Productivity issues also behind rise, consultant adds

好色先生TV specifications and productivity issues are among the reasons why London is the most expensive city in the world in which to build, according to a new report by Arcadis.

The UK鈥檚 capital came out top in the firm鈥檚 latest International Construction Costs report with London beating Swiss city Geneva into second place with Norway鈥檚 capital Oslo in third.

The report said the five least expensive cities to build, including Kuala Lumpur and Delhi, are in Asia and India.

Arcadis head of strategic research and insight Simon Rawlinson said London鈥檚 position was 鈥渋n part a reflection on the specification of UK buildings. We do like to have beautifully specified buildings here.

london

Source: Shutterstock

More towers are planned in the coming years for London鈥檚 financial district in the Square Mile

鈥淟ondon has always been right at the top. We deliver very good quality buildings and we have a heritage of ambitious designers.鈥

But he said problems with UK productivity was adding to the bill. 鈥淲e don鈥檛 use many standardised solutions. The issue around productivity we need to look at very carefully.鈥

Rawlinson said supply chains in the UK were more fragmented than other countries while inefficiencies meant some schemes saw a doubling up of resources.

Bill Barton, the director of specialist Leeds construction law firm Barton Legal, said regional cities offered better value for money but admitted: 鈥淔or London, being expensive is not a new phenomenon and this news will not detract international parties from choosing to build in the city.鈥

He added Brexit had driven workers鈥 wages up and said: 鈥淟ondon might be expensive but that鈥檚 because it offers a safer environment to work and, as a city, London employs more sustainable construction methods than most around the world. These things cost. Compound these factors with the finite available land that the city has, resulting in companies being forced to build up or down to create their own space, and the planning implications of building in a heritage city, and costs of building in the city begin to add up.鈥

Arcadis鈥檚 report said that rising energy prices, materials shortages and labour availability were also behind increased costs.

Other cities in the top 10 include New York, Hong Kong and San Francisco.. Regional UK cities in the top 40 included Bristol in 11th spot, Manchester in 14th, Cardiff 18th and Glasgow 22nd.