Average Construction Cost to Build a House in 2023

Feb 25, 2023

Building your dream home is an exciting project, but it can also be a daunting task. One of the most crucial aspects of building a house is determining the average construction cost. The cost of building a house depends on various factors, including the home style, location, number of floors, bathrooms, windows, and the types of materials and finishes used. In this article, we will provide you with all the necessary information you need to know about the average construction cost to build a house in the Philippines.


What You Need to Know Before building your Dream House 

1. Hiring professionals - Building a house is a complex process that requires the help of various professionals. It is important to hire an architect who can help design the house and create plans and blueprints. A contractor will also be needed to oversee the construction process, and a project manager can help ensure that the project stays on track and within budget.


2. Budget - The cost of building a house in the Philippines varies depending on the location, type of house, and materials used. It is important to determine a realistic budget before starting the construction process. Homeowners should take into account all the costs, including land purchase, permits, labor, materials, and finishes. The average cost of building a house in the Philippines is around P8,000 to P30,000 per square meter, depending on the type of finish.


3. Requirements - Before starting construction, it is important to obtain all the necessary permits and clearances from the local government. This includes a building permit, land of ownership documents: land titles, deed of sale, tax declaration, and some may even as for environmental clearance. The local government may also have specific requirements for setbacks, height limitations, and other aspects of the construction process. It is important to work with a professional who is familiar with the local regulations and can ensure that all requirements are met.


4. Land preparation - The site where the house will be built needs to be properly prepared. This includes clearing the land, leveling the ground, and ensuring that the soil is stable enough to support the weight of the house. Depending on the location, additional measures may be necessary, such as protecting against flooding or earthquakes.


5. Materials - The materials used in construction can greatly affect the cost and durability of the house. It is important to choose high-quality materials that are suitable for the local climate and environment. This includes materials for the foundation, walls, roofing, and finishes. Homeowners should work with their architects and contractor to choose the best materials that fit their budget and desired aesthetic.


The Average Construction Cost in the Philippines

The cost of building a house in the Philippines varies depending on the location and the type of house you want to build. According to Lamudi Philippines, the cost of building a house ranges from P15,000 to P20,000 per square meter, depending on the location, quality of materials used, and other factors such as lighting fixtures and grills. Another study conducted by Arcgo Philippines suggests that building a house in the Philippines would cost around Php 20,000 to Php 30,000 per square meter.

It is important to note that the construction cost is just a part of the overall cost of building a house. Other expenses, such as permits, land development, utilities, and design fees, should also be considered when creating a budget for your house construction.


Factors that Affect the Construction Cost

Home Style 

The style of your home plays a significant role in determining the construction cost. Generally, the simpler the design, the more affordable it will be. For example, building a bungalow house is typically less expensive than a two-story or a multi-level house. A bungalow house only requires a single-story layout, which reduces the number of materials and labor needed. 


Location 

The location of the house, specifically the cost of land, plays a significant role in determining the overall cost of the construction. For instance, building a house in the bustling city of Metro Manila can cost more than constructing one in rural areas because of the land cost. Additionally, if the location is prone to natural disasters such as floods, typhoons, and earthquakes, the owner must prepare for additional costs for safety features like flood barriers and earthquake-resistant materials.


Number of Floors

 The number of floors is another significant factor that affects the construction cost of a house. Generally, the more floors the house has, the higher the cost of construction. This is because adding extra floors means more materials and labor costs, as well as additional design and engineering work. Additionally, multi-story houses require a stronger foundation, which is more expensive than a one-story house. 


Bathrooms 

The number of bathrooms also plays a vital role in determining the cost of constructing a house. The more bathrooms a house has, the higher the construction cost. Each additional bathroom requires additional plumbing, fixtures, and labor, which can add up to the overall cost.


Windows

The type and number of windows you want to install can also affect the construction cost. Larger windows or those with intricate designs may require more labor and higher-quality materials, which can increase the cost of construction.


Materials and Finish 

The cost of building a house in the Philippines varies depending on the type of finish that the owner chooses. Generally, the cost of the finish will range from P10,000 to P25,000 per square meter. Some of the common types of finishes used in the Philippines include basic, standard, and high-end finishes. Basic finishes are the most affordable option for homeowners. This type of finish is suitable for those who are looking for a functional home without any frills.


 Basic finishes may include standard paint, basic tiles, and basic lighting fixtures. The average cost of a basic finish is around P10,000 to P13,000 per square meter.


Standard finishes, on the other hand, are a step up from basic finishes. This type of finish is ideal for those who want a home that is more visually appealing and has a bit more character. Standard finishes may include better-quality tiles, more intricate lighting fixtures, and higher-quality paint. The average cost of a standard finish is around P14,000 to P18,000 per square meter.


Finally, high-end finishes are the most luxurious option for homeowners. This type of finish is ideal for those who want a home that is high-quality and designed to impress. High-end finishes may include expensive materials such as imported tiles, top-of-the-line lighting fixtures, and designer paint. The average cost of a high-end finish is around P18,000 to P25,000 per square meter.


By understanding these key factors, homeowners can ensure that their home construction project in the Philippines is successful and meets their needs and expectations.


Building or Buying? 

Deciding whether to build or buy a house is a big decision that requires careful consideration. There are pros and cons to each option, and what works for one person may not be the best choice for another. 

Here are some factors to consider when deciding whether to build or buy a house in the Philippines.


Cost 

Building a house can be more expensive upfront, as it requires the purchase of land and the construction process. However, buying an existing home may require additional repairs or renovations, which can also be costly. Homebuyers should carefully consider their budget and financial situation before making a decision. 


Customization

Building a house allows for greater customization and control over the design and features of the home. Buyers can work with their architect and contractor to create a home that meets their specific needs and preferences. Buying a home, on the other hand, may require compromising on certain features or settling for a less-than-ideal layout.


Timing 

Building a house can take longer than buying an existing home, as it requires the design and construction process. This can be a disadvantage for those who need a home quickly, such as those relocating for work. On the other hand, buying a home can be a faster process, as the home is already built and ready-for-occupancy.


If you're in the market for a new home but are not sure if building or buying is right for you, you may want to consider purchasing a condo or downsizing into one. Vista Residences is a leading provider of quality condominiums in the Philippines, offering a range of properties in prime locations throughout the country. By buying a condo in Vista Residences, you can enjoy all the perks of owning your own home without the hassle of building or buying a traditional house.


One of the benefits of buying a condo in Vista Residences is the flexibility it offers. Whether you're looking for a pre-selling property that you can customize to your liking or a ready-for-occupancy unit that you can move into right away, there are plenty of options to choose from. Pre-selling condominiums give buyers the opportunity to work with an architect and interior designer to create a space that meets their specific needs and tastes. Ready-for-occupancy units, on the other hand, are move-in ready and require little to no renovation or customization.


In conclusion, building a house in the Philippines can be a complex and costly process, but with careful planning and guidance, it can also be a rewarding experience. Whether you decide to build, buy, or invest in a condo, it's important to do your research and work with experienced professionals who can guide you through the process. By taking the time to carefully consider your options and working with the right team, you can ensure that you make the best decision for your needs and goals.


For more information on Vista Residences, email [email protected], follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.  

Other blog

Try our loan calculator and find your future home!