Revealed: World's most expensive places to build
To identify the most expensive place to build, th...
The world most expensive places to build have been revealed by new research by Turner & Townsend.
To identify the most expensive place to build, the average build cost in $ for six different types of building was assessed:
- Apartment high-rise
- Office block prestige
- Large warehouse distribution centre
- General hospital
- Primary and secondary school
- Shopping centre including mall
The International Construction market survey detailed:
New York retained its position as the most expensive place to build in the world even though building spend dipped in 2017. But that was from an all-time high in 2016 and growth in construction spending is set to resume in 2018, stretching resources.
San Francisco held the second spot, driven by the wealth and demand generated by high-speed growth in the technology sector.
Hong Kong moved ahead of Zurich to third. An emphasis on boosting housing and infrastructure supported growth and with labour increasingly stretched, the market’s already historically high construction costs rose further and are expected to grow in 2018.
Zurich, meanwhile, saw relatively low levels of construction cost inflation in 2017 with levels of construction stable and a relatively even balance between supply and demand established in the market.
London held fifth place, with noticeably higher costs than other UK regions. Construction cost inflation at 3.9 percent was above the rate seen elsewhere in the UK, which in part reflects the high demand and pressures on supply, notably skilled labour, in the capital.
The report added: "It is intriguing to note that average construction costs in 2017 in New York City, the most expensive place to build, are more than six times those seen in Bangalore, the cheapest place to build.
"It is, however, worth noting that the method we use to compare the least and most expensive places to build is highly dependent on the exchange rate. A country with a weak currency against the USD will seem like an inexpensive place to build and a country with a strong exchange rate will seem expensive."
France to invest €1.8bn in Egypt’s infrastructure
France will invest a total of €1.8bn into Egypt’s infrastructure focusing specifically on upgrading the Cairo Metro, building a railway to Sudan, and developing water and energy schemes. Officials have called the investment a “major boost to bilateral cooperation”.
The Cairo Metro
Included in the financing is a concessional government loan of around €800mn to upgrade Line 1 of the Cairo Metro, introduced in the 1980s. The financing will pay for 55 trainsets for the line and is provided by the French engineering company, Alstom.
Line 6 is also due to be upgraded using further state-guaranteed loans worth up to €2bn. Bruno Le Maire said that this would be negotiated over the next six months. France and Egypt have worked in close cooperation ever since Abdel Fattah al-Sisi became president in 2014, despite differences over human rights and strong criticism of Egypt by rights activists and some foreign states.
Nine more projects over the next half a decade
A further €1bn from France’s development agency, Agence Française de Développement (AFD), aims to cover a range of other projects over the next half a decade.
These projects include a railway line between Aswan, southern Egypt, and Wadi Halfa in Sudan, as well as several projects in the renewable energy and water purification industries. Bruno Le Maire, France’s Finance Minister, said Egypt was a “strategic partner and commercial dealings with it would be developed. France will substantially increase its direct exposure to Egypt, becoming the first counter-party for government to government loans,” he said.
According to Le Maire, the AFD will also €150mn to support the construction of a universal health insurance programme. French contractors such as Vinci and Bouygues have a long history of working on the Egyptian capital’s underground system.
Talking about the relationship between France And Egypt, Le Maire concluded: “France will substantially increase its direct exposure to Egypt, becoming the first counter-party for government to government loans”.