The most expensive and cheapest cities in the world to build in have been revealed in the annual Arcadis International Construction Cost Index (ICC).
The report revealed that the top three most expensive cities to build in are: London, New York and Hong Kong while the cheapest cities to build in around the world are all in India: Bengaluru, New Delhi and Mumbai.
According to the report, although multiple factors influence a city’s position in the index, the main factor is the level of specification and quality, which can vary over time. The report says that, “the costs of high-end hotels and residential buildings have increased significantly in cities such as London, reflecting a global market for luxury developments that only affects a small sub-set of the cities.
”Looking forward, enhancements to specifications to deliver low-carbon developments are likely to further increase differentials. We expect to see this effect emerging first in Europe, with the universal adoption of the requirement for the delivery of near zero-energy buildings (nZEB) in the public and private sector from 2020 onwards.”
Arcadis said that the report was finished just as the scale of the COVID-19 pandemic was becoming clear.
“Just as COVID-19 is leading to a search for new forms of resilience for public health and essential services, in time, we will also need to do the same within the construction industry,” said Andrew Beard, Arcadis’ global head of cost & commercial management.
As well as COVID-19 the report also highlighted the need for the construction industry to reduce the amount of greenhouse emissions it produces. Construction processes alone are responsible for nearly 12% of global, energy-related CO2 emissions and heating and cooling buildings is one of the biggest single causes of global warming.
The ten most expensive cities to build in are:
2. New York City
3. Hong Kong
5. San Francisco
The ten least expensive cities to build in are:
99. New Delhi
97. Kuala Lumpur
To download a copy of the report, click here.