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

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Executive Summary

This comprehensive analysis provides a detailed examination of building costs within the Mpumalanga province of South Africa, drawing exclusively from the latest data published by Statistics South Africa (STATSSA) in their April 2025 P5041.1 report. The report offers two critical perspectives on the construction sector: building plans passed (an indicator of future construction intentions and investment) and buildings reported as completed (a record of finalized work and actual expenditure).

The analysis reveals a province in a state of significant construction flux. While investment intentions, as shown by the value of plans passed, have surged dramatically—with a 41.6% year-on-year increase for all buildings and an astonishing 87.2% increase for non-residential buildings—the volume of completed residential buildings has actually contracted. This suggests a potential lag between planning and completion, supply chain challenges, or a shift towards larger, more valuable projects.

A key finding of this guide is the calculation of the average cost per square metre (m²) for various building categories. For planned residential buildings in the first four months of 2025, the average cost stood at R8,169/m². In contrast, the cost for completed residential buildings was significantly lower at R4,485/m², highlighting critical differences between projected budgets and final execution costs. This guide breaks down these figures across all building types, providing developers, investors, contractors, and policymakers with essential data for informed decision-making in the Mpumalanga construction industry for the remainder of 2025 and into 2026.

Introduction and Data Source

Understanding construction costs is fundamental to the health of the property development, investment, and building sectors. Accurate cost-per-square-metre data is crucial for creating feasible project budgets, securing financing, and assessing market trends. This article serves as a dedicated guide to these metrics for the Mpumalanga province.

The analysis is based entirely on two tables from the STATSSA publication “Selected building statistics of the private sector, April 2025” (P5041.1): Table 17: Building plans passed by larger municipalities at current prices by type of building: Mpumalanga. Table 27: Buildings reported as completed to larger municipalities at current prices by type of building: Mpumalanga.

All calculations, averages, and conclusions are derived directly from the figures presented in these tables for the cumulative period from January to April 2025, compared with the same period in 2024. This cumulative view smooths out monthly volatility and provides a more reliable indicator of trends.

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

Building plans passed represent formal approval for construction to begin. This data is a leading indicator, reflecting developer confidence, intended investment, and the future pipeline of construction activity.

1.1 Residential Buildings – Plans Passed

The data shows robust growth in the intended value of residential construction, though the nature of this growth is nuanced.

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	53	3,173	28,591	539,453	9,009
Dwelling-houses >= 80m²	209	72,996	584,494	2,796,622	8,008
Flats and Townhouses	40	8,269	54,941	1,373,525	6,643
Other Residential Buildings	–	4,871	35,097	–	7,204
Total Residential	302	89,309	703,123	2,328,221	7,871

Note: “Other Residential Buildings” does not have a unit count, as it includes various accommodation types like hotels and hostels where counting individual “dwellings” is not standard. The total number of dwellings (302) is the sum of the first three rows.

Key Calculations: * Average Cost of a Planned House: The total value of R703,123,000 divided by the total number of dwellings (302) gives an average cost of approximately R2,328,221 per dwelling unit planned. * Average Cost per m² for Planned Residential Buildings: The total value of R703,123,000 divided by the total area of 89,309 m² results in an average cost of R7,871 per square metre.

Analysis: The cost per m² varies by housing type. Smaller sub-80m² homes are the most expensive to build per unit area at R9,009/m², likely due to the high fixed costs of services like plumbing and electrical being distributed over a smaller area. Larger homes show a more efficient cost structure at R8,008/m². Flats and townhouses, which benefit from economies of scale and shared structures, are the most cost-efficient at R6,643/m². The high intended investment (R703 million) and 302 new units point to strong developer confidence in residential demand.

1.2 Non-Residential Buildings – Plans Passed

This sector exhibits explosive growth in investment intention, far outstripping the residential sector.

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	1,489	9,892	6,644
Shopping Space	49,239	330,263	6,708
Industrial & Warehouse Space	53,752	386,424	7,188
Other Non-Residential Buildings	3,185	21,151	6,641
Total Non-Residential	107,665	747,730	6,945

Key Calculation: * Average Cost per m² for Planned Non-Residential Buildings: The total value of R747,730,000 divided by the total area of 107,665 m² results in an average cost of R6,945 per square metre.

Analysis: The year-on-year percentage changes are staggering: a 256.6% increase in the value of shopping space and a 234.8% increase in area. This indicates a major wave of new retail development in Mpumalanga. The costs per m² are remarkably consistent across all non-residential subtypes, clustering around R6,600 – R7,200/m². Industrial space is slightly more expensive than retail or office space, possibly due to requirements for heavier flooring, higher ceilings, or specialized loading facilities.

1.3 Additions and Alterations – Plans Passed

This category covers renovations, extensions, and improvements to existing structures.

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	51,890	372,496	7,180
Other Buildings	27,734	211,145	7,614
Total Additions & Alterations	79,624	583,641	7,330

Key Calculation: * Average Cost per m² for Planned Additions & Alterations: The total value of R583,641,000 divided by the total area of 79,624 m² results in an average cost of R7,330 per square metre.

Analysis: Renovation and extension work is a massive market, with plans valued at over R583 million. The cost per m² for this work is high (R7,330), which is typical as alterations often involve complex integration with existing structures, dealing with unforeseen issues, and higher per-unit costs for smaller-scale works compared to new builds.

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	703,123	34.6%
Non-Residential Buildings	747,730	36.7%
Additions and Alterations	583,641	28.7%
Total at Current Prices	2,034,494	100.0%

The total value of plans passed reached over R2 billion, a 41.6% increase from the previous year. The investment is almost evenly split between new residential, new non-residential, and alterations, demonstrating a broad-based and vigorous construction pipeline for Mpumalanga.

