TurnerTownsend：2024國際建筑市場調查報告（英文版）（76頁）.pdf

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1、making the differenceInternational construction market surveyICMS2024Key highlights55markets are warm or hot32markets are set to warm up20markets are expecting lower construction cost inflation1|International construction market survey 202401|IntroductionOur team of global economists collaborated wi

2、th our local specialists to evaluate input costs such as labor,materials,and plant and outlined the average construction costs per square meter for multiple asset classes across several sectors in key markets.Cost data was collated in Q1 2024 measuring the performance of projects and programs across

3、 the previous calendar year.This information provides context and a richer understanding of the balance of supply and demand and the cost pressures within each market.Since our 2023 publication,we have added three new unique markets in Japan Fukuoka,Hiroshima and Sapporo.We publish data for 91 marke

4、ts in total a list of those markets can be found here.For simplicity,we have adopted straight-line USD conversion as our primary method of comparison for our cost data.For more information,refer to the methodology section.Detailed explanations of what is included in and excluded from our cost inform

5、ation are given here.We hope that our report serves as a useful barometer of the general health of the global construction industry,as well as the performance of individual markets and collective regions.The global real estate market is emerging from a challenging period of inflationary pressures,vo

6、latility and disruption.The construction sector has proved resilient with steady activity overall.Neil Bullen,Global Head of Real EstateGlobal Head of Real Estate,Neil Bullen,introduces our research.Our latest report sees global construction emerging from a period of significant economic challenge a

7、nd slowly returning to strength as inflationary pressures ease,build costs stabilise and confidence rises.Global construction gets back on stronger footingOur International construction market survey brings together data,insights and experience across 91 global markets in 42 countries.Now in its 15t

8、h year,it explores how the industry is performing,the challenges it faces and its future outlook.01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact2|International construction market survey 202402|Global economic out

9、lookTaken as a whole,the global economy is stable and improving,though it is a long way from booming.Several indicators point to a period of sluggish growth to come.Despite this,there are reasons to be positive.The risk of a global recession has been skirted,with inflation easing,and commodity and e

10、nergy prices softening.As a consequence,there is increased expectancy in global financial markets for cuts in interest rates to stimulate growth.However,this growth will be hard won and slow to materialize.High stakes in an election yearA sequence of overlapping risks is being held in the balance by

11、 policymakers.2024 is set to see the greatest number of elections in global history,with swathes of the worlds population heading to the ballot boxes.Recent geopolitical instability,rising tensions and potential moves towards more isolationist,de-globalizing policies to win votes may affect the glob

12、al economic picture.This illustrates a complex and unpredictable economic outlook,which many commentators expect to remain subdued for the rest of this decade.However,as the past 12 months have demonstrated,expectations may well be exceeded,with the world economy showing remarkable resilience throug

13、h continued shocks.Global forecasts paint a mixed pictureOverall gross domestic product(GDP)has held up better than anticipated,growing by 3.5 percent in 2022 and 3.2 percent in 2023,an out performance compared with the IMFs forecast of 2.7 percent for 2023.While high interest rates were expected to

14、 dramatically pinch household budgets and constrain spending in developed markets,savings accumulated during the pandemic have so far provided a buffer to stave off recessionary pressures in many markets.However,tight monetary policies to counter inflation,the removal of fiscal support and low produ

15、ctivity in several major economies could put the brakes on growth in the short and medium term.Increased propensity to use tariffs and subsidies to safeguard domestic interests could continue as many hit the election campaign trail,further fragmenting global trade and exacerbating geopolitical tensi

16、ons which arise as a result.Forecasts for several of the G20s emerging economies have been revised down and will weigh on the global economy.India,spurred on by one of the worlds youngest populations,is now expected to deliver 6.8 percent GDP growth in 2024 the highest in the G20,but a percentage po

17、int lower than in 2023.Chinas ambitious growth agenda is being hampered by a downturn in its real estate sector,on which the national economy is heavily reliant,and the forecast is for growth to slow from 5.2 percent in 2023 to 4.6 percent in 2024.There is general consensus in the forecasts publishe

18、d by both the IMF and the Organization for Economic Co-operation and Development(OECD).The emerging economies of India,Indonesia,China,Turkey and Russia are all expected to be the strongest performers,continuing the trend of the past two decades.Shock absorber:global economy to march steadily throug

19、h a pivotal political year While momentum continues across in-demand industries,structural economic challenges remain deeply rooted across the globe,placing a drag on growth.01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06

20、|Contact3|International construction market survey 2024The weakest emerging economies are expected to be Argentina,where we could see radical policies to stem its inflationary spiral and economic decline,and South Africa,where citizens have headed to the polls for the most important election in 30 y

21、ears.South Africas economic outlook is being undermined by high unemployment,continued electricity shortages and high public debt levels.Turning to the developed economies,Germany is expected to show the weakest performance among the eurozone,as elevated energy costs,decreased foreign investment and

22、 record high interest rates take their toll.However,some indicators now point to the business outlook steadily improving.Spain is forecast to outperform other EU nations with 1.9 percent growth forecasted.Its economy has been bolstered by the return to pre-pandemic levels of tourism and waves of fin

23、ancial investment in recent years from the EU Recovery Fund.Figure 1:2024 Real GDP forecast of G20 economies(%)Region-2.8-2.8?-2.80.20.2?0.20.50.5?0.50.70.7?0.70.70.7?0.70.90.9?0.90.90.9?0.91.21.2?1.21.51.5?1.51.91.9?1.92.22.2?2.22.32.3?2.32.42.4?2.42.62.6?2.62.72.7?2.73.13.1?3.13.23.2?3.24.64.6?4.6

24、5.05.0?5.06.86.8?6.80.80.8?0.83.23.2?3.2-4.0-2.00.02.04.06.08.0ArgentinaGermanyUnited KingdomItalyFranceEuro areaJapanSouth AfricaCanadaAustraliaSpainBrazilRepublic of KoreaMexicoSaudi ArabiaUnited StatesRepublic of TrkiyeRussian FederationWorldPeoples Republicof ChinaIndonesiaIndia01|Introduction02

25、|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact4|International construction market survey 2024Inflation rates offering respiteWhile still above target levels,headline inflation has been falling from the peaks in 2022.Globally,the

26、rate sat at 6.8 percent in 2023,and is on track to fall to 5.9 percent in 2024 and further to 4.5 percent in 2025,according to IMF data.Freight costs have seen a dramatic decrease of 75 percent since January 2022,but are still 79 percent above their pre-pandemic levels.The overall easing of inflatio

27、n is being aided by shipping and commodity prices continuing to settle following the disruption of the pandemic.As a result of softened demand and supply chain bottlenecks easing,prices of key metals have dropped over the past year.The World Bank has reported reductions of 14.5 percent in the cost o

28、f iron ore,25.1 percent for nickel and 17.1 percent for zinc,with these expected to fall further through 2024.Greater certainty around energy supplies and the impact of tight monetary policy on global demand have also been pushing costs downwards.The average price of oil has fallen by 28.5 percent s

29、ince its peak in June 2022 as production in the US and Iran has swelled.In Europe,where reliance on Russian oil and gas caused prices to soar in 2022 with the outbreak of the war in Ukraine,markets have shifted to imports from the US and northern Africa,allowing the region to shore up reserves and s

30、tabilize prices.Figure 2:World Bank Commodity Price IndexFigure 3:Oil,natural gas and coal prices0.0Index:(2016=100)Coal,AustralianCoal,South AfricanJan 2020Nov 2020Sep 2021Jul 2022May 2023Mar 2024100.0200.0300.0400.0500.0600.0700.0Index:(2016=100)Natural gas,USNatural gas,EuropeLiquefied natural ga

31、s,JapanJan 2020Nov 2020Sep 2021Jul 2022May 2023Mar 20240.0200.0400.0600.0800.01000.01200.01400.01600.01800.0Index:(2016=100)Crude oil,BrentCrude oil,DubaiCrude oil,WTIJan 2020Nov 2020Sep 2021Jul 2022May 2023Mar 20240.050.0100.0150.0200.0250.0300.0Index:2016=100AluminiumIron ore,cfr spotCopperLeadTin

32、NickelZincJan 2020Nov 2020Sep 2021Jul 2022May 2023Mar 202450.0100.0150.0200.0250.0300.0350.0400.001|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact5|International construction market survey 2024(%)United StatesEuro a

33、reaJapanUnited States_fEuro area_fJapan_fJan 2022May 2022Sep 2022Jan 2023May 2023Sep 2023Jan 2024May 2024Sep 2024Jan 2025May 2025Sep 2025Jan 2026-1.00.01.02.03.04.05.06.0(%)BrazilIndiaMexicoSouth AfricaBrazil_fIndia_fMexico_fSouth Africa_f0.02.04.06.08.010.012.014.0Jan 2022May 2022Sep 2022Jan 2023Ma

34、y 2023Sep 2023Jan 2024May 2024Sep 2024Jan 2025May 2025Sep 2025Jan 2026With inflation continuing to ease this year,there will be increased calls for central banks to start cutting interest rates.However,a sense of caution is to be expected as monetary policymakers and governments walk a careful line

35、between encouraging growth and keeping a handle on inflation.As a result,we may not see rate cuts in some major markets until the tail end of 2024 or early 2025.As US rates remain high for longer,this will cause acute challenges for emerging markets with large dollar denominated debts and could make

36、 it more difficult for other central banks to lower their own rates.That said,the expectation is for rates to start to ease from mid-2024 into 2025 as banks work to spur on fresh investment.The interest rate outlook for emerging economies is not as dovish as it is for developed countries.In both Bra

37、zil and Mexico,rates are expected to be close to 10 percent at the end of 2024,and in India,only a moderate fall is expected from the 6.5 percent peak to 5.75 percent.The need to control inflation is still the main policy objective.Figure 4:Developed and emerging economies interest rate and forecast

38、Developed economiesEmerging economies01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact6|International construction market survey 2024Hurdles remain for price deflationGeopolitical tensions,particularly the possibili

39、ty of an escalation of the conflict in the Middle East,could spell further trouble for inflation and interest rate forecasts.The cost of mechanical and electrical components in Europe,for example,has picked up due to the redirection of shipping routes by Far East suppliers,which dominate production

40、of electronics,around the Cape of Good Hope to avoid the Red Sea.At the start of the Red Sea crisis,there was an upside risk to inflation from renewed goods delays and higher shipping costs.However,so far,we have not seen this materialize.Shortages of skilled labor are providing another barrier to u

41、npicking stubborn inflation.Unemployment rates in the G7 economies are at historical lows,in part as a result of early retirement decisions and career moves triggered during the pandemic.While low unemployment rates should support demand and protect economies from risks of outright recessions,it is

42、also pushing wage costs upwards,adding to persistent inflationary pressures.(%)CanadaItalyGermanyFranceUSAUKJapan2000 Q12004 Q42009 Q32014 Q22019 Q12023 Q41.02.03.04.05.06.07.08.09.010.011.012.013.014.0Figure 5:Unemployment rates in G7 economiesThe balance between labour supply and demand is beginni

43、ng to shift for several reasons.Recruitment challenges are limiting businesses appetite for lay-offs,while a soft outlook for growth has eroded the volume of unfilled vacancies in the job market.Meanwhile,emerging markets are also benefitting from strong population growth and increasingly young work

44、forces.Although the US,Canada,UK and the Euro area have recorded an increase in foreign migrant workers since the pandemic,labour participation rates in North America have been mostly flat for the past year,falling in the UK and with a modest rise in the Euro area.General elections taking place in a

45、 number of major markets this year,the US most notably,throw up considerable uncertainties around future immigration policies,which could impact the supply of skills and contribute to a heating labour market once more.Political uncertainties are also likely to introduce renewed volatility in the cur

46、rency and commodity markets and could reignite inflationary pressures.01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact7|International construction market survey 2024New catalysts for investment There are green shoo

