International Construction Costs 2021
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Dublin
Hong Kong
San Francisco
New York
Zurich
Oslo
London
Geneva
Macau
Copenhagen
Amsterdam
0
50
100
150
200
250
The rise of Geneva in the ranking was strongly supported by appreciation of CHF by almost 9% and increasing impact of the net-zero regulations (even though Switzerland is not part of the EU, it has decided to adopt the NZEB regulations too). The construction market in Switzerland suffered a relatively mild hit with output decreased by 2%, however a general slowdown is expected and the levels of work not likely to return to pre-covid levels for at least two years. Prices are expected to remain flat in 2021.
Geneva
1/100
Amsterdam
Macau
Dublin
Hong Kong
San Francisco
New York
Zurich
Oslo
Copenhagen
London
Geneva
2/100
Leader of the previous year’s ranking, this year London has shifted only marginally to 2nd position. Faced not only with the pandemic but also Brexit headwinds, the city continued with the construction activity, although at a lower pace. We estimate that prices decreased by 4% but this was offset by Sterling strengthening by a comparable value against the dollar. The outlook for 2021 remains uncertain with the levels of investment in construction still below 2019 values. The expectation is that TPIs remain flat in 2021, before picking up from 2022 and returning to regular 4-5% by 2023.
London
Amsterdam
Macau
Dublin
Hong Kong
San Francisco
New York
Zurich
Oslo
Copenhagen
London
Geneva
Amsterdam
Macau
Dublin
Hong Kong
San Francisco
New York
Zurich
Oslo
Copenhagen
London
Geneva
3/100
Previously in 6th position, Copenhagen climbed to the podium, driven by a combination of significant appreciation of Danish krone against dollar (approximately 10%) and introduction of additional building requirements regarding the near zero-energy buildings regulations in the EU. Construction sector was only moderately impacted by the lockdown, the movement of workers and materials was maintained, albeit with some delays in deliveries of the latter. As a result, the output decreased by a mere 0.5%, and is expected to increase by 1% in 2021, supported especially with public investment into energy and transport infrastructure. We expect the TPIs to be at the level of 2%.
Copenhagen
Amsterdam
Macau
Dublin
Hong Kong
San Francisco
New York
Zurich
Oslo
Copenhagen
London
Geneva
Amsterdam
Macau
Dublin
Hong Kong
San Francisco
New York
Zurich
Oslo
Copenhagen
London
Geneva
Amsterdam
Macau
Dublin
Hong Kong
San Francisco
New York
Zurich
Oslo
Copenhagen
London
Geneva
Amsterdam
Macau
Dublin
Hong Kong
San Francisco
New York
Zurich
Oslo
Copenhagen
London
Geneva
4/100
A new entrance to the index and a very high debut supported with strong appreciation of 7% of Norwegian krone against the dollar and reflecting the high standards of construction and cost levels in Norway. Construction sector in Norway recorded slight increase in output in 2020, driven by a strong performance of civil engineering works, while residential and commercial sectors were impacted the most. Despite relatively stable situation, it is expected that long term consequences of pandemic will be still felt in 2021 and this will be reflected in subdued investment and flat output. However, the price inflation will grow by approximately 3%, reflecting background cost increases in both labor and materials.
Oslo
5/100
Similarly to Geneva, the rise of Geneva in the ranking was strongly supported by appreciation of CHF by almost 9% and increasing impact of the net-zero regulations (even though Switzerland is not part of the EU, it has decided to adopt the NZEB regulations too). Despite pandemic, construction sector in Switzerland could celebrate the accomplishment of the biggest building construction project, a multi-function center located at the Zurich airport. Multiple investments in expansion of research and education, as well as manufacturing facilities continued in 2020 and driven by the demand especially from the pharmaceutical sector, this trend is likely to maintained in 2021.
