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How Much Does It Cost To Build A Condominium? Pro Tips

Building a condominium can be expensive, but with the right research and planning, it is possible to determine your estimated budget. Here at Takeoffsconstruction, we will explore how much it costs to build a condominium and provide you with the information you need to make an informed decision.

We’ll look at several factors that could affect the overall cost. By understanding these costs beforehand, you can plan for a successful condominium project. Let’s get started.

Costs Associated with Condominium Construction:

Many components come into play when constructing a condominium building. These include:

Condominium Cost
National Average Cost$3M
Average Cost$1.5M-$4.5M
Low End Cost$450K
High End Cost$18M

Land Acquisition:

Acquiring land is the primary expense when constructing a condominium. The cost of the land can differ significantly, depending on its location and demand in the region. Urban areas and prime locations generally have higher costs compared to suburban or rural areas.

Land acquisition costs can make up around 20% to 30% of the total construction cost. This means that if the land costs $500,000, it could add an extra $100,000 to $150,000 to the overall budget.

Land Preparation:

Land preparation costs are typically used to level and shape the land for the construction of a condominium building. This includes removing rocks, dirt, debris, or any other material that might be in the way.

It also includes preparing the area for future parking lot plans and other landscaping needs. The cost of this can range from $20,000 to several hundred thousand dollars, depending on the scope of work.

Architectural and Engineering Services:

When constructing a condominium, it is important to have plans and drawings that will be approved by the local building authorities. Professional architects and engineers must be hired to create these documents.

Fees for such services can range from $50,000 to several hundred thousand dollars. This cost is typically based on the size of the project and the complexity of its design.

Permitting and Regulatory Fees:

It is essential to secure the appropriate permits and adhere to building regulations during construction. This may entail paying fees such as zoning permits, building permits, environmental impact evaluations, and other relevant local or state mandates.

Permitting and regulatory fees for a $10 million condominium project can cost anywhere from $100,000 to $300,000, which is typically 1% to 3% of the total construction cost.

Construction Materials:

The cost of constructing a condominium is largely influenced by the prices of building materials, which can vary due to market conditions, availability, and project requirements. Examples of common construction materials include:

Concrete:

Concrete is crucial for the strength of the building’s foundation and walls. The price of concrete can range from $100 to $150 for each cubic yard.

Steel:

Steel is commonly used to strengthen structures and build frames. The cost of steel varies between $1,000 to $1,500 per ton.

Bricks or Blocks:

Bricks or blocks are commonly used for exterior walls, with a cost range of $0.50 to $1 per unit.

Roofing Materials:

There are different roofing options to choose from, such as asphalt shingles, metal roofing, or tiles. Each option can cover an area of 100 square feet and will cost around $100 to $300 per square.

Windows and Doors:

The cost of windows can vary between $300 and $800 per window, and for doors, the prices can range from $500 to $1,500 each. The factors that influence the pricing are the quality of the materials used.

Interior Finishes:

This category includes materials such as flooring, paint, fixtures, and fittings, and the cost can differ greatly based on the quality of the chosen materials. Typically, construction materials make up 40% to 50% of the total cost of a project. For instance, a $10 million project would require an estimated $4 million to $5 million for construction materials alone.

Exterior Finishes:

Exterior finishes include items such as siding, roofing shingles, and other finishing materials. The cost of these can be anywhere from $2 to $5 per square foot depending on the quality.

Labor Costs:

Skilled workers, such as carpenters, electricians, plumbers, and masons, are needed to complete the condominium construction project, and their labor costs are a significant part of the overall expenses.

The cost of labor varies depending on where you are and how many skilled workers are available. Generally, labor expenses make up around 20% to 25% of the entire construction budget. For a project worth $10 million, this could amount to about $2 million to $2.5 million.

Utilities and Infrastructure:

It is essential to establish utility connections including water, electricity, gas, and sewage systems for the condominium. The infrastructure expenses will vary based on the project’s specifications and the distance from the current utility connections.

The cost of utilities and infrastructure typically ranges from 3% to 5% of the total construction cost. For a condominium that costs $10 million, the cost of this component may be between $300,000 and $500,000.

Amenities and Common Spaces:

Condominiums offer amenities and common spaces such as pools, fitness centers, recreational areas, parking structures, and landscaping to lure in potential buyers. The expenses for such features can differ significantly based on their complexity and desired standard.

Typically, the amenities included in a construction project can make up 10% to 15% of the total cost. So, for instance, in a $10 million condominium, you can expect to pay around $1 million to $1.5 million for these features.

Condominium Construction Cost Per Unit:

The construction cost required to build per unit condominium is given:

Number of UnitsApproximately Cost
2 Units$224K – $450K
10 Units$1.12M – $2.25M
20 Units$2.24M – $4.5M
50 Units$5.6M – $11.25M
100 Units$11.2M – $22.5M
200 Units$22.4M – $45M

Factors to Consider When Setting a Construction Budget For Condominium:

Several factors need to be taken into consideration when setting a construction budget. These include:

Location:

Location is a key factor in determining the cost of land acquisition and other expenses associated with the construction project.

Size:

The size of the project will play an important role in defining its overall cost, including labor, materials, and other expenses related to the construction.

Quality:

The quality of the materials used in the project will also impact its overall cost. Higher-quality materials are usually more expensive than standard ones but may be necessary to ensure a high-end finish for the condominium.

Type:

The type of condominium being constructed will also influence the overall cost. 

TypeCost Per Square Foot 
Townhouse$110 – $135
Condominium$180 – $400

Timeframe:

The timeline of the project will affect the labor costs and other related expenses. A shorter timeline usually means higher labor costs as more workers will be required to complete the project promptly.

Site Conditions:

Assess the construction site’s condition, taking into account soil quality, topography, accessibility, and existing infrastructure, as these factors can affect the budget. A site survey or assessment can provide useful information for estimating costs.

Equipment and Machinery:

Make a list of the necessary equipment and machinery needed for the construction project. Decide if you will rent or buy the equipment and include the costs for fuel, maintenance, and operator wages.

Contingencies:

It is recommended to allocate funding for unforeseen expenses or potential changes in the project’s scope while conducting construction. A contingency amount, usually calculated as a percentage of the overall budget, can aid in minimizing risks and providing adaptability.

Developing a comprehensive construction budget that covers all necessary expenses, while considering these factors, can help ensure the success and cost-effectiveness of your project.

Conclusion:

In conclusion, building a condominium can be a costly endeavor if not done properly or with the right team of professionals. It is important to do your research and fully understand all expenses related to building a condominium before beginning any project.

If you need any help estimating the cost of building a condominium, our team of experienced professionals can help you create a comprehensive budget that covers all necessary expenses.

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Construction cost estimating everything you need to know
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