47、ts of recovery appearing across global regions,particularly in the revival of industrial manufacturing,which is proving an important catalyst for investment and productivity.In the US,subsidies through the Inflation Reduction Act are supporting the advancement of green technologies,particularly batt

48、ery manufacturing working to challenge Chinas current dominance in this area.Similarly,the Biden administrations Chips and Science Act is spurring on the development of the countrys domestic manufacturing sector.Advanced manufacturing continues to boom across its traditional heartlands in Asia.Europ

49、e is also accelerating its investment with the EUs Net Zero Industry Act.Artificial Intelligence(AI)holds the potential to raise worker productivity and incomes,contributing to growth over the medium term.AI could help break out of the post-2008 cycle of diminishing returns from technological progre

50、ss and slow adoption of new digital technologies into production processes.But this comes at the potential cost of job displacement and increased inequality making AI both an opportunity and challenge in equal measure.Climate change to define long-term growth prospects Climate change will be the def

51、ining long-term challenge facing the global economy.According to the World Economic Forum,the global economy could lose ten percent of its total economic value by 2050 as a result of climate change.However,a growing list of countries,cities,businesses and other institutions have pledged to meet net-

52、zero emissions.More than 140 countries have set these targets,covering about 88 percent of global emissions,by at least 2050.There is already a significant drive to develop renewable energy sources from solar power,wind farms and hydro and to move away from carbon energy generation.This will require

53、 a significant amount of infrastructure investment,at a time when interest rates are expected to remain high.Looking beyond interest rates to spur on growthThere are reasons to be optimistic about the outlook,with inflation expected to fall across the globe this year,energy and commodity costs easin

54、g and the expectation of lower interest rates.Healthy investment is continuing in key sectors on a global scale,such as in industrial manufacturing,data centers,healthcare and life sciences,which will help to keep the wheels of growth turning.Yet the economy remains on an unsure footing and growth i

55、s likely to remain subdued.Banks may be slow in reducing interest rates,particularly in the US,which will have knock-on impacts for investment across the world.Regardless of when rates ease or by how much,policymakers will need to place a sharp focus on improving productivity and maintaining free-fl

56、owing global trade to reap the rewards of greater fiscal headroom and restart the engine of growth.Climate change mitigation policies are expected to drive infrastructure investment in renewable energy,as well as opportunities for domestic and commercial heat pumps and production of electric vehicle

57、 batteries.In real estate,there is already a shift in demand for sustainable buildings and this is expected to grow over the decade to come.For clients looking to reset their capital investment strategies against this backdrop,the next 12 months should offer an increasingly stable environment econom

58、ically with key opportunities developing in vibrant sectors,green investment areas and emerging economies.01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact8|International construction market survey 2024According to

59、our data,New York City has retained its position as the most expensive market to build in for the second year running.The average construction cost per m2 stands at US$5,723,up 5.0 percent compared with last year.San Francisco closely follows in second place,with an average cost of US$5,489 per m2.I

60、t similarly retains its position,after dropping from first place in 2022.Zurich has surpassed Geneva to claim third place,with an average cost of US$5,035 per m2,up 8.2 percent on the year.Meanwhile,Geneva saw a 7.7 percent increase,averaging US$5,022 per m2.The top of the table continues to be domi

61、nated by US locations with Los Angeles,Boston,Seattle and Chicago all showing significant increases in cost compared with 2023.Los Angeles has secured fifth place,surpassing Boston,which is now in sixth.Seattle has risen to seventh place,followed by Chicago in eighth.The ongoing high build costs in

62、US cities are being driven by a range of factors.At a domestic level,robust industry demand has seen activity grow,coupled with sustained high prices for labor,machinery and equipment.London has re-entered the top ten in tenth position,with an average cost of US$4,473 per m2.Among the contributing f

63、actors of this rise are the growing construction capacity squeeze and the appreciation of the UK pound sterling relative to the US dollar.Market volatility,tightening financial conditions and decreased affordability have influenced exchange rates significantly.Throughout 2023,many currencies depreci

64、ated against the US dollar as a result.Notably absent from the top ten rankings are Tokyo and Osaka,which have slipped to 14th and 17th position,respectively.Japan has witnessed a significant devaluation of the yen,with the economy experiencing only moderate growth following the pandemic shock.This,

65、paired with strong inflation elsewhere,has contributed to a wider gap.Despite this,the weakened yen has spurred foreign investment.Data centre development is gaining traction alongside large-scale projects such as the Osaka Expo and semiconductor factories in Kyushu and Hokkaido.Slow steps forward:g

66、radual acceleration in activity as build costs stabiliseOverview 03|Global construction cost performance Over the past 12 months,inflationary pressures,reduced credit availability,tight capital markets and declining affordability have been widespread trends across global construction markets.Since t

67、he beginning of the year,however,most construction markets have been gradually emerging from a period of significant economic difficulty.Countries are now diverging in their reactions to inflationary pressure.While some emerging markets have started to reduce interest rates,the majority are still co

68、ntending with elevated rates.Against this volatile backdrop,global construction presents a mixed picture.Geopolitical tensions,disrupted supply routes and increasing shifts towards nearshoring,friend-shoring and onshoring have impacted construction pricing.Despite these challenges,most markets have

69、maintained steady activity levels over the past year,with fast-growth sectors,attractive locations and hot investment areas helping to hold up overall demand.An international ranking where are the most expensive markets?Ten most expensive places to build01|Introduction02|Global economic outlook03|Gl

70、obal construction cost performance 04|Regional insights and data05|Methodology06|Contact9|International construction market survey 2024($)531.9510.1468.0466.8452.2437.6430.9425.7418.2415.7400.4396.7383.5382.2378.6378.2370.4366.6365.9364.3362.2352.9350.8337.6336.0322.2320.8312.0310.7307.5297.4296.429

71、6.3292.3290.8287.9287.8285.2284.6282.1280.8280.4280.2276.6275.6273.6273.2265.0260.4250.4247.4247.1246.6246.1241.6241.0228.7205.7205.0203.2194.8191.8186.7185.2179.1174.2171.4162.5158.3157.0144.4143.1115.0105.1104.4103.4101.1101.097.896.191.990.884.584.583.583.173.065.562.062.061.3New York CitySan Fra

72、nciscoZurichGenevaLos AngelesBostonSeattleChicagoHong KongLondonAtlantaMacauTokyoPhoenixNashvilleSapporoOsakaHiroshimaFukuokaAustinTampaMunichDublinDenverViennaHoustonFrankfurtAmsterdamHamburgManchesterParisBerlinBrusselsBristolSingaporeLeedsStockholmEdinburghVancouverOttawaBirminghamSydneyGlasgowTo

73、rontoMilanNewcastleBelfastMontrealBrisbanePerthAucklandEdmontonCalgaryMelbourneChristchurchRiyadhAdelaideSeoulMadridWarsawDohaMonterreyMexico CityHarareBuenos AiresDubaiAbu DhabiSantiagoSo PauloRio de JaneiroBogotaLagosKuala LumpurKigaliManilaHo Chi Minh CityCape TownHanoiKampalaGaboroneJohannesburg

74、JakartaGuangzhouShenzhenShanghaiBeijingNairobiMumbaiNew DelhiHyderabadBangalore0.0100.0200.0300.0400.0500.0600.0Figure 6:The most expensive places to build(ft2),average cost of eleven building types in USD01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional in

75、sights and data05|Methodology06|Contact10|International construction market survey 2024Preliminaries and marginsBy the end of 2023,inflationary pressures stemming from supply chain disruptions,increased costs of raw materials,transportation and energy costs began to alleviate.Our construction expert

76、s have identified the typical margins on a medium-sized commercial project with a gross floor area(GFA)of 5,000 m2 in their local market.Contractors and supply chains have adapted to the“new normal”following the COVID-19 pandemic and the prolonged conflict in Ukraine.However,new challenges have aris

77、en from increasing geopolitical tensions in the South China Sea,disruptions to shipping in the Red Sea and drought in the Panama Canal.As a result,any potential reductions in prices may not translate into cost savings for those procuring construction work.Instead,many contractors and elements of the

78、 supply chain have sought to recover some of the lost earnings in recent years.Profit margins have consequently continued to rise,perhaps driven more by market conditions than input costs.Additionally,contractors are less able to offer reduced margins to win work,given the financial strain many have

79、 come under in recent years.Profit margins have increased from an average of 6.6 percent in 2023 to 7.0 percent in 2024,though these vary across different regions,with developing economies typically exhibiting higher margins.Our survey identified the typical preliminary percentage on a medium commer

80、cial project with a gross floor area(GFA)of 5,000 m2.These also vary by region and country,influenced by factors such as the type of construction,local building standards and the complexity of building sites.Along with the alleviation of inflationary pressures,preliminary costs have decreased to an

81、average of 11.6 percent in 2024 from 15.5 percent in 2023.Figure 7:Preliminaries and margins(full ranking)MarginsPreliminaries(%)Market15.011.011.010.010.010.07.05.015.015.015.015.015.015.012.012.012.012.012.012.012.010.010.010.08.08.08.08.08.08.018.015.015.015.014.514.013.014.013.013.013.012.512.01

82、2.012.012.012.012.012.012.011.010.015.012.012.010.013.512.012.012.011.010.010.010.010.010.010.010.010.010.010.010.010.010.09.08.58.010.010.010.010.08.015.015.014.014.014.013.013.013.013.00.05.010.015.020.0LagosCape TownJohannesburgGaboroneKigaliHarareKampalaNairobiHong KongMacauKuala LumpurManilaSin

83、gaporeSeoulBangaloreHyderabadSapporoHiroshimaFukuokaTokyoOsakaNew DelhiMumbaiJakartaBeijingGuangzhouShanghaiShenzhenHanoiHo Chi Minh CityBrisbaneAdelaidePerthSydneyMelbourneAucklandChristchurchDublinViennaBrusselsAmsterdamStockholmParisBerlinFrankfurtHamburgMunichMilanMadridZurichGenevaWarsawDubaiRi

84、yadhAbu DhabiDohaOttawaMontrealTorontoVancouverTampaCalgaryEdmontonMexico CityMonterreyAtlantaAustinBostonHoustonLos AngelesNashvilleNew York CitySan FranciscoSeattleDenverChicagoPhoenixBogotaBuenos AiresRio de JaneiroSo PauloSantiagoBirminghamLondonBristolLeedsNewcastleBelfastEdinburghGlasgowManche

85、ster(%)Market30.05.05.06.015.012.58.015.05.05.011.515.05.05.015.015.012.012.012.012.012.015.015.010.04.03.03.03.06.06.05.05.05.05.04.56.06.04.05.05.04.06.06.05.05.05.05.05.06.05.55.56.010.015.08.05.05.54.54.05.05.02.02.07.08.03.53.55.03.55.06.05.05.04.04.04.06.08.011.08.08.010.04.04.06.06.04.03.06.0

86、6.06.00.010.020.030.040.001|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact11|International construction market survey 2024Globally,2023 ended with an average increase of 4.6 percent in construction cost inflation.Ho

87、wever,nuances across different regions are evident.As general consumer price inflation slows in many economies,construction inflation may follow a similar trend.However,there might be differences in the magnitude of change.To understand these differences,it is important to examine the data and consi

88、der the different measures of inflation.Consumer price indices and construction cost indices use different baskets of goods for their calculations.Construction cost indices measure those items specific to the sector such as construction labor,materials and plant,while consumer inflation measures a m

89、uch broader basket made up of a range of items consumers can purchase.Rates of change therefore vary,with consumer price inflation tending to be less volatile and showing slower growth in most economies.While both measures of inflation typically move in line with economic cycles,construction cost in

90、flation can also be driven by a range of market-specific factors that may influence cost.This can include the level of local construction activity,labor and materials cost and availability,legislation changes and supply chain disruptions.Africa leads construction cost inflation at an average of 6.6

