Global construction costs are projected to increase 2.4% in 2026, though uncertainty rather than escalation is expected to pose the greater challenge for project delivery, according to a new report from Currie & Brown. Across most markets, cost growth is forecast to range between 2% and 6%, supported by demand in infrastructure, healthcare, technology and industrial construction.
The United Kingdom sits near the middle of that range, with costs expected to rise 3.6%. Public investment is supporting activity, but high interest rates and weak economic growth are limiting confidence, the report said. Many projects remain finely balanced, leading developers to proceed cautiously and often phase work rather than commit fully at the outset.
Elsewhere, local conditions continue to drive wide variations. Construction costs in China are expected to remain flat, pulling down the global average, while Japan could see escalation of 10% to 12% due to labor shortages and material pressures. The report noted that labor constraints, supply chain disruptions, energy price volatility and shifting trade policies are increasingly interconnected, amplifying risk across markets.
Currie & Brown said moderate cost growth does not equate to stable conditions and emphasized the need for flexibility as market conditions evolve. The firm noted that organizations able to respond quickly to emerging pressures and adjust plans early are better positioned to manage risk and maintain project momentum in 2026.
