Have you ever wondered if it is possible to know how to calculate the square meter value of a property? So be sure to check out the content below!
When buying or selling a property, you are certainly faced with conversations about the price per square meter. If at this time, you feel confused and are not sure how to interpret or respond to information about the subject, you need to learn more.
Understanding how to calculate the square meter — and especially how to consider the results of that calculation — is essential to understanding the particularities of each property or land. So, for those who have the objective of acquiring a good or investing in the sector, it is worth dedicating themselves to the subject.
See in this post the main aspects related to the calculation of m², its influence on the final price of a project, and understand how to calculate the value of the square meter of a property! Follow up!
Why is it important to understand how to calculate the square meter?
Let’s start by reinforcing the importance of knowing how to calculate and understand data related to the square meter of a property. Knowledge is important for everyone involved: buyers, sellers, investors, realtors, etc.
If you decide to sell an apartment, one of the first decisions you need to make is what price you want to ask for it, right? The property may have a high affective value for your family, but you need to calculate its price in relation to the market.
Asking for an amount much higher than the average would greatly hinder your sale. Just like putting a price below what you could get—in that case, you would miss the opportunity to earn the money the property is worth.
On the purchase
For those who buy, the situation is similar. How would you feel if you were researching properties to buy and you came across one that is worth way above the market? Probably wouldn’t be interested in buying, right?
In the case of investors, the square meter gains even more importance. After all, you have no effective attachment to a good. Buying and selling is based on profit possibilities. Therefore, it is essential to assess the market.
For this reason, it is natural that there is the question “How to know the value of the square meter of a neighborhood?”. Or even “How to calculate the value of the square meter of a property?”
In all the situations that we illustrate so that you understand the context, it is possible to find a common denominator: the calculation of m². Knowing how to calculate the price per square meter is fundamental to assigning value to a property.
The price of a house or an apartment depends a lot on the market situation, that is, on the price per square meter at the moment. So, one of the central steps in buying or selling is knowing and knowing how to assess this factor.
What information is used in the calculation?
To calculate the square meter, it is necessary not only to understand basic math, but also to know all the aspects involved in setting the price of the property. Check out some main elements below.
The length and width of the area
m² is a mathematical concept, so the first step in figuring out how to get there is by learning the formula. In this case, it basically depends on the length and width of an area.
It is possible to reach the total size of a property by taking the general measurements from the outside or considering the sum of the measurements of each room. To do this, just measure the length of one side of a space in the house or apartment.
From there, you will also need to measure the width, considering the side that is 90 degrees away from the measured length. The m² of a room is the multiplication of the result of the length and width.
The sum of all property
Measuring the spaces of property and applying the basic multiplication it is possible to arrive at the result of the square meter of the measured environment. Thus, the same strategy can be applied to each space in the house or apartment.
In the end, the sum of all environments will be the result of the m² of the property as a whole. However, you must be careful to differentiate what is a private area, what is a common area and what is the total property.
The concept of a private area is also known as a useful area. It refers to the internal and private environment, for the exclusive use of the owner. The concept is especially important for those who live in condominiums.
In the case of condominium houses and apartments, there is a different separation between the private areas and the so-called common areas. The useful area indicates, then, the environments of the house and the parking spaces, for example.
Unlike the private one, the common area corresponds to the square meters that can be used by several people, in addition to the owners of a unit. In condominiums, they can refer to the entrance hall, parks, swimming pool, ballroom, etc.
Many people assume that if the common area is not owned by a resident, it should not be added to the m² calculation. But that’s not how it works. In fact, the footage of the common areas is considered, according to a percentage based on the private area.
The concept of total area, in the formula for calculating the square meter, is the sum of all measurements taken in relation to private and common areas. Therefore, in condominiums, it will be necessary to understand how much of the common area refers to each unit.
Law of supply and demand
So far, we have been talking about mathematical concepts in calculating the size of a property. But you do know that the price of a property is not just based on its numbers and measurements, do you? You need to consider other elements.
One of the main elements is the real estate market. The price of m² is directly influenced by the law of supply and demand. In other words, the same property, of the same size, can be worth more or less depending on how the market is doing.
So, in addition to the measurements and formulas for the calculation, it is important to keep in mind that the final price also depends on economic and even subjective factors. Once you have the footage in hand, you will need to see what the m² is worth in your region at the moment.
How to calculate the square meter?
Once you know what are the aspects that relate to calculating the m² of a property, it’s time to learn how to calculate the value. After all, how is it possible to calculate the property’s value per square meter? In addition to taking measurements, it is important to consider that each type of property works in a different way.
