Europe dominates construction cost ranking

Five Continental European markets feature in a new ranking of the top 10 most expensive construction markets of 2012, mirroring last year's results.

As Europe continues to struggle against the headwinds of Eurozone woes, deficit reduction and challenging export market, costs actually increased across the five markets in the top 10.

Switzerland is in second place behind Hong Kong in the ranking which forms part of the 2013 International Construction Costs Report released by global built asset consultancy EC Harris.

Denmark and Sweden are in third and forth place in the ranking, with France in eighth place and Belgium in tenth place.

EC Harris said that this represents a major competitive challenge for European markets. Constructions costs in Belgium, France, Sweden and Denmark have increased by 3-4%, cementing their position in the top ten.

The UK, in contrast, remained stable in 14th place.

The annual study, which benchmarks building costs in 47 countries across the globe, found that relative construction costs have been affected by substantial fluctuations in currency throughout the year. Although building costs have fallen in the UK over the past 12 months, the UK has maintained its position lower down the rankings due to a combination of the weaker pound and inflation in some European markets. The cheapest locations to build are India, Indonesia and Vietnam where construction costs are 30-40% of levels in the UK.

The top ten most expensive countries to build in are:

1. Hong Kong

2. Switzerland

3. Denmark

4. Sweden

5. Macau

6. Australia

7. Japan

8. France

9. Singapore

10. Belgium

To download a copy of the International Construction Cost report 2013, click here