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Construction costs report reveals most expensive cities to build in 2024

17/04/2024, 08:51
Construction costs report reveals most expensive cities to build in 2024
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After dropping to second place last year, London has regained its position as the world’s most expensive city for construction in 2024. While construction output in the British capital declined by over 10% year-on-year in 2023, it remained above long-term trends. The housing sector suffered significantly, but this was offset by activity in other sub-sectors, particularly commercial projects driven by retrofit initiatives. However, new construction orders in London have been falling since late 2022, accelerating in the final quarter of 2023 due to high interest rates impacting project viability and regulatory changes causing design and planning delays, driving up costs.

Other Costly Cities for Construction
Following London, the next most expensive cities for construction in 2024 are:

  1. Geneva, Switzerland
  2. Zurich, Switzerland
  3. Munich, Germany
  4. New York City, USA
  5. San Francisco, USA
  6. Philadelphia, USA
  7. Copenhagen, Denmark
  8. Hong Kong
  9. Bristol, UK

Most Affordable Construction Destinations
On the other end of the spectrum, the report identified the world’s least expensive cities for construction projects in 2024:

  1. Buenos Aires, Argentina
  2. Lagos, Nigeria
  3. Kuala Lumpur, Malaysia
  4. Nairobi, Kenya
  5. Bengaluru, India
  6. Johannesburg, South Africa
  7. Delhi, India
  8. Mumbai, India
  9. Chengdu, China
  10. Ho Chi Minh City, Vietnam

The Arcadis International Construction Costs report is an annual publication that provides a valuable resource for companies and organizations planning construction projects globally, helping them budget and plan effectively based on location-specific cost factors.