1. Three definitions that must be known
Without them no price per square metre is interpretable. The definitions are requested before the figure is used.
| Definition | What it tells you | Effect on price |
|---|---|---|
| Completion level | whether the price covers structure only, or also services and internal finishes | largest, roughly twofold |
| Area definition | which area the price refers to | the same building can appear with different square metre figures |
| Cost scope | works only, or also preparation, connections and external works | determines what the figure contains |
Without all three no two prices are comparable, even when both are stated in euros per square metre. A price per square metre is a fraction, and the denominator determines the result as much as the numerator.
2. Why the ranges are so wide
Published ranges on the Estonian market often run from €1,500 to €3,000 per m². That width does not come from imprecision on the part of those quoting, it reflects real differences.
| Factor | Share of the range |
|---|---|
| Completion level | largest share, roughly twofold |
| Building technology | around a third within published ranges |
| Shape and size of the building | the remainder |
A building without internal finishes and a building ready to live in differ by roughly a factor of two. Shape matters less but consistently: a simple rectangular plan is cheaper than a complex shape, and the price per square metre of a larger building tends to fall, because the kitchen, bathrooms and building services are spread over more square metres.
A range is therefore information, not vagueness. A narrow range without definitions is less reliable than a wide range with them.
3. What the price usually excludes
Three cost groups mostly fall outside, and only the first is obvious to the client. Their absence explains most budget overruns.
Buying the plot, which is property rather than a construction cost.
Preparation, that is design, surveys and permits, which commercial sources put at often €5,000 to €15,000.
Connections and external works, which appear in the budget later.
These three groups are not small, and excluding them is not dishonesty: a price per square metre measures construction, not a project. The problem arises when a client reads a construction price as a project price.
4. Four questions without whose answers the figure is unusable
| Question | Why it matters |
|---|---|
| To what completion level does this price take the work | the single largest cost variable |
| Which area does it refer to | sets the denominator of the fraction |
| Does it include VAT | in Estonia the rate has moved from 20 % to 24 % in two and a half years |
| Which source is it from, and of what date | determines the status of the figure |
The fourth question matters particularly on the Estonian market, because most published prices come from construction companies selling a service. That does not make them wrong, but it changes their status: they are commercial material, not official statistics. The only official and neutral figure in this field is the Statistics Estonia construction price index.
In summary, and four practical rules
A price per square metre is interpretable only together with the completion level, the area definition and the cost scope. Published ranges of €1,500 to €3,000 per m² reflect real differences, of which completion level explains the largest share and technology around a third. The plot, preparation, connections and external works fall outside every price per square metre, so a construction price is not a project price.
Four rules: ask for the completion level before the price. Check which area the price refers to. State the VAT status against every price. Check the source and the date, because most published prices are commercial.
This article serves professional orientation at the date of checking. It is not a quotation.