91、percent,while North America also displayed higher than usual levels of inflation at 6.1 percent.Europe experienced a modest increase in inflation of 2.8 percent,and,the UK had a slightly lower inflation rate than the global median at 4.2 percent.The rate of growth in construction costs is showing si

92、gns of easing at the global level.On average,construction cost inflation is projected to settle to 3.3 percent globally this year,with all regions anticipating lower inflation compared with 2023.Africa expects the highest level of construction cost inflation,at a forecasted 5.7 percent in 2024.Lagos

93、 notably leads this increase with an estimated rise of 25.0 percent alone.Higher import prices,driven by elevated global inflation and exchange rate passthrough,have impacted domestic prices in Nigeria.The domestic factors were primarily around materials and labor costs.The shift to a market-determi

94、ned exchange rate also introduced shocks to prices at home.Additionally,security challenges,prolonged infrastructural deficits and expectations of further price increases have contributed to inflationary pressures.The Middle East follows,expecting construction cost inflation of 4.0 percent in 2024,f

95、ollowed closely by South America and Asia,each with an average of 3.9 percent.Europe anticipates the lowest level of inflation in 2024,with an average of 1.5 percent.The UK follows with construction cost inflation at 3.0 percent.No market is expecting deflation in 2024.Demand is a primary driver of

96、construction inflation,with increasing client investment and a growing pipeline of work leading to heightened competition among contractors and upward pressure on prices.Looking ahead,we anticipate that price pressures in the construction sector may not alleviate as rapidly as general inflation,and

97、therefore,construction cost escalation could prove to be persistent across various regions.Globally,construction costs are anticipated to rise at a similar rate in 2025,by 3.4 percent.However,market differences are evident even within regions.Construction inflation is expected to nudge upwards in No

98、rth America,Europe,Australia and New Zealand,and Africa,while it is projected to decrease in South America,the Middle East and Asia.In the UK,construction inflation is expected to remain steady in 2025 at 3.0 percent.Africa is again expected to experience the highest levels of inflation at 5.9 perce

99、nt on average.North America,Asia,and Australia and New Zealand follow,albeit with some distance,with expected increases of 3.0 percent,3.8 percent and 3.7 percent in 2025,respectively.Conversely,Europe anticipates the lowest inflation of 1.9 percent in 2025.Construction cost inflation(CCI)across 202

100、3,2024 and 202501|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact12|International construction market survey 2024CityCCI 2023CCI 2024CCI 2025Lagos30.0%30.0%25.0%25.0%20.0%20.0%Cape Town7.7%7.7%6.8%6.8%5.6%5.6%Johanne

101、sburg7.7%7.7%6.8%6.8%5.6%5.6%Kigali12.0%12.0%6.4%6.4%5.0%5.0%Nairobi5.0%5.0%5.0%5.0%5.0%5.0%Gaborone4.0%4.0%4.0%4.0%5.0%5.0%Harare4.0%4.0%3.0%3.0%5.0%5.0%Kampala2.2%2.2%2.5%2.5%4.0%4.0%Fukuoka5.0%5.0%5.0%5.0%4.0%4.0%Hiroshima5.0%5.0%5.0%5.0%4.0%4.0%Tokyo5.0%5.0%5.0%5.0%4.0%4.0%Singapore8.0%8.0%5.0%5

102、.0%5.0%5.0%Ho Chi Minh City4.0%4.0%4.5%4.5%4.5%4.5%Beijing4.0%4.0%4.0%4.0%4.0%4.0%Guangzhou4.0%4.0%4.0%4.0%4.0%4.0%Shanghai4.0%4.0%4.0%4.0%4.0%4.0%Shenzhen4.0%4.0%4.0%4.0%4.0%4.0%Bangalore4.5%4.5%4.0%4.0%5.0%5.0%Hyderabad4.5%4.5%4.0%4.0%5.0%5.0%New Delhi4.5%4.5%4.0%4.0%5.0%5.0%Mumbai4.5%4.5%4.0%4.0%

103、5.0%5.0%Sapporo6.3%6.3%4.0%4.0%3.0%3.0%Manila5.0%5.0%4.0%4.0%4.0%4.0%CityCCI 2023CCI 2024CCI 2025Macau4.0%4.0%3.5%3.5%3.0%3.0%Osaka5.5%5.5%3.5%3.5%2.5%2.5%Hong Kong4.0%4.0%3.0%3.0%3.0%3.0%Jakarta5.0%5.0%3.0%3.0%3.0%3.0%Kuala Lumpur5.0%5.0%3.0%3.0%3.0%3.0%Seoul3.3%3.3%3.0%3.0%3.0%3.0%Hanoi1.0%1.0%3.0

104、%3.0%3.0%3.0%Brisbane6.5%6.5%5.0%5.0%5.5%5.5%Perth4.9%4.9%4.0%4.0%5.0%5.0%Adelaide5.0%5.0%3.5%3.5%4.0%4.0%Melbourne5.5%5.5%3.0%3.0%3.0%3.0%Sydney6.0%6.0%3.0%3.0%3.5%3.5%Auckland5.6%5.6%3.0%3.0%3.0%3.0%Christchurch5.6%5.6%3.0%3.0%3.0%3.0%Warsaw5.5%5.5%5.0%5.0%3.0%3.0%Dublin3.0%3.0%3.0%3.0%2.0%2.0%Mad

105、rid2.0%2.0%3.0%3.0%3.0%3.0%Paris2.4%2.4%2.5%2.5%1.0%1.0%Milan1.5%1.5%2.0%2.0%2.0%2.0%Geneva2.4%2.4%2.0%2.0%1.0%1.0%Zurich2.6%2.6%2.0%2.0%1.0%1.0%Stockholm2.0%2.0%1.5%1.5%2.5%2.5%Vienna3.5%3.5%1.0%1.0%2.0%2.0%CityCCI 2023CCI 2024CCI 2025Berlin4.0%4.0%1.0%1.0%2.0%2.0%Frankfurt4.0%4.0%1.0%1.0%3.0%3.0%H

106、amburg4.0%4.0%1.0%1.0%2.0%2.0%Munich4.0%4.0%1.0%1.0%2.0%2.0%Brussels2.1%2.1%0.5%0.5%2.0%2.0%Amsterdam1.5%1.5%0.5%0.5%2.0%2.0%Riyadh7.0%7.0%5.0%5.0%5.0%5.0%Dubai5.0%5.0%5.0%5.0%3.0%3.0%Abu Dhabi4.0%4.0%4.0%4.0%3.0%3.0%Doha3.5%3.5%2.5%2.5%3.0%3.0%Monterrey15.5%15.5%11.5%11.5%16.5%16.5%Mexico City13.0%

107、13.0%10.0%10.0%12.0%12.0%Ottawa5.5%5.5%4.5%4.5%4.0%4.0%Austin5.5%5.5%4.5%4.5%4.0%4.0%Calgary8.0%8.0%4.0%4.0%3.5%3.5%Chicago5.0%5.0%4.0%4.0%4.0%4.0%Denver5.0%5.0%4.0%4.0%3.0%3.0%Houston4.5%4.5%4.0%4.0%3.0%3.0%Nashville5.0%5.0%4.0%4.0%3.0%3.0%Phoenix5.0%5.0%4.0%4.0%3.0%3.0%Toronto6.0%6.0%3.5%3.5%4.0%4

108、.0%Boston6.0%6.0%3.5%3.5%2.5%2.5%New York City6.0%6.0%3.5%3.5%3.5%3.5%CityCCI 2023CCI 2024CCI 2025Vancouver7.8%7.8%3.3%3.3%3.5%3.5%Edmonton8.0%8.0%3.0%3.0%3.5%3.5%Atlanta5.0%5.0%3.0%3.0%4.0%4.0%Los Angeles4.5%4.5%3.0%3.0%4.5%4.5%Seattle5.0%5.0%3.0%3.0%3.0%3.0%Tampa3.5%3.5%3.0%3.0%3.5%3.5%San Francis

109、co6.0%6.0%2.5%2.5%4.0%4.0%Montreal6.7%6.7%2.0%2.0%3.0%3.0%Bogota7.3%7.3%6.5%6.5%5.0%5.0%Rio de Janeiro3.5%3.5%4.0%4.0%3.5%3.5%So Paulo3.5%3.5%4.0%4.0%3.5%3.5%Buenos Aires5.0%5.0%3.0%3.0%2.0%2.0%Santiago3.5%3.5%3.0%3.0%3.0%3.0%Birmingham4.5%4.5%3.5%3.5%3.5%3.5%Bristol4.5%4.5%3.5%3.5%3.5%3.5%Edinburgh

110、4.0%4.0%3.5%3.5%3.5%3.5%Glasgow4.0%4.0%3.5%3.5%3.5%3.5%Manchester4.5%4.5%3.5%3.5%2.0%2.0%Newcastle4.0%4.0%3.5%3.5%3.0%3.0%Leeds4.0%4.0%3.0%3.0%3.0%3.0%Belfast4.5%4.5%2.0%2.0%3.0%3.0%London3.5%3.5%2.0%2.0%2.8%2.8%Figure 8:Construction cost inflation across 2023,2024 and 202501|Introduction02|Global e

111、conomic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact13|International construction market survey 2024Input costsLaborA global rise in labor costs,brought on by persistent labor shortages,is exerting upward pressure on overall construction expens

112、es.Skilled construction labor remains scarce in most developed nations,exacerbated by an ageing workforce,high retirement rates and insufficient recruitment of young people seeking careers in construction.Following the COVID-19 pandemic,numerous construction workers have also migrated to different i

113、ndustries where work is perceived as less laborious.Critical levels of labor shortages remain in Australia and New Zealand and the UK.Skills shortages have also become more pronounced in North America with 91 percent of respondents identifying labor as an acute issue.Conversely,labor availability ha

114、s slightly improved in South America,though demand for high-tech projects in major regional markets such as Bogota and Santiago is leading to a growing number of skilled workers being imported from other regions.(%)Africa0.050.0100.0Skills shortageIn balanceSurplus25.025.0?25.012.512.5?12.562.562.5?

115、62.5(%)Europe0.050.0100.0Skills shortageIn balanceSurplus86.786.7?86.713.313.3?13.30.00.0?0.0(%)South America0.050.0100.0Skills shortageIn balanceSurplus0.00.0?0.060.060.0?60.040.040.0?40.0(%)Asia0.050.0100.090.990.9?90.90.00.0?0.09.19.1?9.1(%)Middle East0.050.0100.050.050.0?50.050.050.0?50.00.00.0?

