London returns to being the most expensive construction location in the world, according to latestArcadis report- Many cities in
North America andEurope show double-digit cost increases, includingChicago ,New York ,Munich ,Berlin , and Barcelona Melbourne andSydney drop down the rankings, as higher costs get absorbed by the supply chain- Doing ‘more with less’ will be critical to long term success, as inflationary pressures and geo-political uncertainty take their toll
Due to a combination of cost drivers – including rising energy costs, materials shortages and labor availability – along with high sector-specific demand, particularly residential and industrial, markets in
Across
The 2022 Arcadis ICC Index covers 100 of the world’s large cities across six continents. The cost comparison was developed covering twenty building functions, based on a survey of construction costs, review of market conditions and the professional judgement from its global team of experts. The calculations are based in USD and indexed against the price range for each building type relative to
In addition to providing a comparative index of global construction costs, this report also looks at construction around the world and notes that differing government COVID-19 strategies have resulted in varying paces of recovery. With the impact of materials shortages and rising costs being felt across the supply chain, businesses are looking towards tackling pressing and persistent problems such as low productivity, staff retention and project resilience. Sustainability is equally high on the agenda, with the economic pressure of resource scarcity and net-zero goals increasing the importance of doing more with less. The use of digital products and solutions to tackle resource scarcity and reduce waste are key, along with a focus on the full project lifecycle, rather than the cost of short-term returns.
A five-point ‘Practical Guide’ is presented in the report to provide a pragmatic guide to dealing with the challenges ahead, demonstrating how clients can rationalize, standardize, automate, and use digital processes to be more cost-effective, and meet essential sustainability goals.
“Construction has proved itself extremely robust during the last year in adapting to the most difficult of circumstances. Sustained delivery of housing and infrastructure, better use of data, and increasing investment in technological solutions such as modern methods of construction can both improve efficiency and aid the drive to net-zero.
“This adaptability will prove vital as businesses ready themselves for the uncertain and inflationary environment ahead. While on the surface the looming market conditions sound unfavourable, we believe these challenges more than ever present our industry with a great opportunity to drive forward innovation and cement a mentality of doing more with less to reduce our own impact on resource use and the environment.”
10 most expensive cities
1. London
2.
3. Oslo
4.
5.
6. San Francisco
7. Zurich
8. Munich
9.
10.
10 least expensive cities
100. Kuala Lumpur
99. Delhi
98. Mumbai
97. Ho Chi Minh
96.
95. Nairobi
94. Wuhan
93. Jakarta
92. Chengdu
91.
Download the full report here.
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- “Construction must rapidly adapt,” says
Arcadis , as soaring costs and rising uncertainty take their toll
© OMX, source