key finding. The average cost per square metre for completed residential buildings was calculated at R6,658/m², which is notably lower than the national average often seen in other provinces. Furthermore, the cost per square metre for completed work was consistently lower than what was initially planned, indicating that projects in Limpopo are often completed under budget.

This guide provides a meticulous breakdown of costs per square metre across all building categories—residential, non-residential, and additions/alterations—for both planned and completed work. This data is an indispensable tool for homeowners, developers, contractors, and investors seeking to understand the unique economic dynamics of the Limpopo building industry and to make informed financial decisions for the remainder of 2025 and into 2026.

Introduction and Data Source

Accurate, localized construction cost data is the bedrock of successful property development, investment, and personal building projects. For a province like Limpopo, with its specific economic drivers and cost structures, understanding these metrics is particularly important.

This article is derived exclusively from two tables published by Statistics South Africa (STATSSA) in their monthly report “Selected building statistics of the private sector, April 2025” (P5041.1):

Table 18: Building plans passed by larger municipalities at current prices by type of building: Limpopo.
Table 28: Buildings reported as completed to larger municipalities at current prices by type of building: Limpopo.

All figures, calculations, and trends discussed herein are based on the cumulative data for the first four months of 2025 (January – April 2025), compared with the same period in 2024. This cumulative approach provides a more stable and reliable overview than volatile monthly figures.

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

Building plans passed are a leading indicator, reflecting the approvals granted for future construction. This data reveals the intent and confidence of developers and investors.

1.1 Residential Buildings – Plans Passed

The residential sector shows a decline in planning activity, with a significant reduction in the number of units and value compared to the previous year.

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

Type of Building	Number	Gross Floor Area (m²)	Value (R’000)	Cost per Unit (R)	Cost per m² (R/m²)
Dwelling-houses < 80m²	18	1,071	7,988	443,778	7,458
Dwelling-houses >= 80m²	127	45,562	334,885	2,636,890	7,350
Flats and Townhouses	29	3,208	21,852	753,517	6,811
Other Residential Buildings	–	1,499	9,743	–	6,500
Total Residential	174	51,340	374,468	2,152,115	7,295

Note: “Other Residential Buildings” does not have a unit count, as it includes various accommodation types like hotels and hostels. The total number of dwellings (174) is the sum of the first three rows.

Key Calculations:

Average Cost of a Planned House: The total value of R374,468,000 divided by the total number of dwellings (174) gives an average cost of approximately R2,152,115 per dwelling unit planned.
Average Cost per m² for Planned Residential Buildings: The total value of R374,468,000 divided by the total area of 51,340 m² results in an average cost of R7,295 per square metre.

Analysis:

There is a clear downward trend in residential planning. The number of planned dwelling units fell from 258 in 2024 to 174 in 2025. The cost per m² is efficient, with larger homes (>=80m²) being slightly cheaper per unit area (R7,350/m²) than smaller homes (<80m²) at R7,458/m², likely due to economies of scale. Flats and townhouses are the most cost-effective to build at R6,811/m². The overall decline of 15.1% in value points to a cooling residential development market in Limpopo.

1.2 Non-Residential Buildings – Plans Passed

The non-residential sector exhibits an even more pronounced contraction in planned investment.

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

Type of Building	Gross Floor Area (m²)	Value (R’000)	Cost per m² (R/m²)
Office and Banking Space	759	5,492	7,236
Shopping Space	1,324	8,399	6,344
Industrial & Warehouse Space	4,489	32,655	7,274
Other Non-Residential Buildings	15,432	105,277	6,823
Total Non-Residential	22,004	151,813	6,900

Key Calculation:

Average Cost per m² for Planned Non-Residential Buildings: The total value of R151,813,000 divided by the total area of 22,004 m² results in an average cost of R6,900 per square metre.

Analysis:

The value of planned non-residential buildings fell dramatically by 36.0% year-on-year. The most significant declines were in shopping space (-88.1%) and industrial space (-52.8%). The “Other Non-Residential Buildings” category (which includes churches, schools, and clinics) was the only area to show growth (+13.8%) and constitutes the largest share of both area and value. The costs per m² are consistent across all subtypes, ranging from R6,344 to R7,274, indicating a relatively standardized cost structure for non-residential builds in the province.

