New figures show Zürich, New York, and London are the three most expensive places to build in the world…
Figures from the International Construction Market Survey 2016 have revealed London is among the top three most expensive cities in the world to undertake construction in.
The data, which was compiled by UK consultancy form Turner & Townsend (T&T), revealed Swiss capital Zürich topped the table, with the average cost of construction reaching almost $3,700 per sq m.
New York came in second place, with costs standing at $3,650 per sq m, and London in third place at $3,550 per sq m.
Behind the top three, other major cities include San Francisco at $3,400 per sq m, and Seattle at $2,800 per sq m. The latter is expected to see costs increase by a further eight per cent in the next 12 months. Conversely, costs in Beijing saw a 10 per cent slump as demands in the city have weakened.
Steve McGuckin, Global Managing Director – Real Estate, Turner & Townsend, said: “Two macro-economic factors – the sharp fall in oil prices and China’s slowdown – have rippled across the global construction industry over the past year and triggered a rapid polarisation of the market.
“Some regions are now facing acute overstretch, with construction demand outstripping what the industry is able to supply.
During this year it is expected global construction costs will rise by 2.9 per cent, but areas that rely heavily on trade with China or the oil industry have seen both demand and levels of investment fall.
McGuckin added: “In overstretched markets both contractors and their clients must take urgent action to improve efficiency and keep cost inflation in check, while those operating in subdued markets should seize the opportunity to strip out waste and get the skills mix right for when demand returns.
“While advances in technology like Building Information Modelling (BIM) and modular construction can help, efficiency improvements of the scale required will only be achieved if the industry evolves – and develops leaner, more collaborative ways of working across the supply chain.”
