International

construction
market survey
2019
Contents

Overview
2 Survey overview
and highlights
6 *OREDOHFRQRPLFRXWORRN
10 *OREDOFRQVWUXFWLRQ
cost performance
22 0DUNHWFKDOOHQJHVWKHWUDGH
wars ripple effect

Around the globe

Africa
26 Kenya
28 Rwanda
30 South Africa
32 Tanzania
34 Uganda
36 =LPEDEZH

Asia
38 China
42 India
44 Indonesia
46 Japan
48 Malaysia
50 Singapore
52 South Korea
54 Vietnam

Australasia
56 Australia
58 New Zealand

Europe
60 Austria
62 France
64 Germany
66 Ireland
68 Netherlands
70 Poland
72 Russia
74 Spain
76 Sweden
78 Switzerland
80 7XUNH\
82 UK

Middle East
86 Oman
88 Qatar
90 6DXGL$UDELD
92 UAE

North America
94 Canada
96 0H[LFR
98 USA

South America
104 Argentina
106 Brazil
108 Chile
110 &RORPELD

Methodology
112 Comparing construction costs
114 Terms and references
Overview
Economic turmoil is not a barrier to growth
In the last 12 months, the economic
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Monetary Fund has cut its forecast for
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have retreated, and house price
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Added to this, political turmoil and
trade-war tensions have increased
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the construction sector.
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construction sector entered this year
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Prospects throughout 2019
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are hot or overheating and a further
36 percent continue to warm up. Just
eight percent are cooling, indicating
widespread and continued growth
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Demand – a double-edged sword
Increasing activity and demand,
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for the construction industry and
its customers. On one hand, strong
growth in construction will help
support economic growth, reducing
the potential of a major downturn.
This could cushion some of the
negative impacts on the sector and
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attempts to deliver projects to desired
standards, cost and timeframes.
This will also put pressure on the
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have also widened. In 2018, the cost
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No time for complacency
A future easing of economic growth
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some relief, the symptoms of an
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delays in delivery and an erosion of
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We cannot hide from the increasing
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Nor can we ignore growing impatience
that construction is not adapting or
improving fast enough. We continue
to face some fundamental issues.
Clients and suppliers equally have
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using technology in a smarter way and
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now is our time to shine.
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forces across the industry, identify
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collectively from the whole industry and
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attractive conditions for investment,
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construction today and with a view
to future growth, may yield
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Neil Bullen
Global Managing Director, Real Estate
neil.bullen@turntown.com
1
Overview
Survey overview and highlights
About our survey
Our 2019 International construction market survey (ICMS) brings
together data and experience from 64 global markets. It is our largest
and most in-depth survey to date, providing insights into the current
state and direction of the global construction industry.
Our 2019 survey draws on
construction data and analysis from
real estate projects around the world,
providing asset investors and owners
with an even greater insight to the
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construction activity. With the addition
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ƒ Auckland and Christchurch
±1HZ=HDODQG
ƒ Harare ±=LPEDEZH
ƒ Mexico City±0H[LFR
ƒ Riyadh ±6DXGL$UDELD
ƒ Stockholm ±6ZHGHQ
ƒ Vienna ±$XVWULD
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countries already covered in the survey
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ƒ Atlanta, Chicago, Indianapolis
and Phoenix±86$
ƒ Vancouver, Ottawa and
Edmonton±&DQDGD
ƒ Berlin and Frankfurt, Germany
and Barcelona6SDLQ±(XURSH
ƒ Guangzhou ±&KLQD
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construction cycle that started in 2009,
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As a result, the construction sector
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momentum. This impetus should
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economy during the year. Of the
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2 International construction
market survey 2019
hot or overheating and a further
36 percent continue to warm up.
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are impacting. But the strength of
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in our survey indicates that they may
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any economic downturn.
conditions, as well as challenges
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are seeing on the ground. We also
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and materials, and the average cost
per square metre across different
construction types from residential
to commercial.
A variety of construction cost
comparison methodologies are
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deliver accuracy and insight. As well
as straight-line USD conversion, we
also use purchasing power parity (PPP)
and location factors. These methods
remove the impact from changing
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data and draw valid conclusions.
For more information on the
methods we use see pages 112 and 113.
Detailed explanations of what’s included
and excluded from our cost information
is given on page 114.
 Key highlights

35
markets are warm,
23
markets are
hot or overheating warming up

5
markets
18
new markets in
are cooling the 2019 survey

Construction costs in Auckland are the closest to the global median

3
Overview
Survey overview and highlights

Construction cost escalation 2019–2020

Indianapolis

Edmonton
4.0%
Stockholm
2.0% 2.0%

New York

Vancouver 3.0%
5.0%

San London
Francisco
2.5%
6.0%
Frankfurt
Mexico City 4.0%
5.0%
Zurich
0.7%

Buenos Aires
18.0%
Johannesburg

Santiago 6.0%
2.6%

International construction
 market survey 2019
 Current tendering conditions New markets in this survey
Mexico City, Mexico
Overheating :LWKWLJKWOLQNVWRWKH86$DQG
Hot Canada, its inclusion completes
Berlin Warm WKH1RUWK$PHULFDQSLFWXUH0H[LFR¶V
3.0%  /XNHZDUP
Cold
refreshed trade deal with the USA and
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and lower than average construction
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to follow.

