New

Horizons
International Construction Costs 2023
Foreword

Our 2023 International Construction Costs Report, entitled

‘New Horizons’, looks back at another highly disruptive year
across global construction markets. The high construction price
inflation that we first reported in 2021 broke out across most
parts of the global economy in 2022. Even as domestic inflation
hit double figures, construction price rises accelerated further,
prompted by a unique combination of strong demand, supply
chain disruption, tight labor markets and soaring energy costs.
Construction markets had mixed fortunes in upwards. These barriers need to be addressed
an unsettling year of stop-start development. head-on, and in this year’s International
Whilst overall volumes of work shrank by Construction Costs Report, we have chosen to
around 5% in the US and Canada, Australia and focus on pragmatic steps that clients can take
China benefited from a post-Covid bounce- in any market to invest in the longevity of their
back. In Europe, differences in fortunes were building portfolio. Our five-point plan sets out
even more stark, with France, Belgium and the a comprehensive approach to the repositioning
UK continuing to grow whilst previous high- of existing assets for long-term performance.
fliers Germany and Ireland lost momentum.
Even as markets stabilize in 2023, the
The stop-start theme is an important one, challenges won’t go away. Prices will stay at a
because it points to widely based, contrarian high level. Skills and resources will remain in
trends that affect our markets. 2022 saw short supply. Clients that understand and act
the likely end to an era of cheap money as on their own priorities and the ability of the
interest rates were hiked around the world market to respond will deliver highly successful
to tackle inflation. Such a move will have investment programs in line with market
profound effects on demand for private sector expectations. This report provides the insights
construction, anticipated by a slump in real needed to anticipate market conditions and
estate investment last year. At the same time, latest thinking on asset optimization, equipping
capital is pouring into giant energy transition clients to ensure that investments in new and
and infrastructure programmes, soaking up existing assets are delivered successfully,
available resources and creating new pinch whatever the temperature of the market.
points in specialist trades. Not even sky-high
inflation will stop these government-supported
programs, meaning that other clients are
being crowded-out – unable to make timely
investments in response to market signals.

One area where timely investment is critical

is in the longevity of existing building stock
in the face of the twin challenges of low-
carbon performance and climate change
resilience. The green premium for accredited
low carbon buildings will get wider and wider.
Property owners have no choice but to invest
to protect asset value. High construction
prices and rising interest rates are a big barrier
to action, but ‘do nothing’ isn’t an option
when regulations, investment standards and Kathleen Abbott
customer expectations are all ratcheting Global Sales Director, Places, Arcadis

2 International Construction Costs 2023 International Construction Costs 2023 3

The Arcadis
International
Construction Costs
Index 2023
A look back at 2022
Inflationary spikes prevailed throughout 2022, even as a
V-shaped recovery in Europe and North America petered out.
The prospects for a sustainable recovery proved short-lived
as supply chains continued to buckle under the strain of high
demand, and as interest rates soared. The client challenge in
2021 was deliverability – assembling the team and the supply
chain to deliver a project. During 2022 the challenge expanded
to include viability, particularly as the cost of finance increased
by 400 basis points or more.

By 4th quarter 2022, annualized GDP growth rates in most markets covered by the
ICC had slowed to a crawl. Only the US, Australia, Denmark and the Netherlands
showed much life, with the Eurozone contracting at an annualized rate of -0.1%.
Prospects for 2023 are uncertain. Forecasters hope for a soft-landing in Europe
and North America, but that might be difficult to engineer. Nevertheless, the
International Monetary Fund (IMF) projects growth of 2.8% for 2023, with 5%+
expansion in China, India and South East Asia compensating for much weaker
prospects in North America and the Eurozoane.

It is by no means certain that Central Banks will be able to trace a path to low
inflation by the end of the year. Whilst structural inflation associated with energy
costs will drop out, core inflation has proven to be much more deeply rooted.
The prospect of higher interest rates for longer will continue to weigh down on
investment in the commercial and residential sectors.

4 International Construction Costs 2023 International Construction Costs 2023 5

International Construction Costs Index 2023
Geneva
London
New York City
San Francisco
Munich
Zurich
Copenhagen
Hong Kong
Boston
Philadelphia
Macau
Oslo
Bristol
Seattle
Manchester
Dublin
Birmingham
Los Angeles
Tokyo
Las Vegas
Edinburgh
Cardiff
Chicago
Washington DC
Glasgow
Christchurch
Berlin
Vienna
Singapore
Stockholm
Denver
Auckland
Detroit
Toronto
Nice
Sydney
Frankfurt
Belfast
Paris
Helsinki
Phoenix
Brussels
Calgary
Lyon
Miami
Brisbane
Luxembourg
Montreal
Melbourne
Dallas
Houston
Prague
Abu Dhabi
Riyadh
ICC 2023:
Update on the index
Rome
Milan
Perth
Seoul
Dubai
Bratislava For 2023, we have expanded coverage in Eastern
Santiago
Amsterdam Europe and Western Africa. Our commentary on
Adelaide Canadian markets is supplemented with insight
Sao Paulo
Rio de Janeiro from colleagues from Arcadis IBI.
Zagreb
Riga
Lisbon Geneva tops the ICC index this year, closely
Sofia
Budapest followed by London. Most of the top 10 cities
Bucharest
Belgrade remain unchanged with perennial European
Barcelona construction cost hot spots, Copenhagen and
Porto
Warsaw Zurich, high in the rankings. Munich has moved
Malaga
Krakow up to 5th place, highlighting not only the impact One notable move in the 2023 ICC index is our
Mexico City of a second year of punishing price increases in baseline location, Amsterdam. As highlighted
Madrid
Istanbul Germany, but also the large premium associated in our Country and City commentaries, the
Manila
Athens with building in the city – costs are 25% higher Netherlands construction sector has faced
Bogota than Berlin for example. Five of the top-10 are multiple headwinds during 2023, including an
Beijing
Shanghai cities with dollar denominated or dollar pegged economic slowdown and permitting delays.
Buenos Aires
Lagos currencies, including Hong Kong. Boston and Our data for Amsterdam shows that even
Shenzhen Philadephia are new entrants. Their inclusion though input costs were rising, contractors
Guangzhou
Jakarta is mostly due to local inflation, although dollar were discounting their bids to secure work.
Wuhan
Bangkok appreciation during 2022 certainly helped. Overall, prices rose by only 1-2%, and as a result,
Nairobi According to currency comparison model The Amsterdam fell 11 places from 51 to 62 in the
Chengdu
Johannesburg Economist Big Mac Index, the Euro and US Dollar rankings. This is an important point as we look
Ho Chi Minh
Mumbai are broadly trading on a par, so the ICC ranking is forward to 2023, as we expect to see similar cost
Delhi a good reflection of current cost differentials. absorption in many markets as demand softens.
Kuala Lumpur
Bengaluru

