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Writer's pictureGabriel Mikael

Basic Cost of Building a House in the Philippines

Building a house in the Philippines can vary widely in cost depending on factors such as location, design, materials, and labor. To help you get started, here’s a breakdown of basic costs, factors influencing the price, and some general guidelines for building a house in the Philippines.

1. Basic Cost of Building a House in the Philippines

The average cost of building a house in the Philippines ranges from around ₱15,000 to ₱35,000 per square meter. This cost will depend on whether you are building a basic, mid-range, or high-end house.

a. Low-Cost Housing

  • Cost per square meter: ₱15,000 - ₱20,000

  • Description: This type of home usually uses basic materials and a simpler design. It is common in rural or provincial areas or for budget-conscious homebuilders.

  • Example: A 50 sqm house would cost around ₱750,000 to ₱1,000,000 to build.

b. Mid-Range Housing

  • Cost per square meter: ₱20,000 - ₱30,000

  • Description: Mid-range homes typically use better-quality materials and include some custom finishes or fixtures. It is suitable for suburban or residential neighborhoods.

  • Example: A 100 sqm house would cost around ₱2,000,000 to ₱3,000,000.

c. High-End Housing

  • Cost per square meter: ₱30,000 - ₱50,000+

  • Description: High-end homes use premium materials, custom designs, and luxury features. These houses often include advanced technology, high-end finishes, and imported materials.

  • Example: A 150 sqm house would cost around ₱4,500,000 to ₱7,500,000+.

2. Factors Affecting the Cost of Building a House

a. Location

  • Metro Manila and Other Urban Areas: Building in cities like Metro Manila, Cebu, or Davao is typically more expensive due to higher labor costs and more expensive land.

  • Provincial or Rural Areas: Costs tend to be lower in rural areas due to cheaper land and lower labor costs.

b. House Design

  • Bungalow vs. Multi-Storey: A single-storey house generally costs less than a multi-storey home due to the structural and material requirements of supporting multiple levels.

  • Custom vs. Standard Design: Custom-designed homes tend to cost more than homes built from standard plans because of the additional architectural fees and design complexities.

c. Building Materials

  • The choice of building materials can have a major impact on cost. Locally sourced materials like hollow blocks, local timber, and basic roofing materials are more affordable, while imported or luxury materials like hardwood, premium tile, and high-end fixtures will increase costs.

d. Labor

  • Labor costs vary based on location and the type of contractor you hire. Skilled labor in urban areas can cost around ₱500 - ₱1,500 per day, while in provincial areas, labor might cost between ₱300 - ₱800 per day.

e. Utilities and Infrastructure

  • Connecting utilities like water, electricity, and internet will add to the cost. Off-grid solutions, such as installing solar panels or rainwater harvesting systems, can increase upfront costs but may save money in the long run.

f. Permits and Fees

  • Before you start building, you’ll need to secure several permits from your local government unit (LGU), which can include a building permit, electrical permit, and sanitation permits.

    • Building permit costs: Typically range from ₱10,000 to ₱50,000, depending on the size and location of the project.

3. Step-by-Step Guide to Building a House in the Philippines

a. Set a Budget and Design Plan

  • Step 1: Establish your total budget for the project, including the cost of materials, labor, permits, and contingencies (typically 10-20% extra for unexpected expenses).

  • Step 2: Decide on the design and size of your home. You can choose between hiring an architect for a custom design or using standard house plans to save on design fees.

b. Find a Lot and Secure Ownership

  • Step 3: Purchase land if you haven’t already. Ensure the lot is properly titled and free from any legal issues. You’ll need to have the Transfer Certificate of Title (TCT) in your name.

  • Step 4: Have the lot surveyed to determine boundaries, which is a requirement for applying for a building permit.

c. Hire Professionals

  • Step 5: Depending on the complexity of your house, you’ll need to hire various professionals, such as:

    • Architect: For custom designs and plans.

    • Civil Engineer: For structural requirements.

    • Contractor or Foreman: To manage the construction project.

    • Electrical and Plumbing Experts: For utility installations.

    Alternatively, a contractor may handle all these responsibilities for you in a turnkey project.

d. Obtain Permits and Approvals

  • Step 6: Apply for the necessary building permits from the local government unit (LGU). This process may require the submission of the following:

    • Blueprints and structural plans

    • Land survey documents

    • Title of ownership

    • Zoning clearance

    • Payment of permit fees

e. Start Construction

  • Step 7: Begin construction. If you're managing the project yourself (owner-builder), ensure you are coordinating with the contractors and suppliers for materials and work schedules.

  • Step 8: Conduct regular site visits to monitor progress and ensure quality. Pay attention to material delivery and ensure they meet specifications.

f. Utility Connections and Final Inspections

  • Step 9: Once the structure is completed, arrange for the installation of utilities such as water, electricity, and sanitation systems.

  • Step 10: Before moving in, your LGU may require an occupancy permit, which ensures that the house is safe and up to code.

4. Tips to Reduce Costs

  • Use Local Materials: Choose materials that are locally available to reduce transportation costs.

  • DIY Where Possible: Handle non-specialized tasks like painting, landscaping, or interior decorating yourself.

  • Limit Custom Designs: Using a pre-designed plan or modifying an existing design can save money on architectural fees.

  • Keep it Simple: Opt for a simpler design with fewer architectural features to reduce building and material costs.

5. Sample Budget for a 100-Square-Meter Mid-Range House

Here’s a rough estimate of the cost for building a 100-sqm mid-range house in the Philippines:

Category

Estimated Cost (PHP)

Lot Purchase

₱500,000 - ₱1,500,000

Architectural Design

₱50,000 - ₱100,000

Permits and Fees

₱10,000 - ₱50,000

Materials

₱1,500,000 - ₱2,000,000

Labor

₱500,000 - ₱1,000,000

Utility Connections

₱50,000 - ₱200,000

Total Estimated Cost

₱2,600,000 - ₱4,850,000


Building a house in the Philippines can be a rewarding experience if you plan carefully, budget properly, and manage construction effectively. Whether you are building a small home in a rural area or a mid-range house in a suburban neighborhood, understanding the factors that influence cost and following a step-by-step process will help you make informed decisions throughout the project.


Basic Cost of Building a House in the Philippines
Basic Cost of Building a House in the Philippines

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