Zurich
6/100
Usually in Top 3, this year New York City suffered the consequences of the U.S. dollar tumbling during the pandemic. Both construction activity and demand were heavily impacted, especially by the restrictions introduced during the first wave of Covid when all non-essential construction had to stop for almost three months. Output in construction decreased by almost 4%, with commercial and manufacturing sectors hit most. Infrastructure fared the best, with a number of big projects ongoing, such as Gateway Tunnel or Second Avenue Subway. The outlook for 2021 is modest with many big projects set to conclude and new work pipelines still uncertain. Despite that, there is still some inflationary pressure especially in the labor market, and even with subdued demand, the TPIs are expected to reach 2-3%.
New York
7/100
Previously in 5th position, San Francisco dropped two places, due to weakened dollar. Construction activity went offline for one week only and was allowed to continue for the rest of the year. However, strict safety procedures impacted productivity, and this is reflected in decreased output which fell by 4% compared to 2019 levels. Yet San Francisco remains an attractive market, and it is anticipated that with the economic stimulus approved, many of the projects that were put on hold will be brought back to life, especially in the residential and technology sectors. The TPIs are likely to reach 5%, even while the recovery is still ongoing.
San Francisco
Amsterdam
Macau
Dublin
Hong Kong
San Francisco
New York
Zurich
Oslo
Copenhagen
London
Geneva
Amsterdam
Macau
Dublin
Hong Kong
San Francisco
New York
Zurich
Oslo
Copenhagen
London
Geneva
Amsterdam
Macau
Dublin
Hong Kong
San Francisco
New York
Zurich
Oslo
Copenhagen
London
Geneva
8/100
A combination of economic recession, temporarily lower demand and weak dollar pushed Hong Kong out of the Top 3 into 8th position. A consequence to the redeployment of some civil service to support efforts in managing the Covid pandemic, the number of building permits granted decreased and impacted the output of the private sector. Also, subdued demand resulted in increase in spare capacity of workforce, creating highly deflationary conditions. While the recovery is expected to be accomplished by Q4 2021, it will be driven mainly by the public sector investment and TPI are likely to remain negative in 2021, at around -3%.
Hong Kong
9/100
Dublin retained its position from the previous year. While the construction sector in Ireland experienced one of the harshest lockdowns, requiring all but essential sites to shut down for few months, the market remains attractive to investors. This is reflected in the positive sentiment expressed by many Irish construction businesses, many of which anticipate dynamic growth in H2 of 2021. But there are challenges too – as the economy begins to reopen, it will take time before materials manufacturing returns to full capacity and labor market rebalances. This will cause some inflationary pressures that we expect to drive TPI to around 3%.
Dublin
10/100
Macau was much less affected by a Covid-19-driven downturn than Hong Kong in 2020. Workload decreased by around 5%, but public sector workload remained stable. With market conditions improving in the surrounding Greater Bay area, prices actually rose during the year by 2-3%. As a result, Macau climbed one position up the rankings to number 10 in the 2021 ICC. Looking forward, the government intends to stimulate the economic recovery through investment in infrastructure. It is expected that construction sector will recover to pre-Covid levels of activity by Q1 2022. During 2021, construction prices are expected to stabilize, falling by around 2% during the year to return to pre-Covid-19 levels.
Macau
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Baseline measure
43/100
Amsterdam climbed by 10 positions in the ranking, from 54th to 43rd position. A combination of nitrogen emission ruling introduced in 2019 and Covid-19 pandemic delayed multiple projects leading to an approximate 2% fall in workload. However, prices still increased driven mainly by a strong (10%) appreciation of Euro against US dollar and introduction of near-zero energy building regulations. In 2021 the workload is likely to decrease by further 3% and this will likely be reflected in TPI decrease of approximately 3%.
Amsterdam
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Download the full report to view all 100 cities.
Baseline measure
Download the full report to view all 100 cities.
Baseline measure
Download the full report to view all 100 cities.
Baseline measure
Download the full report to view all 100 cities.
Baseline measure
Download the full report to view all 100 cities.
Baseline measure
Download the full report to view all 100 cities.
Baseline measure
Download the full report to view all 100 cities.
Baseline measure
Download the full report to view all 100 cities.
Baseline measure
Download the full report to view all 100 cities.
Baseline measure
Download the full report to view all 100 cities.
