Building Costs Per Square Metre in South Africa 2025 to 2026 — AECOM Guide

Based solely on the AECOM Africa Property & Construction Cost Guide (2025/26), pages 47–62. Figures are expressed excluding VAT and refer to rates current to 1 July 2025. Use these benchmarks carefully — see the notes and assumptions below.

1. Introduction & How to Use These Rates

This guide republishes and organises the AECOM cost benchmarks into a WordPress-ready article that stakeholders can reference for budgeting, feasibility studies and early-stage estimating for 2025–2026. The rates originate from the AECOM “Africa Property & Construction Cost Guide 2024/25” and are stated as indicative values accurate to 1 July 2024. Users must account for escalation, regional variation, professional fees, site development, VAT and specific design requirements when applying these figures.

Important: The AECOM rates are inclusive building cost rates for typical specifications in their categories but exclude site infrastructure, professional fees, future escalation and VAT. They should be treated as starting benchmarks, not final contract values.

2. Key Influencing Factors (Why R/m² Can Mislead)

When using rate-per-square-metre methods for order-of-magnitude estimates, practitioners must consider the following influences which materially affect the outcome:

• Specification & finishes: High-end finishes (carpets, imported tiles, specialist joinery) add directly to R/m².
• Wall-to-floor ratio: Plan shape affects façade area — elongated plans increase façade cost per m² of floor area.
• Vertical heights: Taller floor-to-ceiling heights increase walling and cladding costs.
• MEP intensity: The concentration and complexity of plumbing, HVAC, security and electrical systems increases unit rates significantly.
• Inclusions in construction area: Large balconies, corridors or parking counted as construction area alter the per-square-metre calculation.
• Internal subdivisions: Partitioned offices cost more per m² than open-plan space due to additional finishes and fittings.
• Parking: Integrated parking structures lower average R/m² for building area but increase total project cost.

3. Office Building Costs (R/m² excl. VAT)

Office costs vary by height, prestige and specification. AECOM provides the following ranges (current to 1 July 2024):

Office Type	Rate per m² (excl. VAT)
Low-rise office park (standard specification)	R 10,700 – R 13,100
Low-rise prestigious office park	R 13,800 – R 20,500
High-rise tower block (standard specification)	R 15,500 – R 20,500
High-rise prestigious tower block	R 20,500 – R 25,900

Notes: These rates include typical building services (for example, air-conditioning as appropriate) but exclude site infrastructure, parking and professional fees. When tendering, separate line items should be created for those elements.

4. Parking Costs

Parking provision has a significant impact on total development costs. AECOM separates simple at-grade provision from more expensive structured and basement parking:

Parking Type	Rate per m² (excl. VAT)
Parking on grade (including integral landscaping)	R 750 – R 950
Structured parking	R 5,200 – R 5,800
Parking in semi-basement	R 5,800 – R 7,800
Parking in basement	R 6,100 – R 10,700

Practical implication: Excluding parking area from the construction area increases the apparent R/m² of the functional building space. Always clarify whether parking is included in the base construction area when comparing rates.

5. Retail Building Costs

Retail development costs are driven by centre scale and tenant mix. The AECOM ranges below include allowances for tenant requirements and national chain store fit-out allowances where appropriate.

Retail Type	Rate per m² (excl. VAT)
Local convenience centres (≤5,000 m²)	R 10,500 – R 13,800
Neighbourhood centres (5,000–12,000 m²)	R 11,500 – R 15,200
Community centres (12,000–25,000 m²)	R 12,600 – R 16,100
Minor regional centres (25,000–50,000 m²)	R 13,300 – R 17,100
Regional centres (50,000–100,000 m²)	R 14,100 – R 17,100
Super-regional centres (exceeding 100,000 m²)	R 15,500 – R 20,000

Retail notes: Super-regional and regional centres with enclosed malls are typically more expensive per m² than open outward-trading convenience centres.

6. Industrial Building Costs

Industrial costs depend on structural system and finishes. Cold-storage is a high-cost industrial typology due to specialist insulation and services.

Industrial Type	Rate per m² (excl. VAT)
Steel frame, steel cladding and roof sheeting (light-duty)	R 5,400 – R 6,900
Steel frame, brickwork to ceiling, steel cladding above (heavy-duty)	R 6,100 – R 8,800
Administration offices, ablution and change room block	R 9,900 – R 12,700
Cold storage facilities	R 18,500 – R 26,300

7. Residential Building Costs

Residential benchmarks cover low-cost to super-luxury categories. AECOM also provides rates per site for certain low-cost housing services.

7.1 Housing Developments (per m² — excl. VAT)

Housing Type	Rate per m² (excl. VAT)
RDP housing	R 3,200 – R 3,400
Low-cost housing	R 4,000 – R 7,000
Simple low-rise apartment block	R 9,800 – R 13,500
Duplex townhouse — economic	R 9,800 – R 13,900
Prestige apartment block	R 19,000 – R 28,000

7.2 Private Dwelling Houses (per m² — excl. VAT)

House Category	Rate per m² (excl. VAT)
Economic	R 7,400
Standard	R 9,300
Middle-class	R 11,200
Luxury	R 15,600
Exclusive	R 25,000
Exceptional / Super luxury	R 37,000 – R 75,000

Typical ancillary residential items include:

• Outbuildings (standard): R 6,900 / (luxury): R 9,800
• Carport — single (shaded): R 6,000; double (shaded): R 12,100
• Carport — covered (single): R 9,400; (double): R 18,400
• Swimming pool (≤50 kl): R 127,000; (50–100 kl): R 225,000
• Tennis court (standard): R 670,000; (floodlit): R 830,000

8. Hospitality & Student Housing

Hotel rates are quoted per key (i.e., per guest room) and include FF&E allowances as indicated in AECOM data.