Berlin and Frankfurt, Germany

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survey provides a rounded picture
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Amsterdam
Both are considered to have hot tender
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costs and wages are lower than
Munich, with Berlin the lower cost
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Istanbul Guangzhou Stockholm, Sweden

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12.0% 5.0% Scandinavian country included in this

survey, offering insight into a nation
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:RUOG%DQNWKRQ*'3SHUFDSLWD
According to our survey, average
Riyadh construction costs in Sweden is aligned
with other capitals, such as Paris and
5.0% Berlin, despite its high living costs.

Auckland and Christchurch, New Zealand

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Kampala Kuala %DQNVUDQNLQJVRI(DVHRI'RLQJ
Lumpur Business, New Zealand is an
3.0% 0.0% attractive destination for investment.
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Melbourne relatively overheated, and there

5.0% Auckland
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construction costs. Overall, contractors
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4.0% VRPHVNLOOVVKRUWDJHVZKHQZRUN
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Perth
1.5%
Harare Christchurch
3.0% 4.0%


Overview
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An uncertain economic
backdrop
There are clear signs of a retreat in stock markets, of
lower house-price inflation, and falls in many developed
economies, where cheap credit, tax cuts and speculation
have inflated the price of assets.
As a potential economic slowdown
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uncertainties in the political sphere
which have potentially powerful
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LPSOLFDWLRQVQRWMXVWIRUWKH8.EXW
Europe, trade wars, USA government
shutdown and political tensions,
climate change fears rising with
the perception that natural disasters
are increasing, mass migrations of
disenfranchised people and a rise
of populist leaders, to name a few.
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USD80trn according to the World
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economies (G20) accounted for 77
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percent growth in construction during
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construction to USD6.2trn.
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GDP of the G20 came from the USA,
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The International Monetary Fund
Economic overview:
Global
3.5%
forecasted GDP growth in 2019
3.6%
USA approaching a peak
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percent (annualised) in the second forecasted GDP growth in 2020
quarter, slowing in the third and fourth
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2.5%
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tech sectors, caused a 16 percent
sell-off in shares on the Dow Jones
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forecasted GDP growth in 2019
1.8%
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than 37 quarters of GDP growth since
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is approaching the previous upswing
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forecasted GDP growth in 2020
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prices in the country last year
surpassed the previous record high on Gary Emmett
WKH&DVH6KLOOHU&LW\LQGH[RI Senior Economist
set in late 2006. Consumer spending is Australia
the most important component of the
USA’s GDP. High house prices not only gary.emmett@turntown.com
SURYLGHFRQVXPHUFRQ¿GHQFHEXWDOVR
Kris Hudson
LQFUHDVHWKHDELOLW\WRERUURZDQG
PDNHPDMRUSXUFKDVHV Senior Economist
UK
At the end of 2018 there were several
kristoffer.hudson@turntown.com
sources of concern for the US economy.
The Fed raised interest rates in 2018
which caused a ripple effect through the
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government shutdown and a slump
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are increasing, saying a disorganised
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slowdown in China were potential
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into 2019, the strength of the USA,
China and European economies in
particular are of concern.
6 International construction
market survey 2019
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resisted further monetary tightening
in 2019, and this is causing the
indicators to improve.
Despite this, our survey shows the
construction sector is especially strong
in the USA, with overheating and
record high levels of construction costs
in the tech cities of the West coast.
“The group of
20 largest economies
(G20) saw five percent
growth in construction
in 2018, equivalent
to USD315bn.”

