Construction is one industry that is constantly changing on a global scale. Inflation, costs of supplies, energy prices, and more can all affect the index in more ways than one. The construction cost index is used to measure the statistics behind those changes. In this article, we will learn more about how the construction cost index is playing out around the world in 2023.
In 2023, the city of Geneva, which is located in Switzerland currently has the highest construction cost ranking. There is currently a backlog of construction projects and there is set to be a public sector boost soon as well. The city is also expected to see an increase in the number of industrial data centers and logistics firms that are under construction soon. The construction costs in Geneva are a little more than 150% higher than average.
The next city on the list is London, which is located in England. In prior years, London was the city that took the top spot, but due to the unique challenges happening in Geneva in 2023, it has fallen to second place. In London, construction costs are averaging about 150% higher than average.
New York City in the United States comes in third on the cities with high construction costs list. Construction projects in New York City are just slightly less than 150% above average on a global scale. San Francisco is currently in the 4th place spot and has only a slightly lower construction cost than New York City.
A city in Germany, Munich, is the city with the fifth-highest construction costs in 2023. In Munich, construction costs are about 125% higher than average. The number of residential construction projects has increased in Munich in recent years, which has led to an increase in construction costs around the city. There are also plans to open a large tunnel, which will improve the city's transportation capabilities.
The other cities and countries that round out the top ten highest construction costs in 2023 include Zurich, Switzerland; Copenhagen, Denmark; Hong Kong, China; Boston, USA; and Philadelphia, USA. Overall, the country of Switzerland has been especially hit hard in the construction industry due to an increase in energy prices, inflation, and interest rates. There has also been a shortage in the number of construction workers.
While the above cities are showing spikes in costs, some areas of the world are seeing a decrease in construction costs, such as New Delhi, Nairobi, Johannesburg, Beijing, and Manila. These cities are all showing lower construction costs in 2023.
Cost (per m2)
|Rio de Janeiro