Below you will see details and examples for different types of projects, such as how to calculate the square meter value of land, houses, etc.
The terrain is often one of the easiest calculations to perform. As there is no built-up area, to calculate the value of land per square meter, just measure the sides of the property to calculate the total square meters it has.
For example, on a land with 15 meters in front and 18 meters in depth, we have a total area of 270 square meters. It is noteworthy that we are considering regular land. In the case of locations with irregular measurements, the calculation must be adapted.
When the land has a built house, calculating the square meter becomes a little more complex. In this case, it is necessary to measure the built-up area of the house, in addition to knowing the size of the external area, which also belongs to the total land.
Considering the same terrain as the previous example (with 15 meters in front and 18 meters in depth), imagine the construction of a house with 10 meters in front and 13 meters in depth. As a result, the built-up area would be 130 square meters.
It is important to pay attention to the fact that constructions made outside the house, such as a swimming pool and barbecue, are also included in the calculation of the usable area. Remembering that there is also the common area, which refers to the rest of the land, where there is no construction.
What to do if you are evaluating a house with more than one floor? When there is a two-story house or properties with more floors, this particularity must be considered in the calculation. Soon, the built area will be multiplied.
Imagine a townhouse. There are two floors, so the measure of the floor below must be replicated to the floor above (if the environments are exactly the same). Considering the previous example, each floor would be 130 square meters.
Consequently, the total area of a two-story house with these dimensions would be 260 m². In situations where the floors do not necessarily have the same measurements, it is necessary to perform the measurement to get the real result.
How to calculate the square meter of an apartment? The basic activity is what we have been presenting so far: measuring the width and length of the built-up area to know the result of the useful or private area.
So, in a practical example, in an apartment of 8 meters in front and 9 meters in-depth, we arrived at the unit’s 72 m² footage. It refers only to the private area, that is, the spaces occupied by the owner.
But apartments are in buildings and condominiums, right? And they have common areas, such as reception, hall, garden, leisure areas, etc. The number and size of common spaces depend on the type of building.
The outdoor area of apartments
As use environments are available to everyone, common areas also influence the calculation of the square meter of an apartment. It is not by chance that the tenants have to pay a fee for the maintenance of the spaces, right?
The condominium fee is charged according to a proportional division of the common areas in relation to the private areas. It is usually related to the size of the property, so the rate will be the same if all apartments are the same size.
To find out what part of the common area fits in, it is necessary to carry out a simple calculation that takes into account the total size of the external spaces and the number of properties. Just divide the m² by the number of apartments.
Making the example easier, let’s consider a condominium with 20 equal apartments and 800 m² of outdoor area. So, the result of the proportional footage for each apartment would be 40 m² — it is the value that must be added to the size of the property.
It is also worth remembering that, in the case of private parking spaces, you must carry out the measurements and add value to the apartment’s useful area. After all, the garage is for the exclusive use of the owner. If the space is rotating, it must make up the external area.
What elements affect the price of the property?
You just know how to calculate the square meter of a property correctly. From now on, it’s easier to define the size of the property to buy or sell, right? But how to reach the final price of the property?
Undoubtedly, the m² influences this. In general, larger properties are more expensive, also because they involve higher construction costs. However, it is not just the total size that determines the amount charged for a good.
Once you’ve figured out what the size of a property is, see what other elements you should consider to arrive at its price.
Price per m² at the moment
As you saw in this post, the price per square meter varies according to the real estate market. So even if the size or characteristics of the property do not change over time, its price may change.
It is possible to search the values that are currently being practiced per square meter. Thus, you can assess whether the properties are valued or depreciated in relation to what they were worth before.
The location of a property is one of the most relevant factors in its price. You can find large houses selling for prices close to small apartments in another part of town.
This is due to the facilities that value or devalue a good according to its location. Some neighborhoods are more sought after, which makes the price per square meter increase. Therefore, it is a central factor when you want to know how to calculate the price per square meter.
Finally, there are some peculiarities of the property that have everything to do with its price. Imagine visiting a house of 100 m² and finding only a gap with built-in walls. Surely the footage wouldn’t mean much, would it?
It’s different from visiting a house of the same size, but which has a good division of spaces, has innovative architecture, modern finish, and has an outdoor area built for family leisure. The price of this property would likely be higher than in the previous example.
In this post, you checked how to calculate the square meter of a property and how to reach its final price based on mathematical information. Don’t forget that, in addition to numbers, there are subjective and market-related characteristics for determining value!
Do you need tips on how to purchase a property? See our content on how to buy an apartment and check out the e-book “Search and Acquisition of Property: The Journey”: