London most costly city in the world for construction

Aaron Morby 5 years ago
Share

London became the most expensive city in the world to build in, after rising up past New York and Hong Kong just before the Coronavirus pandemic struck.

According to the latest international construction costs report from consultant Arcadis, the UK capital jumped from sixth to top place in its survey.

A year ago London ranked behind New York, San Francisco, Hong Kong, Copenhagen and Geneva.

Edel Christie, UK Managing Director for Buildings at Arcadis, said: “Continuing investment in some of the highest quality residential, hotel and commercial developments in the world has bumped up London’s cost range over the past year.

Across the UK, the construction market grew at twice the speed of the wider economy, driven by housing and infrastructure.

Outside of London, UK cities are well represented in the top 25 most expensive cities in which to build.

Edinburgh ranked in 10th place, cementing its position as a regional hub, followed by Manchester and Birmingham, in 16th and 24th place after surges in activity across sectors including offices, hotels, retail, education and student housing are all indications of a booming local construction market.

The comparative data represents a valuable snapshot into the state of construction markets on the eve of the crisis.

Over the past three weeks, the UK has faced unprecedented challenges, with society locked-down and direct Government intervention to support the economy, business and families.

Construction has been badly affected, with work suspended on around 2,000 sites and prospects for future work severely affected.

The actions taken by clients, project teams and the wider supply chain over the weeks and months to come will have a significant bearing on the future health, capacity and capability of the UK construction sector said Christie.

“The Government’s interventions to help save jobs and keep the economy running are an example of short to mid-term measures to support resilience, responding to the sudden shock caused by the pandemic.”

But he warned that the industry’s gathering momentum to face up to the global climate change challenge must not be forgotten once Government’s start to rebuild economies after the pandemic.

“Globally, we now face the challenges that COVID-19 will bring. With the global disruption of the pandemic, there is a real risk that the momentum towards climate action will be lost.

“It is crucial that we overcome the crisis, while still enhancing resilience and sustainability, and plotting a course towards a carbon neutral future. The success of our industry’s future depends on our ability to respond to these challenges effectively.”

10 most expensive cities


  1. London                                                                    6. Copenhagen
  2. New York City                                                         7. Tokyo
  3. Hong Kong                                                              8. Zurich
  4. Geneva                                                                   9. Dublin
  5. San Francisco                                                         10. Edinburgh

Where do UK cities rank?

  1. London (1/100)
  2. Edinburgh (10/100)
  3. Bristol (14/100)
  4. Manchester (16/100)
  5. Glasgow (17/100)
  6. Liverpool (20/100)
  7. Leeds (21/100)
  8. Birmingham (24/100)
  9. Belfast (36/100)

Latest news

London new home starts plunge 38% as Building Safety Act bites

Capital only region to see Q1 fall in NHBC new home registrations
1 hour ago

Higgins Homes and site workers face manslaughter charges

Contractor and four site staff charged after woman killed by falling pallet of bricks
23 hours ago

Operator spots cracked mast on Hinkley tower crane

Hinkley Point C contractor hit with safety notice over failed mast pin and cracks
6 hours ago

Countdown starts for £1bn Birmingham highways bid race

Council will break-up mega framework into five lots
5 hours ago

Acciona wins £400m Thames waterworks upgrade

Lea Valley Coppermills water treatment works to get full overhaul
6 hours ago

Pension giants pledge £25bn for infrastructure push

Seventeen pension providers pledge to invest in projects
5 hours ago

Safety row over London tower ducking fire regs by 30cm

Fire union calls on Mayor to block Bromley flats plan over single staircase
5 hours ago

Midgard lands £145m deal to build Edition Birmingham

Construction to start shortly on twin residential towers
1 day ago

McAleer & Rushe set to break £500m turnover barrier

Pre-tax profit jumped 16% to £46m last year
1 day ago

Top design team picked for £2.5bn York Central scheme

Massive city centre regen scheme moves to detailed design
1 day ago

MoD to bid £100m command HQ enabling works

Hertfordshire joint forces command centre expansion advances
1 day ago

Failed shed specialist Marbank owed suppliers £10m

Contractor was facing a string of adjudication claims
1 day ago

New scaffolding training trade body launches

Scaffolding Training Alliance formed amid disquiet caused by planned training changes
22 hours ago

£1.8bn framework planned for green retrofit drive

Procure Plus to invite bids later this month
1 day ago

Breakthrough for HS2 as first Birmingham tunnel section dug

Balfour Beatty VINCI completes 3.5-mile TBM drive in 652 days
4 days ago

HS2 Curzon Street station redesign approved as timber roof axed

Change to meet stricter fire safety rules and cut maintenance costs
4 days ago

Care home fire trial collapses

Prosecution withdrawn against four firms including Morgan Sindall Property Services
5 days ago

Leicester rebids £22m station revamp after failed tender race

Council opts for ECI route after receiving one bid for project
4 days ago

Kier wins £58m East Coast College rebuild job in Great Yarmouth

Work to start this summer for 1,300-student college
4 days ago

R G Carter wins £28m hospital car park job in King’s Lynn

MSCP paves way for £1.5bn Queen Elizabeth Hospital rebuild in 2027
4 days ago

London to relax green belt building rules

Sadiq Khan shifts position on planning
4 days ago

Willmott Dixon wins Great Yarmouth waterfront deal

North Quay 10.5 acres mixed-use scheme to advance
5 days ago

SIG chief quits to join Travis Perkins

Gavin Slark to leave by the end of this year
4 days ago

Eight take key spots on £250m Prosper framework

Housing and public building upkeep deal for North East awarded
5 days ago

Early call-out for £150m Ebbsfleet Garden City infrastructure

Bidders day to set out plan for Ebbsfleet Central commercial scheme
6 days ago

McLaren storms April contracts league with flurry of wins

Cardiff Bay Arena job headlines a series of big contract wins
5 days ago

Balfour Beatty lifts cash forecast after strong first quarter

Contractor set to hit £1bn average monthly net cash in 2025
5 days ago

Goldman Sachs-owned Adler & Allan buys 180-strong civils outfit

West Country's Glanville Environmental gets new owner
5 days ago

Caddick lands first contract for £200m Skelmersdale revamp

Developer gets green light for masterplan
5 days ago

Van Elle sells HGV fleet to haulage firm

WS Specialist Logistics pays £2.9m to take on fleet and drivers
5 days ago

Contractor services