This year's International Construction Cost Comparison put San Francisco and Hong Kong just behind New York, with Copenhagen and Geneva completing the top five and London coming in sixth. The 10 least expensive cities for construction are situated almost exclusively in Asia. This year the comparison covers 100 major cities.
Arcadis said that a cooling-off of the global economy will have three principal impacts on construction market conditions in 2019: a tightening of financial conditions, a volatile supply of materials and costs and downside risks on demand for construction.
Construction companies and their clients will need to make smart decisions in order to consolidate long-term success, it advises.
“In 2019 and beyond, smart investment in three key areas is crucial for the future success of construction companies and the sector in general,” said Andrew Beard, global head cost and commercial management at Arcadis. “Firstly, innovation and digitization present an opportunity for construction companies to increase efficiency, lower costs and increased productivity while improving the end product. Secondly, a strong focus on end-user benefits is necessary. Buildings will increasingly need to be part of the urban mobility ecosystem in order to create value in the long term. 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 resiliency and sustainability as part of their business strategy and into buildings.”
Top 10 most expensive cities are:
- New York
- San Francisco
- Hong Kong
The least expensive city to build in is Bengaluru in 100th place, with New Delhi in 99th place, Mumbai at 98, Kuala Lumpur at 97 and Ho Chi Minh at 96. Belgrade, at 91, is the only European city among the 10 least expensive on the list.