0 50 100 150 200 250

< Less likely to construct Index base: Amsterdam 100 More likely to construct >
International Construction Costs 2023 7
Inflation drivers – global trends and
the impact of the Ukraine War
Looking at the wider index, and for the second year Colleagues across Europe have highlighted the
in succession, high levels of inflation affected most steps taken by clients and their teams to ensure
cities in the survey. Fewer than 10 cities recorded that budgets were met and that projects could
zero or negative inflation, all located in South East proceed. Lessons learned during 2022 could be
and East Asia. Cities in Australia and New Zealand usefully applied across other markets in times of
previously affected by extended lock-down saw high inflation, for example in Ireland, where a new
prices rise as they experienced their version of a Inflation Co-operation Framework was added
V-shaped recovery. By contrast, China’s extended to the Public Works Contract. For the record,
lockdown means that a price bounceback in many mitigations adopted included:
Asian markets is not likely to take hold until 2023.
• Early purchase of materials
The sector-specific inflation we highlighted in
2021 proved to be an early warning of the much • Changes to the project scope
more broadly based price pressures seen last
• Renegotiation of prices
year. With double-digit consumer price inflation
in many markets, construction clients were • Inclusion of price revision clauses in contracts,
inevitably going to be exposed to further price including formula-based calculations
escalation. Some price pressures did subside, with
the prices of metal commodities falling by 25% • Focused use of prime cost-based procurement
between January and October 2022, and timber on elements exposed to high inflation
markets returning to normal.
• Use of provisional sums to enable delayed
The invasion of Ukraine inevitably had a specific procurement of later packages.
effect on costs in European markets, over and
above the worldwide increase in energy costs. Our
assessment is that the combination of disruption Premium costs of net zero carbon
to local manufacturing supply chains and regional-
specific energy markets added 5-6% to inflation in Our commentary on inflation in the ICC is mostly 7-10%. The increases seen in the UK are broadly
European markets during the year. Construction focused on background price increases that affect compatible with changes seen to the costs of
was particularly exposed to the European energy projects, irrespective of design and specification. projects in the EU at the introduction of the NZEB.
crisis due to the energy intensity of manufacturing The cost data behind the ICC rankings also
processes for materials including steel, cement, accounts for changes to specification. With further Interestingly, although projects in Scandinavia
glass, brick and block. At the peak of the energy changes to building codes and specification have historically been associated with some of
crisis in August 2022, Arcadis modeling of standards associated with the pathway to net-zero the highest cost levels in the ICC, we have not
manufacturing input costs suggested that energy carbon buildings, we are seeing further evidence of seen a cost premium associated with low carbon
accounted for 50% of the manufacturing cost of the cost implications of low carbon design. design. Specification standards in these markets
cement and glass. are already very high, so the final steps to a net
The Nearly Zero Energy Building (NZEB) standard zero building can be taken with little additional
has applied to EU markets since 2020, requiring cost implication.
improvements to thermal performance and some
low-carbon energy sources. More recently in 2022,
the UK launched an interim step to a fully net-zero
specification for residential and non-residential
buildings. Revised costs allow for a like-for-like
comparison with previous standards, providing
an early insight into the cost implications of low
carbon design standards that will have to be
adopted more widely.

In the UK this year for example, the budgets for

public sector buildings including schools and
hospitals were increased by 10% to allow for
upgraded specifications. The cost uplift associated
with the interim version of the UK’s Future Home
Standard are lower, typically in the range of 5-7%. Kayleigh Owen
Commercial buildings, also now specified to an Head of Cost and Commercial
upgraded standard, have seen costs increase by Management, Arcadis

8 International Construction Costs 2023 International Construction Costs 2023 9

Deep Dive:

New World Order -

the impact of higher
finance costs

Some sectors are much more resilient. Multi- However, from distress comes opportunity. We
The implosion of Silicon Valley Bank (SVB) in March 2023 was a family rental housing development for example anticipate that a shake-out of markets for existing
brutal reminder of the risk that the effects of higher finance costs continues to benefit in many markets from high city-centre stock will prompt fresh thinking about
could spread far beyond the direct impact of increased costs of levels of demand and a shortage of supply. Other the reimagining of existing assets that benefit
sectors which benefit from structural growth, from excellent locations, with value-add and
borrowing. Silicon Valley Bank collapsed after the falling book value including data centres and last-mile logistics, or opportunistic funds leading the way. This is a huge
of its long-dated bond investments created a liability mismatch, energy transition, including gigafactories, have a challenge for existing investors, and new ideas
momentum that won’t be slow, even in the face of and new investment will be needed to reposition
which triggered a run on deposits. SVB clients withdrew $48 billion higher finance costs. what otherwise might become stranded assets.
in one day, highlighting how digital systems can amplify some of As we highlight in the next section on ‘Taking the
the effects of contagion. Existing commercial property is doubly exposed. Long View’, owners have many opportunities and
Not only have finance costs increased by 400 levers to enhance the resilience of their properties.
basis points or more, but income streams and However, if proactive steps are not taken, then risks
February 2023 saw base rates in the US and UK increase to a 15-year highpoint. Although they may be near asset values are reduced by a higher discount rate, of a further deterioration in asset value will grow.
their peak, the days of rock bottom rates are over. The market is normalizing, and expectations reported by cutting for example, the present-day value of the
CCLA and Bloomberg are for UK rates to still be above 3% by the end of 2026. benefits that can result from energy-saving low Investors in long-lived assets have to take a long-
carbon investments. Lower asset values could term view. Required adjustments to higher finance
Demand for housing will inevitably be hard hit by affordability issues triggered by higher mortgage rates. trigger further risks associated with loan-to- costs will be painful but the effects will eventually
However, the impact could spread much further. Evidence of the broader effect of the interest rate cycle value covenants and funding gaps. According to unwind, and ultimately owners and investors
is plain to see. Property related shares fell significantly during 2022, and as we write in March 2023, the Bloomberg, the global stock of distressed debt in will benefit once again from improvements in
UK’s FTSE 350 Real Estate Index and the Dow Jones US Real Estate Index are both 30% below price levels Real Estate totals nearly $150 billion. Owners of investment value aligned to the quality and
office towers in midtown Manhattan are reportedly longevity of their asset portfolios.
seen in December 2021. Given the hefty discount to asset value, some developers are choosing to pay off
‘handing back the keys’ to their lenders rather than
expensive debt with sales proceeds rather than taking forward new development.
wait for asset values to recover.

