{"id":18640,"date":"2023-06-26T00:51:40","date_gmt":"2023-06-26T07:51:40","guid":{"rendered":"https:\/\/essential.construction\/news\/london-drops-from-10-most-expensive-cities-to-build\/"},"modified":"2023-06-26T00:51:46","modified_gmt":"2023-06-26T07:51:46","slug":"london-drops-from-10-most-expensive-cities-to-build","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/london-drops-from-10-most-expensive-cities-to-build\/","title":{"rendered":"London drops from 10 most expensive cities to build"},"content":{"rendered":"

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According to Turner & Townsend\u2019s International Construction Market Survey,<\/em> the average cost of construction is \u00a33,136 per sq m.<\/p>\n

London remains the most expensive UK city in which to build. The next two most expensive UK markets, Manchester and Edinburgh, only ranked 30th<\/sup> and 32nd<\/sup> with average costs of \u00a32,504 and \u00a32,425 per sq m respectively.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
UK city cost inflation forecast<\/th>\n<\/tr>\n<\/thead>\n
<\/td>\nRanking in
89 cities<\/td>\n		Cost\/m2 (\u00a3)<\/td>\n2022 inflation (%)<\/td>\n2023 inflation (%)<\/td>\nWages \/ hour (\u00a3)<\/td>\n<\/tr>\n
London<\/td>\n14<\/td>\n3,137<\/td>\n10<\/td>\n4.0<\/td>\n42.47<\/td>\n<\/tr>\n
Manchester<\/td>\n30<\/td>\n2,504<\/td>\n10<\/td>\n4.0<\/td>\n37.50<\/td>\n<\/tr>\n
Edinburgh<\/td>\n32<\/td>\n2,425<\/td>\n8<\/td>\n3.5<\/td>\n35.97<\/td>\n<\/tr>\n
Bristol<\/td>\n33<\/td>\n2,410<\/td>\n10<\/td>\n4.0<\/td>\n34.50<\/td>\n<\/tr>\n
Leeds<\/td>\n35<\/td>\n2,350<\/td>\n9.5<\/td>\n3.5<\/td>\n38.25<\/td>\n<\/tr>\n
Birmingham<\/td>\n37<\/td>\n2,336<\/td>\n8.0<\/td>\n3.5<\/td>\n36.75<\/td>\n<\/tr>\n
Glasgow<\/td>\n38<\/td>\n2,309<\/td>\n8.0<\/td>\n3.5<\/td>\n34.25<\/td>\n<\/tr>\n
Newcastle<\/td>\n40<\/td>\n2,275<\/td>\n10.0<\/td>\n4.0<\/td>\n34.75<\/td>\n<\/tr>\n
Belfast<\/td>\n42<\/td>\n2,259<\/td>\n11.0<\/td>\n2.0<\/td>\n33.83<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

UK markets have been overtaken by exceptional growth in secondary US cities such as Atlanta and Tampa, reflecting a strong US dollar and the impact of green subsidies in the States.<\/p>\n

Real estate activity in the US has been boosted by a series of policy initiatives designed to attract investment, including the Biden administration\u2019s Inflation Reduction Act (IRA).<\/p>\n

Martin Sudweeks, UK managing director, Cost Management at Turner & Townsend, said: \u201cExceptional growth in US markets has seen a relative shift in the UK\u2019s global ranking of the most expensive places to build.<\/p>\n

\u201cHowever, that shouldn\u2019t be misinterpreted as a sign that the market has cooled.\u00a0 While the expectation is that the rate of cost inflation will ease in the next twelve months, the overall picture is one of high competition for labour and resources.\u201d<\/p>\n

Looking forward in the UK the rate of inflation is expected to cool to 3.6% in 2023 as pressure on supply chains eases and demand falls, with higher interest rates increasing the cost of borrowing to finance projects.<\/p>\n

The UK is the fourth most expensive global region for construction labour, with average wages across the nine markets \u00a336.50 per hour.<\/p>\n

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