Hotel Category	Rate per Key (excl. VAT)
Budget	R 840,000 – R 1,399,999
Mid-scale (3-star)	R 1,340,000 – R 2,009,999
Upper-scale (4-star)	R 2,010,000 – R 2,849,999
Luxury (5-star)	R 2,850,000 – R 3,800,000

Student residential — high-rise tower block: R 15,100 – R 16,600/m² (includes FF&E allowances).

9. Institutional & Community Buildings

Building Type	Rate / Unit (excl. VAT)
Conference centre (international standards)	R 34,000 – R 43,000/m²
Retirement centres — dwelling houses	R 11,000 – R 15,500/m²
Retirement apartments	R 11,300 – R 17,600/m²
Community centre	R 14,900 – R 21,700/m²
Frail care	R 17,600/m²
Primary school	R 8,800 – R 10,100/m²
Secondary school	R 10,500 – R 11,200/m²
District hospital	R 37,000/m²

10. Stadiums, Prisons & Correctional Facilities

Large specialised projects carry unit costs specific to their functions.

Type	Rate (excl. VAT)
Stadium (PSL standards) — per seat	R 45,000 – R 70,000
Stadium (FIFA standards) — per seat	R 105,000 – R 138,000
Stadium pitch (FIFA standard) — per pitch	R 30,000,000 – R 35,000,000
1,000 inmate prison — per inmate	R 783,000 – R 832,000
500 inmate prison — per inmate	R 807,000 – R 932,000
High/maximum security prison — per inmate	R 1,245,000 – R 1,645,000

11. Airport Infrastructure

Airside and terminal infrastructure are reported using linear or area unit costs and include associated infrastructure where noted.

Element	Rate (excl. VAT)
Apron stand (Code F — per m²)	R 7,400
Apron stand (Code E — per m²)	R 7,800
Apron stand (Code C — per m²)	R 9,900
Taxi lanes (per m)	R 123,000 – R 247,000
Runway (per m)	R 414,000
Terminal building (per m²)	R 40,200
Structured parking (per bay)	R 253,000
Basement parking (per bay)	R 379,000
Perimeter wall with PIDS (per m)	R 11,500

12. Building Services (MEP)

Services form a material portion of modern building costs — especially in office, retail, hotel and healthcare projects. AECOM provides the following typical ranges.

12.1 Electrical Installation

Building Type	Rate per m² (excl. VAT)
Offices — standard installation	R 1,000 – R 1,500
Offices — sophisticated installation	R 1,500 – R 1,900
UPS/substations/standby gensets (offices)	R 700 – R 900
Residential	R 900 – R 1,500
Shopping centres	R 1,500 – R 1,900
Hotels	R 1,600 – R 2,150
Hospitals	R 2,100 – R 3,100

12.2 Electronic Installation (Access control, CCTV, Fire detection, Data)

Building Type	Rate per m² (excl. VAT)
Offices — standard electronic installation	R 500 – R 700
Offices — sophisticated electronic installation	R 700 – R 1,000
Residential	R 450 – R 700
Shopping centres	R 950 – R 1,300
Hotels	R 900 – R 1,300
Hospitals	R 950 – R 1,400

12.3 Fire Protection

Sprinkler systems (including hydrants and hose reels, excluding void sprinklers): R 450 – R 550/m².

12.4 Air-Conditioning

Type	Rate per m² (excl. VAT)
Ventilation to parking/service areas	R 450 – R 700
Offices — console units	R 1,150 – R 1,600
Offices — console/split units	R 1,300 – R 2,050
Offices — package units	R 1,900 – R 2,800
Offices — central plant	R 2,300 – R 3,600
Residential — split units	R 1,300 – R 2,050
Shopping centres — split units	R 1,500 – R 2,150
Shopping centres — package units	R 1,900 – R 2,800
Hotels — public areas	R 2,300 – R 3,600
Hospitals — central plant	R 3,000 – R 4,800
Hospital — operating theatre (per theatre)	R 860,000 – R 1,450,000

13. Practical Guidance & Key Takeaways for 2025–2026

Reading the AECOM 2024/25 benchmarks with 2025–2026 planning in mind, consider the following practical guidance:

1. Escalation & procurement timing: Material price volatility (steel, cement, imported finishes) may increase baseline rates. Use the AECOM figures as a July 2024 baseline and apply carefully researched escalation factors for 2025–2026.
2. Regional allowance: Where possible, source regional build-up from local AECOM offices; the guide is Gauteng-biased for several categories and local premiums (Western Cape, KZN) are common.
3. Separate site works and parking: Extract site and parking costs from the base building rate to avoid double-counting and to better control tender packages.
4. Specification control: A seemingly small upgrade in finishes or partitioning can add several hundred Rands per m² — define finishes and allowances clearly in scope documents.
5. MEP intensity: Early coordination between architect and services engineers prevents scope creep and allows realistic budget allowances for electrical, HVAC and fire-protection systems.
6. Use unit costs for small structures: When sizing very small or very large elements, the R/m² method may produce misleading results — use unit-cost or elemental estimates for such cases.

14. Conclusion

The AECOM cost guide provides robust and well-structured benchmarks for a wide range of building types in South Africa. For 2025–2026 planning, these figures should be used as a solid baseline calibrated for local conditions, project specifications and expected escalation. Always separate base building costs from site development, professional fees and statutory costs. When in doubt, commission a detailed elemental estimate from a quantity surveyor – the degree of accuracy needed should match the financial risk of the decision.

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(All content above is taken from the supplied AECOM PDF pages 47–62 and organised for publishing.)

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