What it costs to build a house in SA in 2025

Article summary:

• The house is measured in square meters, with the average rate per square meter being available at various municipalities.
• Other factors that will affect the price include location, and the quality of building materials used.
• You can fund the construction with a building loan.

Building a house from scratch is a substantial undertaking, but it grants you the opportunity to forge a home in your image.

To name a few benefits, you get to:

• Include state-of-the-art technology in the construction.
• Enjoy the freshness of a property that’s never been occupied.
• Save on transfer costs and transfer duty.
• Reduce maintenance issues

You may be unclear about the costs of such a project. To help you pursue this worthwhile endeavour, we’ve provided a rundown of the costs of building a home.

Note: You can get pre-approved with ooba Home Loans to find out what you can afford on a home loan, and then take this into account when determining whether to build or buy.

The square meter

The costs of building a home are charged per square meter.

These can be gleaned from the architect’s plans for the building.

The average measurement for a three-bedroom home is 120 to 150 square meters.

According to wisemove.co.za, “Building a house in 2025 in South Africa starts at R6,500 per square metre for a small economic home. Higher-end homes cost upwards of R20,000 to build per square metre.”

Costs throughout South Africa

Cost per square meter varies throughout South Africa. Here’s a summation of average costs by province:

Province	Estimated 2025 Cost per sqm	Estimated 2025 Total Cost
KwaZulu-Natal	R 16 700	R 2 505 000
Gauteng	R 15 000	R 2 250 000
Western Cape	R 14 800	R 2 220 000
Free State	R 12 700	R 1 905 000
Eastern Cape	R 12 300	R 1 845 000
Northern Cape	R 11 800	R 1 770 000
Mpumalanga	R 10 400	R 1 560 000
Limpopo	R 9 600	R 1 440 000
North West	R 9 100	R 1 365 000

 

• Based on the list, the most expensive province in which to build a home is Kwa-Zulu Natal, with an estimated cost of R2 505 000.
• Gauteng is in second place with an estimated cost of R2 250 000.
• The Western Cape is in third place with an estimated cost of R2 220 000.
• North West and Limpopo are the most affordable regions.

Compare this to the average cost of purchasing a home in South Africa:

Province	Average house price
KwaZulu-Natal	R 1 050 000
Gauteng	R 900 000
Western Cape	R 1 610 000
Free State	R 800 000
Eastern Cape	R 860 000
Northern Cape	R 840 000
Mpumalanga	R 950 000
Limpopo	R 940 000
North West	R 800 000

Building vs buying

According to ooba Home Loans, building a home is usually more expensive than buying one, but it can save money in the long run.

Building a home typically costs 20–30% more than buying one. However, building can save money in the long term by avoiding costly renovations and legal fees.

Cost benefits include:

• You don’t have to pay transfer duty.
• You have fewer maintenance issues.
• You don’t have to pay administrative fees for the legal process of transferring a home from one owner to another.
• Building a new home provides tax benefits, such as claiming depreciation over the next few years.

Typical building costs

Building materials

• Bricks – (estimated R1600 – R6000 for 1000 tiles).
• Roof Tiles – (estimated R1300 – R4000 for 1000 tiles).
• Concrete Foundation – (From R23,000 for a 100m (16m3) property).

Supplier websites like BuildIt, Brick Warehouse, BUCO, and AfriSam provide calculators that provide an estimate of your building material costs.

Labour costs

The cost per square meter usually includes labour costs.

But specialised rooms may require additional costs to build, for example:

• Bathrooms: Estimated R9 000 to R13 000 labour costs.
• Kitchens: Estimated R45 000 to R90 000 labour costs.

Professional fees

Professionals who will need to be involved in the construction of the home include the quantity surveyor, architect, various engineers (an engineer must always be on-site during the construction) and geologists.

Here are estimated fees you should set aside for the various professionals involved in construction:

• Architect: up to 8% of the construction cost.
• Land surveyor: up to 5% of the construction cost.
• Structural engineer: 2% of the construction cost.
• Quantity surveyor: up to 4% of the construction cost.

Miscellaneous costs

These can include travel and accommodation fees for remote sites, administrative fees and planning expenses.

As a rule, you should set aside a budget of 10% to 15% of the total construction cost for unexpected developments such as required changes.

Factors that affect the cost

The cost of building a house depends mainly on the following factors:

• Location: Whether you intend to build in a developed urban area or a remote location will influence the size of the house you’re going to build, which in turn affects costs. It’s not just about how good the location is. Houses built near the coast, for example, need thicker roofs which add to the cost.
• Quality and design: The quality of plaster and paint, the quality of the soil, the design of the structure, the thickness of the walls and so on.
• Size: As mentioned, floor size (measured in square meters)  is one of the main factors in determining the home cost.

How do I fund building construction?

You can fund the construction by acquiring a building loan.

A building loan is similar to a home loan, with one major difference; the bank does not pay out the loan all at once, but rather in stages. They pay out a portion of the loan each time a phase of construction is completed.

To qualify for a building loan: 

• You must be at least 18 years old.
• You must have a good credit record. You can use ooba home loans’ free, online tool, the Bond Indicator, to check your credit record. A good credit score is anything above 670.
• The finance must be used to build or alter a residential property.
• The contractor must be registered with the NHRBC (National Home Builders Registration Council) for all new dwellings.
• You will need to pay a deposit upfront, which is usually 10% of the cost of the project. However, as with home loan applications, you have the option of applying for a 100% bond, which removes the need for a deposit but means higher monthly repayments.

The documents required to apply for a building loan:

• Provisional drawings, plans for the property, and a site plan. This can all be drawn up by an architect.
• A building contract, signed with the building contractor.
• Proof of the builder’s registration with the National Home Builders Registration Council (NHBRC).
• A lien waiver provided by the builder. This basically means the builder is waiving all rights to the property and any materials and labour used in its construction.

Get the best deal by applying with ooba Home Loans

As with home loans, you need to apply to a bank for a building loan.

ooba Home Loans can guide you through the process and submit your application to multiple banks. This allows you to compare deals offered by the banks, and choose the most favourable package.

Contact ooba Homa Loans to find out more.

What if you’d rather purchase a home?

Getting pre-approved will help you determine what you can afford so you know your target.

Pre-approval also improves your chances of getting home loan approval from the bank.

You can get pre-approved by contacting an expert at ooba Home Loans or by using our free, online pre-approval tool, the Bond Indicator.