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Munich in Germany is the fifth most expensive city in which to build
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There is a new most expensive city in the world in which to build, according to the latest Arcadis 2023 International Construction Costs (ICC) report – Geneva, Switzerland.
According to the study of comparative construction costs across 100 global cities, the UK capital city of London was overtaken by Geneva, with New York coming third and San Francisco fourth.
A number of factors impacted costs including high levels of inflation, which continued to affect most cities in the report. As a result, many of the top ten most expensive cities remained unchanged from last year, including hotspots such as Munich, Copenhagen, and Zurich.
Five of the top ten were also cities with dollar-denominated or dollar-pegged currencies, including Hong Kong, while Boston and Philadelphia in the US were new entrants thanks to a combination of dollar appreciation and the ongoing impact of local inflation.
According to the report, entitled New Horizons, European market costs were particularly impacted by the invasion of Ukraine over 2022, over and above the worldwide increase seen in energy costs, with the resulting disruption to local manufacturing supply chains and regional-specific energy markets adding 5-6% to the region’s inflation.
The 2023 Arcadis ICC Index covers 100 of the world’s largest cities across six continents. The cost comparison was developed covering 20 different building types, and is based on a survey of construction costs, a review of market conditions and the professional judgement of Arcadis’ global team of experts. The top ten most expensive cities are: Geneva, London, New York, San Francisco, Munich, Zurich, Copenhagen, Hong Kong, Boston and Philadelphia.