The latest International Construction Costs Report from EC Harris shows the UK has slipped down its construction costs league table.
The UK has fallen from 13th to 15th among the 53 countries ranked by the consultant.
But in Europe the UK has actually jumped a place from eighth to seventh as costs fell even quicker across the continent.
Mathew Riley, Group Head of Cost and Commercial at EC Harris said: “In the UK a slow economic recovery combined with a lack of private investment, means that construction workload is unlikely to increase until 2014 at the earliest.
“London’s office sector is a potential bright spot, however even then market uncertainty and difficulty in securing funding means that opportunities may not be fully realised.”
Highest construction costs globally: