Construction Price Of A Ten-story Building Goes Up To EUR800/Sqm

05.24.2011 ZF English

The average "hard costs" (labor and material costs) of a building with an underground level and ten upper floors currently amount to around EUR450 to 550 per square meter, on top of which come "soft costs" (design, advertising etc), which can add another 25% to the final cost, according to Florin Popa, managing partner of construction consultancy firm Vitalis Consulting.

"The price does not, however, include the land and the utilities. If we include the 10% design costs and the 5% contingency (unforeseen costs) and 10% financing, we can reach a price of EUR700 to 800 per square meter," Popa said at the conference 'How much it costs to build a square meter of apartment in Romania," organized Tuesday by Ziarul Financiar.

Two years ago the hard cost amounted to around EUR680-800 per square meter, according to Vitalis Consulting representatives.

"Considering the costs, which have somewhat declined, we can say this is a good time to start developing apartment projects, but considering the current demand on the market, I don't think this is the right time for that.