Building permit and requirements for its issuance
What is the cost of a building permit for a family house, that precious license which will open the doors for us to construct and complete our project?!
In our today’s post, we will try to specify all of the costs pertaining to the process of obtaining the building permit in Croatia. Assuming that you already own the building plot.
Since the costs vary in different parts of Croatia (there are different utility and water charges), for now, we will only focus on the City of Zagreb. These costs in Zagreb are similar to the costs in most of the coastal towns. Less expensive zones are continental ones and those in underdeveloped areas.
‘Our’ house would be of 200 m2 GFA (Gross Floor Area). It would be built in the communal Area 2 which would be the most accurate benchmark and very comparable to Dalmatia.
So, let’s start:
Family house of 200m2, City of Zagreb, Communal Area 2
1. Creation of the Conceptual and Main Design –
The assessment of the construction possibilities is the first step in the process. It is followed then by the conceptual design.
The conceptual design is the basis of the whole project, and it gives us a clear idea of the appearance, size and spatial organization of the building. It costs arround 7 € per m2.
Once the conceptual design is agreed between the architect and the investor, there comes the moment for the main design.
The main design is the basis for obtaining the building permit.
The main design always comes as a synthesis of projects of several professions (architecture, mechanical stability, electricity, water and drainage, and electrical engineering).
The price of the main design depends on the complexity of the future building. It ranges approximately from 17 to 25 € per m2 + VAT. For the purposes of this post, we will apply the value of 20 € per m2.
The price of the main design (conceptual design included) for a standard house of 200 m2: 30.000kn+ VAT (cca 5.000 eur) .
2. Surveying design – although the surveying design is an integral part of the main design, we will consider it separately due to the fact that it is done and billed independently. In a nutshell, the surveying design is important for forming the building plot, the positioning of the building on the plot, and registration of the building once it has been completed.
The price of the surveying design: in the range of 7.000 to 10.000kn + VAT
(cca 1.200 eur)
3. The cost of obtaining the building permit – as we have said at the beginning of this post, the price of the building permit as a document is not high, it only comprises the procedural cost for the issuing of the permit. Price: 1.000kn (cca 130 eur).
IN ORDER FOR THE HOUSE TO FUNCTION PROPERLY, IT NEEDS CONNECTION TO UTILITY AND OTHER INFRASTRUCTURE
In order to connect the house to utility and other infrastructure, canals must be dug, cables laid, roads repaired, etc. Today, all such works are usually charged in accordance with the realistic estimate of required and completed works. Below are the approximate prices of such works, based on our hands-on experience:
4. Gas: 8.000kn (cca 1.100 eur)
5. Water and drainage: 10.000kn (cca 1.300 eur)
6. Electricity – the cost of connection to the electricity supply network equals the amount of required power. In this case 10kW multiplied by a unit price of 2.125kn.
Total: 10kW x 2.125kn = 21.250kn. In reality, due to various additional costs (cabinets, cables etc.), the price could reach as much as 30.000kn (cca 4.000 eur). So we will use that amount.
Finally, there are also utility and water management charges.
In the past, these charges were to be paid before the permit was issued. Today they are to be paid afterward.
7. Community Infrastructure Levy – purpose of this levy is to help deliver infrastructure to support the development of the area where the house is built. Areas are determined by local administrative bodies. There are four such areas (zones) in Zagreb. The basis for the price calculation is a cubic meter, and prices range from 118kn/m3 for Area 1 to 56kn/m3 for Area 4.
Our house of 200m2 will comprise approximately 600m3 of volume. The price for Area 2 is 108kn/m3. In the case of a one-time payment for a building of up to 600m3, there is a 25% discount, and we will apply it in our calculation.
Formula 600m3 x 108kn – 25%
The amount of the Service Charges: 48.600kn (cca 6.500 eur)
*Service Charge in Makarska (Dalmatia) amounts to 138kn/m3.
8. Water Management Fee – is paid to the national water management company “Hrvatske vode”. Money spent for water management, irrigation, flood prevention etc. The City of Zagreb is in the Zone A where the price is 11,25kn per m3 for a family house of up to 400m2. Therefore, the formula is 11,25 x 600m3 = 6.750kn
The amount of the Water Management Fee: 6.750kn (cca 900 eur)
All expenses, fees, and charges before the construction
We have totaled the costs and have concluded that the building permit and other documents required to start constructing a family house of 200m2, in the Area (zone) 2 of the City of Zagreb, cost approximately 150.000kn (or cca 20.000 eur).
What about construction, how much does it cost??
There are all sorts of amounts mentioned in the press, in the Internet forums, and in other informal contexts.
Our estimate, based on our expertise and feedback received from our clients. It says that in order to build a house conforming to contemporary standards, you should consider the cost of 800€/m2. Considering the size of the house, in our case, the costs would amount to 160.000 €, or 1.200.000kn (exchange rate 1€=7.5kn).
When you add all of the costs for administration, infrastructure and other connections, permits, and construction costs, the price of our 200m2 family house would be 180.000 eur or 1.350.000kn.
The importance and price of a high-quality design
The cost and quality of building materials in Croatia is the same as in other countries of the European Union. The cost of high-quality construction is rather consistent throughout different projects. Therefore, the quality of design can greatly influence the overall value of the house. In the countries of the Western European Union, the price of the main design usually ranges between 5% and 15% of the total investment.
However, at the moment, it seems that in Croatia the investment into design is the lowest-priced item of the cost estimate. Although the Croatian Chamber of Architects recommends the range of 4% to 10%, depending on the complexity of the building. We have seen in this example that a satisfactory main design in the City of Zagreb can be carried out for only 2% of the total investment.
And what about the conceptual design?!
The conceptual design, crucial for the future value and quality of the project, is priced even below 1%. However, it can be of great value at the very beginning of the project.[/color-box]