Calculate the price per square meter of a home based on purchase price and area, making it easier to compare homes.
Price per square meter is one of the most widely used figures when buying a home, because it makes it possible to fairly compare homes of different sizes. A large home can have a lower total price per square meter than a small one, even though its total price is higher.
The figure is often used to judge whether a home is fairly priced for its area, or to track price trends over time in a particular neighborhood or city. Many real estate listings and statistics services publish average price-per-square-meter figures by area, which you can compare your result against.
Listings often quote more than one area figure — the total floor area within the walls, and a smaller net livable area that excludes storage rooms, parts of a basement and similar spaces. Use whichever figure the listing highlights, and try to compare like with like when checking other homes.
No, price per square meter is one of several key figures. Condition, location, layout, shared costs and the home's overall quality also matter a great deal for what's a fair price for that particular home.
Real estate agents, listing portals and local statistics services often publish average price-per-square-meter figures by area. You can compare the number you've calculated with the average for your neighborhood or city.