The ideal commercial building will attract and also retain tenants in Pakistan. However, in today’s hyper-competitive business market, investors or buyers always consider the location and the cost of commercial building construction. There is a high demand for commercial buildings in Pakistan due to rapid urbanisation, the shift toward development, and retail sector growth. In this blog, we will explore the important aspects of commercial building construction and its costs in Pakistan. Read till the end to get the most out of it.
What is Commercial Building Construction?
Commercial building construction involves the building’s construction, which is used for commercial purposes. Commercial buildings are constructed for office workplaces, shops, or any commercial activity. In commercial sites, various professionals are involved in the building process, such as architects, engineers, and contractors.
The first step in the construction of a commercial building is to develop a plan for it. Here, the plan will cater to all the demands from the client’s side. Once the plan is developed, the construction team can start working on erecting the building structure.
Also Read: Importance of DPC in Construction
Why is Commercial Building Construction Different from Residential Construction?
The residential buildings and commercial buildings come under the private construction umbrella, but there are a few key differences as well. These differences include site size, financing, and equipment requirements.
Commercial Construction:
Projects are usually larger in scale than the residential construction projects. The construction site is more expensive than a residential site. Also, loans or private investment fund commercial projects. Lastly, commercial building projects usually require specialised equipment.
Residential Construction:
Mortgages and private investments usually fund residential construction projects. Residential construction projects mostly don’t require any specialised equipment. Lastly, the site of the construction is mostly smaller than a commercial construction site.
Types of Commercial Construction Projects
Commercial buildings come in various types, fulfilling the demands of the investors. Here are the 8 common types of commercial building construction:
- Medical Facilities
- Retail & Grocery Stores
- Shopping Malls
- Restaurants
- Accommodations like hotels, apartment buildings, etc.
- Industrial structures such as factories, warehouses
- Institutional buildings such as universities, high schools
- Sports Facilities
Moreover, there are six distinct constructions that are pivotal to understand. These constructions are based on the used materials and their quantity within the structure.
The goal of classifying these constructions is to assess the fire risk and also estimate the potential damage a building can endure. The building construction classes include framework, masonry with joints, and non-flammable, non-flammable masonry
altered fire resistant, and fire resistant.
Levels of Commerical Construction
A recent industry article divides commercial construction into three levels: small-scale construction, mid-scale construction, and large-scale construction projects.
Small-Scale Construction Projects
These involve repairs, renovations, or expansions that don’t change the footprint of a building. Also, these projects take less time and need fewer crew members and equipment.
For example, installing new doors, windows, or roofs comes under it. Remodelling or interior office renovations and installation or upgrade of HVAC systems.
Mid-Scale Construction Projects
These projects include expanding, upgrading, and starting from the ground up. These types of projects are more complex and need several months or sometimes a year to complete.
For instance, buildings for businesses such as hotels, offices, or medical facilities come in mind-scale construction projects. Lastly, the construction of a new wing in a commercial building also comes in the mid-scale projects.
Large-Scale Construction Projects
These types of projects require a significant change in the footprint of the building or develop an entirely new building. These projects are complex and take years to complete. Equally important, these projects require more specialised equipment and also a large number of workers.
Buildings for large offices, shopping malls, or skyscrapers are some of the large-scale construction projects. Also, infrastructure projects, such as bridges or airports, will be large-scale projects. Understanding the needs of every investor, we at Union Developers provide architectural planning and construction services in Pakistan.
Estimated Cost of the Commercial Buildings in Pakistan
Moving forward, commercial buildings in Pakistan can be costly depending on the location, currency fluctuation, and quality. The estimated per-square-foot construction cost in Pakistan in 2024 is between Rs. 250 and 380. This cost may vary by design, location, and currency depreciation. Here is an estimated cost calculation for commercial building sizes:
Small commercial buildings (6,000 square feet)
- Low: 6,000 sq. ft. x Rs. 250 = Rs. 1,500,000
- High: 6,000 sq. ft. x Rs. 380 = Rs. 2,280,000
Medium Commercial Building (30,000 square feet)
- Low: 30,000 sq. ft. x Rs. 250 = Rs. 7,500,000
- High: 30,000 sq. ft. x Rs. 380 = Rs. 11,400,000
Large Commercial Building (60,000 square feet)
- Low: 60,000 sq. ft. x Rs. 250 = Rs. 15,000,000
- High: 60,000 sq. ft. x Rs. 380 = Rs. 22,800,000
Also Read: Mix Concrete in Construction
Key Considerations
Urban centres such as Lahore, Karachi, or Islamabad can see higher per-square-foot costs due to the demand, higher land value, or labour availability. Also, building with upgraded amenities can increase the Rs. 380 upper estimate.
The fluctuation of the Pakistani rupee can also increase the cost of materials and land. Regulatory compliance, contingencies, and permits can further add to the estimated overall budget (15-20%). Moreover, these estimates give a rough understanding of commercial construction costs in Pakistan for 2024.
Lastly,
Overall, commercial building construction in Pakistan is a demanding and dynamic investment landscape. While costs vary depending on location, building requirements, size, urban areas, and upgraded features can cause higher expenses. Careful planning around budgets like land value, design, and regulatory costs can ensure a successful commercial building construction project in 2024’s market. Contact us to learn more about commercial buildings and their costs in Pakistan.
