Terms and references

Building costs per m²

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 2023, relevant for Q1 2023, and excludes applicable taxes. All exchange rates are from March 2023.

Our international building costs per m² comparison has been calculated using the average values 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 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 onsite 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 recommends 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.