116、0.0(%)Total0.050.0100.079.179.1?79.111.011.0?11.09.99.9?9.9Australia and New Zealand0.050.0100.0(%)100.0100.0?0.00.0?0.00.00.0?0.0(%)North America0.050.0100.090.590.5?90.59.59.5?9.50.00.0?0.0(%)UK0.050.0100.0100.0100.0?0.00.0?0.00.00.0?0.0Figure 9:Availability of construction labour by region01|Intr

117、oduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact14|International construction market survey 2024Low unemployment rates are driving up labor costs in many developed markets,including Australia,Europe,the US and Canada.Subc

118、ontractors for specialized jobs such as mechanical and electrical are facing significant strains in Japan and the UK in particular.Conversely,developing and emerging markets are experiencing higher unemployment rates while grappling with the lingering effects of the pandemic and various geopolitical

119、 tensions.Regions such as Africa,South America and some markets in eastern Europe show a better balance between job vacancies and the available workforce,which is helping to maintain stability in labor costs.To assess inflationary pressures stemming from labor issues,we gather wage data across our m

120、arkets and evaluate their impact on projects and Programs.Our 2024 survey findings have been influenced by exchange rate fluctuations,yet they consistently reveal an increase in construction wages over the past 12 months.Examining changes in domestic currency provides clearer insights into underlyin

121、g trends,with labor costs averaging a 4.6 percent rise over the past year,slightly below the growth levels observed between 2022 and 2023.As a result of higher consumer price inflation,the industry has encountered sustained pressures to raise salaries,further contributing to the inflationary challen

122、ges faced by construction companies.Average hourly wage(USD)by regionFigure 10:AfricaAsiaAustralia and New ZealandEuropeMiddle EastNorth AmericaSouth AmericaUK$3.49$12.69$58.74$68.64$6.97$75.13$5.56$49.46Figure 10:Average hourly wage(USD)by region01|Introduction02|Global economic outlook03|Global co

123、nstruction cost performance 04|Regional insights and data05|Methodology06|Contact15|International construction market survey 2024MaterialsAlthough still rising,the prices of key construction materials have experienced some relief,decreasing from the exceptionally high levels of price growth seen in

124、previous years.For example,the reduction in the cost of iron ore has had a positive impact on steel prices.Additionally,the pandemic-related disruptions to supply chains have eased,and the return of shipping costs to pre-pandemic levels is supporting the stabilization in building material costs.Neve

125、rtheless,geopolitical tensions and ongoing conflicts continue to pose a threat to the global supply chain.These ongoing risks,along with lessons learned from the COVID-19 pandemic,are prompting some economies to reconsider their trade strategies and relocate some production activities closer to home

126、.In efforts to mitigate risks associated with supply chain dependence,the US has explored Mexico as an alternative for certain components previously imported from China.Similarly,India,Indonesia and several African countries have emerged as global alternatives for material manufacturing.We expect th

127、at,over the coming years,we will continue to see the move away from globalized supply chains with more friend-shoring and onshoring taking place.While this might provide greater supply chain certainty,it could also add additional costs as domestic production may involve higher labor and plant expens

128、es.However,some positive reductions might result from shorter shipping distances,which would also decrease projects embodied carbon footprints.(%)Category0.02.04.06.08.010.012.014.0Reinforcement bar 16mm(tonne)(120 tonne job)13 mm plasterboard(m)Glass pane 10mm tempered(m)Concrete 30 MPa(m)(1,500m j

129、ob)Concrete block 400 x 200 x 100 tk solid blocks cost per 1,000 blocks(for schemes with 10,000 blocks)Structural steel beams(tonne)(100 tonne+job)Softwood timber for framing100mm X 50mm(m)Copper cable(metre)(3C+E,2.5mm PVC)(100,000m+job)Copper pipe 15 mm(metre)(1,000+metre job)Standard brick per 1,

130、000Emulsion paint(litre)Figure 11:Percentage change between 2023 and 2024 in key materials,global averagePlantWe measure plant costs as day hire rates,considering labour,consumables(e.g.fuel)and sales tax for a 50-tonne mobile crane with an operator per day.Our data indicates that plant costs have r

131、isen by 3.4 percent compared with last year,as have overall operational costs of plant,machinery and equipment.As well as inflationary pressure from the labour market,some of these increases can be attributed to the growth in oil prices.The cost of oil has a strong interdependency with economic cycl

132、es.When economic activity rises,so does the demand for oil,causing its price to surge.According to data from the World Bank,the price of Brent crude oil has escalated by 8.8 percent between March 2023 and March 2024.Oil stands out as one of the worlds most volatile commodities,in part because many o

133、il-producing regions,including the Middle East,Latin America and Russia,are experiencing political turbulence.The heightened risk of regional crises leads to global oil price fluctuations,which impact energy markets and economies worldwide.01|Introduction02|Global economic outlook03|Global construct

134、ion cost performance 04|Regional insights and data05|Methodology06|Contact16|International construction market survey 2024Tendering conditions and construction outlookAssessing current tendering conditions and anticipating how these may change provides valuable insights into what stage of the cycle

135、a construction market is at and can be a key indicator of future cost inflation.In markets where tendering conditions are classified as cold or lukewarm,intense competition among contractors for fewer available projects is common,leading to heightened commercial tension,which often drives prices dow

136、n.Conversely,hot or overheating tendering conditions typically signify markets with robust project pipelines and full order books,which can push up margins and labor costs and drive higher construction costs.46.2 percent of our surveyed markets reported warm tendering conditions.This aligns with the

137、 findings of our 2023 survey,when 48.3 percent of respondents also identified warm tendering conditions as prevalent across markets.At the global scale,tendering conditions are notably warm,exerting downward pressure on construction costs.Central banks globally responded to elevated general inflatio

138、n by increasing interest rates,consequently dampening investment for construction projects.This trend affected most markets,placing them within the warm and lukewarm regions.In 2023,25.8 percent of respondents identified tendering conditions as either cold or lukewarm.However,in 2024,this proportion

139、 increased to 39.6 percent.Only 3.3 percent of markets reported cold tendering conditions,primarily attributable to specific circumstances such as political uncertainty in Santiago,which has hindered foreign and local investment.At the same time,the proportion of markets seeing hot or overheating te

140、ndering conditions decreased from 25.8 percent in 2023 to 14.3 percent this year.Most of these are markets that have experienced a release of pent-up demand following periods of volatile inflation and tightening financial conditions such as New York City,Ottawa and Dubai.Figure 12:Regional construct

141、ion tendering conditions Australia and New Zealand0.00.0?0.028.628.6?28.657.157.1?57.114.314.3?14.30.00.0?0.00.010.020.030.040.050.060.070.0(%)0.010.020.030.040.050.060.070.0North America4.84.8?4.814.314.3?14.361.961.9?61.919.019.0?19.00.00.0?0.0(%)70.00.010.020.030.040.050.060.0United Kingdom0.00.0

142、?0.022.2?0.00.0?0.00.00.0?0.0(%)Asia?0.00.0?0.040.940.9?40.931.831.8?31.827.327.3?27.30.00.0?0.00.010.020.030.040.050.060.070.0(%)Middle East20.020.0?20.00.00.0?0.040.040.0?40.040.040.0?40.00.00.0?0.00.010.020.030.040.050.060.070.0(%)Total3.33.3?3.336.336.3?36.346.246.2?46.214.314.3?14.30.00.0?0.00.

143、010.020.030.040.050.060.070.0(%)Africa?0.00.0?0.050.050.0?50.050.050.0?50.00.00.0?0.00.00.0?0.00.010.020.030.040.050.060.070.0ColdLukewarmWarmHotOverheating(%)Europe?0.00.0?0.066.766.7?66.733.333.3?33.30.00.0?0.00.00.0?0.00.010.020.030.040.050.060.070.0ColdLukewarmWarmHotOverheating(%)South America?

144、20.020.0?20.060.060.0?60.020.020.0?20.00.00.0?0.00.00.0?0.00.010.020.030.040.050.060.070.0ColdLukewarmWarmHotOverheating(%)100.001|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact17|International construction market s

145、urvey 2024Looking ahead,42.9 percent of markets anticipate conditions to stay the same,while 35.2 percent expect conditions to get warmer.This marks an improvement from last year,when more than half of respondents,56.2 percent,expected market conditions to stay the same.Additionally,the number of pe

146、ople expecting warmer market conditions has increased by 8.2 percentage points on the year.For most markets,the potential for a recession has receded,and though growth remains subdued,signs of progress are emerging.Several countries and regions will undergo elections this year,bringing promises of i

147、nvestment to the forefront and fostering a sentiment of new opportunities within the industry.However,a notable proportion of markets,22.0 percent,anticipate their markets will cool down.This increased from 16.9 percent in 2023.Primarily,these are European markets that have encountered heightened in

148、flationary pressures and disruptions in the supply chain due to the conflict in Ukraine.Figure 13 Regional construction market outlookSouth America40.040.0?40.020.020.0?20.040.040.0?40.00.050.0100.0CoolerStaying the sameTotal22.022.0?22.042.942.9?42.935.235.2?35.20.050.0100.0United Kingdom11.111.1?1

149、1.188.988.9?88.90.00.0?0.00.050.0100.0Warmer(%)(%)(%)Europe73.373.3?73.326.726.7?26.70.00.0?0.00.050.0100.0CoolerStaying the sameMiddle East25.025.0?25.00.00.0?0.075.075.0?75.00.050.0100.0North America?9.59.5?9.581.081.0?81.09.59.5?9.50.050.0100.0Warmer(%)(%)(%)Africa0.00.0?0.025.025.0?25.075.075.0?

150、75.00.050.0100.0CoolerWarmerStaying the sameAsia4.54.5?4.518.218.2?18.277.377.3?77.30.050.0100.0Australia and New Zealand28.628.6?28.642.942.9?42.928.628.6?28.60.050.0100.0(%)(%)(%)01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Method

151、ology06|Contact18|International construction market survey 2024Looking ahead There are reasons to be optimistic as we turn our attention to the second half of 2024 and beyond.As consumer price inflation gets under control across each economy,we expect to see the implementation of supportive policy s

152、etting,which for most markets could be a trigger for private sector construction investment.Additionally,we expect there to be fiscal stimulus from governments to prompt public investment across the construction sector,which for many is a substantial contributor to economic growth.There are also sev

153、eral key sectors poised to see sizeable growth in the years ahead.This includes data centers and advanced manufacturing facilities,driven by the continued advancement in technologies and the drive to net zero.The renewable energy sector is likely to continue to expand,as will life sciences,driven by

154、 an ageing population and advancements in biopharmaceuticals.Skills shortages are one of the most significant challenges we foresee with a growing need for the construction sector to improve productivity and efficiency.Addressing these challenges will open up the possibility of cheaper construction

155、costs,which in turn will help to ensure the growth of global construction markets.The outlook is not without risks and challenges.The construction workforce is structurally shrinking with the sector continuing to see more retirees than fresh entrants.Additionally,construction cost inflation continue

156、s to be a constraint impacting the feasibility and viability of new projects.01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact19|International construction market survey 202404|Regional insights and dataA view from

157、around the globe01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|ContactAfricaAsiaAustralia and New ZealandEuropeUKSouth AmericaNorth AmericaMiddle East20|International construction market survey 202420|International const

158、ruction market survey 2024making the differenceAfricaA continent in transitionAuthor:Wendy Cerutti,Regional Real Estate Lead,AfricaPropelled by rapid population growth,economic activity across many parts of Africa is accelerating,and investment in digital infrastructure,retail and commercial is incr

159、easing.However,significant hurdles to growth remain across the continent.Surging population growth is set to radically reshape economies across Africa.The United Nations forecasts that,by 2050,2.5 billion people will live in Africa,accounting for more than a quarter of the worlds population.High bir

160、th rates mean a significant proportion will soon enter the workforce and start contributing to economic activity.According to the International Monetary Funds April Outlook,GDP growth is set to pick up in 2024 to 3.8 percent in sub-Saharan Africa,and then again in 2025 to 4.0 percent.Despite this la

161、bor boost,specialist skills for construction remain in comparably short supply in many locations a situation that was exacerbated by the COVID-19 pandemic,when many overseas consultants and contractors left the market.This is made clear by the hourly wages paid to site foremen in major cities,which

162、are significantly higher than the salary for other roles.In Cape Town,a key investment market,they earn US$14.6 per hour,compared with the US$6.2 average.Current tendering conditionFuture market outlook Overheating Hot Warm Lukewarm Cold Warmer No change Cooler Natural EarthGaboroneGaboroneJohannesb

163、urgJohannesburgKigali CityKigali CityNairobiNairobiCape TownCape TownHarareHarareKampalaKampalaLagosLagos01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact21|International construction market survey 2024AfricaDisloca

164、ted supply chains,along with a persistent stop-start cycle of financing,delayed approvals,and bureaucratic complexities,continue to challenge construction programs.One consequence has been an increase in programs lengths with delays commonly stretching to over five weeks in Nairobi,Lagos,Cape Town a

165、nd Harare.Despite the challenges,demand for construction services is only set to grow,given the urgently increasing need for real estate and infrastructure to serve the continents booming population and accelerating digitalization,as the internet becomes increasingly accessible.0.020.040.060.080.010

