London is one of the top 10 most expensive cities in the world for new construction projects according to a report by consultant Arcadis.
The Arcadis International Construction Costs report says New York City is the most expensive city in the world to build in.
New York was followed by San Franciso and Hong Kong in second and third place respectively. London came in at sixth place with the recent completion of the Tottenham Hotspur football stadium identified as a “positive indication of strength” for the city.
Meanwhile Dublin was ranked as the 17th most expensive city to undertake construction projects.
The second and third highest ranking UK cities were Bristol and Manchester, which came in 20th and 22nd, while Birmingham followed just behind in 23rd place.
At the other end of the scale, Belfast was identified as the cheapest city in the UK for construction.
Ireland topped the list when it came to year-on year change, with the country’s forecasted construction industry value rising 20% since 2018.
The report considered 20 different building types in the calculations. These ranged from offices to residential, retail and hotels. Other factors such as cost of labour, productivity and cost of materials were also factored in.
Arcadis managing director for buildings Edel Christie said the key for construction companies looking to operate efficiently was adopting innovations and incorporating sustainability into projects.
“In 2019 and beyond, smart investment in three key areas is going to be crucial for future success. Technological innovation and digitisation present an opportunity for construction companies to increase efficiency, lower costs and raise productivity, while simultaneously improving the end product for customers and communities alike,” she said.
“Secondly, in order to create long term value there needs to be a much stronger focus on how the buildings we construct can work for, and meet the changing requirements of, the people who actually live in or use them.
“Finally, constructing and operating buildings has a significant impact on the environment, in terms of water and energy use, carbon emissions and waste. As a consequence, clients are looking to incorporate resilience and sustainability into building design and use as part of their business and growth strategy. These key areas all require the whole supply chain to collaborate more deeply to deliver the potential value in the investments being made.”
10 most expensive cities for construction
- New York City, US
- San Francisco, US
- Hong Kong, China
- Copenhagen, Denmark
- Geneva, Switzerland
- London, UK
- Macau, China
- Zurich, Switzerland
- Tokyo, Japan
- Boston, US
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