10 International Construction Costs 2023 International Construction Costs 2023 11

ICC 2023

Taking the long

view – investing to
protect property
value for a net
zero future
2022 was a very challenging year for developers and owners of
investment property. This was one of the overwhelming messages
that we took from our 2023 ICC surveys. Investors and owners have
faced challenges from all angles, not only the higher construction
costs that the ICC is focused on, but also increased finance costs,
reduced numbers of transactions and, most significant of all,
depressed asset values. Whilst rents for new Grade A assets in
prime locations have held up, the outlook for returns from older
stock has deteriorated.

Investors and owners need to respond to these challenges. However, property is a cyclical business
and traditionally, in difficult times, the lowest cost and perceived lowest risk option has often been the
do-nothing approach. An alternative, perhaps only for a more opportunistic, risk-seeking developer, is to
invest in anticipation of market recovery. Looking back at the Great Financial Crisis (GFC) of 2008 to 2012,
some of the best returns were delivered by properties that were launched early into markets that had
been starved of new space requirements and box-fresh assets. These developments also benefited from
access to new sources of investment capital from private equity, sovereign wealth, and other sources such
as the giant property exchange traded funds established by asset managers such as Blackrock.

12 International Construction Costs 2023 International Construction Costs 2023 13

Protecting the value
and future returns
from existing assets
One difference between now and the GFC is that any
hiatus in investment and letting is also likely to have a
cost related to the climate change and carbon reduction
agenda. Strong demand for the most sustainable
buildings in prime locations underscores a tectonic shift
in markets in favor of modern, green stock. As this stock
becomes more common, what we currently describe as
the ‘green premium’ is on track to become the baseline
rent. When this happens, markets will have crossed an
obsolescence horizon. Market support for returns and
values from poorly located and under-invested assets
will fall away and momentum behind a brown discount
will accelerate. Little wonder that the green premium for
prime assets, or the brown discount for tired buildings,
has widened to between 25% and 35% in markets as
diverse as London, Paris and Sydney according to latest
data from RCA/MSCI.

As property markets evolve, Environment, Social and

Governance (ESG) expectations and reporting standards
are also getting tougher, such as the EU’s updated
Sustainable Financial Disclosure Regulation (SFDR) and
the EU’s Investment Taxonomy, which are having a direct
impact on portfolio selection and performance reporting.
New Nationally Determined Contributions (NDC)
associated with the Paris Accord and COP 27 ambitions
mean that more regulatory net-zero deadlines are in the
pipeline, which means that leading-edge standards that
are currently seen in the EU are likely to be applied to a
Insights from the Great Financial Crisis –
wider range of markets, including the US.
getting on the front foot
Delaying investment to improve asset performance
might be acceptable given current market conditions We expect the 2023 slowdown to be short-lived, with many markets like the UK and US avoiding
but taking the eye off the ball with respect to changing recession. By contrast, the GFC lasted over five years. Despite the big differences, there are some
client and ESG expectations is a risk too far. Holders valuable lessons to take from the GFC for investors and owners who are faced with many challenges,
of investment property need to stay engaged with the not only with respect to the actions needed to maintain progress on projects, but also lessons about
market, focused on changing occupier needs, even as making sure that specification is fully aligned to occupier needs, and that projects are deliverable.
they wait out the current turmoil. These apply as much to refurbishments and upgrades as they do to new build. These include:

This is why it is so important to actively maintain the • Demand for space emerges before viability • Downturns accelerate change, particularly
long view – looking through the current cycle - taking the metrics stack up. In 2010 the blocker was specifications and user expectations.
steps that are needed to protect and ultimately enhance availability of finance. In 2023 the issue for Developers need to look ahead to the new
returns for today, and asset value for the long-term. owners is much more likely to be linked standards, not backwards to the status quo.
to the cost of retrofit and upgrade.
• Difficult markets foster difficult projects.
• The window of opportunity to deliver the Clients who invest time and energy
best development value in a downcycle in a collaborative project team will
is short. Projects need to be prepared secure the better outcome. Lowest
in anticipation of the opportunity. cost is not always best value.

The current development cycle has lasted over a decade and the GFC is a distant memory. However,
the key lesson of being ready to act when the time is right is completely relevant to the challenges
faced by today’s owners of existing assets, particularly when it comes to ensuring they remain
aligned to current and future market need.

14 International Construction Costs 2023 International Construction Costs 2023 15

What levers to pull?
Steps to increase the
resilience and long-term
value of investment property
The factors affecting long-term value are complex and
interlinked. They vary by city, by location and by asset
type. In US cities where home working has become much
more entrenched since Covid-19, economic obsolescence
has become a real threat to asset value, particularly in
city centres. By contrast, in UK and European cities, office
working is re-established, but the division between high
quality and non-performing workspace, and between
prime and secondary locations, has accelerated. In
both situations, existing assets need investment to
remain competitive, but the solutions are different.

Decisions are of course more complex when assets are held

in portfolios. Investors and owners face the challenge of
prioritizing expenditure against multiple criteria, having
made trade-offs across asset types, geography, type of
investment and the returns that are generated.

To support this complex process, we typically focus on

four pillars that summarise the key variables that will help
to determine the relevance of an asset and its value in
the current market. The pillars naturally work together to
enhance value, so a balanced application of the levers will
deliver the optimum outcomes. The pillars cover long-term
chronic issues, such as network capacity in the face of more
acute challenges such as the weather effects of climate
change. By applying the pillars using a holistic approach,
decision making will be more balanced and better informed.

These variables operate at different scales ranging from

national policy, through city climate and infrastructure,
to the planning context of a city block and the level of the
individual asset and user need.

Energy performance and Climate change exposure affecting Local infrastructure resilience: Potential for asset repositioning:
decarbonisation: assets and infrastructure:

Asset performance relative to Urban heat stress risks. Quality and resilience of building Asset potential – location,
current energy standards and infrastructure – networks, data and design, and specification.
sustainability reporting. building services.
Planned performance and reporting Climate-related natural perils – Clean energy provision, Planning potential – massing, change
targets for net zero, with implications wildfires, flooding, storm surges. including plans for expansion of use, planning gain.
for investment. across the network.

Planned investment, incentive, and Known plans for mitigation. City infrastructure and network Market potential – user and
penalty programmes. resilience, including disaster investment demand, green finance.
recovery planning.

16 International Construction Costs 2023 International Construction Costs 2023 17

Creating momentum – taking first steps
Property’s strength is that it is a long-life asset. Held as part of a wider portfolio, property’s role is to
provide portfolio diversification, predictable returns and inflation protection. Cyclical property markets
also create opportunities and threats as markets ebb and flow.