166、0.060.0(%)Difficult contractual and legal conditionsLow workplace productivity,inefficient andNet-zero commitmentsPolitical instabilityInstitutional instabilityThe market is oversupplied,e.g.too manyIncreasing contractor insolvencyLack of confidence in the marketDifficulties accessing creditSkilled

167、labour shortagesExcessive materials lead-in timesToo many contractors chasing too few projectsEconomic instabilityRising costs of constructionGovernment red tape,bureaucracy,to invest in new projectsvacant apartments and office spaceoutdated work practicesLittle impactFair impactMedium impactLarge i

168、mpactMajor impactdelayed approvalsRegional construction key challenges01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact22|International construction market survey 2024AfricaConstruction cost escalation in hot sector

169、sIn Johannesburg,it comes with a price tag of US$1,146.2 per m2,compared with US$1,130.1 per m2 in 2023.In South Africa,this is already translating into sustained investment which,when combined with a general inflationary environment,is creating cost escalation:in Cape Town and Johannesburg,average

170、costs are forecast to increase by 6.8 percent this year,although this is a reduced rate compared to the 7.7 percent seen in 2023.Demand for commercial space is a contributing factor.As expectations for the workplace increase,the cost to build a high-rise prestige office in the center of Cape Town is

171、 now US$1,284.1 per m2,up from US$1,265.1 per m2 last year.Recovery in the tourism sector is also fueling activity.Building a five-star hotel now costs US$1,629.0 per m2 in Cape Town,and US$1,549.5 per m2 in Johannesburg.Elsewhere,too,the opportunity to attract increasing visitor numbers is generati

172、ng work.In Lagos,the cost to build a luxury resort is US$1,923.0 per m2.Throughout the continent,the need for data centers to keep up with growing demand for IT infrastructure is also being recognized.Construction hubs include Kenya,Nigeria and South Africa.In Nairobi,the cost of data center constru

173、ction is US$8.49 per watt,according to our 2023 Data center cost index.Some clients are tackling the impacts of these rising prices by building data centers in bordering countries,where costs may be lower.For example,many developers are looking to Ghana,where construction is more affordable than Nig

174、eria,though close enough for the Nigerian population to benefit from centers data capacity.0.050.0100.00.00.0?0.050.050.0?50.050.050.0?50.0WeakenImprove0.00.0?0.025.025.0?25.075.075.0?75.00.050.0100.0DecreasedIncreased(%)(%)Stayingthe sameStayedthe same0.050.0100.00.00.0?0.050.050.0?50.050.050.0?50.

175、0WeakenImprove0.00.0?0.025.025.0?25.075.075.0?75.00.050.0100.0DecreasedIncreased(%)(%)Stayingthe sameStayedthe sameHow do you think supply chain will perform in the coming 12 months?Approximately,how has program length changed over the last 12 months?01|Introduction02|Global economic outlook03|Globa

176、l construction cost performance 04|Regional insights and data05|Methodology06|Contact23|International construction market survey 2024AfricaPower security is still some way offPower security remains a critical challenge across real estate sectors,including in South Africa,where load shedding continue

177、s to be a feature of daily life.The high energy demands of the data centre industry have typically been satisfied by prioritising these increasingly essential assets in the queue for connection with national power grids,and back-up generators when required.Governments are working to address energy s

178、tability while also attracting private sector investment in alternative sources.Hydrogen,for example,is being considered as an option to keep up with growing energy needs across the continent.South Africas planned Hydrogen Corridor is set to include nine separate projects between Mokopane,Johannesbu

179、rg and Durban,supporting mining in the region and boosting the countrys supply of clean energy.With many parts of Africa boasting ample sunshine hours,solar power is another obvious resource.This is being explored throughout the continent,and workers who can install solar panels are highly sought af

180、ter as a result.Across all African locations surveyed,this is cited as the most in-demand green skill in construction.Growing project pipelinesIn all locations,however,under 50 percent of projects are committed to net-zero carbon,according to our data.While environmental regulation remains light ove

181、rall,awareness of climate issues within the political consciousness is growing.With nations across the continent due to head to the polls this year,we could expect to see new sustainability pledges from governments,which may impact investment.For the construction industry,political change will affec

182、t more than just the importance placed on the road to net zero.Over the next year,it could also result in more public sector tenders,adding to the increasing opportunities for work being created across Africa.Survey respondents across most locations expect the market to get warmer over the next year

183、.The sector will need to prepare for the coming pipeline of work.The opportunities for the construction industry are not just set to grow in number,but also in complexity,as economic headwinds prevail and new priorities,including environmental issues,become increasingly important considerations.Gett

184、ing ahead of the curve will require the sector to start laying long-term plans and thinking proactively and innovatively about the ways that market challenges can be mitigated.Investment in digital tools,for example,will help the industry to address a shortfall of high-skilled labor propelling effic

185、iency and accelerating delivery for rapidly expanding communities.($)Market185.2185.2?185.2143.1143.1?143.1105.1105.1?105.1101.1101.1?101.197.897.8?97.896.196.1?96.191.991.9?91.972.972.9?72.90.0100.0200.0300.0400.0500.0600.0HarareLagosKigaliCape TownKampalaGaboroneJohannesburgNairobiA regional ranki

186、ng where are the most expensive markets?Most expensive place to build(ft),average cost of eleven building types in USD01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact24|International construction market survey 2024

187、AfricaConstruction market metricsCape TownGaboroneHarareJohannesburgKampalaKigaliLagosNairobiNairobiTendering:WarmLukewarmWarmLukewarmWarmLukewarmWarmLukewarmColdMarket:Staying the sameWarmerStaying the sameWarmerWarmerWarmerWarmerWarmerCoolerInflation 2023:(%)7.74.04.07.72.212.030.05.05.0%Inflation

188、 2024:(%)6.84.03.06.82.56.425.05.010.0%Inflation 2025:(%)5.65.05.05.64.05.020.05.08.0%Contractors margin:(%)5.06.012.55.08.015.030.015.0-5.0%Preliminaries:(%)11.010.010.011.07.010.015.05.015.0%Location Index(London=100):24.323.144.522.123.525.334.417.54.0%Location index(London=100):25.826.332.140.72

189、3.225.429.656.018.801|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact25|International construction market survey 2024AfricaJohannesburgJohannesburgNairobiNairobiInternational building costs per ft of internal areaZAR

190、US$KESUS$CommercialCBD Offices high-rise prestige 2,007 107 12,268 93 CBD Offices up to 20 floors medium(A-Grade)1,608 85 8,783 67 EducationPrimary and secondary 1,022 54 4,647 35 General Hospital(e.g.city teaching hospital)2,955 157 13,290 101 Hotels3-Star travellers 1,868 99 13,197 101 5-Star luxu

191、ry 2,714 144 16,078 123 Resort style 2,630 140 14,638 112 IndustrialAdvanced manufacturing facility 1,673 89 10,734 82 Large warehouse distribution centre 678 36 6,506 50 RetailLarge shopping centre including mall 1,775 94 7,435 57 Neighbourhood incl supermarket 1,310 70 6,506 50 Prestige car showro

192、om 1,459 77 7,807 59 ResidentialApartments high-rise 1,896 101 6,506 50 Townhouses medium standard 1,097 58 5,576 42 Regional construction cost performanceLabour,material and plant costs JohannesburgJohannesburgNairobiNairobiZARUS$KESUS$Labour costs(rates per hour)Group 1 Tradesman e.g.plumber/elect

193、rician11662502Group 2 Tradesman e.g.carpenter bricklayer9052502Group 3 Tradesman e.g.carpet layer,tiler,plasterer9052502Group 4 Green collar installation operative e.g.insulation/solar/heat pump11663002General labourer6531001Site foreman272143753Material costs13 mm plasterboard(m)9855854Concrete 30

194、MPa(m)(1500m job)1,98710511,40087Concrete block(400 x200)per 1000(10,000 block job)8,20043555,000419Copper cable(metre)(3C+E,2.5mm PVC)(100,000m+job)5034503Copper pipe 15 mm(metre)(1000+metre job)12971,60012Emulsion paint(litre)5039507Glass pane 10mm tempered(m)1,750937,00053Reinforcement bar 16mm(t

195、onne)(120 tonne job)22,6641,203136,0001,036Softwood timber for framing 100mm X 50mm(m)9759007Standard brick per 10002,52013449,000373Structural steel beams(tonne)(100 tonne+job)31,7151,683160,0001,219Plant costs(rates per day)Hire 50t mobile crane+operator(day)13,600722100,00076201|Introduction02|Gl

196、obal economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact26|International construction market survey 202426|International construction market survey 2024making the differenceAsiaShifts in the manufacturing heartlandsAuthor:Sumit Mukherjee,Regi

197、onal Real Estate Lead,AsiaAn economic slowdown in China and global trends towards nearshoring are reshaping the Asian market and opening up new opportunities for emerging economies.In previous years,the gap in maturity between so-called established and emerging markets has meant divergent economic a

198、nd construction trends.Yet,in 2024,Asia is seeing more consistent shifts across the region.The rebalancing of Chinas economic dominance and manufacturing sector is a major factor.GDP growth in the country is expected to slow 4.6 percent in 2024 from 5.2 percent last year,according to the IMFs April

199、2024 World Economic Outlook.In March,inflation sat at just 0.1 percent.The Chinese governments response to its economic challenges is not yet clear,making the future of the market unpredictable and dampening investment confidence.In the construction sector,most Chinese markets remain near the bottom

200、 of the overall cost table,with the expected exception of the unique and expensive Hong Kong(at an average US$4,500 per m)and Macau(US$4,269 per m)markets.Chinas abundant labor force continues to keep costs low in mainland markets.FukuokaFukuokaHiroshimaHiroshimaMumbaiMumbaiOsakaOsakaSapporoSapporoT

201、okyoTokyoBeijingBeijingGuangzhouGuangzhouHanoiHanoiHo Chi Minh CityHo Chi Minh CityHong KongHong KongMacauMacauSeoulSeoulShanghaiShanghaiShenzhenShenzhenBengaluruBengaluruHyderabadHyderabadJakartaJakartaKuala LumpurKuala LumpurManilaManilaNew DelhiNew DelhiSingaporeSingapore Natural EarthCurrent ten

202、dering conditionFuture market outlook Overheating Hot Warm Lukewarm Cold Warmer No change Cooler01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact27|International construction market survey 2024AsiaJapan,which has of

203、ten seen its cities come top of the ICMS ranking for construction cost,no longer has any markets in the top 10.This is more a reflection of globally high inflation,the devaluation of the yen and the countrys comparative ability to manage escalation while supporting high growth in industries includin

204、g data centers,advanced manufacturing,retail and urban development.Osaka the worlds 17th most expensive market to build in at US$3,985 is seeing a development boom as it prepares for EXPO 2025.0.020.040.080.0100.060.0(%)Net-zero commitmentsInstitutional instabilityToo many contractors chasing too fe

205、w projectsPolitical instabilityDifficult contractual and legal conditionsLow workplace productivity,inefficientThe market is oversupplied,e.g.too manyDifficulties accessing creditEconomic instabilityIncreasing contractor insolvencyLack of confidence in the marketGovernment red tape,bureaucracy,Exces

206、sive materials lead-in timesRising costs of constructionSkilled labour shortagesdelayed approvalsto invest in new projectsvacant apartments and office spaceand outdated work practicesLittle impactFair impactMedium impactLarge impactMajor impactRegional construction key challenges01|Introduction02|Gl

207、obal economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact28|International construction market survey 2024AsiaMoving centers of manufacturing and techIndia,in particular,is seeing strong industrial investment as it looks to take over from China

208、 as the regions economic leader and this is reflected in the rise in relative construction costs.The position of China has seen other markets move on the opportunities in advanced manufacturing,an area which has long been a cornerstone of the Asian economy especially chips,semiconductors and gigafac

