One of the most common questions from clients considering buying land and building is how much per square metre? I think they must often wonder if we are just being evasive when we do not immediately come up with a figure, but if you look at the building process from the very beginning, right through to the final ‘key in the door’, you will realise that the price depends absolutely on what is included, and if you do not know the correct questions to ask as in “Is x included?” you will be in danger of ending up with a large bill for ‘extras’ which you might have previously understood to be part of your agreement.
Different contractors and developers complete their initial responsibilities at different stages. Many leave certain areas unfinished so that clients can make their own choices, and of course pay extra for them. A good developer will give a detailed list of everything he plans to use, and if you agree to this then this is what you are paying for. Changes are often a cause for disagreement – if midway through the build you decide to make alterations you must ask what the difference in cost will be as they will not necessarily be at the same price, and if they involve bringing workers back to the project for further visits you will obviously be charged.
The costs begin before you get anywhere near building. You will have to obtain a planning permit, pay an IKA deposit and a deposit for VAT on the project, before you begin the build.
Obviously you then want a costing for your house. It is easy for a builder to give what looks like an economic quote, until, for example, you find later he plans to do no outside work, leaving you with a nice house still on a building site and a large bill for paths, parking area and landscaping.
Build costs depend on so many variables. Situation of plot - does it need many retaining walls, does it need an access road, does it have power close by, or are you going to have to pay for columns to bring the power to your site? Ditto for water - or are you going to have to pay to dig for a water supply? One or two floor design? Design including basement or not? Pool and permit included or not? What type of ground is it - hard to excavate if it is solid rock, or not - making a vast difference in terms of initial work for foundations and septic tank.
Does the builder include light fittings, kitchen cupboards, all tiles, shower/bath units, loos, wardrobes, sufficient power points? What type of doors and windows? Electrical kitchen goods, fireplace, central heating piping and/or complete heating, aircon, door handles? The list is endless and this is why quotes vary so much.
Some builders are quoting 1,200 euros per square metre for a build and others quote 2,000 euros plus. Most offers hold good for a maximum of three months since in the last few months, as everywhere else, we have suffered large price increases in the cost of materials, plus the cost of building permits, and the linked IKA costs have risen three times in the last three years. It is not possible to give even an approximate figure until you have some land and a possible plan in mind.
You can see now why I said “How long is a piece of string?” but as I say there are so many variables and so many builders give quotes that turn out to be incomplete, because you both have different assumptions about what a ‘finished’ project means. It is essential to analyse exactly what is included in your estimate,
A project manager will charge you a percentage of the cost of the project, but he or she is the one person who is totally responsible for asking the correct questions of the builders, the power company etc., calculating the costs and making sure the project is completed to your satisfaction. Your project manager is also the person who continues working when the build is complete, to the installation of permanent electricity, the finalisation of accounts for VAT and IKA purposes with your civil engineer, and accountant, and generally ties up all the loose ends, so that no expenses come back to haunt you further down the line.
At Corfuhomefinders and Corfupremierproperty, we are involved in both newbuild and renovation projects and have established a system with our project managers/builders where we just keep on asking questions – “Is it included in the quote?” “Can we do it any cheaper?” “Are you sure that’s the colour the clients wanted?” “Is that power point in the right place?” “Why don’t we do this?” We probably drive them mad – but we make the point – we want to be 100% sure that our clients know exactly what they are paying for and that they actually get what they are paying for.
Building and labour costs are not cheap here and many items, mass produced in larger European countries, are either locally hand-made or imported, making them proportionately more expensive. Also for an island as small as Corfu there is a considerable amount of development in progress, good builders and craftsmen are in demand and have no reason to lower prices in order to obtain work. It is all a matter of perseverance, patience and a certain amount of humour, and in the end you get there. And as you sit on your balcony in the sun in April or November, when you would be freezing elsewhere, you might just consider that it was all worth it!
Diana
Different contractors and developers complete their initial responsibilities at different stages. Many leave certain areas unfinished so that clients can make their own choices, and of course pay extra for them. A good developer will give a detailed list of everything he plans to use, and if you agree to this then this is what you are paying for. Changes are often a cause for disagreement – if midway through the build you decide to make alterations you must ask what the difference in cost will be as they will not necessarily be at the same price, and if they involve bringing workers back to the project for further visits you will obviously be charged.
The costs begin before you get anywhere near building. You will have to obtain a planning permit, pay an IKA deposit and a deposit for VAT on the project, before you begin the build.
Obviously you then want a costing for your house. It is easy for a builder to give what looks like an economic quote, until, for example, you find later he plans to do no outside work, leaving you with a nice house still on a building site and a large bill for paths, parking area and landscaping.
Build costs depend on so many variables. Situation of plot - does it need many retaining walls, does it need an access road, does it have power close by, or are you going to have to pay for columns to bring the power to your site? Ditto for water - or are you going to have to pay to dig for a water supply? One or two floor design? Design including basement or not? Pool and permit included or not? What type of ground is it - hard to excavate if it is solid rock, or not - making a vast difference in terms of initial work for foundations and septic tank.
Does the builder include light fittings, kitchen cupboards, all tiles, shower/bath units, loos, wardrobes, sufficient power points? What type of doors and windows? Electrical kitchen goods, fireplace, central heating piping and/or complete heating, aircon, door handles? The list is endless and this is why quotes vary so much.
Some builders are quoting 1,200 euros per square metre for a build and others quote 2,000 euros plus. Most offers hold good for a maximum of three months since in the last few months, as everywhere else, we have suffered large price increases in the cost of materials, plus the cost of building permits, and the linked IKA costs have risen three times in the last three years. It is not possible to give even an approximate figure until you have some land and a possible plan in mind.
You can see now why I said “How long is a piece of string?” but as I say there are so many variables and so many builders give quotes that turn out to be incomplete, because you both have different assumptions about what a ‘finished’ project means. It is essential to analyse exactly what is included in your estimate,
A project manager will charge you a percentage of the cost of the project, but he or she is the one person who is totally responsible for asking the correct questions of the builders, the power company etc., calculating the costs and making sure the project is completed to your satisfaction. Your project manager is also the person who continues working when the build is complete, to the installation of permanent electricity, the finalisation of accounts for VAT and IKA purposes with your civil engineer, and accountant, and generally ties up all the loose ends, so that no expenses come back to haunt you further down the line.
At Corfuhomefinders and Corfupremierproperty, we are involved in both newbuild and renovation projects and have established a system with our project managers/builders where we just keep on asking questions – “Is it included in the quote?” “Can we do it any cheaper?” “Are you sure that’s the colour the clients wanted?” “Is that power point in the right place?” “Why don’t we do this?” We probably drive them mad – but we make the point – we want to be 100% sure that our clients know exactly what they are paying for and that they actually get what they are paying for.
Building and labour costs are not cheap here and many items, mass produced in larger European countries, are either locally hand-made or imported, making them proportionately more expensive. Also for an island as small as Corfu there is a considerable amount of development in progress, good builders and craftsmen are in demand and have no reason to lower prices in order to obtain work. It is all a matter of perseverance, patience and a certain amount of humour, and in the end you get there. And as you sit on your balcony in the sun in April or November, when you would be freezing elsewhere, you might just consider that it was all worth it!
Diana