7
Overview
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Slowing growth rates in China
Turning to China, its slower growth
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trade tensions with the USA caused
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and aluminium and further threats of
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economy is on a long-term transition
from the investment-led growth of the
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and domestic consumption.
Nevertheless, these sectors suffered
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Sales of cars and smartphones were
down, and revenues in the real estate
and retail sectors fell as tighter
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consumer demand.
Finally, there is concern regarding
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the construction of infrastructure and
state-owned enterprises. The overall
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generate enough income to repay it
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leading to lower Chinese demand for
imports, of which further impacts on
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8 International construction
market survey 2019
Europe’s revival cut short
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slowing. During 2017 and early 2018,
growth rates in Germany, UK, Spain,
Italy, Greece and France increased
to levels that suggested Europe was
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crisis. However, in the second half
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all regions.
The German economy is particularly
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only 1.1 percent growth for the year.
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and industrial machinery from China is
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standards and testing has also slowed
the German car industry. With so much
of European industry connected to
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a slowdown may have far-reaching
effects.
A bad Brexit
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is another major concern. With
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political turmoil, there are fears over
the scale of any potential disruption
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to see a further slowdown in growth
in the short term.
Climate change debate heats up
Around the world, 2018 proved
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signs of climate change. It was
the fourth hottest year on record,
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temperatures in the late 19th century.
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Panel on Climate Change (IPCC)
indicated that the time window was
closing to carry out necessary actions
to prevent the temperature of the
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far-reaching transitions in land,
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transport and cities.”
Resources and commodities
In 2018, volatile commodity price
movements affected construction costs
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in OPEC and the emergence of the USA
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With oil prices lower, in the region
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prices and delivery costs for materials
is positive for construction activity.
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materials, eased down a little in the
second half of 2018. Copper prices
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However, trade tariffs on steel are
imposing additional costs on USA
contractors that use a high proportion
of steel.
 Global construction will help to cushion
the landing
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remains a solid performer. Our 2019
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sector, helping to mitigate the effects
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With construction projects generally

spanning multiple years, once started,
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going. There are many instances where
large projects, such as the natural
resources sector, transcend economic
cycles, often continuing during
a downturn and delivering into
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construction sector still warming
up, with 28 percent of the surveyed
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in construction will help support
economic growth, reducing the
potential of a major downturn. This
would cushion some of the negative
impacts on the sector and help
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“China’s economy is on
a long-term transition
from the investment-
led growth of the
past to growth led by
services and domestic
consumption.”

9
Overview
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A strong year for construction
Even as the global economy starts to slow the construction sector remains
strong. Our survey suggests there is enough activity to help cushion the worst impacts
of any global economic downturn.
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construction sector is in a strong
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compared with just eight regions from
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or overheating countries are forecast
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This is in line with the IMF, who are
predicting a slowdown rather than
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to get cooler. The warming regions are
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Africa, South America and the Middle
East, where last year’s survey found
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currently under pressure. Of the
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to warm up in 2019.
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to cool in 2019, Kuala Lumpur, Harare,
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into the warm category.
Turning to the UK, current construction
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Ireland remains cold. Scotland, UK
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Central and UK North are warm. Of the
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(UK Central) to warm up.
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Ireland, Muscat, Riyadh and Doha.
Other than Northern Ireland and
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up as the early stages of a recovery in
the minerals and oil and gas sectors
encourage growth and construction.
International improvers
ƒ São Paulo moved from cold
to lukewarmDQGLVH[SHFWHG
to warm up in 2019 as the
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resources improve.
ƒ Houston moved from
lukewarm to warmEXWLV
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2019. With the USA energy
sector undergoing long-term
growth Houston’s growth
prospects are improving.
ƒ Brisbane moved from
lukewarm to warm. Several
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in road, rail and entertainment
construction are getting
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ƒ Toronto moved from warm to
hot. Vancouver, Edmonton
and Ottawa are new to the
survey this year and come
in as hot. Each of these
cities has seen solid amounts
of construction despite
residential construction
PDUNHWVVORZLQJGRZQ

7KHUHDUHPDUNHWVRXWRI (OVHZKHUHDVLQWKHFDVHRI,VWDQEXO

from 18 countries where the DQG0RVFRZJOREDOJHRSROLWLFVDUH
PDUNHWLVGHVFULEHGDVZDUPKRW SHUKDSVWKHPDLQGULYLQJIRUFHEHKLQG
or overheating and of these only one WKHODFNRILQFHQWLYHWRLQYHVWZKLFK
PDUNHWLVIRUHFDVWWRFRRODOLWWOHRQ LVNHHSLQJWKHPDUNHWFROG
2019. This is Kuala Lumpur, a country
KLJKO\GHSHQGHQWRQRLOH[SRUWVDQG
WUDGHZLWK&KLQDERWKRIZKLFKDUH

