{"id":160428,"date":"2026-03-24T14:09:17","date_gmt":"2026-03-24T14:09:17","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=160428"},"modified":"2026-03-24T14:09:17","modified_gmt":"2026-03-24T14:09:17","slug":"londons-tall-buildings-market-see-costs-jump-by-up-to-40-in-five-years","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/londons-tall-buildings-market-see-costs-jump-by-up-to-40-in-five-years\/160428\/","title":{"rendered":"London\u2019s tall buildings market see costs jump by up to 40% in five years"},"content":{"rendered":"

A new report from Turner & Townsend on the tall buildings market has revealed that for skyscrapers, shape is as important as height<\/h2>\n

The Global Tall Buildings report draws on Turner & Townsend\u2019s exclusive data to provide insights into the challenges and opportunities facing developers building skyscrapers in London, New York, Seoul, Tokyo, Mumbai, and Dubai, including costs and the impact of designs and height on viability.<\/p>\n

\"\"<\/p>\n

Building a London skyscraper costs ten times the amount to build one in Mumbai<\/h3>\n

The report found that the cost of delivering a new office building in London has increased by up to 40% since 2020, one of the largest price increases<\/a> out of the cities analysed, and it is now more than three times as expensive to build skyscrapers in the city as it is in Seoul, and ten times as it is in Mumbai.<\/p>\n

This significant cost rise is the result of a range of factors that include price inflation prompted by conflicts and geopolitical events, significant regulatory changes, enhancements to the product, and challenging trading conditions following Brexit.<\/p>\n

Cost ranges for constructing tall office and residential shell-and-core buildings<\/h4>\n\n\n\n\n\n
2025\/6 costs<\/strong><\/td>\nLondon<\/strong><\/td>\nSeoul<\/strong><\/td>\nTokyo<\/strong><\/td>\nMumbai<\/strong><\/td>\nNew York<\/strong><\/td>\nDubai<\/strong><\/td>\n<\/tr>\n
Office Shell & Core ($\/m\u00b2 GIA)<\/b><\/td>\n$6,900 – $8,700<\/td>\n$2,100 – $2,500<\/td>\n$7,300 – $8,400<\/td>\n$705 – $805<\/td>\n$7,000 – $9,700<\/td>\n$1,500 – $1,800<\/td>\n<\/tr>\n
Residential Shell & Core ($\/m\u00b2 GIA)<\/b><\/td>\n$4,900 – $5,700<\/td>\n$1,800 – $2,200<\/td>\n–<\/td>\n$521 – $586<\/td>\n$5,900 – $7,800<\/td>\n$1,400 – $1,750<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

*Cost data analysis was undertaken by Turner & Townsend during Q1 2026, with cost ranges derived from Turner & Townsend project data. The report was finalised before the recent events in the Middle East and does not reflect any potential impacts arising from them.<\/em><\/p>\n

Shape matters just as much as height<\/h3>\n

However, more positively, demand for high quality, sustainable space remains strong, and confidence is beginning to return, with some large investors using their ability to take a longer-term view to get their towers into a favourable letting market. As a result, it is still possible to deliver a high quality, financially successful skyscraper in London, but only if project teams work together to address viability issues from the outset.<\/p>\n

One key finding from the report is that the shape of a skyscraper is as important as the height when it comes to the overall cost. In a city like London, there can be a 25% difference in price between the most ambitious and the most cost-efficient projects, with massing being a key determining factor.<\/p>\n

With its diverse skyline and broad range of buildings, London stands out globally for having progressed through four distinct but overlapping waves of high-rise construction in just three decades, driven by differing typologies, and developers have learned important lessons along the way. Looking to the future, London is moving through its fifth wave where there is a deep focus on value, and high-quality towers are being realised against a challenging economic backdrop:<\/p>\n