MJD Risk Insurance Brokers

Short Term Insurance and Risk Management Consultants

“Partners in your Risk”

In estimating the replacement cost of a building, many will refer to a construction guide such as the Property & Construction Handbook published by AECOM. For example, the 2018 handbook recommends the following building rates per square metre for private dwellings (excl. VAT):

– Economic: R5 000 – R6 300

– Standard: R6 300 – R7 600

– Middle Class: R7 600 – R10 800

– Luxury: R10 800 – R17 000

– Exclusive: R17 000 – R26 000

– Exceptional: R26 000 – R54 000

*Please note that the above rates are outdated and shall serve as an example only as the latest edition of the handbook was not yet published at the time of this writing.

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