A study of the Construction Market Indices by real estate consultancy Turner & Townsend has revealed that New York City topped the list of the 10 most expensive construction markets in the world for the second year in a row.
New York City topped the list for the second year in a row.
The study predicted that the average construction cost in New York City will reach $5,723 per square meter this year, up 5% from last year, while San Francisco came in second place with an average cost of $5,489 per square meter, and Zurich edged out Geneva for third place.
The study predicted that the average construction cost in New York City will reach $5,723 per square meter this year, up 5% from last year.
The study noted that U.S. cities continue to dominate the global ranking in terms of the high cost of construction, with Los Angeles, Boston, Seattle and Chicago showing significant cost increases compared to 2023, due to factors including strong industrial demand, along with the continued rise in labor, machinery and equipment costs.
The study noted that U.S. cities continue to dominate the global ranking in terms of the high cost of construction.
In Asia, the study said, Hong Kong is the most expensive building market in Asia this year, with an average cost of US$4,500 per square meter, but ranks ninth globally, with the city's construction industry suffering from labor shortages amid an aging population. London is back in the top ten, due to factors including the increasing value of the pound sterling compared to the dollar.
London is back in the top ten. Turner & Townsend's study also showed that strong global inflation, moderate post-pandemic economic growth and a significant decline in the value of the yen to a 34-year low were key factors behind the decline in overall construction costs in Japan this year, with no Japanese city appearing in the top ten most expensive construction markets in Asia.
Turner & Townsend's study also showed that Japan's overall construction costs fell this year, with no Japanese city appearing in the top ten list of the most expensive construction markets in Asia.
The study said that most of the global markets the firm tracks indicate that the scarcity of skilled labor is the most important factor driving cost inflation in construction markets.
Construction markets
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