Construction costs heat up across Europe, cool in the UK
Commerical property construction costs are rising fast in key European cities, while the London market has seen a dip in cost escalation.
UK-based Turner & Townsend has carried out research on construction costs across Europe and found that construction cost inflation is rising sharply in markets that hope to attract some financial organisation operations from London once the UK leaves the European Union. Construction inflation in Amsterdam rose by 8.8 percent during 2018, while Dublin saw prices increase by 7 percent. Berlin and Frankfurt have seen inflation rise by 4.7 percent.
In contrast, London saw building cost escalation more than halve to 2.1 percent in 2018, compared to 5.1 percent before the EU referendum in 2016. Nevertheless, the professional services company’s International Construction Market Survey 2019 also reveals that average build costs stand at £2,880 (€3,352) per square metre in the UK capital, making it still the third most expen