Is Price Per Square Metre a Reliable Way to Compare Homes?
🏢 Where does price per square metre come from?
Price per square metre has long been used as a key measurement in commercial property sales and lettings.
In a commercial setting, businesses are often comparing broadly similar offices, shops, warehouses or industrial units within a particular location. The incoming occupier will usually adapt the property to suit the needs of the business, potentially making substantial decorative, mechanical or structural changes.
The property is therefore often viewed as a form of blank canvas. When comparable commercial spaces have similar uses, locations and specifications, calculating the rent or sale price per square metre can provide a useful starting point.
🏠 But is it as useful for residential property?
In recent years, price per square metre has become increasingly common in conversations about house prices in Ireland. Buyers may use it to compare asking prices, assess recent sales or decide whether a particular property appears expensive.
However, in my experience, its usefulness as a residential property comparison tool is limited.
Homes are not blank canvases in the same way as commercial units. One house may be fully renovated and ready to occupy. Another may be dated but perfectly liveable, while a third may require extensive renovation before it becomes a comfortable home.
A price-per-square-metre calculation does not properly account for:
✅ The condition of the property
✅ Renovation and energy-upgrade costs
✅ BER rating and likely running costs
✅ Exact location and proximity to amenities
✅ Layout and quality of usable space
✅ Garden, parking and orientation
✅ Extension or development potential
🔍 What do these three houses tell us?
These three homes were advertised for sale in the same area on 29 July 2026. They are similar in size and their asking prices are within €15,000 of each other. However, their price per square metre ranges from €5,381 to €5,909.
Looking purely at the calculation, House 3 appears to offer the best value. Yet it is the furthest from the town centre, has a D-rated BER and requires full renovation. The lower figure does not reflect the money, time and disruption that may follow after purchase.
House 2 has a slightly higher price per square metre, but it has a C-rated BER and is presented in modern, walk-in condition.
House 1 has the highest figure despite having dated décor and an E-rated BER. Its closer proximity to the town centre may be having a greater influence on its asking price.
⚠️ One figure cannot tell the whole story
Price per square metre may offer a quick reference point, but I would be cautious about using it as the primary way to assess the value of a home.
A lower price per square metre does not necessarily mean better value. It may simply reflect a less desirable location, a poorer condition or considerably more expense after the keys are handed over.