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London Named the Most Expensive Place to Build in the World

London Named the Most Expensive Place to Build in the World

A study has found that central London is the most expensive place in the world to build. The study of 40 nations was conducted by Arcadis, a global consultancy firm based in Amsterdam, the nations were compared on a common currency basis. It found that construction in London cost 5 per cent more than building in Switzerland, 10 per cent more than Hong Kong and 36 per cent more than the rest of the UK. Construction in London poses complications due to its rivers, Victorian rivers, utilities and archaeological sites. The main reason, however, is the soaring land and building costs, this has attracted Chinese, Singaporean and Malaysian developers and buyers.

The British government has pledged to cut building costs by 33 per cent by 2025, with plans to cut the lengthy planning procedures and to move a large amount of the work to factories and away from the construction site. The value of construction sites for a year from third quarter 2013 had increased 25 per cent with Kings Cross and Earls Court all under redevelopment. The majority of building was private housing, with the iconic Battersea power station is to be converted into luxurious homes. Labour shortages are also a reason for higher costs with contractors demanding higher prices. India was the cheapest country to build in.

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