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

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Executive Summary

This comprehensive analysis examines building costs within South Africa’s North West Province using the latest official data from Statistics South Africa’s Selected Building Statistics of the Private Sector report (P5041.1) for April 2025. The report provides two critical perspectives on the construction industry: building plans passed (indicating future investment and intended construction) and buildings reported as completed (documenting finalized work and actual expenditure). By analyzing data from both tables, this guide calculates average building costs and crucial cost per square metre metrics for various building categories, including residential, non-residential, and additions/alterations.

The data covers the cumulative period from January to April 2025, enabling robust comparison against the same period in 2024. The analysis reveals a complex picture of the construction sector in North West Province, with significant declines in planning activity contrasting with increased completion values, particularly in the non-residential sector. This guide serves as an essential resource for property developers, investors, architects, quantity surveyors, and homeowners seeking to understand current construction economics in the North West Province.

Introduction and Methodology

The construction industry serves as a vital economic indicator, reflecting investment levels, consumer confidence, and development activity. Accurate, timely data is essential for informed decision-making in both public and private sectors. Statistics South Africa’s P5041.1 report represents the premier source for such data, collecting information from larger municipalities on building plans passed and completed structures.

This analysis is based exclusively on two tables from the April 2025 report:

1. Table 15: Building plans passed by larger municipalities at current prices by type of building: North West
2. Table 25: Buildings reported as completed to larger municipalities at current prices by type of building: North West

Methodology of Analysis:
All calculations derive from the “Jan – Apr 2025” cumulative columns to ensure meaningful sample sizes and enable year-on-year comparisons. The key metrics calculated include:

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). These figures represent current prices and are not adjusted for inflation.

Section 1: Analysis of Building Plans Passed

Building plans passed represent formal approvals for construction to commence, serving as a leading indicator of future construction activity. These figures reflect intent and planned investment in the property market for the coming months.

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

1.1 Residential Buildings – Plans Passed

The data shows a total planned investment of R302.2 million for residential buildings in the first four months of 2025, representing a significant decline of 53.2% compared to the same period in 2024.

• Dwelling-houses larger than 80m²: This segment dominates residential planning, with 139 units planned, encompassing 32,515m² of floor space at a total value of R246.6 million.
• Other residential buildings (e.g., flats, townhouses): This category includes 62 units with a total floor area of 6,118m² and a value of R42.1 million.
• Dwelling-houses smaller than 80m²: This affordable housing segment shows minimal activity, with only 23 units planned, representing a small 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 R7,584.
• Smaller sub-80m² houses have a slightly lower average cost per m² of R6,695, potentially reflecting simpler designs, more basic finishes, or economies of scale on smaller projects.
• “Other residential buildings” have a cost per m² of R6,889, positioned between small and large houses.
• The overall average cost per square metre for all planned residential buildings is R7,556.

1.2 Non-Residential Buildings – Plans Passed

Planned non-residential investment totals R235.5 million, showing a dramatic decline of 66.8% compared to the same period in 2024.

• Industrial and Warehouse Space: This sector leads non-residential planning, with 25,599m² planned at a value of R168.2 million, indicating continued investment in logistics and manufacturing despite the overall decline.
• Shopping Space: 8,480m² of new retail space is planned, valued at R57.2 million.
• Office Space: Planned activity is minimal at only 445m², suggesting a constrained 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 R6,570 per m², consistent with its typical simpler finishes and functional design.
• Shopping space (retail) costs R6,741 per m², slightly higher than industrial space, reflecting better finishes and customer-facing elements.
• Office space shows the highest cost per m² at R6,800, likely due to higher-quality finishes and specialized infrastructure.
• The average cost per m² for all planned non-residential buildings is R6,608.

1.3 Additions and Alterations – Plans Passed

This category represents R347.5 million of planned work, significantly exceeding both new residential and non-residential planning values. This highlights a robust market for property improvements and upgrades despite overall declines in new construction planning.

• Dwelling-house Alterations: Comprises the bulk of this category (30,465m², R138.1 million).
• Other Building Alterations: Accounts for 9,486m² and R209.4 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 to houses show a relatively low cost per m² of R4,533, suggesting these may be smaller-scale projects or basic upgrades.
• Alterations to “other buildings” are significantly more expensive at R22,075/m², indicating complex commercial renovations or specialized upgrades.
• The overall average for alterations is R8,698/m², higher than new construction costs, reflecting the premium nature of renovation work.

