Building costs for a flat development??
Building costs for a flat development??
Author
Discussion

Dav_s

Original Poster:

1,781 posts

223 months

Thursday 18th February 2010
quotequote all
Hello all,

Would anyone know roughly how much it would cost to build a flat development from scratch?
Say, for example, a two storey building, consisting of 16-20 dwellings, mainly two bedroom?

Obviously not expecting an accurate figure, but an approximation would be really helpful.

Feel free to pm me if this is your area of expertise

Cheers! smile

silverthorn2151

6,413 posts

210 months

Thursday 18th February 2010
quotequote all
Well, that's one of the questions that needs a million questions back before venturing an opinion.

Where, what's the site like, how big are the flats, standard of finish etc etc etc.

There is a range of costs per sq ft that we use when valuing properties for rebuilding costs (for insurance). That's different to a development appraisal, which is what you are talking about. There can be such a huge variation in costs (both estimated and real) that if you need figures to make decisions about things you really need to have some focused advice locally.

randlemarcus

13,646 posts

262 months

Thursday 18th February 2010
quotequote all
Absolutely not my area of expertise, but I'd have thought you could buy a completed , empty, buyerless flat development substantially cheaper than building one at the minute hehe

Dav_s

Original Poster:

1,781 posts

223 months

Thursday 18th February 2010
quotequote all
lol

Possibly, but that depends on just how much of a good deal you got on the land you intend to build on

wink

The Moose

23,708 posts

240 months

Friday 19th February 2010
quotequote all
Have you got your funding in place?

Where abouts is the plot?

Cheers

The Moose

Hobo

6,654 posts

277 months

Friday 19th February 2010
quotequote all
Build cost only, ie no land, but including interest on loan (assuming its a loan), not a bad spec, but far from a brilliant spec, I'd be saying around £80/sqft.

We did a scheme of 7 apartments, 5 2-beds & 2 1-beds, worth between 115-135k on completion, nice bathrooms/kitchens, natural stone (which was expensive), far from basic lighting, block paved car parking area, laminate flooring throughout apartments, carpeted communals, natural slate roof, and build came in at £346k. Total sqft of living area/communals being 4820, so £72/sqft. I would expect to do this now for nearer £300k.

Much depends on who you know, and how good your credit rating is.

2 5HAN

702 posts

262 months

Friday 19th February 2010
quotequote all
As mentioned this has too many variables

Where in the Country
Type of Design: Lots of Glass, Balconies, Roofing Issues, Brick, Render etc
Size of Plot
Type of Plot: Flat, Slope, Underground Car Park
Other buildings in close proximity, allow for Party Wall Issues and Costs
Spec will be one of the biggest factors

A builder wont give you it at cost as they will want to make a margin
would say a normal range £85 - £125

dafydd2008

454 posts

215 months

Saturday 20th February 2010
quotequote all
Agree with you guys, there are far to many questions which need answering prior to a answer.

I have just completed a refurb in London to a apartment which came in at £900 per sq ft. That's based on a existing structure with 4 apartments across 2 floors have been knocked into one.
Plus you have still got the millions to by the pad on top of this!




paul0843

2,007 posts

238 months

Sunday 21st February 2010
quotequote all
dafydd2008 said:
Agree with you guys, there are far to many questions which need answering prior to a answer.

I have just completed a refurb in London to a apartment which came in at £900 per sq ft. That's based on a existing structure with 4 apartments across 2 floors have been knocked into one.
Plus you have still got the millions to by the pad on top of this!

yep..not impossible for high end stuff to cost in that region..
some clients have very long pockets and some designers/builders have no problem in spending the money....
my attitude is at least the money is going around instead of being
hoarded...i have seen designers walk into a finished room and
make changes that would cost £300 -350k without batting an eyelid..

JQ

6,883 posts

210 months

Sunday 21st February 2010
quotequote all
If the land is cheap, there is a very good reason. In many locations the development of apartments has become unviable. I've looked at a number sites where there is actually a negative land value when applying the existing planning consent. The only way to extract value is to work the planning consent and go for a much lower density development.

Looked at a site last week with detailed consent for 40 apartments - it was worth £0 for the proposed development. Value with hope value for alternative use was circa £350,000. It was being marketed at the peak of the market at £2m.

As said above, you question is very much a "how long is a piece of string question". Average is probably £100psf on the gross area. However, with all development appraisals a small change in one variable can make a massive difference to the land value, so be careful.

dafydd2008

454 posts

215 months

Sunday 21st February 2010
quotequote all
paul0843 said:
dafydd2008 said:
Agree with you guys, there are far to many questions which need answering prior to a answer.