In the current market, when ‘do nothing’ or ‘wait and see’ might seem to be the best option, these two
characteristics – long-life and cyclicality - work against investing in asset resilience. Long-life, because the
durability of property can lull investors into a false sense of security, and cyclicality, because owners stop
investing when asset values are at risk.

However, this approach is no longer fit for purpose. The rate of obsolescence is accelerating as occupiers
demand improved performance and as the range of risks increase, triggered both by climate change and
consumer behavior. Who would have thought that urban heat stress was a risk to asset values in Northern
European Cities before the summer of 2022? Assets need to be made resilient for a fast-moving market
and that requires some targeted intervention.

There are many barriers to action, not least the fact that most buildings are occupied so delivering
investment is hard work. Furthermore, as highlighted by our 2023 data, the construction supply chain is
busy, and work is costly and challenging to procure. Clients will need to take a long-term view, but they
also need to create momentum.

The best way to start is through no- Existing assets will ultimately need
regret actions. Work that will have to be significant investment to retain their long-
done at some point, which has inherent term relevance and value. Given market
value, but which could easily be put off. challenges in 2023, this investment might
No regret actions could include simple not feel like a priority, but planning for the
energy efficiency improvements or carbon- investment is. By investing in anticipation
emission reductions associated with energy of their markets, developers and owners
sourcing. It could be a plan that anticipates can take the first steps to protect the value
government incentives and penalties for of their assets against a net zero future.
investment in low-carbon retrofits. It could
involve the use of simple digital tools to
improve the understanding of how users
behave, and how a building could be
adapted to improve their experience.

18 International Construction Costs 2023 International Construction Costs 2023 19

Protecting property value Map the local timeline for
developments in building
Identify changes that will
have a material impact
Build mitigation steps
into the long-term renew/
design regulation, financial on leasing, refinancing or reinvest/disposal asset
1
A five-step action plan
markets and reporting asset valuation – e.g., new management plan.
Plan ahead for how standards, including known carbon intensity standards
regulation and changes and likely direction for loan portfolios.
governance will affect of travel.

to invest in the longevity

property values

of property portfolios
Screen across a wider range Size the big risks – even Identify no-regret
of risk types and timescales if they are far in the actions that can be taken
– e.g., climate change, future. Use the 80:20 as a part of planned
health and well-being, and rule to focus effort. investment programs to
2 Identify and quantify
business risks. Consider
risks to 2050 and beyond to
Identify the mitigation
steps that could be taken
improve risk resilience
– e.g., energy efficiency
The past three years have been challenging for many property investors and the full range of risk account for long-term asset now with little impact. measures to reduce
exposures affecting value implications. sky-high running costs.
owners. During times of uncertainty, the rational, least-cost and lowest-risk asset your property portfolio
management strategy is often to do as little as possible, reducing investment until
prospects improve, whilst also minimizing the chances of making costly mistakes.
But can investors afford to wait out the turmoil in 2023? To guide these actions, we have developed this Anticipate and follow Use digital technologies to Understand how your
Can previous experience be relied upon? Are markets guide to prompt developers and owners to think market trends. Invest enhance the connection buildings are used.
moving faster than before in response to changes in product about the full range of issues influencing the in understanding with your occupiers and Develop building
standards, regulation, risk exposure and client expectation? value and longevity of their property assets. how tenant and user investors – from BIM and intelligence capability
Has the time-bound requirement for low-carbon retrofit
in many markets changed the investment model? We have identified five key prompts to help clients
3 Track and adapt
expectations are evolving.
Build closer relationships
digital twins to apps and
virtual environments,
including predictive
analytics to track and
interrogate their current approach to asset management. to changes in user with occupiers using use adaptable digital anticipate building
Our view is that risks affecting the underlying longevity of These prompts will help clients to identify whether flexible leasing models solutions to increase the performance and user
demand and opportunities attractiveness, flexibility,
an asset, or a portfolio are becoming more complex and they are considering and acting on all relevant issues behaviors in real time.
more significant. This is a product of the pace of change and that affect long-term returns and asset value. for collaboration. and value of your assets.
the approaching obsolescence horizon driven by net-zero
requirements. Fortunately, these risks are also actionable.

Maximize the value of the Exploit the strengths Exploit the power of
location and the site. How of the existing asset – digital modeling to
3 will the location develop
in the future? Could a
identify opportunities
to reuse and extend
understand all the
opportunities over
4 change of use enhance
value? Can the potential
the existing fabric.
Maximize reuse of
the asset lifecycle.
Model the implications
Identify repositioning
2 4 opportunities
of a site be enhanced
through a new approach?
the fabric to minimize
embodied carbon.
of new proposals for
future adaptability.
Track and adapt
Identify and quantify to changes in
the full range of risk user demand
exposures affecting Identify repositioning
your property portfolio opportunities
Develop a dashboard Measure the wider social Acknowledge the value of
of asset performance and environmental longevity by highlighting
metrics that support value of the asset in its enhancements to

1 A five-step action plan 5 5 Build and measure

the business case for
investment. Combine
current and future uses.
Align to the targets
asset resilience.

Plan ahead for how

regulation and
to invest in the longevity Build and
a benefits case
specification benchmarks
and in-use KPIs.
of partners including
users and funders.
governance will affect
property values
of property portfolios measure a
benefits case

20 International Construction Costs 2023 International Construction Costs 2023 21

ICC 2023 France
GDP in France increased by 2.6% in 2022, down from the 6.8% growth recorded
during the 2021 rebound. Latest projections from the International Monetary

Construction
Fund (IMF) have French GDP growth stalling at 0.7% in 2023, recovering to 1.6%
in 2024.