1.3 Additions and Alterations – Plans Passed

This category, encompassing renovations and extensions, also saw an overall reduction in planned value.

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

Type of Work	Gross Floor Area (m²)	Value (R’000)	Cost per m² (R/m²)
Dwelling-houses	7,356	52,412	7,125
Other Buildings	10,653	80,072	7,515
Total Additions & Alterations	18,009	132,484	7,357

Key Calculation:

Average Cost per m² for Planned Additions & Alterations: The total value of R132,484,000 divided by the total area of 18,009 m² results in an average cost of R7,357 per square metre.

Analysis:

The total value of planned alterations fell by 7.8%. However, this masks a divergent trend: plans for alterations to dwelling houses fell significantly (-30.2%), while plans for alterations to “Other Buildings” (which includes non-residential and other residential) actually increased by 16.8%. The cost per m² for this work is high, as is typical, due to the complex nature of integrating new work with existing structures.

1.4 Summary of All Plans Passed

Table 4: Summary – All Building Plans Passed (Jan-Apr 2025)

Category of Building	Value (R’000)	% of Total Value
Residential Buildings	374,468	56.8%
Non-Residential Buildings	151,813	23.0%
Additions and Alterations	132,484	20.1%
Total at Current Prices	658,785	100.0%

The total value of plans passed was R658.8 million, a significant decrease of 19.9% from the previous year. Residential buildings make up more than half of all planned investment, indicating that despite the decline, it remains the core of the construction pipeline in Limpopo.

Section 2: Analysis of Buildings Completed (Actual Execution)

Buildings reported as completed show the final cost of construction that has been signed off, providing a clear view of what was actually built and at what cost.

2.1 Residential Buildings – Completed

In contrast to the decline in plans, the value of completed residential buildings saw a slight increase.

Table 5: Residential Buildings Completed (Jan-Apr 2025)

Type of Building	Number	Gross Floor Area (m²)	Value (R’000)	Cost per Unit (R)	Cost per m² (R/m²)
Dwelling-houses < 80m²	6	414	3,027	504,500	7,312
Dwelling-houses >= 80m²	73	24,560	175,454	2,403,479	7,142
Flats and Townhouses	4	696	5,042	1,260,500	7,244
Other Residential Buildings	–	0	0	–	–
Total Residential	83	25,670	183,523	2,211,120	6,658

Note: The total number of dwellings (83) is the sum of the first three rows.

Key Calculations:

Average Cost of a Completed House: The total value of R183,523,000 divided by the total number of dwellings (83) gives an average cost of approximately R2,211,120 per completed dwelling unit.
Average Cost per m² for Completed Residential Buildings: The total value of R183,523,000 divided by the total area of 25,670 m² results in an average cost of R6,658 per square metre.

Analysis:

This is a crucial finding. While fewer units were completed (83 vs. the planned 174), the value of completed work was actually 11.6% higher than the same period last year. More importantly, the actual cost per m² for completed buildings (R6,658) was 8.7% lower than the planned cost per m² (R7,295). This suggests that construction in Limpopo is being executed more cost-effectively than initially budgeted for. The cost per m² for larger homes is the most efficient at R7,142.

2.2 Non-Residential Buildings – Completed

The completion of non-residential buildings was limited and showed a significant overall decline.

Table 6: Non-Residential Buildings Completed (Jan-Apr 2025)

Type of Building	Gross Floor Area (m²)	Value (R’000)	Cost per m² (R/m²)
Office and Banking Space	0	0	–
Shopping Space	4,412	31,868	7,223
Industrial & Warehouse Space	1,542	8,964	5,813
Other Non-Residential Buildings	0	0	–
Total Non-Residential	5,954	40,832	6,858

Key Calculation:

Average Cost per m² for Completed Non-Residential Buildings: The total value of R40,832,000 divided by the total area of 5,954 m² results in an average cost of R6,858 per square metre.

