• Version
• Download 2
• File Size 5.00 MB
• File Count 1
• Create Date November 15, 2024
• Last Updated November 15, 2024

Output Building Cost Indices 3rd Quarter 2024

Retail output building costs surge in Q3 of 2024

Industry Insight's output building cost index (including input costs of material, labour and other costs related to risk and profit) increased by 12.1 percent on average for commercial projects, with retail space showing a robust increase of 43 percent y-y to an average of R16407/m2. The slowdown in the office space developments, has put pressure on building costs, and fell by 8.8 percent y-y in the 3rd quarter of 2024 to an average of R18 000/m2, while Industrial space increased by 10 percent to an average of R13 292/m2. Residential output costs increased by 5.7 percent, a slight moderation from the 8.1 percent increase in Q2 to an average of R11 380/m2.

According to Stats SA, average construction costs, as measured by the Contract Price Adjustment Provision (CPAP - that includes input costs for materials and uses the CPI as a labour cost index) for domestic buildings increased by 4.3 percent in Q3, and by 4.2 percent for commercial buildings.  Stats SA's estimated building rate for commercial buildings (based on building plans approved including office, retail and industrial space) fell by 2.5 percent on average in the 12 months up to August 2024, to R8400/m2, significantly lower compared to Industry Insight estimates that averaged R16 000/m2 for commercial space (including retail, office and industrial space).

Please note that building rates included in Industry Insight's survey are influenced by the scope and type of materials used that goes beyond the scope of this survey. The mandate of this survey is to monitor the average change in output costs, and not a detailed assesment of materials used. For costing please contact the relevant professionals or contact Billcost to estimate and cost your building project, that includes built-in formulae and up-to-date material and labour prices included for all South African provinces as well as Namibia. Contact details: https://ppis.cloud/products/billcost, +27 (0)27 2171165, admin@ppis.co.za.

Attached Files