{"id":3393,"date":"2021-12-14T09:20:30","date_gmt":"2021-12-14T08:20:30","guid":{"rendered":"https:\/\/v1.personalhome.es\/cuanto-cuesta-construir-una-vivienda-unifamiliar\/"},"modified":"2021-12-14T09:59:14","modified_gmt":"2021-12-14T08:59:14","slug":"how-much-does-it-cost-to-build-a-single-family-home","status":"publish","type":"post","link":"https:\/\/v1.personalhome.es\/en\/how-much-does-it-cost-to-build-a-single-family-home\/","title":{"rendered":"How much does it cost to build a single-family home?"},"content":{"rendered":"\n

Building your own house, the villa of your dreams, to your liking, is something that many people aspire to, but do not make a reality due to the complexity of the process.<\/p>\n\n\n\n

The lack of familiarity with technical and legislative processes and market prices turns this dream into a nightmare for those brave enough to take on such a herculean task.<\/p>\n\n\n\n

As if all this was not enough, there is also economic uncertainty. You never really know how much things cost. You never know if everything you need is included in your budget or if you have all the necessary paperwork to live there.<\/p>\n\n\n\n

Let’s start with a figurative assumption of a 180 m\u00b2 house on a plot of land in a residential area. At the end, we will make a summary of the costs according to this calculation.<\/p>\n\n\n\n

There are many concepts to consider and, to make our answer as clear as possible, we are going to begin, figuratively, with the foundation of the process, which is land acquisition.<\/p>\n\n\n\n

1.- Land purchase<\/strong><\/h2>\n\n\n\n

Above all, the price of the land will depend on such plot characteristics as: the square meters, location, town planning qualification, technical parameters, etc. (see \u201cThe three keys to choose a plot of land to live on<\/a>\u201d). The cost of the land represents a very important expense which can be between 30% and 40% of the total investment, although from our market perspective we always recommend that the cost of the land never exceed 1\/3 of the total investment.<\/p>\n\n\n\n

Before buying the land, our next recommendation would be to familiarise oneself with the importance of its urban and legal characteristics. Such information will be provided by the Town Planning Department of the Town Hall where the land is located. Don\u2019t forget to request a \u201cnota simple\u201d from the Land Registry to check the deeded surface area, charges and easements. You must make sure that the land is considered viable for construction and has the status of a vacant plot.<\/p>\n\n\n\n

To this cost you will have to add the Transfer tax (ITP)which is 10%, or VAT (21%) depending on whether you are a business or a private people.<\/p>\n\n\n\n

2.- Notary fees and financial costs<\/strong><\/h3>\n\n\n\n

The notary will become a figure that will accompany you throughout the entire process, and every time you visit him you will incur additional costs. In addition, you will have to register both certifications with the Land Registry: the purchase of the land and the completion of the building work. Bear this in mind if you are financing through a mortgage.<\/p>\n\n\n\n

The notary and registry fees are stipulated by means of tariffs established by law. The total of both fees is around 0,5% of the property value (or the mortgage liability) plus the well-known Stamp Duty (AJD), which is 1-1,5%. On the financial side, it is necessary to take into account the bank\u2019s interest rates, in addition to the commission charged for opening the mortgage account (0-1% of the loan amount), which depend on the mortgage subscription conditions. To all this, we should add the valuation costs, which depend on the characteristics of the property, the land and can fall in the 350-450 \u20ac range.<\/p>\n\n\n\n

Notary and registry<\/strong><\/td>0,5%<\/td>The value of the property to be built \/ land or mortgage liability<\/td><\/tr>
Stamp Duty<\/strong><\/td>1 \u2013 1,5%<\/td>The value of the property to be built \/ land or mortgage liability<\/td><\/tr>
Valuation costs<\/strong><\/td>250 \u2013 500\u20ac<\/td>Depends on the value of the property to be built or the land<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

The notary, registry and the valuation appraisal fees will be subject to the corresponding VAT, which is currently the highest type of tax imposed (21%).<\/p>\n\n\n\n

3.- Technicians<\/strong><\/h3>\n\n\n\n

The Law of Construction Planning (\u201cLa Ley de Ordenaci\u00f3n de la Edificaci\u00f3n\u201d) establishes the different agents involved in the building process. Among them are the technicians, like topographers, geologists, architects and technical architects, all of whom are necessary for the different phases of the project.<\/p>\n\n\n\n

Topographical study:<\/em> this provides the physical characteristics of the plot, that is, the real surface area of the plot. It never hurts to have a topographical report carried out before purchasing the land, in order to check that the square metres that you are being offered are the same as the square metres that you are actually buying. The cost of this study will be around 750-1,000 \u20ac for a plot between 500 and 1,000 m\u00b2.<\/p>\n\n\n\n

Geotechnical study:<\/em> this provides us with an assessment of the stability of the land and the depth of the foundation level for our building project and it is advisable to have it approved by the competent official trade association. This document is compulsory for any construction or building project. This study will cost around 1,500 \u20ac for a single-family home with a surface area of no more than 400 m\u00b2.<\/p>\n\n\n\n

The architect<\/em> is the main figure in the process of planning the building project and ensuring its successful implementation on the land. The architect’s fees vary depending on the complexity and surface area of the home and can be around 3-6% of the material execution budget (PEM), which is the amount of the cost of the materials and labour costs necessary for the execution of a project. This percentage is only an estimate, and there are professionals who assess their fees at percentages higher than 10% of the PEM. Such fees usually include the basic preparation of the project and the execution of the project, both of which are approved by the corresponding architects’ association, and the project management.<\/p>\n\n\n\n

