Nowadays, racing has become very popular among people. That’s why different types of races (athletes, RC cars, motorbikes, dirt bikes, or horses) are arranged from time to time.
But, any pavement is not appropriate for race. A race track needs proper planning and massive resources to build. However, it also needs a huge investment.
How much does it cost to build a race track?
A track or car race track needs around $700k to $1 million depending on its location, size, shapes, materials, and many other things. Sometimes the cost may reach $20-$30 million when you upgrade the race track facilities and services.
To fulfill your desire to have your own racing track, you must have a clear concept of its cost. Otherwise, there is a high chance of misleading investment. So, let’s learn the overall cost of building a racing track.
How Much Does It Cost To Build A Track?
Building a racing track is not as easy as building a shopping mall, restaurant, or apartment. Here’s a short overview of its cost
|Land cost||$1300k -$1500k||Land buying cost|
|Construction cost||$2400k-$3000k||Landscaping, grading, tire walls, gravel runoffs, banking curves, adding hills, etc.|
|Mechanic and electric cost||$530k – $600k||Entire space close circuit TV, crowd protection fence etc.|
|Site finishing cost||$100k -$120k||Stands, external fittings, etc.|
|Equipment and amenities cost||$1000k -$1200k||Office blocks, parking lots, washroom, dressing room, paddock, etc|
|Design and project management cost||$250k -$300k||Project managers salaries|
|Legal fees||$1120k -$1150k||Permits, taxes, insurance, etc|
|Project development cost||$215k -$300k||Development|
|Total||$6915k -$8170k||Entire project handle|
Running Track Construction Specifications
After observing a cost overview, you have to know a detailed cost breakdown to decide how much you need to complete your project. This in-depth analysis will help you to spend your every buck exact the point and avoid money wastage.
1. Land Cost
It is pretty impossible to build any infrastructural facilities without having land. If you already have your own land, then it’s great. But, if you don’t have your land, you need to buy suitable land to build your racing track.
You can build different sizes of racing tracks—for example, ¼ mile, ½ mile, or 1 mile as per your convenience. Depending on the size of the track, you will need different sizes of land.
- A ¼ mile racing track needs 120 – 200 acres of land
- A ½ mile racing track needs almost 300 – 500 acres of land.
- A 1-mile racing track needs 800-1000 acres of land.
- A 2 miles racing track needs 1200 -1500 acres of land.
Besides land size, the land purchasing cost will vary depending on the location. If you choose a land in a rural area, it costs less than an urban area. Let’s see 5 famous states’ average land cost in the USA. Average land cost for 1200 acres
- Washington $348k
- Texas $285k
- Florida $722k
- New York $392k
- Georgia $440k
Land clearing cost
You won’t receive the land to start your project. Instead, you have to prepare the land by clearing its garbage or woods, and other things. According to the land position, labor availability, labor charge, and a lightly wooded area, you must spend $1,500 to $3,000 for per acre. But, if the land has heavy woods, then the cost will be $3,500 to $6,700 per acre. That means you may need around $180k to $804k to clear 120 acres of land.
2. Construction cost
After preparing your land for the main activity, it’s time to manage materials to build the track. You can use different types of materials deepening on your racing track plan.
Running track material
In recent years, the most extensive running tracks have been made with rubber running track material or concrete. There are some of the most asphalt materials that you can use to build a racing track. The asphalt materials’ per linear foot cost is roughly $70 to $170. If you plan to build one mile 2 lanes track, it may cost you around $370k to $900k.
You have to appoint many professionals for gradings, banking curves, and adding hills. You may need to spend approximately $300k to $350k for labor costs.
3. Mechanic and electric cost
If your racing track doesn’t have any space for spectators or close circuit TV to enjoy the race. Then your race track won’t be an excellent track for most people. You have to appoint mechanical and electrical experts to ensure all these facilities. It may need to spend around $500k to 1 million to pay their charges.
4. Equipment and other facilities cost
Before and after participating in the race, the players need refreshments. Not only that, but the audience also needs some basic facilities. For example, the players and audience need a car parking zone to ensure their vehicles’ safety, a canteen to check their hunger, a washroom, and a dressing room. You have to include all those facilities separately for players and audiences. All those facilities need at least $108k as equipment costs.
5. Legal fees
No matter where you live, you are bound to obey that country’s laws and regulations. To start a business venture, you have to take permission from the legal authority in that state and pay a fixed amount of taxes on your sales.
Besides permission costs and taxes, you have to collaborate with an insurance company to ensure your property’s safety. In that case, you have to pay a fixed insurance installment to the company. All of these costs may figure around $1128k.
Buy Vs. Build A Racing Track
If you don’t like to go with these lots of steps and want to own an instant racing track, then it’s an excellent option to buy one. In that case, you have to analyze the business facilities, demand, rumor, and growth. All those factors will help you make a draw line between its asking price and its justified price. You may need to spend around $889k to $10 million to buy a race track depending on its quality, location, size, shapes, and styles.
Read more: How much does it cost to lease a Ferrari?
Frequently Asked Questions
How much does it cost to build a 200m track?
It costs around $500k to build a 200m track. However, if you like to include runways to offer jumping events, the cost will increase, and reach up to $750k.
How much does a 400m track cost?
A 400m track will cost approximately $1 million from scratch to finish. But the cost will vary depending on many factors, including location, materials, labor charge, etc.
Are race tracks profitable?
Yes or not; both can be the answer to this question. It can be a profitable business for those who have passion and love for racing. Besides love the owners’ business operation skills, racing track size, and demand can be also factors to make profit.
On the contrary, those who don’t have any passion, prior knowledge about this business, and just blindly start it because many others earn a massive profit from their business. It can say they can’t sustain in this business and make a profit.
So now you know; how much does it cost to build a race track? But as it needs massive investment, we’ll suggest you take suggestions and advice from those who are already running a racing track business.
You can also invite them to your office, entertain them with snacks, and listen to their business ups and downs stories. Their practical experiences will help you understand the nature of this business. As a result, you can plan your racing track to avoid silly mistakes and so many things.
James A. Rider has been writing about savings and finance since 2016 and analyzes thousands of products to find you the best deal. He will help you save money while you shop. They cover huge products including home, garden, car, business, tech, and many more for making the best financial decision.