209、tories.A trend towards nearshoring has helped stimulate demand for local manufacturing bases to reduce reliance on cross-border trade.In overall cost terms,Indian markets tend to see lower prices than Chinese ones,yet predicted construction cost inflation is greater in India,and when it comes to ind

210、ustrial construction specifically,India is higher up the table.In Bangalore,for example,advanced manufacturing construction costs are now US$1,861 per m,compared with US$568 per m in Shenzhen.Malaysia and Indonesia are also seeing high growth in manufacturing as part of this shift,and in Jakarta,the

211、 cost of advanced manufacturing construction has sharply risen.Malaysia especially is making the most of another trend too the growth of data centers across Asia.Corporates across the region are moving to more cloud-based solutions,and the Asian population has increasing access to broadband,meaning

212、much greater digital infrastructure is needed.How do you think supply chain will perform in the coming 12 months?Approximately,how has program length changed over the last 12 months?0.050.0100.00.00.0?0.050.050.0?63.650.050.0?36.4WeakenImprove0.00.0?0.059.1?18.275.075.0?22.70.050.0100.0DecreasedIncr

213、eased(%)(%)Stayedthe sameStayingthe same0.050.0100.00.00.0?0.050.050.0?63.650.050.0?36.4WeakenImprove0.00.0?0.059.1?18.275.075.0?22.70.050.0100.0DecreasedIncreased(%)(%)Stayedthe sameStayingthe same01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights

214、and data05|Methodology06|Contact29|International construction market survey 2024Changing demographics drives new investmentsAn increasing challenge is the availability of specialist labor in markets where high-tech construction demand is ramping up faster than training can keep up.Across Asia,growin

215、g populations and increasing wealth are changing consumer habits.The leisure and hospitality markets across Asia are resurgent,as are high street retail and automotive retail.More people have money to spend on luxury goods and experiences.The result is greater construction and fit-out work to keep u

216、p with the increase in demand.The population boom is also driving investment in new education and healthcare facilities,and with attitudes to old age care changing,especially in urban communities,later living is becoming an area of significant expansion for the first time.The cost of construction in

217、 these sectors remains very affordable,primarily due to low wages.Average Asian wages have risen from US$11 per hour in 2023 to US$13 this year but in most of the emerging markets,they are still in the low single digits.Malaysia,Indonesia and India are all seeing challenges in access to skilled,spec

218、ialist workers and clients should look closely at local development pipelines to predict where bottlenecks may occur.It is not just demographics that are shifting whole cities are moving too as climate resilience rises up the agenda.Jakarta,for example,is sinking into the sea at an alarming rate,and

219、 Indonesia is building a new capital city,Nusantara,at a cost of around US$35bn.This is just one example of where the impact of climate change is being felt more acutely by many across Asia,and,as a consequence,sustainability is moving up the agenda.China has positioned itself well in the sustainabi

220、lity supply chain,and the growing focus may benefit them as well as creating opportunities in development sectors across the continent.Net zero and projects to mitigate climate disruption can be expected to be major areas of investment in the years to come,and clients should be looking to move ahead

221、 of the curve.Asia($)Market418.2418.2?418.2396.7396.7?396.7383.5383.5?383.5378.2378.2?378.2370.3370.3?370.3366.6366.6?366.6365.9365.9?365.9290.8290.8?290.8205.7205.7?205.7115.0115.0?115.0104.4104.4?104.4103.4103.4?103.4101.0101.0?101.090.890.8?90.884.584.5?84.584.584.5?84.583.483.4?83.483.183.1?83.1

222、65.565.5?65.562.062.0?62.062.062.0?62.061.361.3?61.30.0100.0200.0300.0400.0500.0600.0Hong KongMacauTokyoSapporoOsakaHiroshimaFukuokaSingaporeSeoulKuala LumpurManilaHo Chi Minh CityHanoiJakartaGuangzhouShenzhenShanghaiBeijingMumbaiNew DelhiHyderabadBangaloreA regional ranking where are the most expen

223、sive markets?Most expensive place to build(ft),average cost of eleven building types in USD01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact30|International construction market survey 2024AsiaConstruction market met

224、ricsBeijingBengaluruFukuokaGuangzhouHanoiHiroshimaHo Chi Minh CityHong KongHyderabadJakartaKuala LumpurTendering:LukewarmWarmHotLukewarmLukewarmHotLukewarmLukewarmWarmWarmWarmMarket:Staying the sameWarmerWarmerWarmerWarmerWarmerWarmerStaying the sameWarmerWarmerWarmerInflation 2023:(%)4.04.55.04.01.

225、05.04.04.04.55.05.0Inflation 2024:(%)4.04.05.04.03.05.04.53.04.03.03.0Inflation 2025:(%)4.05.04.04.03.04.04.53.05.03.03.0Contractors margin:(%)4.015.012.03.06.012.06.05.015.010.011.5Preliminaries:(%)8.012.012.08.08.012.08.015.012.010.015.0Location Index(London=100):20.014.788.020.324.388.224.9100.61

226、4.921.827.7MacauManilaMumbaiNew DelhiOsakaSapporoSeoulShanghaiShenzhenSingaporeTokyoLukewarmLukewarmWarmHotWarmHotHotLukewarmLukewarmLukewarmWarmHotMarket:WarmerWarmerWarmerWarmerWarmerStaying the sameCoolerWarmerWarmerStaying the sameWarmerInflation 2023:(%)4.05.04.54.55.56.33.34.04.08.05.0Inflatio

227、n 2024:(%)3.54.04.04.03.54.03.04.04.05.05.0Inflation 2025:(%)3.04.05.05.02.53.03.04.04.05.04.0Contractors margin:(%)5.015.015.015.012.012.05.03.03.05.012.0Preliminaries:(%)15.015.010.010.012.012.015.08.08.015.012.0Location Index(London=100):95.425.115.814.989.191.049.520.120.369.992.301|Introduction

228、02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact31|International construction market survey 2024AsiaRegional construction cost performanceInternational building costs per ft of internal areaHong KongHong KongJakartaJakartaMumbaiM

229、umbaiShanghaiShanghaiKuala LumpurKuala LumpurSeoulSeoulSingaporeSingaporeTokyoTokyoCNYUSDIDRUSDINRUSDCNYUSDMYRUSDKRWUSDSGDUSDJPYUSDCommercialCBD Offices high-rise prestige 3,206 410 1,672,862 105 5,651 68 864 120 651 138 295,353 220 381 283 68,123 450 CBD Offices up to 20 floors medium(A-Grade)2,742

230、 350 1,291,822 81 5,084 61 743 103 534 113 234,572 175 339 252 56,784 375 EducationPrimary and secondary 2,862 366 855,019 54 3,309 40 386 53 257 55 173,699 129 186 138 45,911 303 General Hospital(e.g.city teaching hospital)4,089 523 2,063,197 130 6,464 78 604 84 511 108 254,089 189 507 376 43,309 2

231、86 Hotels3-Star travellers 3,234 413 1,370,818 86 6,468 78 609 84 613 130 255,762 190 428 317 64,591 427 5-Star luxury 4,182 535 2,137,546 135 8,848 106 1,162 161 1,078 228 545,725 406 558 414 90,335 597 Resort style 4,322 552 2,592,937 163 11,078 133 725 100 911 193 349,628 260 632 469 69,703 461 I

232、ndustrialAdvanced manufacturing facility 2,751 352 2,193,309 138 14,414 173 390 54 1,375 291 443,030 330 437 324 56,413 373 Large warehouse distribution centre 2,305 295 1,133,829 71 2,830 34 325 45 335 71 119,238 89 214 159 34,387 227 RetailLarge shopping centre including mall 3,439 439 1,059,480 6

233、7 3,736 45 558 77 511 108 289,498 215 372 276 47,584 315 Neighbourhood incl supermarket 2,695 344 822,491 52 3,355 40 376 52 414 88 161,896 120 311 231 39,033 258 Prestige car showroom 3,290 420 1,589,219 100 4,052 49 418 58 432 92 318,680 237 400 296 58,550 387 ResidentialApartments high-rise 3,141

234、 401 1,375,465 87 5,251 63 432 60 321 68 238,662 178 330 245 60,409 399 Townhouses medium standard 3,439 439 808,550 51 3,690 44 414 57 172 36 231,970 173 349 259 48,792 322 01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06

235、|Contact32|International construction market survey 2024Labour,material and plant costs Hong KongHong KongJakartaJakartaMumbaiMumbaiShanghaiShanghaiKuala LumpurKuala LumpurSeoulSeoulSingaporeSingaporeTokyoTokyoCNYUSDIDRUSDINRUSDCNYUSDMYRUSDKRWUSDSGDUSDJPYUSDLabour costs(rates per hour)Group 1 Trades

236、man e.g.plumber/electrician2002625,0002149249730637,6002841304,32029Group 2 Tradesman e.g.carpenter bricklayer2803625,0002154249730637,6002830224,14027Group 3 Tradesman e.g.carpet layer,tiler,plasterer2162825,0002140248728637,6002837274,47030Group 4 Green collar installation operative e.g.insulation

237、/solar/heat pump1952528,0002187252730640,2003036273,81025General labourer1752222,0001135233523523,6001833243,58524Site foreman2403132,00022263659451048,2003650376,90046Material costs13 mm plasterboard(m)1131495,000625332533884,26031183322Concrete 30 MPa(m)(1500m job)885113975,000616,3837765090280591

238、10,420821168621,800144Concrete block(400 x200)per 1000 (10,000 block job)13,0001,6625,700,00035937,7354536,2008593,800805700,000521800593140,000925Copper cable(metre)(3C+E,2.5mm PVC)(100,000m+job)27332,00022643132612,7352433352Copper pipe 15 mm(metre)(1000+metre job)577128,0008556752748108,09261291,

239、3609Emulsion paint(litre)8210105,000726333852557,000514106224Glass pane 10mm tempered(m)1,000128850,000542,46030155213307032,2002414510815,600103Reinforcement bar 16mm(tonne)(120 tonne job)8,0001,022 13,000,00081962,3007484,4906223,0606481,026,000763825612114,000753Softwood timber for framing 100mm

240、X 50mm(m)1131487,000533043352667,500617121,3939Standard brick per 10004,500575850,000548,755105600834008579,00059400297110,000727Structural steel beams(tonne)(100 tonne+job)20,4002,607 25,000,0001,57573,0008764,6006377,0001,4821,610,0001,1982,9502,188550,0003,635Plant costs(rates per day)Hire 50t mo

241、bile crane+operator(day)14,0001,789 12,000,00075639,6554763,2004433,2006781,400,0001,0422,3501,74397,000641Regional construction cost performanceAsia01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact33|International

242、construction market survey 2024making the differenceAustralia and New ZealandA region fueled by government-backed growthAuthor:Julian Kerwood,Regional Real Estate Lead,Australia and New ZealandMixed-use precincts,healthcare and data centres are driving growth across Australia and New Zealand(ANZ)and

243、 public sector spending is on the up.But clients need to be wary of ongoing shortages of labour,and how this will impact project costs.Confidence is high in the economies and construction markets across Australia and New Zealand.GDP growth has slowed across the region predicted to be 1.0 percent in

244、2024 for New Zealand,and 1.5 percent in Australia according to the International Monetary Funds April 2024 World Economic Outlook.In Australia,state governments continue to invest in infrastructure,helping to unlock new precincts and opportunities across the region.In Australia,inflation has eased b

245、ut remains sticky,which is keeping higher interest rates in place for longer.The federal government is focused on relieving cost of living pressures through measures such as tax cuts,electricity bill relief and increased rental assistance.Other policies include significant investments to increase ho

246、using supply and clean energy production.While softer market conditions are expected to persist in the near-term,these policies,along with strong support from the private sector,bolster a strong outlook for construction activity over the medium-term.New Zealand faces more challenges than its neighbo

