Arcadis' International Construction Costs Index lists New York as the most expensive city in the world in which to build. Following closely behind are London and Hong Kong.
The index, which analyzes the relative cost of construction across 44 major cities, finds that strong currency performance and significant resource constraints have seen these ‘world city’ locations command premiums of up to 60% compared with many European locations.
Elsewhere, the gradual recovery in the Eurozone has meant that these markets have avoided this high construction inflation. While, in Asia, the Chinese economic slowdown and weakening demand in many cities means that overall growth in Asia is expected to ease as we enter 2016.
Throughout 2015, every construction market saw the overall level of cost inflation restricted due to drops commodity prices. The growing uncertainty over prices will inevitably have a long-term impact on the global construction industry.
The 10 most expensive for construction according to the index are:
- New York
- London
- Hong Kong
- Geneva
- Macau
- Copenhagen
- Stockholm
- Frankfurt
- Paris
- Singapore
The 10 least expensive cities to build on Arcadis’ 44-city list are:
35. Jakarta
36. Sofia
37. Sarajevo
38. Prague
39. Bucharest
40. Ho Chi Min
41. Kuala Lumpur
42. Bangkok
43. Bangalore
44. Taipei