Construction firms approached 2022 with optimism, with a high level of planned

around the world

activity in the first half of the year. Total output eventually increased by 2-3%.
The Ukraine war led to increasing difficulties in obtaining credit, triggering
construction cost inflation to rise to an all-time high of more than 8% in the first “2021 and 2022
three quarters of the year, according to the National Institute of Statistics and
Economic Studies in France. This was experienced on Arcadis projects, with the were extraordinary
data center segment for instance seeing significant price increases for specific
equipment such as generators and transformers. years marked firstly
Looking forward, PMI data published in February 2023 showed that France’s
by the Covid-19
construction sector remained stuck in a downturn at the start of 2023, held back pandemic and then
by the housing sector falling at “a considerable pace”. Housing looks set for a
tough 2023, as the number of building permits issued declines. disrupted by the
By contrast, some commercial sub-sectors will be more buoyant and offer better shock of the Ukraine
prospects for well-placed contractors. Demand for data centers is still strong, for
instance, while the Paris 2024 Olympics continues to boost demand in the leisure
War. Our experience
and hospitality segment. is that the French
Looking further ahead, infrastructure will help to sustain long-term workload. construction market
Europe High-speed rail projects remain high on the agenda. Projects in planning include
the €19.4bn modernization of the Marseille - Nice line, along with the €26bn
has been flexible
greenfield Turin-Lyon project. Elsewhere, work on the €42.6bn Grand Paris
Express is well underway. It is due to be fully operational by 2035, adding more
enough to adapt
The Netherlands than 200km of track and 68 new stations to the existing network. quickly to the
GDP in the Netherlands grew by 4.3% overall in 2022, boosted by a strong rebound
from lockdown in the first half of the year. Forecasts suggest that this will slow to
changes. While 2023
just 0.4% growth in 2023. Consumer price inflation peaked at 11.6% in September promises to be a
2022 but is predicted to fall to 4.9% in 2023 and 4.0% in 2024.
difficult year for the
Growth of the construction sector has lagged the wider economy since early 2021.
Output in real terms fell from 3rd quarter 2022 onwards as a result of project delays
sector, there are
and de-scoping. As a result, construction prices rose by 1-2% in 2022, one of the
lowest figures in the sample. Amsterdam fell from 51st to 62nd in the ICC rankings
some encouraging
this year. Low inflation in the Netherlands resulted from contractor discounting of “Insight into the signs. We are
around 6% in competitive bids. Structural cost inflation increased by 7.5% overall,
with labor costs rising by around 4% and materials by around 10%. costs and cost looking forward to
Affordability is still very much an issue and many clients have secured competitive
developments, greater stability
bids by allowing for inflation risk transfer, often calculated using BDB indices. proactive steering and lower levels of
Although deflation has helped to keep construction costs down during 2022, the and fair settlement price inflation.”
introduction of net zero targets in 2021 has resulted in specification upgrades, with
construction costs up between 4% and 11% depending on building type and size.
are essential to keep
The outlook for 2023 is downbeat, with a cooling housebuilding sector. Statistics
construction projects Nicolas Boffi, France

Netherlands (CBS) reported that in Q3 2022, the number of new build property affordable and
transactions fell by over a third year-on-year. This was the largest decline since the
measurement of transactions began in 2015. feasible. This applies
Other headwinds include continued issues around nitrogen emissions, high building
to both the client
material prices, a shortage of development land, and local authority staffing issues
impacting the processing of building permit applications. However, construction
and the contractor
companies still have well-stocked order books, and the high energy prices have or the installer.”
accelerated building activity for energy-efficiency improvements.

Maarten in ‘t Veld, The Netherlands

22 International Construction Costs 2023 International Construction Costs 2023 23

Belgium Germany
GDP year-on-year growth in Belgium was 3.1% in 2022. Latest estimates suggest the German economy The outlook for 2023 sees opportunities in the
The rate of growth slowed in the second half of the grew by just 1.8% in 2022, below the Euro German construction market being driven by large
year due to high inflation, which reached 10.3%. area average of 3.5% The German economy infrastructure projects for power distribution, rail
has stalled since Covid-19. Projections from and road projects. Large industrial projects such as
For 2023, headline inflation is forecast to fall to below the International Monetary Fund (IMF) for gigafactories in Kaiserslautern and Magdeburg, and
4% by the end of the year, with GDP growth slowing to 2023 indicate negative growth of -0.1% data centers in Frankfurt will also support demand.
just 0.8% in the year, before rising to 1.6% by Q4 2024. against a Euro area average of +0.8%.
Looking forward, the 2021-2026 National Recovery
2022 was a tough year for the construction sector Germany saw some of the highest construction and Resilience Plan (NRRP) allocated €2.5bn for
in Belgium, with high materials inflation leading to inflation in Europe in 2022, which in turn has led energy efficient upgrade measures, including for
many discussions about project affordability. Growth to some projects being put on hold, particularly 40,000 homes by 2026. Progress is also being
was around 2% in real terms. Looking forward, there in the schools, commercial and residential made on the €86bn investment plan to 2030
is evidence that clients are becoming more cautious sectors. Overall, output fell by 2-3% during the to upgrade Germany’s rail infrastructure. A key
regarding future project development. In the public year. A study by the Ifo Institute in Munich found focus is on the upgrade of 40 highly congested
sector, reduced estimates of social and economic 16.7% of German construction companies had sections of the national railway to create a high-
benefits result in weaker business cases. With project suffered cancellations of building projects in performance network. Work on lines between
bids often coming in at prices that are significantly November 2022, up from a rate that is typically Frankfurt and Mannheim, and Hamburg and Berlin
higher than original estimates, political and public only 1-2%. Meanwhile new home building orders will begin soon.
support for certain developments is eroding. in Germany fell by 14% year-on-year in October.

The European Investment Bank (EIB) recently loaned

The February 2023 Construction PMI survey
the Brussels Capital Region €475m to encourage
showed that demand for building work was
greater use of public transport. Some of the money
still held back by high prices and a tight
will be used to upgrade 63km of tram and metro
lending market. There was some good news,
track. Elsewhere, work is underway to develop a 150ha
however. The survey highlighted that input
industrial estate in northeast Belgium. Road and utility
costs increased at the slowest rate since
upgrades are planned for the North-C Circular site to
November 2020, with the rate of inflation
encourage companies specialising in ‘circular systems’
falling below its long-run average since 1999.
to locate there.
It is important to ensure
that key components
of a project are pre-
ordered to ensure price
rises and time schedule
effects are kept to a
“For 2023, inflation minimum. We are also
continues to create seeing a much wider
uncertainty. To remain application of circular
within budget, many economy principles to
planned project determine if materials
developments either can be re-used.
require a major value
engineering process, Poul Syratt, Germany

or an accelerated
start date to minimize
inflation impacts.”
Ann van Melkebeek, Belgium

24 International Construction Costs 2023 International Construction Costs 2023 25

 United Kingdom
UK GDP grew by 4.1% in 2022, outperforming many eurozone and G7 economies.
The impact of the Ukraine conflict and the resulting increases in food and energy
costs saw the Consumer Price Index (CPI) peak at 11.1% in the 4th quarter of 2022.
Interest rates increased from 0.1% to reach a 15-year high of 4.25% by Q1 2023.
Having avoided recession at the end of 2022, the UK economy is forecast to
contract by 0.5% in 2023.

