What is Price per Square Foot?
Price per Square Foot represents the cost of a property per unit area, typically calculated by dividing the property's price by its total square footage. This metric allows buyers, sellers, and investors to compare properties of different sizes and locations on a standardized basis.
In residential real estate, price per square foot provides insight into the relative affordability of homes within a specific area or neighborhood. Higher-priced properties with larger square footage tend to have lower price per square foot values compared to smaller, more expensive properties. Conversely, lower-priced homes with smaller square footage typically have higher price per square foot values.
In commercial real estate, price per square foot is crucial for assessing the value and potential return on investment of office buildings, retail spaces, and industrial properties. Investors and tenants use this metric to evaluate leasing agreements and property valuations, considering factors such as location.
How to Calculate Price per Square Foot?
Price per Square Foot calculator uses Price per Square Foot = Property Sale Price/Total Square Footage to calculate the Price per Square Foot, Price per Square Foot is a common metric used in real estate to evaluate the value of properties, particularly in residential and commercial sectors. Price per Square Foot is denoted by P_{sqf} symbol.
How to calculate Price per Square Foot using this online calculator? To use this online calculator for Price per Square Foot, enter Property Sale Price (PSP) & Total Square Footage (T_{sqf}) and hit the calculate button. Here is how the Price per Square Foot calculation can be explained with given input values -> 7500 = 450000/60.