Section 2: Analysis of Buildings Completed (Actual Execution)

Buildings reported as completed reflect the final cost of construction that has actually been finished and signed off. This data provides a reality check against the plans, showing what was ultimately built and at what cost.

2.1 Residential Buildings – Completed

The completion data tells a different story from the plans, showing a contraction in the residential sector.

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	17	1,187	8,768	515,765	7,386
Dwelling-houses >= 80m²	61	15,372	131,807	2,160,770	8,574
Flats and Townhouses	5	1,928	12,811	2,562,200	6,644
Other Residential Buildings	–	1,198	7,787	–	6,500
Total Residential	83	19,685	161,173	1,941,843	8,189

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 R161,173,000 divided by the total number of dwellings (83) gives an average cost of approximately R1,941,843 per completed dwelling unit. * Average Cost per m² for Completed Residential Buildings: The total value of R161,173,000 divided by the total area of 19,685 m² results in an average cost of R8,189 per square metre.

Analysis: There is a stark contrast between plans and completions. Only 83 dwelling units were completed, compared to 302 plans passed. The value of completed work (R161 million) is a fraction of the planned value (R703 million). This suggests a significant time lag and/or potential bottlenecks in the construction process. The cost per m² for completed buildings (R8,189) is slightly higher than for planned buildings (R7,871), which could be attributed to cost escalations during construction. Notably, the cost per m² for larger homes increased from a planned R8,008 to a completed R8,574.

2.2 Non-Residential Buildings – Completed

The completion of non-residential buildings has seen a dramatic collapse compared to the previous year.

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	958	6,227	6,500
Industrial & Warehouse Space	1,822	17,125	9,399
Other Non-Residential Buildings	0	0	–
Total Non-Residential	2,780	23,352	8,400

Key Calculation: * Average Cost per m² for Completed Non-Residential Buildings: The total value of R23,352,000 divided by the total area of 2,780 m² results in an average cost of R8,400 per square metre.

Analysis: The completion volume is minuscule (R23 million) compared to the plans passed (R747 million), with a year-on-year decline of 88.5%. This indicates that the wave of non-residential investment is very new, and few projects have reached completion. The high cost per m² for industrial space (R9,399) completed in this period may reflect the nature of the specific, potentially specialized, projects that were finalized.

2.3 Additions and Alterations – Completed

This is the only category where completed value saw a massive year-on-year increase.

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	6,935	57,903	8,350
Other Buildings	3,347	39,471	11,791
Total Additions & Alterations	10,282	97,374	9,470

Key Calculation: * Average Cost per m² for Completed Additions & Alterations: The total value of R97,374,000 divided by the total area of 10,282 m² results in an average cost of R9,470 per square metre.

Analysis: The value of completed alteration work skyrocketed by 148.6% year-on-year. The cost per m² for completed work (R9,470) is significantly higher than for planned work (R7,330), confirming that renovation and alteration projects often encounter unforeseen complexities and cost overruns during execution. The cost for “Other Buildings” (which includes non-residential alterations) is extremely high at R11,791/m².

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	161,173	57.2%
Non-Residential Buildings	23,352	8.3%
Additions and Alterations	97,374	34.5%
Total at Current Prices	281,899	100.0%

The total value of completed work was R282 million, a 31.6% decrease from the previous year. The market is currently dominated by the completion of residential projects and alterations, while new non-residential completions are negligible.

Section 3: Comparative Analysis and Conclusion

3.1 Plans vs. Completions: The Gap Analysis

The most striking finding is the vast divergence between the value of plans passed (R2.03 billion) and buildings completed (R0.28 billion) in the Jan-Apr 2025 period. This indicates a large and growing pipeline of work that has not yet been realized. This gap can be attributed to several factors: 1. Time Lag: Construction projects, especially large non-residential ones, take many months or years to complete. The plans passed in early 2025 will be completed in late 2025 or 2026. 2. Economic and Logistical Constraints: Projects may be delayed or stalled due to rising material costs, financing issues, or supply chain disruptions. 3. Project Phasing: Large developments are often completed in phases, meaning the full value of passed plans will be realized over an extended period.

3.2 Cost per m²: Budget vs. Reality

A direct comparison of cost per square metre reveals important trends for budgeting:

Category	Planned Cost (R/m²)	Completed Cost (R/m²)	Variance
Residential	7,871	8,189	+4.0%
Non-Residential	6,945	8,400	+21.0%
Additions & Alterations	7,330	9,470	+29.2%

* For residential buildings, the final cost was only slightly higher (4%) than planned, suggesting relatively accurate initial budgeting. * For non-residential and alterations, the final costs were significantly higher than plans (21% and 29% respectively). This highlights the higher risk of cost escalation in these categories, often due to their complex nature and greater potential for unforeseen challenges.

3.3 Implications for 2026

The data suggests that Mpumalanga is on the cusp of a major construction boom, particularly in the non-residential retail sector. The R2 billion pipeline of planned work will translate into significant activity through 2025 and into 2026. Stakeholders should be aware of the following: * For Budgeting: Use the completed cost per m² figures (R8,189 for residential, R8,400 for non-residential, R9,470 for alterations) as a more realistic baseline for 2026 projects, factoring in an additional percentage for annual cost inflation. * For Supply Chain: The high volume of plans passed indicates strong future demand for building materials, labour, and professional services, which could lead to supply constraints and further price increases. * For Investors: The surge in non-residential plans points to strong investor confidence in Mpumalanga’s economic growth and consumer spending potential.

In conclusion, the Mpumalanga building sector is poised for a period of intense activity. While the current data on completions shows a contraction, the record level of plans passed signals a strong recovery and growth trajectory. Understanding the detailed costs per square metre provided in this guide is essential for navigating this dynamic market successfully in 2025 and 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 17 and 27 for Mpumalanga.