Technical architect<\/em> is the most senior person responsible for the building work during the execution phase, he is the safety and quality control coordinator for the construction work. Similarly to the architect, their fees for all these functions will vary between 3-6% of the PEM.<\/p>\n\n\n\n

Topographical study<\/strong><\/td>750 \u2013 1.000 \u20ac<\/td>For a plot between 500 and 1000 m\u00b2<\/td><\/tr>
Geotechnical study<\/strong><\/td>1.500 \u20ac<\/td> <\/td><\/tr>
Architect<\/strong><\/td>3 \u2013 6%<\/td>From the material execution budget (PEM<\/em>)<\/td><\/tr>
Technical architect<\/strong><\/td>3 \u2013 6%<\/td>From the material execution budget (PEM<\/em>)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

All these costs are taxed at 21% (VAT) as they are treated as professionally incurred costs.<\/p>\n\n\n\n

4.- Licences and insurance<\/strong><\/h3>\n\n\n\n

In order to start building, a planning permit must be requested from the corresponding local municipality, with the aim of checking that the project complies with the municipal regulations, as well as proceeding with the self-settlement of the tax on constructions, installations and works (ICIO).<\/p>\n\n\n\n

Prior to the concession of the licence, and in order to begin the work, a deposit must be made at the Town hall, to guarantee the correct management of the waste derived from the building process, as well as the conservation of the pavements and public roads that could be affected by the construction project.<\/p>\n\n\n\n

You should consider that in addition to being the owner, you are also a private developer and as such you should take out civil liability insurance for all construction risks.<\/p>\n\n\n\n

Finally, we recommend taking out a ten-year insurance policy in order to guarantee the finalization of the project. For this, the reports issued by a Technical Control Body (OCT) that verify the entire building process from inception to the handing over of keys, are necessary. This insurance is only compulsory if you want to sell the house within 10 years of its construction.<\/p>\n\n\n\n

Building permit fee<\/strong><\/td>1 \u2013 2%<\/td>From the material execution budget (PEM<\/em>)<\/td><\/tr>
ICIO<\/strong><\/td>4%<\/td><\/tr>
Civil liability insurance<\/strong><\/td>1.500\u20ac<\/td> <\/td><\/tr>
Technical inspection body ten-year insurance policy and OCT<\/strong><\/td>1.500\u20ac<\/td> <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Please, note that neither fees nor taxes are subject to VAT.<\/p>\n\n\n\n

5.- Construction<\/strong><\/h3>\n\n\n\n

The construction is the most important part and will represent almost 80% of the total global budget (without including the cost of the land).<\/p>\n\n\n\n

The budget for the construction of a house depends mainly on the total surface area and on the building specifications of the house. We also must distinguish the PEM, which includes other costs such as technicians’ fees, the licence and the construction tax, from the contractual implementation budget  (PEC), which is the builder’s budget.<\/p>\n\n\n\n

We are sure that in many forums and websites you have read that the price per square metre for the construction of a single-family house is around 800-1,000 \u20ac per square metre. This valuation is not inaccurate if you really understand that it corresponds only and exclusively to the cost of construction, without considering the rest of the costs that we have mentioned earlier in this post.<\/p>\n\n\n\n

Contractual implementation budget (PEC<\/em>)<\/strong><\/td>800 \u2013 1.000\u20ac<\/td>Per m2<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

6.-<\/strong> The final stage of the building process<\/strong><\/h3>\n\n\n\n

In order to enjoy your home, you will still have to pay a few more bureaucratic euros:<\/p>\n\n\n\n

The first occupation licence fee<\/em>, where they check that the works are in accordance with the project, adjusting, upwards or downwards, the ICIO. It depends on each administration.<\/p>\n\n\n\n

The occupancy certificate,<\/em> which serves to verify compliance with the conditions of occupancy of the property. It depends on each municipal administration.<\/p>\n\n\n\n

Finally, the registration of water, electricity, gas and telecommunications supplies<\/em>. There is an unwritten rule of 200, which is 200 \u20ac for each supply, but until the licence has been issued, the project and the technical details of the property are sent to the supply company, the exact amount of this concept is not known.<\/p>\n\n\n\n

With all these variables, it is very difficult to give an exact answer to the question \u201cHow much does it cost to build a home?\u201d It is therefore essential, in order to bring the project to a good conclusion, to have a desire to know about all aspects of the project and the related budget needed. This uncertainty is what personalHOME eliminates altogether with its TURNKEY \u2013 CLOSED PRICE. No fine print.<\/strong><\/p>\n\n\n\n

Visit our website and contact us<\/a> for personalised, high-quality service. We would be delighted to get to know your dreams and help you to make them come true without any burden nor surprises.<\/p>\n","protected":false},"excerpt":{"rendered":"

Building your own house, the villa of your dreams, to your liking, is something that many people aspire to, but do not make a reality due to the complexity of the process. The lack of familiarity with technical and legislative processes and market prices turns this dream into a nightmare for those brave enough to […]<\/p>\n","protected":false},"author":3,"featured_media":3392,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[],"acf":[],"yoast_head":"\nHow much does it cost to build a single-family home? - Personal Home<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How much does it cost to build a single-family home? - Personal Home\" \/>\n<meta property=\"og:description\" content=\"Building your own house, the villa of your dreams, to your liking, is something that many people aspire to, but do not make a reality due to the complexity of the process. 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