London most costly city in the world for construction

Aaron Morby 2 months 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

Plans go in for 42 acre London food market

Billingsgate, Spitalfields and Smithfield to get a new home in Dagenham
5 hours ago

Premier Inn restarts construction work on 35 sites

Hotel giant committed to long term expansion plans
6 hours ago

Leading brick makers to axe 600 jobs

Ibstock and Forterra restructure businesses to meet forecast fall in demand
11 hours ago

Kier Highways and Seddon reinstated to Prompt Payment Code

Contractors now keeping to pledge to pay 95% of suppliers within 60 days
10 hours ago

London fit-out firm Square Metre in administration

Fifty jobs cut as lockdown tips £32m fit-out firm over the edge
11 hours ago

Last webinar for contractors interested in £600m plant

Final procurement information event before OJEU notice next month
11 hours ago

Offsite system to cut staircase construction times by 80%

New integrated balustrade system added before precast stairs lifted into place on site
1 day ago

Arup bags job to re-open Cardiff city centre

Arup plans to improve public spaces, repurposed streets and digital infrastructure
1 day ago

Hard-hat mounted cough guard will help protect site workers

New product from JSP will help keep sites safe
1 day ago
JSP Ltd

Keep the industry updated by joining the Enquirer Directory

Membership lets construction know you are open for business now or in the future
2 years ago

Balfour Beatty to start £355m Hull A63 scheme

All systems go for delayed Castle Street upgrade to transform Hull
1 day ago

Contractors face data danger fighting covid contract disputes

Redundancies could see project knowledge lost
1 day ago

Mace bags role on £39bn Northern Powerhouse Rail plan

Firm takes lead on project controls, project, stakeholder and commercial management
2 days ago

Cash flow fears spark call for another delay to VAT changes

Thousands of firms unaware tax change could cut cash flow by 20%
2 days ago

Driver unveils changes at the top

Mark Wheeler takes helm as Gordon Wilkinson steps down as CEO
1 day ago

ISG mobilises for £17m north London town hall fit-out

First phase of £150m Waltham Forest Town Hall redevelopment starts
1 day ago

Morrison wins £42m Scottish factory of the future

Work to start this summer on National Manufacturing Institute Scotland.
1 day ago

London mayor loans Mount Anvil £50m to boost building

New partnership to boost housing and construction in the capital
2 days ago

Henley Construct lands £12m Croydon housing contract

Demolition to start imminently to revamp street market site
1 day ago

Piling problems force BAM to tear down building frame

Major construction issues delay new £65m Sheffield University faculty building
2 days ago

Industry leaders draw up roadmap to recovery

Construction able to bounce back stronger and more productive within two years
3 days ago

Leaking diamond synchrotron roof to be replaced

Hunt starts for roofing contractor to strip and replace vast circular roof
2 days ago

ISG director leaves to head-up Structure Tone London division

Danny Blakeston joins rival as London managing director
2 days ago

Balfour sets-up “New Normal” Covid-19 taskforce

Contractor focuses on cash discipline and improving productivity on sites
2 days ago

Hinkley C team hits key target despite Covid-19 curbs

BYLOR delivers record pour on second reactor base with reduced workforce
2 days ago

Seven win new highways geotechnical framework

Highways England's new geotechnical framework worth £91m over four years
2 days ago

Plans lodged for £120m Nottingham hotel scheme

Grade II listed Guildhall to become 162-bed luxury hotel
2 days ago

Fit-out firm fined £1.1m after ladder fall

Engineer needs transfusion after massive blood loss caused by fall injury
5 days ago

SIG management blunders rack-up £112.7m loss

New boss promises growth strategy after PwC called in to investigate divisional forecasts
5 days ago

Union calls for construction workers to wear masks

Unite demands revisions to Construction Leadership Council guidelines
6 days ago

Contractor services