The price per square meter is a metric used in the real estate industry to compare the cost efficiency of different properties. It is calculated by dividing the price of the property by its floor space in square meters.
To calculate the price per square meter, use the following formulas:
\[ \text{Price per square meter} = \frac{\text{Price}}{\text{Floor space (m}^2\text{)}} \]
\[ \text{Rent per square meter} = \frac{\text{Monthly Rent}}{\text{Floor space (m}^2\text{)}} \]
Assume you want to purchase a property for $500,000 and the floor space is 150 square meters. You can calculate the price per square meter as follows:
Step 1 – Determine the price per square meter:
\[ \text{Price per square meter} = \frac{500,000}{150} = 3,333.33 \]
So, the price per square meter is $3,333.33.