247、ur,with higher inflation and a smaller labour force but growth in data centres,healthcare and education means the construction sector in the country continues to be active.BrisbaneBrisbaneAucklandAucklandChristchurchChristchurchAdelaideAdelaideMelbourneMelbournePerthPerthSydneySydney Natural EarthCu

248、rrent tendering conditionFuture market outlook Overheating Hot Warm Lukewarm Cold Warmer No change Cooler01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact34|International construction market survey 2024Australia and

249、 New ZealandMany of the anticipated areas for growth in Australia remain around the major East Coast population centres Brisbane,Sydney and Melbourne.Brisbane,in particular,is already seeing the positive effects of the upcoming Olympic games in 2032.Development plans are being laid out,and state spe

250、nding is increasing on housing and healthcare to keep up with the influx of people that are moving there for the relatively low cost of city living and plentiful job opportunities.Cost escalation continues to remain high across Australian markets,driven by shortages of skilled labour producing highe

251、r labour costs.Average escalation is forecast to be 3.5 percent across Australian markets for 2024,down from 5.6 percent last year.0.020.040.080.0100.060.0(%)Little impactFair impactMedium impactLarge impactMajor impactThe market is oversupplied,e.g.too manyToo many contractors chasing too few proje

252、ctsPolitical instabilityNet-zero commitmentsDifficult contractual and legal conditionsLow workplace productivity,inefficientGovernment red tape,bureaucracy,Institutional instabilityExcessive materials lead-in timesDifficulties accessing creditLack of confidence in the marketEconomic instabilityRisin

253、g costs of constructionIncreasing contractor insolvencySkilled labour shortagesto invest in new projectsdelayed approvalsand outdated work practicesvacant apartments and office spaceRegional construction key challenges01|Introduction02|Global economic outlook03|Global construction cost performance 0

254、4|Regional insights and data05|Methodology06|Contact35|International construction market survey 2024Australia and New ZealandPublic sector forging the path in AustraliaAustralias population is rising at the fastest rate in its history,and states are building more housing,education,healthcare and inf

255、rastructure to meet the rising demand.The situation in Brisbane is indicative of a wider trend across Australia.Governments are doing most of the heavy lifting with new construction investment,but will require a stronger input from the private side in the years ahead if population demands are to be

256、met.The Independent Strategic Review of the Infrastructure Investment Program reported late last year the governments maintained commitment to a 10-year programme of US$120bn rolling investment and an ambition of nation-shaping.This has identified new rail and road catalysts for long-term growth acr

257、oss the Gold Coast,Perth,Central Australia and beyond.Wherever new terminals and precincts are constructed,we expect to see significant spending on the community-building development to surround them.xThrough this,and as economic conditions improve,we expect that these public sector initiatives will

258、 set the foundations for a strong return in private sector investment in the years ahead.Clients should watch the focus of public spending closely to identify new opportunity areas and long-term growth potential.(%)14.314.3?14.314.314.3?14.371.471.4?71.40.050.0100.0WeakenImproveStayingthe same(%)14.

259、314.3?14.328.628.6?28.657.157.1?57.10.050.0100.0DecreasedIncreasedStayedthe sameHow do you think supply chain will perform in the coming 12 months?Approximately,how has program length changed over the last 12 months?01|Introduction02|Global economic outlook03|Global construction cost performance 04|

260、Regional insights and data05|Methodology06|Contact36|International construction market survey 2024Big data bigger opportunitiesAcross Asia,growing populations and increasing wealth are changing consumer habits.The leisure and hospitality markets across Asia are resurgent,as are high street retail an

261、d automotive retail.More people have money to spend on luxury goods and experiences.The result is greater construction and fit out work to keep up with the increase in demand.The population boom is also driving investment in new education and healthcare facilities,and with attitudes to old age care

262、changing,especially in urban communities,later living is becoming an area of significant expansion for the first time.The cost of construction in these sectors remains very affordable,primarily due to low wages.Average Asian wages have risen from US$11 per hour in 2023 to US$13 this year but in most

263、 of the emerging markets,they are still in the low single digits.Malaysia,Indonesia and India are all seeing challenges in access to skilled,specialist workers and clients should look closely at local development pipelines to predict where bottlenecks may occur.It is not just demographics that are s

264、hifting whole cities are moving too as climate resilience rises up the agenda.Jakarta,for example,is sinking into the sea at an alarming rate,and Indonesia is building a new capital city,Nusantara,at a cost of around US$35bn.This is just one example of where the impact of climate change is being fel

265、t more acutely by many across Asia,and,as a consequence,sustainability is moving up the agenda.China has positioned itself well in the sustainability supply chain,and the growing focus may benefit them as well as creating opportunities in development sectors across the continent.Net zero and project

266、s to mitigate climate disruption can be expected to be major areas of investment in the years to come,and clients should be looking to move ahead of the curve.Evolving focus on skillsAn ageing construction workforce and lower new intake numbers are constraining the sector with significant skills sho

267、rtages being felt across all markets.High incoming labour flows and interstate migration have traditionally helped to fill gaps in markets.However,an acute shortage of housing and surging rents and property prices are making it harder for people to move to where the demand is.This is seeing skills s

268、hortages intensify across markets and increasing competition to secure skills.Despite shortages,base labour costs have not increased radically.Where the increases are being seen is in sign-on bonuses and regional allowances to attract skills to projects.The regional average for ANZ now sits at US$59

269、 per hour.The shift to Labour Governments in all Australian states except Tasmania is leading to more spending on apprenticeships and training to increase the construction workforce in the years ahead.In the immediate term,clients need to be cognizant of where construction pipelines in specific regi

270、ons may be leading to bottlenecks and higher costs,and to focus on driving productivity and efficiency improvements wherever possible.Australia and New Zealand($)Market280.3280.3?280.3260.4260.4?260.4250.4250.4?250.4247.4247.4?247.4246.1246.1?246.1241.6241.6?241.6228.7228.7?228.70.0100.0200.0300.040

271、0.0500.0600.0SydneyBrisbanePerthAucklandMelbourneChristchurchAdelaideA regional ranking where are the most expensive markets?Most expensive place to build(ft),average cost of eleven building types in USD01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insi

272、ghts and data05|Methodology06|Contact37|International construction market survey 2024Australia and New ZealandConstruction market metrics AdelaideAucklandBrisbaneChristchurchMelbournePerthSydneyTendering:WarmLukewarmHotLukewarmWarmWarmWarmMarket:Staying the sameStaying the sameWarmerStaying the same

273、CoolerWarmerCoolerInflation 2023:(%)5.05.66.55.65.54.96.0Inflation 2024:(%)3.53.05.03.03.04.03.0Inflation 2025:(%)4.03.05.53.03.05.03.5Contractors margin:(%)5.06.05.06.04.55.05.0Preliminaries:(%)15.014.018.013.014.515.015.0Location Index(London=100):55.059.562.658.159.260.267.401|Introduction02|Glob

274、al economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact38|International construction market survey 2024Australia and New ZealandRegional construction cost performanceInternational building costs per ft of internal areaAucklandAucklandMelbourne

275、MelbourneSydneySydneyNZDUSDAUDUSDAUDUSDCommercialCBD Offices high-rise prestige 553 331 530 346 680 444 CBD Offices up to 20 floors medium(A-Grade)446 267 381 249 511 333 EducationPrimary and secondary 534 320 335 218 418 273 General Hospital(e.g.city teaching hospital)753 450 660 430 686 447 Hotels

276、3-Star travellers 372 222 372 243 449 293 5-Star luxury 613 367 641 418 661 431 Resort style 534 320 428 279 507 331 IndustrialAdvanced manufacturing facility 678 406 604 394 590 385 Large warehouse distribution centre 195 117 130 85 172 112 RetailLarge shopping centre including mall 455 272 358 233

277、 390 255 Neighbourhood incl supermarket 265 158 307 200 353 230 Prestige car showroom 353 211 372 243 349 227 ResidentialApartments high-rise 423 253 367 239 381 249 Townhouses medium standard 339 203 265 173 274 179 Labour,material and plant costs AucklandAucklandMelbourneMelbourneSydneySydneyNZDUS

278、DAUDUSDAUDUSDLabour costs(rates per hour)Group 1 Tradesman e.g.plumber/electrician85511087011575Group 2 Tradesman e.g.carpenter bricklayer80481056810568Group 3 Tradesman e.g.carpet layer,tiler,plasterer7545105689562Group 4 Green collar installation operative e.g.insulation/solar/heat pump85511157511

279、072General labourer603687578555Site foreman80481509814192Material costs13 mm plasterboard(m)159107138Concrete 30 MPa(m)(1500m job)330197230150273178Concrete block(400 x200)per 1000(10,000 block job)3,8102,2794,5002,9354,1502,707Copper cable(metre)(3C+E,2.5mm PVC)(100,000m+job)644364Copper pipe 15 mm

280、(metre)(1000+metre job)2012117117Emulsion paint(litre)352115101711Glass pane 10mm tempered(m)195117320209335219Reinforcement bar 16mm(tonne)(120 tonne job)2,9001,7352,1001,3702,4001,566Softwood timber for framing 100mm X 50mm(m)538596Standard brick per 10001,7501,0471,5009781,5601,018Structural stee

281、l beams(tonne)(100 tonne+job)2,9251,7503,5002,2833,5002,283Plant costs(rates per day)Hire 50t mobile crane+operator(day)3,5002,0943,5002,2833,2002,08701|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact39|International

282、 construction market survey 202439|International construction market survey 2024making the differenceEuropeBack on stronger footing and poised for green investmentAuthor:Martin Londra,Regional Real Estate Lead,EuropeEurope continues to feel the pressure from war within and near its borders.However,r

283、eindustrialisation and the resilience of established hub markets,combined with cooling cost inflation,is creating opportunities.The International Monetary Fund,in its recent World Economic Outlook,has predicted slow growth across the Euro area in 2024,which is expected to see GDP increasing at just

284、0.8 percent this year,marginally up from 0.4 percent in 2023.Ireland is perhaps an outlier,predicted to break out of recession in 2024 and grow by 1.5 percent.This is owing,at least in part,to its position as an active,post-Brexit market that has been comparably less affected by the war in Ukraine t

285、han its European neighbors.Spain is also ahead of the pack with 1.9 percent forecasted growth driven by a revival in hospitality and new industrial opportunities.AmsterdamAmsterdamBerlinBerlinBrusselsBrusselsFrankfurtFrankfurtHamburgHamburgMunichMunichParisParisStockholmStockholmViennaViennaWarsawWa

286、rsawDublinDublinGenevaGenevaMadridMadridMilanMilanZurichZurich Natural EarthCurrent tendering conditionFuture market outlook Overheating Hot Warm Lukewarm Cold Warmer No change Cooler01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Meth

287、odology06|Contact40|International construction market survey 2024EuropeTargeting new opportunities for growthThe recently announced Net Zero Industry Act is just one measure that the EU is driving to help support investment in green manufacturing and technology.This comes in response to the US own r

288、aft of initiatives around the Inflation Reduction Act.The overall trend in construction pricing is for a cooling in the rate of inflation.Sector hotspots include a continued boom in data centres,as well as advanced manufacturing facilities particularly battery giga-factories.Industrial sectors requi

289、re both vast amounts of land and ready access to reliable power,which is driving demand outside established urban centres.Leisure investment is also increasing,including in hotels and stadiums as Europe gears up for both the Paris Olympics and the Mens European Football Championships in Germany this

290、 summer.This has driven investment in the French capital one of the few markets where cost escalation is due to nudge up by 0.1 percentage points this year.This reflects constraints in the market,including where domestic contractors have been facing larger issues around accessing credit,which in tur

291、n has made it harder to meet the cost of production.0.020.040.080.0100.060.0(%)Institutional instabilityPolitical instabilityDifficult contractual and legal conditionsLow workplace productivity,inefficientNet-zero commitmentsDifficulties accessing creditThe market is oversupplied,e.g.too manyToo man