I have just completed a refurb in London to a apartment which came in at £900 per sq ft. That's based on a existing structure with 4 apartments across 2 floors have been knocked into one.
Plus you have still got the millions to by the pad on top of this!

yep..not impossible for high end stuff to cost in that region..
some clients have very long pockets and some designers/builders have no problem in spending the money....
my attitude is at least the money is going around instead of being
hoarded...i have seen designers walk into a finished room and
make changes that would cost £300 -350k without batting an eyelid..

Paul, seen this many times and its just amazing to see them spend their clients money in the way they do.
Whats your company called?

anonymous-user

85 months

Sunday 21st February 2010
quotequote all
I see a short, failed career in property developing just about to launch!

paul0843

2,007 posts

238 months

Sunday 21st February 2010
quotequote all
hi Dafydd...euromarble...we are based in north london ,but work mostly
in central london...whats your company called...paul

paul0843

2,007 posts

238 months

Sunday 21st February 2010
quotequote all
garyhun said:
I see a short, failed career in property developing just about to launch!
he who dares rodney...he who dares...this time next year will all be
millionaires...

dafydd2008

454 posts

215 months

Sunday 21st February 2010
quotequote all
paul0843 said:
hi Dafydd...euromarble...we are based in north london ,but work mostly
in central london...whats your company called...paul
Concept Bespoke Interiors, based in Chiswick however all our work is Mayfair and Chelsea way. Stone wise, we work with MSR and ASG allot on projects.

paul0843

2,007 posts

238 months

Sunday 21st February 2010
quotequote all
dafydd2008 said:
paul0843 said:
hi Dafydd...euromarble...we are based in north london ,but work mostly
in central london...whats your company called...paul
Concept Bespoke Interiors, based in Chiswick however all our work is Mayfair and Chelsea way. Stone wise, we work with MSR and ASG allot on projects.
i know ASG...on a recent residential apartment development at lancelot place and brompton road ,knightsbridge they had contract for floors and we had contract for walls...very strange scenario...

Oi_Oi_Savaloy

2,315 posts

291 months

Sunday 21st February 2010
quotequote all
No-one has mentioned basement parking yet either! (avoid at all costs if it's a marginal/st area, add it in if it's a really expensive area and your development hasn't got secure parking). Or lifts or S106 costs or affordable housing (if it's got 20 apartments to my mind that means it's going to have an element of affordable in it.)

Is it an old petrol station? If it is I'd be looking into the decontamination costs etc etc.

There are so many variables we all need more info to answer your question.

But don't forget; what makes or breaks a site is the resale values of your finished units. You can dick about with your build cost to your hearts content but what is really going to drive the profit of the site (or not) is making sure you are being realistic about your resales.

Do you believe in the figures? Have you got the spec right to match your market?

More questions/thoughts: are you building the right sized units for your area? Don't build 700 sq ft two beds if the market will wear 600sq ft two beds for the same money.

Jayletz

1 posts

147 months

Wednesday 13th August 2014
quotequote all
JQ said:
If the land is cheap, there is a very good reason. In many locations the development of apartments has become unviable. I've looked at a number sites where there is actually a negative land value when applying the existing planning consent. The only way to extract value is to work the planning consent and go for a much lower density development.

Looked at a site last week with detailed consent for 40 apartments - it was worth £0 for the proposed development. Value with hope value for alternative use was circa £350,000. It was being marketed at the peak of the market at £2m.

As said above, you question is very much a "how long is a piece of string question". Average is probably £100psf on the gross area. However, with all development appraisals a small change in one variable can make a massive difference to the land value, so be careful.
Hey,
Just joined this forum as it looks quite interesting.
I was wondering if I could get a little advice?
I'm based in sw London and own an estate agents.
I think an approx build cost is 135 per sq ft. Any ideas how much utilities would cost for a block of 5 flats if I were to build one?

Thanks.

jonah35

3,940 posts

188 months

Wednesday 13th August 2014
quotequote all
A cheapo block of flats with 20 in the block could be knocked up for about £25k-35k per flat.

anonymous-user

85 months

Wednesday 13th August 2014
quotequote all
I would work on £100 per square foot

It might come in cheaper if it goes smoothly. It might cost a bit more if something goes wrong.

But, for the purposes of deciding if it is a goer or not, £100 per square foot is a reasonable place to start imo. If you decide it is a goer, do all you can to get the costs down in every single minute of planning for and doing the build