Switzerland topped the list of most expensive countries to construct in the world in 2014, followed by Denmark and Hong Kong, a new report has found.
According to an annual report by construction consultancy firm EC Harris, European countries dominated the top 10 most expensive construction markets last year.
This was partly due to the ongoing economic recovery in Germany and France, which is gradually translating into a rise in service charges demanded by contractors, the report said.
Meanwhile, currency devaluation in many emerging markets has also led to costs dropping considerably in these countries.
In the Middle East, Qatar, the UAE and Saudi Arabia were named the most expensive markets for construction respectively.
“The Gulf region is less impacted by fluctuations in global currencies as market constraints are driving inflation and price movements,” said Terry Tommason, partner and head of property at EC Harris.
“Investment on social infrastructure, economic diversification investment and event-driven construction are three key trends positively influencing construction spend in the region.”
Despite the steady level of investment, costs in the Gulf markets remain modest compared to the global levels, the report said.
It added that the current fall in oil prices could also impact the costs in future.
“Of the OPEC members, Abu Dhabi, Qatar and Saudi Arabia are amongst the best placed to be able to continue to fund budget commitments, but with oil trading hovering around $50/barrel earlier this month, it is possible that current and capital spending priorities may come under review,” said Tommason.
The Gulf region is set to see a construction boom as it readies to stage mega-events such as FIFA 2022 World Cup and Expo 2020.
The region is also planning the $200 billion GCC rail project, a large-scale transport project that connects six Gulf states through a rail network.
Top 10 World’s Most Expensive Construction Markets
3. Hong Kong