Price per square metre: which property is the better buy

Why price per square metre

The asking price says what the property costs. The price per square metre says whether it is worth that. It is the first number a broker looks at on a new listing, and the last one they use to show an owner that their expectations sit outside the market.

Watch which area you are comparing

This is the trap. Listings quote built-up area — which includes a share of the building's common parts — and net or usable area, which is what you actually live in. The gap between the two is usually ten to twenty percent.

Compare the built-up area of one property against the net area of another and the result is useless, and misleading in a predictable direction. Before comparing, make sure you are measuring the same thing.

What price per square metre ignores

Floor, aspect, condition, year of construction, parking, view, noise. Two flats on the same street at the same price per square metre can be very different deals. The number starts the conversation rather than ending it.

In day-to-day work

This calculation pays off least on a single property and most on a group of them. When an agency keeps every listing in one place, the average price per square metre by neighbourhood and property type comes out ready-made — and valuing a new listing stops being a matter of instinct. That is what the reports in OptiEstate do, though the principle works in a spreadsheet too, as long as the numbers are complete.

Frequently asked questions

How is price per square metre calculated?

The price divided by the area. What matters is which area — built-up or net — and that the properties being compared are measured the same way.

What is the difference between built-up and net area?

Built-up area includes a share of the building’s common parts; net area is what is actually habitable. The gap is usually ten to twenty percent.

Is price per square metre enough to choose a property?

No. It ignores floor, aspect, condition, parking and noise. It reduces listings to comparable numbers, but the decision needs the rest.

Where do I find the average price in a neighbourhood?

From actual transactions in the area rather than asking prices — the two differ. An agency with its own archive of closed deals has the most accurate source.