Baseline measure
Amsterdam
Macau
Dublin
Hong Kong
San Francisco
New York
Zurich
Oslo
Copenhagen
London
Geneva
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50
100
150
200
250
Download the full report to view all 100 cities.
Baseline measure
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Five
Point Plan
• Build a 360-degree view of the value that your investment could deliver informed by data.
• Record the main objectives and consider what are the trade-offs are in delivering your
objectives including, sustainability, productivity and innovation.
• Prioritize the objectives and select the value drivers that support them.
Understand the context: prioritizing the objectives and defining value
• Build a holistic view of how all the parts of the project contribute to the outcomes
and identify particular functional requirements and constraints.
• Develop a detailed understanding of the requirements and the direct relationship
to the expected benefits and CAPEX/OPEX implications.
• Develop a business case based on value drivers and create a value framework.
• Prioritize the requirements understanding interdependencies.
Detail the requirement: bridge deliverables with the outcomes
• Design a solution that addresses all anticipated outcomes, identifying technologies and
innovative approaches that can best meet the requirements.
• Use cost and value drivers to fine tune the design, including the prioritization of investment
as well as the efficiency of construction and operation.
• Define optimal solution and update value framework in accordance with it.Identify the
metrics you will use to monitor the progress.
Optimize the solution: balance nice to have with must-have
• Review supply chain capability and get the understanding of the available
delivery routes.
• Align procurement route and commercial and contract strategy to incentivize the
value chain to leverage technology, manufacturing principles and innovation.
• Ensure assembled team has all required skills – not only technical but also soft skills
needed to facilitate and coordinate the delivery.
Choose the most appropriate delivery route
• Monitoring progress in real time against the expected benefits, correcting any divergence as
soon as it arises.
• Review and sign off performance requirements confirming outputs have been delivered and
long-term performance is assured.
• Continue the evaluation of benefits delivery during and post-occupancy.
Measure performance and success
Understand the context: prioritizing the objectives and defining value
Detail the requirement: bridge deliverables with
the outcomes
Optimize the solution: balance nice to have with must-have
Choose the
most appropriate delivery route
Measure performance and success
Click for more information
Five
Point Plan
• Build a 360-degree view of the value that your investment
could deliver informed by data.
• Record the main objectives and consider what are the trade-
offs are in delivering your objectives including, sustainability,
productivity and innovation.
• Prioritize the objectives and select the value drivers that
support them.
Understand the context: prioritising the objectives and defining value
• Build a holistic view of how all the parts of the project
contribute to the outcomes and identify particular
functional requirements and constraints.
• Develop a detailed understanding of the requirements and
the direct relationship to the expected benefits and
CAPEX/OPEX implications.
• Develop a business case based on value drivers and create a
value framework.
• Prioritize the requirements understanding
interdependencies.
Detail the requirement: bridge deliverables with the outcomes
• Design a solution that addresses all anticipated outcomes,
identifying technologies and innovative approaches that can
best meet the requirements.
• Use cost and value drivers to fine tune the design, including
the prioritization of investment as well as the efficiency of
construction and operation.
• Define optimal solution and update value framework in
accordance with it. Identify the metrics you will use to
monitor the progress.
Optimise the solution: balance nice to have with must-have
• Review supply chain capability and get the
understanding of the available delivery routes.
• Align procurement route and commercial and contract
strategy to incentivize the value chain to leverage
technology, manufacturing principles and innovation.
• Ensure assembled team has all required skills – not only
technical but also soft skills needed to facilitate and
coordinate the delivery.
Choose the most appropriate delivery route
• Monitoring progress in real time against the expected
benefits, correcting any divergence as soon as it arises.
• Review and sign off performance requirements confirming
outputs have been delivered and long-term performance is
assured.
• Continue the evaluation of benefits delivery during and post-
occupancy.
Measure performance and success
Understand the context: prioritising the objectives and defining value
Detail the requirement: bridge deliverables with
the outcomes
Optimise the
solution: balance
nice to have with
must-have
Choose the
most appropriate delivery route
Measure performance and success
Click for more information