Buenos Aires, Istanbul and Amsterdam have seen the biggest jump in construction investment in the last year, it has been revealed.
Research by professional services firm Turner & Townsend’s published in the International Construction Market Survey has revealed the best - and worst - cities across the globe for construction investment.
The research has revealed that construction inflation rose by just 2.1% in London during 2018, with average build costs now standing at an average of £2,880 per m2 - putting London at number 15 of the 64 cities studied.
The value for construction inflation in London is down 3% since the 2016 EU membership referendum as investors shift interest to European cities in anticipation of Brexit. The report also reveals that London is the third most expensive place to build in the world.
Despite significant pressure on the construction industry in Argentina, Buenos Aires saw the biggest rise in construction inflation at 43.4% thanks to a large number of projects in the city - such as the major urban reclamation project at Parque Paseo del Bajo.
Closer to home, in Amsterdam construction inflation rose by 8.8% during 2018, and Dublin saw inflation on construction projects rise 7.0%, in Berlin and Frankfurt construction inflation rose by 4.7%.
At the other end of the scale, Riydah and Kuala Lumpur, in Suadi Arabia and Malaysia respectively, saw no change in their construction inflation.
Muscat, the capital city of Oman was the only city which reported negative construction inflation at –1.0%.
Turner & Townsend global managing director real estate Neil Bullen said Brexit looms large over the UK construction market and its future. “Consecutive years of rising costs in London have been driven by fierce competition for resource,” he said. “Now, as the UK prepares to leave the EU, we are seeing UK local markets cool relative to those on the continent.”
“With more than half of London’s construction workers born abroad, the availability of skilled labour as well as potential supply chain disruption caused by Brexit remain critical concerns.”
San Francisco took the top spot as the most expensive place to build in the world, with the average cost to build at £3,424.65 per m2 followed closely by New York City at £3,023.60 per m2.
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