The world’s most expensive cities to build and a few locations where the cosntruction cost is very high have been outlined by a new research, which is based on a comparative cost assessment. It examined the construction costs in a total of 43 locations and focused on 13 types of buildings.
The most expensive location for construction today is London, or Central London, more precisely. According to the report, the average cost of construction in this part of the UK capital has become even pricier than in Switzerland, which used to lead the ranking last year. Nevertheless, Switzerland remains the most expensive country to build in, followed by Denmark and Hong Kong.
While some locations climb on the list, others have registered a fall. Construction costs in Japan, for example, have decreased. As a result, building in the Asian country has become cheaper than in the U.S. The United States, on the other hand, saw some cost inflation last year. Despite that, however, the country managed to maintain 15th spot on Arcadis consultancy’s ranking.
Many Asian construction markets, with the exception of China, reported a good year. Both Singapore and Hong Kong registered a rise on the ranking.
The Middle East continues to be a generally unstable region. Still, the investment in social infrastructure, ecomomic diversification and transport have had a positive effect on the growth in Middle East countries. Qatar has the most expensive construction market in the region and it ranks 17th on the global list. UAE (20) and Saudi Arabia (21) occupy the second and the third spots, respectively. According to the report, a great part of the construction activity in the region currently is “event-driven” as Qatar is getting reading to host the World Cup and Dubai for World Expo 2020.
The country with the most affordable construction costs is India. Most of the other locations that can be seen at the bottom of the ranking, like Vietnam, Indonesia, Malaysia and Thailand, are situated in Southeast Asia.
A few European countries have also found a spot among the cheapest construction markets. Among them are Bulgaria, the Czech Republic and Romania.
Most expensive locations to build in: London, Switzerland, Denmark, Hong Kong, Sweden, Australia, France, Austria, Germany, Belgium.
The report also makes predictions on construction cost tendencies in 2015. It is expected that Europe will again register weak growth in 2015, that will be a result of the sanctions against Russia. Nevertheless, a number of countries outside the Eurozone, like the UK, Eastern European and Scandinavian countries, will have a higher chance to witness a stronger performance this year.
In Asia, China will manage to maintain its current growth level through its project diversification strategy. Also, Malaysia’s rise on the list is predicted to continue over the next twelve months.
The report, expects that Qatar, Saudi Arabia and UAE’s Abu Dhabi will be the most lucrative spots to invest in construction in the Middle East region. North American countries, on the other hand, are predicted to undergo a construction recovery in 2015.