Construction inflation peaked at around 10-12% in 2022. With the building sector
expected to slow down the most, inflation for buildings is expected to fall to
2-3%, whilst price increases in infrastructure will be higher at 6-7%. “The UK construction
Meanwhile, the UK’s construction markets continued to be resilient throughout
sector remained
2022. The sector delivered record output, despite the various headwinds, which remarkably resilient
also included material price inflation reaching 30% in the middle of the year.
Growth was driven by the housing, industrial and infrastructure sectors, with key despite a series of
projects like High Speed 2 and Hinkley Point Nuclear Power Station reaching peak
workload. The construction sector’s new work pipeline continued to be boosted
headwinds in 2022.
right until the end of the year, with new orders in the 4th quarter 2022 down by While a slowdown has
only 1.8% and well above the long-term trend.
long been expected,
However, output is forecast to contract by 4.6% in 2023 according to the
Construction Products Association (CPA), driven by a sharp fall in house
it is still yet to
Ireland building as changes in government policy, investor sentiment and affordability materialize. Despite a
issues take hold. This will be the first contraction since 2012, aside from the
GDP grew by 12% in 2022, reflecting Ireland’s thriving multinational economy.
“Ireland has made Covid year of 2020. recent improvement
Industrial output increased by a remarkable 23%. However, the rate of growth
tailed off by year end, increasing by just 0.3% in the 4th quarter. Growth for
impressive strides Although materials price inflation is now on track to fall to 6% by mid-2023,
in sentiment, the
2023 is forecast to be 4.9%, still well above the EU average.
in developing
labor scarcity will continue to be a problem, with industry forecasts indicating market fundamentals
a requirement for an additional 225,000 workers by 2027. Continuing
Total construction output reached €32bn in 2022, but saw a rapid slowdown in the
second half of the year, with output in the 4th quarter down in volume terms by its economy improvements in productivity will play an important role in reducing labor market for a slowdown are
11% year-on-year. There are signs of improvement however, and a recent market
and raising
pressure over the forecast period.
still there and the
report highlights contractor confidence at an 11 month high in January 2023, with
85% of builders expecting better conditions in the coming year.
living standards. coming year will be
Inflation was inevitably a problem, and wholesale prices for construction This progress challenging for many
products increased by 16.2% in 2022, according to the Central Statistics Office.
Although material prices are likely to remain challenging in 2023, the February has allowed in the sector.”
2023 Construction PMI report showed that the rate of input cost inflation eased
to a two-year low in January 2023, while program pressures fell to the lowest it to weather Ross Baylis, United Kingdom
level since the start of 2020. the Covid-19
Following the introduction of the mandatory “Nearly Zero Energy Building” pandemic and cope
(NZEB) standard, the construction and renovation of greener buildings has
gone mainstream. The standard aims for a 60% improvement in energy effectively with
performance of non-domestic buildings and introduces a mandatory
requirement of at least 20% primary energy use from a renewable source. the repercussions
Looking forward, capital investment in housing is forecast to increase by €100
from the conflict in
million to €3.5 billion in 2023, with €2.3 billion allocated for new build housing. Ukraine. However,
There is a housing deficit of 250,000 homes in Ireland, with Taoiseach Leo Varadkar
recently suggesting that 40,000 homes a year will need to be built to reduce price pressures
the deficit. Further momentum in transport infrastructure should be expected,
following progress in 2022 on projects such as Dublin Metrolink and the DART+
and global factors
heavy rail programme. The hotels sector is forecast to perform well in 2023, with
Dublin alone seeing the addition of 3,000 keys by 2024.
will lead to an
uncertain 2023.”
Fintan Kenny, Ireland

26 International Construction Costs 2023 International Construction Costs 2023 27

Spain Poland
Spain recorded GDP growth of 5.5% in 2022, according to Poland saw strong GDP growth of 4.9% in 2022, although
the National Statistics Institute. Banco Espana forecast that consensus estimates suggest it will slow to around 1% in
this will slow to growth of 1.3% in 2023, increasing to 2.7% in 2023. CPI inflation is thought to have peaked at 18.4% in
2024. This will be higher than the eurozone average, boosted February 2023 and is forecast to fall to around 10% by the
by a positive contribution from tourism and further roll-out of end of this year.
Next Generation EU (NGEU) funds.
In the construction sector inflation averaged 16% in 2022,
The Spanish construction market is estimated to have grown with some materials and products - such as steel, insulation
by 3.8% in 2022 despite significantly high inflation for key and HVAC equipment - seeing average rises nearer 25%. “It is hoped that
While price uncertainty caused some projects to be put on
construction materials, including concrete, steel and plastic
pipe. The buildings sector fell by 2% but this contraction was hold, especially in the residential sector, most proceeded construction cost
more than compensated by an expansion of the infrastructure
sector. Mitigation of inflation took place through the re-
after investors and contractors worked collaboratively,
often using value engineering techniques to keep prices
stabilization and
evaluation of projects and the bulk procurement of materials down. This included group purchasing of materials and
building equipment, plus risk sharing clauses in contracts.
inflation reduction
was often the order of the day. Typical overall inflation peaked
at 8-10% in 2022 and we anticipate that it will fall back to 3-5% in the coming
The result saw Polish construction output grow by 6.7% in
in 2023.
2022. That trend has continued into 2023 with February year will boost the
During 2022, clients were particularly concerned about
seeing a year-on-year increase of 6.6%, driven by a strong
rise in civil engineering, where the effects of finalizing
Polish construction
increased financing costs and extended lead-in times –
particularly for data centers – as well as the impact of regular
infrastructure projects in the last year of the current EU
funding settlement is making an impact.
market across all
price increases on fixed price contracts. Improved relations
between clients and manufacturers have helped to mitigate
sectors. Sustainable
some of these issues, together with the introduction of
Net zero building standards are increasingly important, with
developers and institutional investors keen to introduce construction will
fluctuation-based mechanisms in some instances. measures such as PV installation and heat pumps to
meet their ESG credentials, despite a potential increase in
be high on the
The Spanish government’s budget for 2023 includes nearly
€17bn of investments in housing, transport and water
construction costs as a result. agenda as clients
projects. There is growing appetite for Build to Rent housing, The Polish government is offering tax incentives and seek to reduce
with some investors spreading their strategies to focus on the
secondary cities of Spain rather than the crowded markets of
speeding up project approvals to encourage manufacturing
and logistics investors. Mercedes has plans to invest €1 the environmental
Madrid and Barcelona. billion in Poland to build the first electric-only van plant
in Jawor. Elsewhere, infrastructure will be boosted by the
impacts of their
Centralny Port Komunikacyjny (CPK) airport transfer hub projects, while the
on a 3,000-ha site between Warsaw and Łódź, which will
integrate air, rail and road transport. increased use of
prefabrication of
building products
should improve
“For 2023, data centers, life productivity
sciences, health and logistics levels and help
will continue to take the lead in to overcome
terms of key growth segments, a constrained
building on momentum construction
from last year. However, a workforce.”
shortage of skilled workforce Dominik Dąbrowski, Poland
will remain prominent and
could impact delivery.”
Emilio Garcia, Spain

28 International Construction Costs 2023 International Construction Costs 2023 29

 Mainland China
China saw annual GDP growth of 3% in 2022, a figure dented
by a resurgence of Covid-19 in key cities in East China, which
led to the suspension of much construction work. Activity has
rebounded quickly across Greater China following the re-
opening policy change from President Xi, with the International
Monetary Fund (IMF) raising its forecast for the Chinese
economy to grow by 5.2% in 2023.

