New York is the most expensive city to build in and San Francisco comes second in UK consultant Turner & Townsend’s 2025 ranking of the costliest cities in the world for construction.
99 cities’ construction markets were ranked, with the top ten featuring five cities in the US: New York, San Francisco, Los Angeles, Chicago and Philadelphia.
The remaining five cities are Geneva, London, Sapporo, Tokyo and Zurich.
Cities are judged by the cost of building per square metre.
Turner & Townsend says a shortage of skilled workers is causing rising prices in the US, with 87% of markets there reporting shortages of mechanical, engineering and plumbing professionals.
The company says that relative economic stability, strong demand and domestic spending is buoying the market in Switzerland and the UK.
Japan is benefiting from the data centre market and other high-tech sectors, with a positive outlook as it is relatively self-sufficient.
Turner & Townsend reports that manufacturing hubs like Vietnam, India and Malaysia have seen rising demand for construction, for which the cost is comparatively low.
Neil Bullen, Turner & Townsend’s managing director of real estate, said: “Whether businesses are making tactical moves to reorient supply chains, or pivot to invest in high-growth sectors like defence, advanced manufacturing and data centres – construction remains crucial to global resilience and growth.
“Despite signs of increasing price stability and renewed activity in construction, we’re seeing a worldwide skills shortage that could put the brakes on growth. International labour could become less mobile as barriers to migration emerge, further adding to long-term dwindling of talent pools.
“Clients need to try new approaches; from the foundational – investing more heavily in training local skills – to the innovative, such as piloting new AI tools or integrating digital solutions across the lifecycle of a project.”
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