Analysis:

Completions in this sector were dominated by shopping space, which saw a massive percentage increase from a very low base in 2024. The cost per m² for completed shopping space (R7,223) was higher than what was planned (R6,344), while completed industrial space was cheaper than planned (R5,813 vs. R7,274). The overall completion value fell by 27.5%, reflecting the earlier downturn in planning activity.

2.3 Additions and Alterations – Completed

This category experienced the most severe contraction, with completions plummeting by nearly 70%.

Table 7: Additions and Alterations Completed (Jan-Apr 2025)

Type of Work	Gross Floor Area (m²)	Value (R’000)	Cost per m² (R/m²)
Dwelling-houses	626	4,520	7,220
Other Buildings	129	3,750	29,070
Total Additions & Alterations	755	8,270	10,954

Key Calculation:

Average Cost per m² for Completed Additions & Alterations: The total value of R8,270,000 divided by the total area of 755 m² results in an average cost of R10,954 per square metre.

Analysis:

The volume of completed alteration work crashed by 69.3%. The cost per m² is extremely high, particularly for “Other Buildings” at R29,070/m². This astronomical figure is likely because the “Value” figure includes internal alterations (for which no square metre data is collected), meaning the area denominator is artificially low, drastically inflating the cost per m² calculation. This highlights a limitation of the dataset for this specific category.

2.4 Summary of All Buildings Completed

Table 8: Summary – All Buildings Completed (Jan-Apr 2025)

Category of Building	Value (R’000)	% of Total Value
Residential Buildings	183,523	78.9%
Non-Residential Buildings	40,832	17.5%
Additions and Alterations	8,270	3.6%
Total at Current Prices	232,625	100.0%

The total value of completed work was R232.6 million, a 6.1% decrease from 2024. The market is overwhelmingly dominated by residential completions, which account for nearly 79% of all completed value.

Section 3: Comparative Analysis and Conclusion

3.1 Plans vs. Completions: The Gap Analysis

The data reveals a significant planning-completion gap, but of a different nature than in other provinces. The value of plans passed (R658.8 million) is much larger than the value of completions (R232.6 million), indicating a pipeline of ongoing work. However, the sharp year-on-year decline in plans passed suggests this pipeline is shrinking, which could lead to lower completion volumes in late 2025 and 2026.

3.2 Cost per m²: Budget vs. Reality

The most significant insight for cost forecasting is the difference between planned and actual costs per square metre.

Category	Planned Cost (R/m²)	Completed Cost (R/m²)	Variance
Residential	7,295	6,658	-8.7%
Non-Residential	6,900	6,858	-0.6%
Additions & Alterations	7,357	10,954	+48.9%

For both residential and non-residential new builds, the final cost per m² was lower than planned. This is a positive indicator of cost management and efficient execution in Limpopo’s construction sector.
The variance for additions is skewed by the data collection issue mentioned previously and is not a reliable indicator of true cost overruns.

3.3 Implications for 2026

The Limpopo construction market presents a mixed outlook:

Negative Leading Indicators: The substantial decline in plans passed across all major categories points to a potential slowdown in construction activity heading into 2026.
Positive Cost Efficiency: The demonstrated ability to complete projects at a lower cost per m² than budgeted makes Limpopo an attractive province for cost-conscious development.
Market Dominance: Residential construction continues to be the dominant force in the province’s building industry.
For Stakeholders: Developers and investors should view Limpopo as a market where budgets can be met or even undercut. However, they must be cautious of the overall declining trend in new project investments. The low cost per m² could be a key competitive advantage for the province if economic conditions improve.

In conclusion, while the Limpopo building sector is showing signs of a slowdown in new project initiation, its ability to execute projects cost-effectively is a major strength. The average cost of R6,658 per square metre for a completed home provides a solid benchmark for anyone considering building in the province in 2026.

Source: All data and calculations are derived from Statistics South Africa (STATSSA), P5041.1 – Selected building statistics of the private sector, April 2025, Tables 18 and 28 for Limpopo.