Revealed: World’s most expensive cities to build in

The world’s most expensive cities to build in have been revealed in the latest Arcadis International Construction Costs report. Image: Adobe Stock

According to the report, the most expensive city in the world to build in is Geneva in Switzerland, followed by London in the UK, with Zurich in Switzerland in third. The top five most expensive cities to build in are rounded out by Munich, Germany, and New York, US.

The report highlights continued pressure on construction costs across major urban cities in Europe and North America, reflecting high demand, labour constraints and complex regulatory environments.

The report underscores that while inflation has eased in some regions, particularly in major US cities such as New York and San Francisco, long-term borrowing costs, geopolitical uncertainty, and shifting trade policies are reshaping the investment landscape.

Arcadis notes that growth opportunities remain strong in key sectors such as data centres, healthcare, and social infrastructure such as education and healthcare, despite persistent inflation in certain geographies such as Australia, Eastern Europe, and parts of Asia.

The report also listed the least expensive large cities to build in. They were named as Buenos Aires (Argentina), Bengaluru (India), Kuala Lumpur (Malaysia), Delhi (India) and Johannesberg (South Africa).

“Even in challenging times, construction markets are diverse, and some areas can be expected to boom. From advanced manufacturing in the US, to energy transition programs in the UK and Europe, we are seeing the reallocation of resources to meet shifting demand,” said Juud Tempelman, global president of places at Arcadis.

The Arcadis International Construction Costs index covers 100 of the world’s large cities across six continents. The cost comparison was developed covering twenty different building types, including residential, commercial, and public sector developments, 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 full report can be viewed here.

The world’s ten most expensive cities to build in are:

Geneva, Switzerland

London, UK

Zurich, Switzerland

Munich, Germany

New York, US

Coppenhagen, Denmark

San Francisco, US

Bristol, UK

Dublin, Ireland

Hong Kong, China