Data from the National Bureau of Statistics (NBS) shows that

the construction sector grew by 6.4% in 2022, with a large
“The increase in government
rise in spending on public infrastructure offsetting slack in the investment in infrastructure
residential market.
will drive the development of
The momentum is set to continue, with the National
Development and Reform Commission (NDRC) recently the construction industry and
approving 109 transportation, energy and water schemes,
totalling CNY 1.48 trillion. Urban renovation and health
the ease of quarantine control
projects are also expected to perform well this year, and the is anticipated to boost market
sector will be boosted by the recent lifting of the three ‘red
line’ government restrictions that held back investment in sentiment. Although real estate
residential development in 2021 and 2022.
developments have not picked
China was one of the few markets where construction materials
prices fell in 2022 as project starts slowed due to prolonged
up quickly, the construction
Covid restrictions. The country was mostly isolated from industry is expected to have a
Asia Pacific the dramatic energy price rises experienced elsewhere and
benefited from lower commodity prices. Overall, construction steady growth in 2023.”
prices fell by 2%. Construction price inflation is forecast to
return in 2023, increasing by 3%.
Australia Joyce Yang, China
China’s goals of ‘carbon peaking’ by 2030 and ‘carbon
According to the Australian Bureau of Statistics, the value of
neutrality’ by 2060 are starting to influence the
total construction work done in the Australian market in 2022
construction sector, with tighter environmental pollution
was A$247.1 at current prices. This was a 10% increase on
controls at building material production plants and
construction output in 2021 and reflects the fact that this was
improvements in building assembly rates.
the Covid recovery year for Australia, which was later than
many other countries to come out of lockdown.

Reduced market capacity, supply chain issues and rising

inflation sharply increased the cost of building projects
across the board during the last 12 months. We expect to see “A sudden influx of government
inflationary pressures on materials easing in the first half of
this year as supply constraints have been largely resolved -
committed spend of A$10bn
although high energy cost inputs remain a challenge. for health projects, combined
However, opportunities are increasing, and capacity is with the A$7bn projected
stretched, so we could start to see a second wave of inflation
affecting labor and staffing costs on projects. investment for the 2032
We anticipate that demand for net zero related investment
Olympic and Paralympic Games
will start to increase over the next 12-24 months, so
specification changes influenced by carbon calculations will
will see Queensland become an
likely begin to impact costings. overheated market with a lack
The residential sector has cooled but there is growing of local capacity to deliver. This
investment in transport and social infrastructure, and this
is providing most of the demand into 2023. Forecaster
will likely lead to construction
ACIF anticipates that overall growth in 2023 will be 2-3% costs rising by between 7%
in real terms.
and 12% as a result.”
Key projects include the Melbourne Airport Rail link and
Sydney Metro Rail. Meanwhile, significant investment in
energy transition across Australia will begin to make this Matthew Mackey, Australia
market increasingly attractive to infrastructure players.

30 International Construction Costs 2023 International Construction Costs 2023 31

Hong Kong
Hong Kong’s real GDP shrank by 3.5% in 2022, as the total
export of goods plunged amid a sharp deterioration in the
external environment, coupled with the Covid shutdown
in China. Domestic demand slackened, triggered first by
the fifth wave of the Covid epidemic and subsequently by
tightened financial conditions.

For 2023, domestic cost pressures may increase alongside

an expected improvement in local economic conditions.
Overall inflation could accelerate but should remain “Recovery in Hong Kong is
moderate in the near term. Government forecasts suggest
economic growth of 3.5% to 5.5% in real terms for 2023.
benefiting from public and
The total gross value of construction works performed
housing sector stimulus, with
by main contractors in the first three quarters totalled contractors keen to tap into
HK$179bn, ahead of final quarter data. This represents
growth of 5.1% in nominal terms, compared to the same the expected increase in annual
period in 2021.
construction expenditure
The most recent industry forecast from the Construction
Industry Council (CIC) indicates that over the next seven
forecast by the CIC.”
years, total construction expenditure in Hong Kong will
keep rising steadily and may exceed HK$300 billion per Francis Au, Hong Kong
annum in the next couple of years. This represents an 28%
Americas “The passage of
increase on 2021 output levels, which totalled HK$233bn in
nominal terms. the historic Federal
Key strategic developments include the HKD100 billion United States Government stimulus
Northern Metropolis and the Kau Yi Chau Artificial Islands
in the Central Waters, which will provide additional land
The US construction market is valued at around $1.95 trillion and packages for infrastructure
and create significant opportunities for the sector. However,
accounts for about 4% of the US economy. Economic uncertainty and
rising inflation through 2022 impacted the construction market, with
will help fund critical
the issue of having a sufficient construction workforce to
meet this demand remains heightened, with Hong Kong
recent figures suggesting it will have contracted about 6% during the
last 12 months.
transportation and transit
facing a decrease in labor force due to an ageing population.
The increased use of innovative technology and adoption
projects across the New
Inflation still affected the market during 2022, with prices rising by
of Modular Integrated Construction (MiC) methods,
aided by a government injection of HKD1.2 billion into
between 5-10% depending on location. Inflation in 2023 is expected to York metro region. Capital
the Construction Innovation and Technology Fund for FY
range between 4-8%, with the greatest inflationary pressure focused
on fast-growing inland cities.
budgets at transit agencies
2022/2023, should help.
The latest Architectural Billings Index (ABI) from the American
are the largest they’ve
Institute of Architects showed firm billings declined for the fourth ever been. The Gateway
consecutive month in January. However, inquiries into new projects
and the value of new design contracts strengthened at the start of (Hudson River) Tunnel
this year, as firms reported a rise in interest in new projects.
may actually get built. The
For 2023, estimates suggest the US construction market will contract
by a further 3.5% to 5%, driven mainly by a slump in residential
key challenge is having
construction. The blow will be softened by massive government adequate capacity to
stimulus in the infrastructure sector, with over US$1.5 trillion signed
off by President Biden. The investment will certainly benefit the deliver on this once-in-a-
energy, mobility and transport sectors and could bring forward many
projects which were stalled following the Covid pandemic. generation opportunity,
In Los Angeles, for instance, the LA Metro saw a decline in revenues
while ensuring that these
as a result of Covid-19, which meant a re-prioritization of new projects infrastructure investments
and delays to others. Some of these will now likely move through the
pipeline, together with large water/resilience projects in the region. are realized equitably,
Despite the slowdown in housing markets, demand for infrastructure sustainably, and resiliently.”
is high enough to trigger risks of delay and increased costs due to
an incredibly constrained construction labor market. The Associated Jee Mee Kim-Diaz, United States
Builders and Contractors (ABC) industry group has suggested that the
sector could be short of up to half a million workers in 2023.

