Liket Property Services plc
Assessing construction costs for Highrise buildings and related cost drivers is crucial for various purposes. Government offices use this information to estimate property taxes. Private institutions like insurance companies and lenders also utilize it for various financial reasons. In Ethiopia, the construction of Highrise buildings is a rapidly advancing sector, but there needs to be sufficient references on cost and cost drivers, especially in Addis Ababa. A study analyzed 15 Highrise buildings over 20 Storeys above the ground floor. It used different criteria and collected factual data on 11 buildings to assess unit prices and cost-significant factors. The study used survey questionnaires and semi-structured interviews to identify the factors influencing construction costs.
The findings identified the height, function, electromechanical systems, ceiling types, and BMS as the top five cost-significant factors. The study also estimated the percentages of cost-significant items and the unit prices per square meter. It revealed that architectural, structural, and BMS works account for 43%, 31%, and 12% of the construction cost, respectively. Additionally, the study calculated the unit price range for constructing high-rise buildings to be between 33,000.00 ETB/m2 and 93,0000.00 ETB/m2, with a weighted average of 66,0000.00 ETB/m2.
By Yitref Derbie Advisor Amha Ermias (PhD)