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Works cost per m²

📐 Topic4 min read

What you will learn The orders of magnitude observed in Luxembourg, what a range actually covers, the three questions to ask before using a price per m², and why this figure is never enough.

This is the most sought-after and most misused figure. A price per square metre only means something if you know what it includes and which area it refers to.

The orders of magnitude observed

Luxembourg professional sources converge on similar ranges. Those ranges are read together with their scope.

Scope Order of magnitude observed
Weathertight shell around €1,600 to €2,100 / m²
Turnkey around €2,400 to €4,000 / m²

These figures exclude land and ancillary costs, which are the subject of the corresponding branches.

The width of the turnkey range reflects finish level and construction method, covered in the article on what changes the works cost.

These orders of magnitude do not replace a quotation. They serve to frame an envelope, check the consistency of an offer and rule out proposals plainly outside the market.

What a range actually covers

Three limits, and ignoring them produces estimates wrong by tens of per cent. They concern the stage, the area and the specification level.

Scope varies. The same label may include or exclude equipment, external works, or certain technical services.

The reference area varies. A price related to living area and one related to built area give appreciably different results for the same building.

The date matters. Construction prices evolve, and the official index documents that movement, covered in the article on index and price revision.

The three questions to ask

Before using any price per square metre, whatever its source. Four questions arise beforehand.

What scope. What exactly does this price cover, and above all what does it not.

What area. Living, built or gross, the difference being far from negligible.

What date and what type of project. An old figure, or one covering a different brief, does not transpose.

A price per square metre without answers to those three questions is unusable, even from a serious source.

Why this figure is never enough

Two reasons, both returning to this guide's theme. They concern land and labour costs.

It excludes the most variable item. Land does not enter the construction price per square metre, although it drives most of the gap between projects, as the article on why land dominates the budget explains.

It excludes ancillary costs, in the order of fifteen to twenty per cent of construction cost, covered in the corresponding branch.

A construction price per square metre is therefore a market indicator, not a project envelope.

Legitimate use

Three uses where this figure genuinely helps. It serves to frame, to compare and to check.

Framing an envelope at an early stage, before any drawing, as the article on estimating before a design exists explains.

Checking the consistency of an offer received, a significant gap with market orders of magnitude calling for explanation.

Comparing two variants of the same project, at identical scope and area, which neutralises definitional bias.

The articles in this branch

The article on shell and turnkey covers the scopes. The stages are defined there.

The article on breakdown by trade covers the internal structure of the works budget. The proportions are given there.

The article on what changes the works cost covers the three levers. The factors are ranked there.

This article reflects the state of the data at the date of checking and serves professional orientation. It does not replace a quotation or a detailed estimate.

Frequently asked questions

It frames an order of magnitude, provided its scope, stage and specification level are known. Without those three, it misleads.

Mainly because of labour costs and regulatory requirements. Both factors largely escape negotiation.

No, external works and connections are generally excluded. Forgetting them explains most budget gaps.

Framing an envelope, comparing two offers and checking a quotation. It does not replace item-by-item pricing.

Explore the articles in this guide

Construction costs per m² in Luxembourg