292、y contractors chasing too few projectsRising costs of constructionIncreasing contractor insolvencyExcessive materials lead-in timesGovernment red tape,bureaucracy,Economic instabilityLack of confidence in the market toSkilled labour shortages invest in new projectsdelayed approvalsvacant apartments

293、and office spaceand outdated work practicesLittle impactFair impactMedium impactLarge impactMajor impactRegional construction key challenges01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact41|International construct

294、ion market survey 2024Europe(%)20.020.0?20.046.746.7?46.733.333.3?33.30.050.0100.0WeakenImproveStayingthe sameHow do you think supply chain will perform in the coming 12 months?Approximately,how has program length changed over the last 12 months?(%)13.313.3?13.340.040.0?40.046.746.7?46.70.050.0100.0

295、DecreasedIncreasedStayedthe same01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact42|International construction market survey 2024Adapting to commercial development challengesA market contraction in more established

296、real estate sectors,such as housing and offices,is expected to ease in anticipation of falling interest rates and corresponding improvement in access to private finance and general confidence.Local conditions are also playing their part.Dublin has been buoyed by investment into both private and publ

297、ic sector housing developments on the back of an acute rental crisis in the Irish capital.This is reflected in construction demand,with a high-rise apartment in the Irish capital costing on average US$3,666.9 per m.Purpose-built rental accommodation for specialist markets is also booming,including s

298、tudent accommodation around key education hubs like Munich,where prestigious universities are looking to expand campus living with all amenities located around new student housing developments.A similar emphasis on specification is seen outside education too,as tech companies look to encourage worke

299、rs back into the office by developing high-specification work campuses and fit-outs.In Munich,this demand is pushing the price of a high-rise,high-specification office space up to US$5,608 per m.labor pricing continues to constitute a substantial part of cost increases.A limited pool of suppliers ha

300、s caused the average price of labor to reach US$84 per hour in the German industrial hub.This is the third highest across the entirety of Europe,only falling short of Zurich and Geneva,which continue to hold top tier spots in global labor cost rankings.Costs are being exacerbated by wider geopolitic

301、al tensions,most prominently through the war in Ukraine and conflict in the Middle East,which have strained labor capacity and the movement of goods and led to greater instability across the continent.Green investment to accelerate opportunitiesAlongside financial cost,carbon is an increasing priori

302、ty within development.Our own data indicates that the majority of projects in Paris,Brussels and Amsterdam are now making significant commitments towards net-zero carbon.This has been led by government regulations,but also rising consumer and employee expectations,and it is widely expected that this

303、 will only increase over time.This also has a bearing on resources.Heading into 2025 and beyond,there will be a need for greater investment into cultivating the right pipeline of green-collared,skilled labor.This will matter even more as market confidence improves to avoid curbing investment pipelin

304、es with a capacity crunch.Europe($)Market468.0468.0?468.0466.8466.8?466.8352.9352.9?352.9350.8350.8?350.8336.0336.0?336.0320.7320.7?320.7312.0312.0?312.0310.7310.7?310.7297.4297.4?297.4296.4296.4?296.4296.3296.3?296.3287.8287.8?287.8275.6275.6?275.6205.0205.0?205.0203.2203.2?203.20.0100.0200.0300.04

305、00.0500.0600.0ZurichGenevaMunichDublinViennaFrankfurtAmsterdamHamburgParisBerlinBrusselsStockholmMilanMadridWarsawA regional ranking where are the most expensive markets?Most expensive place to build(ft),average cost of eleven building types in USD01|Introduction02|Global economic outlook03|Global c

306、onstruction cost performance 04|Regional insights and data05|Methodology06|Contact43|International construction market survey 2024EuropeConstruction market metricsAmsterdamBerlinBrusselsDublinFrankfurtGenevaHamburgMadridMilanMunichParisStockholmViennaWarsawZurichTendering:LukewarmLukewarmLukewarmWar

307、mLukewarmWarmLukewarmWarmWarmLukewarmLukewarmLukewarmLukewarmLukewarmWarmMarket:CoolerCoolerCoolerStaying the sameCoolerCoolerCoolerStaying the sameStaying the sameCoolerCoolerStaying the sameCoolerCoolerCoolerInflation 2023:(%)1.54.02.13.04.02.44.02.01.54.02.42.03.55.52.6Inflation 2024:(%)0.51.00.5

308、3.01.02.01.03.02.01.02.51.51.05.02.0Inflation 2025:(%)2.02.02.02.03.01.02.03.02.02.01.02.52.03.01.0Contractors margin:(%)4.05.05.04.05.05.55.06.05.05.06.06.05.06.05.5Preliminaries:(%)13.012.013.014.012.011.012.012.012.012.012.012.513.010.012.0Location Index(London=100):75.071.371.384.477.2112.374.74

309、9.366.384.971.569.280.848.9112.601|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact44|International construction market survey 2024EuropeRegional construction cost performanceAmsterdamAmsterdamDublinDublinMunichMunich

310、ParisParisInternational building costs per ft of internal areaEURUSDEURUSDEURUSDEURUSDCommercialCBD Offices high-rise prestige 425 458 437 471 483 521 420 453 CBD Offices up to 20 floors medium(A-Grade)302 326 344 371 367 396 298 321 EducationPrimary and secondary 204 221 232 251 288 311 193 208 Gen

311、eral Hospital(e.g.city teaching hospital)427 460 497 536 446 481 412 444 Hotels3-Star travellers 253 273 321 346 279 301 237 256 5-Star luxury 447 482 423 456 511 551 430 464 Resort style 333 359 362 391 358 386 317 342 IndustrialAdvanced manufacturing facility 331 357 251 271 316 341 266 287 Large

312、warehouse distribution centre 124 133 139 150 146 158 115 124 RetailLarge shopping centre including mall 297 321 344 371 316 341 280 302 Neighbourhood incl supermarket 268 289 325 351 307 331 260 280 Prestige car showroom 312 337 362 391 339 366 304 328 ResidentialApartments high-rise 257 278 316 34

313、1 270 291 218 235 Townhouses medium standard 164 177 204 221 223 241 154 167 01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact45|International construction market survey 2024EuropeRegional construction cost performa

314、nceAmsterdamAmsterdamDublinDublinMunichMunichParisParisLabour,material and plant costsEURUSDEURUSDEURUSDEURUSDLabour costs(rates per hour)Group 1 Tradesman e.g.plumber/electrician63685054941017075Group 2 Tradesman e.g.carpenter bricklayer5357465078845863Group 3 Tradesman e.g.carpet layer,tiler,plast

315、erer5357454978845155Group 4 Green collar installation operative e.g.insulation/solar/heat pump63687075941017682General labourer4245404360654144Site foreman7480606584915863Material costs13 mm plasterboard(m)9911128967Concrete 30 MPa(m)(1500m job)164177125135240259163176Concrete block(400 x200)per 100

316、0(10,000 block job)1,8001,9418008631,4201,5311,5381,659Copper cable(metre)(3C+E,2.5mm PVC)(100,000m+job)33894444Copper pipe 15 mm(metre)(1000+metre job)8814151011910Emulsion paint(litre)881415101189Glass pane 10mm tempered(m)205221175189180194219236Reinforcement bar 16mm(tonne)(120 tonne job)1,2061,

317、3011,0001,0791,6501,7801,1281,217Softwood timber for framing 100mm X 50mm(m)5610116644Standard brick per 10007438018008631,0201,100815879Structural steel beams(tonne)(100 tonne+job)2,1762,3472,4502,6423,5003,7752,7522,968Plant costs(rates per day)Hire 50t mobile crane+operator(day)1,4201,5311,2501,3

318、481,5001,6181,2501,34801|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact46|International construction market survey 2024 Abu Dhabi Abu DhabiDoha DohaDubai DubaiRiyadh Riyadh Natural Earthmaking the differenceMiddle E

319、astNation-building at giga-scaleAuthor:Mark Hamill,Regional Real Estate Lead,Middle EastDespite an unsettled political backdrop,rapid levels of investment are driving growth in the Gulf as countries look to diversify away from conventional energy.Giga-projects are attracting global talent,while stre

320、tching supply chain capacity.With central bank interest rates beginning to fall from the highs of previous years,state-backed developments and giga-projects as part of various nation-building initiatives are continuing to drive construction activity across Gulf states.According to the IMFs World Eco

321、nomic Outlook,GDP in the Middle East region is forecast to rise by 2.8 percent in 2024 and 4.2 percent in 2025 representing a positive trajectory,especially relative to other emerging markets.This has been buoyed by the huge number of opportunities in major mixed-use,sports,leisure and residential d

322、evelopment.Current tendering conditionFuture market outlook Overheating Hot Warm Lukewarm Cold Warmer No change Cooler01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact47|International construction market survey 2024

323、Middle East0.020.040.080.0100.060.0(%)Institutional instabilityLack of confidence in the marketEconomic instabilityNet-zero commitmentsPolitical instabilityLow workplace productivity,inefficient andThe market is oversupplied,e.g.tooToo many contractors chasing too few projectsGovernment red tape,bur

324、eaucracy,Increasing contractor insolvencySkilled labour shortagesDifficult contractual and legal conditionsExcessive materials lead-in timesDifficulties accessing creditRising costs of constructiondelayed approvalsmany vacant apartments and office spaceoutdated work practicesto invest in new project

325、sLittle impactFair impactMedium impactLarge impactMajor impactRegional construction key challenges01|Introduction02|Global economic outlook03|Global construction cost performance 04|Regional insights and data05|Methodology06|Contact48|International construction market survey 2024Middle EastState-bac

326、ked initiatives driving growthThere has been a marked increase in construction in sports,leisure and hospitality in KSA and the United Arab Emirates.The standout story across the region has been the accelerated growth in the Kingdom of Saudi Arabia(KSA).KSA,which by our data ranks as the worlds 19th

327、 most expensive country to build in,has seen remarkable investment as both domestic and foreign funds look to capitalise on state-backed initiatives such as NEOM and the Governments wider 2030 vision.This has led to a growth of the major mixed-used development sector as schemes like The Line,King Sa

328、lman Park and Diriyah Gate begin to take shape.KSA is gearing up for EXPO 2030 and the 2034 FIFA World Cup by building in the necessary capacity,while also making overtures to global corporate occupiers through its Regional Headquarter Programme.This scheme encourages companies to launch offices in

329、KSA and there are cost advantages to office investment with an average high-rise central business district office in Riyadh costing a relatively low US$2,266 per m.The UAE has been a hotspot for tourism in the region in recent years and its relatively low cost of construction,when compared with West

330、ern markets,still makes it an attractive place to build the hubs and amenities for international visitors.In Dubai,residential development is buoying the local market as the city aims to support its growing population.Its attractiveness as a market is bolstered by its comparably low cost of construc

331、tion with high-rise apartment buildings costing US$1,334 per m.Data centres are an emerging sector owing to the vast areas of land,easy access to financing and increasing demand for digital infrastructure as the Middle East expands.25.025.0?25.050.050.0?50.025.025.0?25.00.050.0100.0WeakenImprove(%)S

332、tayingthe same0.00.0?0.050.050.0?50.050.050.0?50.0DecreasedIncreased(%)0.050.0100.0Stayedthe sameHow do you think supply chain will perform in the coming 12 months?Approximately,how has program length changed over the last 12 months?01|Introduction02|Global economic outlook03|Global construction cos

333、t performance 04|Regional insights and data05|Methodology06|Contact49|International construction market survey 2024Market241.0241.0?241.0194.8194.8?194.8174.2174.2?174.2171.4171.4?171.4RiyadhDohaDubaiAbu Dhabi($)0.0100.0200.0300.0400.0500.0600.0Understanding the pinch pointsOur survey has indicated that clients in KSA have found the shortage of skilled labour to be one of the greatest challenges f