Now in its 14th year, our latest International construction market survey brings together data and perspectives from 89 global markets. It intends to map out key issues, document trends, and offer insights into the headwinds and tailwinds experienced by the global construction industry.
About our survey Our team of economists collaborated with our local specialist to evaluate input costs – such as labour, materials, and plant – and outlined the average construction costs per square metre for multiple asset classes across several sectors in 31 key markets. Cost data was collated in Q1 2023 measuring performance of projects and programmes across the previous calendar year.
The spotlight cost data for 36 core markets is supplemented by additional information collated in a further 53 markets, allowing us to gauge market conditions in 89 locations in total. This information provides context and a richer understanding of the balance of supply and demand and the cost pressures within each market.
In the three years since COVID-19 arrived, the global economy and its construction industry have endured a heightened period of market volatility and uncertainty. And whilst economic recovery has been set in motion, turbulence from rising interest rates, softening economic growth and stubborn inflation threaten to impact the construction industry in 2023.
When asked “How would you describe current market tendering conditions?”, 3.4 percent responded with ‘Cold’, 22.5 percent ‘Lukewarm’, 48.3 percent ‘Warm’, 23.6 percent ‘Hot’ and 2.2 percent ‘Overheating’. This leaves the global construction industry on a less stable footing than in 2022.
Nonetheless, amidst a changeable economic backdrop across the globe, 2023 also shows potential for positive outcomes. We hope that our report serves as a useful barometer of the general health of the global construction industry and the performance of individual markets and collective regions.
Since our 2022 publication, we have added three new unique markets – Durban, Monterrey and Milan. However, we have moved from 88 to 89 markets in total, increasing our overall coverage by one market. A list of those markets can be found here.
For simplicity, we have adopted straight-line USD conversion as our primary method of comparison for our cost data. For more information on the methodology section. Detailed explanations of what is included in and excluded from our cost information are given here.
© 2023 Turner & Townsend