32 International Construction Costs 2023 International Construction Costs 2023 33

 Methodology
The Arcadis International Construction Cost Index
covers 100 cities. The index is based on a survey of
construction costs which covers 20 building functions.
This data is supplemented by a review of market
conditions in each city combined with the professional
judgement of a global network of experts.

We collect indicative cost ranges for each building

function for each city. The low and high range costs
for each building type are converted into US Dollars
(USD). They are normalized and indexed against the
cost range for equivalent buildings in Amsterdam,
where Amsterdam = 100. We calculate an index range
for each city comprising the low and high values for
each of the 20 building types.

The data was collected in the first quarter of 2023.

Costs used to calculate the index are based on

buildings delivered to local specification standards,
meeting both functional requirements and quality
expectations. As a result, the index compares
the relative costs of delivering the same building
functions in a city, it also reflects the different levels
of quality expectation reflected in a specification.
Canada
Costs covered in the index exclude land, demolitions,
Data from Statistics Canada is expected to show that the external works and services and risk allowances.
country recorded GDP growth of 3.8% in 2022. Moreover, This means that major sources of variability are
Bank of Canada recently forecast growth of 1% in 2023, removed from the index. Similarly, we exclude costs of
with inflation falling significantly in the coming 12-months, professional fees and local sales taxes.
reaching its 2% target in 2024.
The index does not take into account purchasing
Skilled labor shortages, together with the increased cost of power parity. The construction cost data used in the
materials - particularly fuel, concrete and steel - were reported index is current as of 1st quarter 2023. The exchange
by contractors as key issues across the Canadian construction “Whilst a slowdown was rates used to calculate the index were current on 27th
Januray 2023.
industry at the end of 2022. Construction inflation ranged
from 10% to 12% in 2022, depending on location. Long lead forecast in residential
times on certain materials look set to continue, with observers
noting that lead times for power transformers have risen from
construction in the early part
ten months to nearly two years. of 2023, sentiment across the
According to Statistics Canada, the construction industry wider construction market is
contracted by 0.7% in November 2022 due to declines positive for the year ahead.
across nearly all sub-sectors. Residential recorded the
largest fall – down 1.8% - representing the seventh Growth in more sustainable Acknowledgements
monthly fall in the last eight months. Canada Mortgage
and Housing Corporation reported that housing starts fell infrastructure and buildings We would like to thank the following organisations for their support in providing data for the 2023 ICC.
by more than 5% in December. Inflationary pressures will
remain, however, currently forecast at 8% for 2023.
will create opportunity and Bangkok - Mentabuild, [email protected] Kuala Lumpur - JUBM Group, [email protected]

the use of technology and Bengaluru, Mumbai and New Delhi - Arkind Lagos - Q Associates, Danjuma Waniko,
Infrastructure spending is a central tenet of the Canadian
government’s growth strategy, with more than C$180bn of modular construction could LS Private Limited, [email protected] [email protected]

funding promised over the next 12 years. Projects include

public transport links, energy infrastructure and improved
help ease the ongoing labor Ho Chi Minh - DLS Consultant Company
Limited, [email protected]
Prague, Belgrade and other East European cities -
Grinity s.r.o., Mirek Vaško, [email protected]
broadband. In Ontario, C$84.7bn has been allocated over shortages in the industry.”
the next ten years for the region’s transit plan. In British Jakarta - PT Lantera Sejahtera Indonesia, [email protected] Singapore - Asia Infrastructure Solutions Singapore
Columbia, several mega-projects are planned or proposed, Pte. Ltd., [email protected]
including a $16bn Site C dam, the $2.8bn Broadway Line and Mansoor Kazerouni, Canada
three major new hospitals.

34 International Construction Costs 2023 International Construction Costs 2023 35

Disclaimer
This report is based on market perceptions and research
carried out by Arcadis, a design and consultancy organization
for natural and built assets. This document is intended for
informative purposes only and should not be construed
or otherwise relied upon as investment or financial advice
(whether regulated by any financial regulatory body or
otherwise) or information upon which key commercial or
corporate decisions should be taken.

The cost comparison index represents a snapshot in time and

is for illustrative purposes only. While every effort has been
made to ensure the accuracy of the index, Arcadis is not liable
for any loss or damages associated with the use of the index
for decision-making purposes.

This document may contain forward-looking statements

within the meaning of potentially applicable securities
laws. Forward-looking statements are those that predict or
describe future events or trends and that do not exclusively
relate to historical matters. Actual results could and likely
will differ, sometimes materially, from those projected or
anticipated. Arcadis undertakes no obligation to update or
revise any forward-looking statements, whether the result
of new information, future events or otherwise. Additionally,
statements regarding past trends are not a representation
that those trends or activities will continue in the future.
Accordingly, no one should rely on these statements for
decision-making purposes.

This document contains data obtained from sources

believed to be reliable, but we do not guarantee the
accuracy of this data, nor do we assert that this data is
complete. Please be advised that any numbers referenced
in this document, whether provided herein or verbally, are
subject to revision. Arcadis is not responsible for updating
those figures that have changed.

This document should not be relied upon as a substitute for

the exercise of independent judgment.

36 International Construction Costs 2023 International Construction Costs 2023 37

 About Arcadis
Arcadis is the world’s leading company delivering sustainable design,
engineering, digital and consultancy solutions for natural and built
assets. We are more than 36,000 architects, data analysts, designers,
engineers, project planners, water management and sustainability
experts, all driven by our passion for improving quality of life.

www.arcadis.com

Contact us

Kathleen Abbott
Global Sales Director, Places

E [email protected]

Kayleigh Owen
Head of Cost and
Commercial Management
E [email protected]

Simon Rawlinson
Head of Strategic Research
and Insight
E [email protected]

Ian Goodridge
Market Intelligence Lead
E [email protected]

Richard Warburton
Global Director of
Property & Investment
E [email protected]

Arcadis. Improving quality of life

Connect with us @ArcadisGlobal Arcadis @ArcadisGlobal @ArcadisGlobal