Birmingham more expensive to build in than Tokyo

Grant Prior 2 months ago
Share

UK cities feature heavily in the world’s most expensive places to build with Birmingham dearer for contractors than Tokyo.

But London has slipped to being the second most expensive city in the world in which to build according to the latest Arcadis 2023 International Construction Costs (ICC) report.

The study of comparative construction costs across 100 global cities showed London was overtaken by Geneva, with New York coming third and San Francisco fourth.

High levels of inflation continued to affect most cities in the report with London, Bristol, Manchester, Dublin and Birmingham all featuring in the Top 20.

Improved building standards and low carbon building design were significant contributing factors on construction pricing in the UK.

The 2023 Arcadis ICC Index covers 100 of the world’s large cities across six continents. The cost comparison was developed covering 20 different building types, including residential, commercial, and public sector developments, and is based on a survey of construction costs, a review of market conditions and the professional judgement of Arcadis’ global team of experts

Simon Rawlinson, Head of Research and Strategic Insight at Arcadis said: “Inflation in the UK exceeded 10% during 2022, the highest level seen for decades.

“Despite market turbulence triggered by the Ukraine War and rapidly rising interest rates, demand for construction in the UK remained strong throughout 2022. We anticipate a small contraction in 2023 as residential markets slow in response to higher interest rates.”

Peter Hogg UK Cities Director at Arcadis, added: “Despite the relatively high construction costs seen over the year, the UK – and the London market in particular – remain really good places to invest and construct, offering the potential for strong long-term returns for investors.

“Competitive sustainability credentials make our capital a desirable city and continue to attract talent from across the globe.”

Most expensive cities globally:

  1. Geneva
  2. London
  3. New York
  4. San Francisco
  5. Munich
  6. Zurich
  7. Copenhagen
  8. Hong Kong
  9. Boston
  10. Philadelphia
  11. Macau
  12. Oslo
  13. Bristol
  14. Seattle
  15. Manchester
  16. Dublin
  17. Birmingham
  18. Los Angeles
  19. Tokyo
  20. Las Vegas

Latest news

Plan approved for tallest resi tower in Wales

£55m project will be built next to Cardiff's Central Square
6 hours ago

Costain dropped from £1.3bn A66 road job

National Highways pulls Costain off TransPennine upgrade and demands its £1bn A12 widening now shared as a JV
22 hours ago

Laing O’Rourke plans to cut 200 staff jobs

Dartford head office to see bulk of job cuts
2 days ago

SES Services restructures senior team

New MD Rob Clifford to head four new divisions at M&E specialist
23 hours ago

Galliford Try ranks top in May contracts league

Kier holds pole position for highest value of work won over last 12 months
22 hours ago

£800m NEPO construction framework winners

BAM, B&K, Caddick, Esh and Morgan Sindall secure places for first time
22 hours ago

Manchester Uni reboots 3,300-bed campus plan

Initial £7m demolition package out to tender ahead of planning submission
22 hours ago

Subcontractors wanted across Derbyshire

Register now to meet big name buyers at latest Constructionline event
22 hours ago

House builder Lane End owes £12m to suppliers

Administrators probing claims by creditors about company transactions prior to failure
3 days ago

£500m Suffolk construction framework winners

Fourteen contractors and seven M&E specialists secure spots on East of England framework
2 days ago

Illegal cartel whistleblower reward raised to £250,000

Competition watchdog hikes rewards to flush out more construction bid rigging activity
2 days ago

McLaren wins £28m East London health centre job

New three-storey health centre to be built in Hornchurch
2 days ago

Balfour sells telecoms division to Obelisk

Irish infrastructure firm continues expansion plans with Balfour acquisition
3 days ago

Blackburn M65 £20m junction 5 revamp to go-ahead

Balfour Beatty to be confirmed this week to start mobilising in November for 2025 start
2 days ago

Unfit planning system means 4,700-year wait for onshore wind

Call for urgent planning reform for even a chance to meet net zero and housing ambitions
2 days ago

Commercial work boosts construction new orders

Buyers report inflation easing to its weakest for 32 months
3 days ago

Mace, T&T and Atkins secure place on MoD framework

JV wins provide technical services on £5bn defence optimisation programme
2 days ago

Enabling works start on £200m Cambridge station

Murphy starts site preparation ahead of main contractor award next month
4 days ago

Industry aims to be almost diesel-free by 2035

Big players agree first steps to eliminate diesel from most sites
3 days ago

Weston Homes plans £50m East London scheme

Land deal for 147 homes at Town Quay Wharf in Barking
3 days ago

Lee Marley Brickwork hires Countryside regional FD

Matt Sheehan joins from house builder's partnerships arm
3 days ago

Demolition deal awarded on Chancery Lane refurb

General Demolition Ltd lands demolition and enabling works package
3 days ago

Contractors no longer lagging on digital transformation

Construction shrugs-off image as late adopter of technology
3 days ago

Work stops on MAC education job

MAC-Interiors seeks protection from creditors as subbies walk away from Birmingham site
4 days ago

HS2 labour supply firm posts loss despite revenue jump

Hercules Site Services confident about future prospects despite HS2 slow down
4 days ago

Graham to lead UPP push for next generation green campuses

Student campus developer strikes deal with Architype to design and retrofit next generation net zero student halls
4 days ago

NG Bailey appoints Sellafield chief as NED

Martin Chown joins M&E contractor main board
4 days ago

EN:Procure wants firms for £700m new-build homes deal

Regional social housing consortium Efficiency North to renew house building partners
4 days ago

£470m tunnel plan for Scotland’s landslip-prone A83

Scottish Government plans 1-mile long debris flow shelter to protect vehicles from falling rocks
4 days ago

Developer dumps Henry Construction from London tower job

Growing list of subcontractors and suppliers complain they have not been paid
7 days ago

Contractor services