The 2023 International Construction Cost Index (ICC) released by Arcadis provides a relative ranking of construction costs for 100 cities worldwide.
Rising energy costs, material costs, and excessively high transportation and logistics costs all contribute to the final cost.
The latest index indicates that many of the factors driving the rise in construction costs are actually global.
Matthew Mackey, executive director of the cost and business management department at Arcadis, said that construction costs in Australia have skyrocketed in the past 12 months, with some areas already experiencing excessive costs.
Click above ⬆️ According to an annual report from Arcadis, a global architectural consulting company, Australia is not the only country facing a construction crisis, according to a report by the Chinese property search platform that understands you the most in Australia.
London fell to second place, followed by New York and San Francisco, which rose by one place and two places respectively.
The construction costs of other Australian cities are also relatively low compared to similar cities overseas – Melbourne ranks 49th (same as last year), Brisbane ranks 46th (up 4 places from 50th last year), and Perth ranks 57th (up 4 places from 61st last year).
These driving factors may persist for a long time, so customers need to adapt to this new environment.
Mackey said: Focusing on the benefits of long-term investment planning and utilizing digital technology to drive collaboration throughout the project lifecycle are just some ways that clients can alleviate rising construction costs.
The only exception is Adelaide, which ranks 63rd, a decrease of three places compared to last year.
The ArcadisICC index in 2023 covers 6 continents and 100 major cities worldwide
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On a global scale, Geneva has surpassed London as the city with the highest construction cost in the world.
According to an annual report from Arcadis, a global architectural consulting firm, Australia is not the only country facing a construction crisis.
The report found that in 2022, Sydney remained the city with the highest construction costs in Australia, rising 4 places globally to 36th place.