Construction costs in London have soared to become the second highest in the world after New York, and are set to rise another 5%.
Demand in residential and commercial sectors in particular is keeping a strained supply chain at full stretch, according to new research by the global programme managers Turner & Townsend.
The most expensive place to build in the world is New York, which has significantly higher labour costs.
Despite having a workforce nearly 70% cheaper than New York’s, London’s overall cost of construction is just 4% lower.
But cost consultants warn that with a real risk of further price escalation as demand levels outstrip capacity in key trades London may soon eclipse the US city.
The International Construction Market Survey 2015 analysing input costs – such as labour and materials – charts the average construction cost per m2 for both commercial and residential projects in 35 markets around the world.
At £2,283 per m2, London’s average construction cost is second only to New York’s – which at £2,372 per m2 is the world’s highest.
Source: Construction enquirer
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