CHALLENGE
Comparing construction costs
Comparing construction costs between international markets is about more than just indicative pricing across markets, they also provide valuable insights into global best practices, which can inspire innovation in both design and delivery.
Convert to a single currency - USD for comparison.
Most of the international comparisons in this report are based on currency exchange rates, which is a commonly used and practical method for multinational organisations managing projects in their home currency.
In today’s volatile economic landscape, market uncertainty, particularly around geopolitical tensions, continues to influence exchange rates and, by extension, the affordability of imports and exports across many countries.
Our analysis compares exchange rates from March 2025 to March 2026, capturing changes within that specific timeframe. Over this period, 36.1% of global currencies have depreciated against the US Dollar, while the other 63.9% appreciated.
In the first half of 2026, the US dollar continued to soften as inflation progress stalled, rate‑cut expectations became more cautious and global investors diversified away from US assets.
This shift has supported a broad strengthening of other major and emerging‑market currencies, driven by rebalanced capital flows and a reduced appetite for dollar‑denominated holdings. With the US appearing relatively less compelling as a yield and growth destination, currency markets are adjusting accordingly, prompting central banks worldwide to reassess their own policy paths in response to a more diffused global investment landscape.
Although these trends are not directly reflected in the construction cost data presented in out 2026 survey, they play a prominent role in shaping international construction cost comparison. As such, ongoing monitoring of currency movement is essential, given their substantial impact on project and programme costs.
The average cost in USD for the following building types are assessed to rank how expensive each market is to build in.
- CBD Offices - up to 20 floors medium (A-Grade)
- Midscale hotel
- Upscale/ luxury hotel
- Large warehouse distribution centre
- Automotive retail (car showroom)
- Apartments high rise
Advantages
- Easy to understand and visualise
- Gives the cost of typical building in each country
Disadvantages
- A change in the exchange rate makes a significant difference: if a particular currency is strong compared to the base currency, the cost of construction looks expensive
- Is not a reliable indicator of relative costs and efficiency of construction between countries
Location index
The location index provided in this document offers a common base to compare costs of construction across different markets. London equals 100 as the initial base or reference point, with the deviation from 100 driven by our average cost in USD of several different building types of construction.
Terms and references
Building costs per m²
The average cost per square meter of a building measured to the outer perimeter of external walls or other external construction features, sheltered areas and external floor areas. In this survey, building costs per m², sometimes referred to as direct costs (as opposed to indirect costs) are for construction of the building, including preliminaries (or general conditions) costs and substructure, columns, upper floors, staircases, roof, external walls, external doors, internal walls, internal doors, wall finishes, floor finishes, ceiling finishes, fitments, plumbing, HVAC, fire protection, electrical and communication systems and transportation systems.
It is assumed that building costs are based on the typical building standards and building methods for the region.
This survey’s building costs per m² information comes from programmes underway at the beginning of 2026, relevant for Q1 2026, and excludes applicable taxes. All exchange rates are from March 2026.
Our international building costs per m² comparison has been calculated using the average values of the low and high ranges of the typical costs of all asset classes within our survey – excluding new data entries. Cost per m² information, collated from our survey, has formed the baseline of our in-house view of international building cost comparisons and rankings.
Expert opinions of experienced colleagues and sector specialists, informed by projects and programmes delivered in each location and external data have been used to support decision-making.
Costs, comparisons and location factors are only applicable for generalised building works as a high-level indication of preliminary costs. They are only suitable as an initial assessment of approximate build costs and quoted figures are to be treated with at least a +/-10.0 percent range of accuracy.
Actual costs are dependent on building design, inclusions, exclusions and site conditions. Cost comparisons between countries are subject to different interpretations, building methods and standards for costing, measurement and construction. Costs may vary substantially between regions within countries.
Exclusions from building costs per m²
External works, landscaping, professional fees, demolition, loose furniture, fittings and equipment, developer’s internal costs and finance, local authority fees and headworks charges, land, legal, finance and holding costs, GST or sales taxes, site investigation and test bores, removal of significant obstructions in the ground, abnormal footings. Allowance for underground or on-site car parking is also excluded from the building cost unless stated otherwise.
Labour costs
Labour costs are the all-inclusive cost to the employer, which includes the basic hourly wage, allowances, taxes, annual leave cost and where paid by the employer, workers’ compensation and health insurance, pensions, and travel costs and fares. It excludes overheads, margins, overtime and bonuses.
Inflation forecasts
This report contains forward looking construction cost inflation data that are subject to risk factors associated with global and local market changes. It is to be noted, that at the time of this report’s publication, the expectations reflected in these indices are reasonable. However, given the current volatile market conditions and rapid pace at which market conditions have and are continuing to change, these forecasts may be affected and may no longer be valid.
Therefore, the inflation forecasts included in this report should be used only as a guide. Turner & Townsend recommend seeking the advice of a local Turner & Townsend representative or contact prior to the use of these allowances, to ensure they are valid and remain current.
Composite trade rates
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