Section 2: Analysis of Buildings Completed

Buildings reported as completed reflect the actual work finished and paid for during the period. This data serves as a lagging indicator, showing what has been built, often from plans passed in previous periods.

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

2.1 Residential Buildings – Completed

The total value of completed residential buildings was R312.2 million, showing a modest increase of 3.8% compared to the same period in 2024.

• Dwelling-houses larger than 80m²: 178 units were completed, with a total area of 39,147m² and a value of R277.7 million.
• Dwelling-houses smaller than 80m²: 42 units were completed, with 2,445m² of space valued at R14.4 million.
• Other residential buildings: 16 units were completed, with 1,426m² of space valued at R11.7 million.

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 R7,093, slightly lower than the planned cost of R7,584/m².
• Completed small houses cost R5,888/m², also lower than planned, potentially indicating cost efficiencies during construction.
• “Other residential buildings” show a higher cost per m² of R8,210, possibly reflecting the specialized nature of these structures.
• The overall average cost per square metre for all completed residential buildings is R7,258.

2.2 Non-Residential Buildings – Completed

The completion value for non-residential buildings was R350.9 million, representing a substantial increase of 235.5% compared to the same period in 2024.

• Shopping Space: Dominates completions with 31,561m² completed, valued at R209.7 million.
• Other Non-Residential Space: 10,836m² completed at a value of R86.9 million.
• Industrial and Warehouse Space: 6,950m² completed, valued at R45.8 million.

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

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

Analysis:

• Shopping space shows a cost of R6,645/m², slightly lower than planned, potentially indicating efficient project execution.
• Industrial and warehouse space costs R6,588/m², consistent with planned rates.
• Other non-residential buildings have the highest cost at R8,025/m², reflecting specialized requirements for these facilities.
• The overall average cost per m² for completed non-residential buildings is R6,918.

2.3 Additions and Alterations – Completed

Completed alterations work was valued at R111.3 million, representing a significant decline of 47.7% compared to the same period in 2024.

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 R6,529, significantly higher than the planned rate of R4,533/m², suggesting either more substantial projects or cost overruns.
• Alterations to “other buildings” cost R11,096/m², substantially lower than planned, potentially indicating different types of projects were completed versus those planned.
• The overall average is R7,024/m², lower than the planned rate, suggesting more cost-effective execution of alteration projects.

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 Contrast: While planning activity declined significantly (-53.2%), completed residential values showed modest growth (+3.8%). The cost per m² for completed residential buildings was slightly lower than planned, suggesting efficient execution or different project mixes.
2. Non-Residential Surge: Despite a dramatic decline in planning (-66.8%), completed non-residential values increased substantially (+235.5%). Completed costs were slightly higher than planned, potentially indicating more complex projects reaching completion.
3. Alterations Market Adjustment: Planned alterations significantly exceeded completions, with completed values 67.9% lower than planned values. Completed alteration costs were lower than planned, suggesting either different project types or cost efficiencies.
4. Economic Implications: The disparity between planning declines and completion increases suggests a pipeline of projects from previous periods reaching completion despite current economic challenges reducing new planning activity.

3.2 Conclusion

The STATSSA P5041.1 data for January to April 2025 presents a complex picture of the construction industry in North West Province. The significant decline in planning activity across all categories (-47.4% overall) contrasts with increased completion values (+25.1% overall), particularly in the non-residential sector.

For construction planning and budgeting, the key figures for 2025/2026 in North West Province are:

• New residential construction: approximately R7,250 per square metre
• New non-residential construction: approximately R6,900 per square metre
• Residential alterations: approximately R6,500 per square metre
• Commercial alterations: approximately R11,100 per square metre

These figures, derived from actual completed costs, provide a reliable foundation for financial planning. The significant variance between planned and completed alteration costs highlights the importance of using completed data for accurate budgeting. As economic conditions evolve, monitoring subsequent releases of the P5041.1 report will be essential for tracking the trajectory of building costs in North West Province.