UK cities climb the international cost table
A study of construction costs in 90 global markets by Turner & Townsend found that while London had risen from the third to the eighth most expensive place in the world to build, many other UK cities rose in the rankings.
Bristol (16th), Birmingham (19th), Manchester (24th), Newcastle (29th) and Glasgow (30th) join London in the world top 30, closely followed by Edinburgh (32nd) and Leeds (33rd). All of these cities now rank as more expensive to build than major global markets such as Paris and Singapore, according to International construction market survey by cost consultant Turner & Townsend
Tokyo is now the most expensive city in the world to build, with an average cost of £ 2,906 per m², followed by Hong Kong (£ 2,828 per m²) and San Francisco (£ 2,701 per m²). Next come New York, Geneva, Zurich, Boston and London (£ 2,326 per m²).
The average hourly construction wage in London has now reached £ 37.3, above the UK average of £ 33.0.
The report finds construction costs rising globally due to rising material costs and shortages of skilled labor, but UK cost inflation is expected to hit 4.0% by 2023 – exceeding forecasts for the European Union, North America, Australasia, the Middle East and Asia.
Neil Bullen, managing director of global real estate at Turner & Townsend, said the pressure on the construction industry needs to be managed carefully to ensure projects stay on track: “Capacity constraints on availability skilled labor and supply chain disruptions are already providing significant inflationary pressure – and this will only intensify in the months and years to come as we focus on rebuilding after the pandemic.
“It’s more important than ever that the industry embraces wholesale reform and invests in data, technology and productivity improvements to help reduce costs and save money where we can. to stay competitive. This will complement the steps already taken by many companies to diversify the world. supply chains and become closer to their suppliers, moving from a “just in time” to “just in case” delivery approach.