High construction costs: three French cities in the top 50 in the world


Nice, Paris and Lyon in the world ranking of the cities with the highest construction costs. They rank 32nd, 35th and 42nd in this top 50 compiled by Arcadis.

The engineering and consulting firm reports based on its latest Global Construction Cost Index London as “the most expensive city in the world to build”. The British capital, popular among real estate investors, is ahead of the Swiss capitals Geneva (2nd) and Zurich (3rd).

Behind Munich (Germany, 4th), the ranking outside Europe is dominated by the American cities of New York (5th) and San Francisco (6th).

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After the Olympics of automation

In France, Arcadis notes “strong differences between sectors (…): real estate is hard hit by inflation and rising interest rates, while hospitality, logistics, renewable energy, industry and data centers are resisting due to sustained demand.

Arcadis laments the perpetual “labor shortage” that characterizes the construction sector and recommends investing in “automation and standardization” to “secure” projects.

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A practical guide to delivery during the Olympic Games

If the French market is “stimulated by a slowdown in inflation compared to the peaks seen in 2022 and by investments linked to the Olympics and major public transport projects such as the Grand Paris Express, Arcadis notes two lingering obstacles: interest rates and inflation, ‘still high’.

For the first time since a rapid rise in rates between mid-2022 and mid-2023, the European Central Bank (ECB) plans to change its monetary policy by this summer, the Banque de France said.

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