10 International construction
market survey 2019
 Other newcomers to the survey
ƒ Vienna is in the survey for
WKH¿UVWWLPH,WFRPHVLQ
as a hotPDUNHWUHJLRQ
ƒ In Germany, Berlin and
FrankfurtKDYHEHHQDGGHG
to Munich. All are hotPDUNHWV
)UDQNIXUWLVZDUPLQJXS'HVSLWH
evidence of a slowdown in the
German economy, the region
ORRNVUHPDUNDEO\VWURQJ
for construction.
ƒ (LJKWPDUNHWVIURPWKH86$DUH
now part of the survey. All are
warm, hot or overheating. The
tech cities of San Francisco
and Seattle are overheating.
Newcomers Phoenix and
Indianapolis are hot, and
Atlanta and Chicago are warm.
ƒ Another major newcomer to
WKHVXUYH\LV0H[LFRDFRXQWU\
with 123 million people, GDP
of USD1.1trn and GDP growth
RISHUFHQWMexico City
LVGHVFULEHGDVKDYLQJD
lukewarmPDUNHWDWWKH
start of 2019.
ƒ New Zealand, a country of
PLOOLRQSHRSOHLQFOXGHV
Auckland and Christchurch,
ERWKZLWKwarm construction
PDUNHWV

Frankfurt, Germany, is a hot market in this year’s survey

11
Overview
*OREDOFRQVWUXFWLRQFRVWSHUIRUPDQFH

Figure 1 Defining market temperature

Current tendering condition Future market outlook

Overheating Warmer
Hot No change
Warm Cooler
 /XNHZDUP
Cold

Summary:

4.7%
Overheating
North America

23.4%
San Francisco
Seattle
Indianapolis
Ottawa
Hot
3KRHQL[
Toronto

26.6%
Warm
Edmonton
Vancouver
Houston
Atlanta
Chicago

32.8%
1HZ<RUN&LW\
0H[LFR&LW\

Lukewarm South America

Bogotá

12.5%
Santiago
São Paulo
Buenos Aires

Cold

12 International construction
market survey 2019
Europe
Amsterdam
)UDQNIXUW
Berlin
'XEOLQ
Munich
Warsaw
Vienna
Barcelona
Asia
Madrid
7RN\R
Paris
Bangalore
UK Central
Ho Chi Minh City
UK North
Hong Kong
Zurich
Middle East Shanghai
6WRFNKROP
UAE Beijing
London
Muscat Guangzhou
Scotland
Riyadh -DNDUWD
UK South
Doha Singapore
Moscow
Kuala Lumpur
Northern Ireland
,VWDQEXO Seoul

Australasia
Africa
0HOERXUQH
Dar es Salaam
Sydney
Kampala
%ULVEDQH
Kigali
1DLUREL $XFNODQG
Harare Christchurch
-RKDQQHVEXUJ Perth

13
Overview
*OREDOFRQVWUXFWLRQFRVWSHUIRUPDQFH
Current market conditions
:HDVNHGRXUH[SHUWVWRGHVFULEH
WKHLUORFDOFRQVWUXFWLRQPDUNHWDVFROG
OXNHZDUPZDUPKRWRURYHUKHDWLQJ
&RPSDULQJPDUNHWKHDWSURYLGHV
useful insight relating to the strength
of competition in the construction
VXSSO\FKDLQDQGOLNHO\FRVWSUHVVXUHV
$VDUXOHZHZRXOGH[SHFWKRWRU
RYHUKHDWLQJPDUNHWVWRKDYHKLJKHU
SULFHLQÀDWLRQ$VWKHGHPDQGIRU
construction services or materials
LQFUHDVHVDJDLQVWDUHODWLYHO\¿[HG
supply, prices increase. When a
PDUNHWLVFROGWKHZKROHVXSSO\FKDLQ
must compete more vigorously to win
ZRUNRUDVXSSO\FRQWUDFWDQGWKLV
encourages lower prices. We should
see the evidence all along the supply
FKDLQZLWKULVLQJODERXUUDWHVULVLQJ
materials costs and rising costs of
FRQVWUXFWLRQLQKRWPDUNHWV
7KHUHDUHH[FHSWLRQVWRWKHUXOH)RU
H[DPSOHHYHQLQFROGPDUNHWVKLJKHU
prices of materials, perhaps caused
E\ULVLQJLQWHUQDWLRQDOFRPPRGLW\
prices, can push up construction
costs. Similarly, where a country is
dependent on a high proportion of
imported materials any fall in the
H[FKDQJHUDWHZRXOGDOVROHDGWR
LQÀDWLRQLQRYHUDOOFRQVWUXFWLRQFRVWV
,Q¿JXUHWZRPDUNHWVH[SHULHQFHG
H[FHSWLRQDOO\ODUJHFRQVWUXFWLRQFRVW
LQFUHDVHVLQ7KHVHZHUH %RWKH[SHULHQFHGVORZHUFRQVWUXFWLRQ
ƒ Buenos Aires ±OXNHZDUPPDUNHW
VWD\LQJWKHVDPHSHUFHQW
increase in 2019
ƒ Istanbul±FROGPDUNHWJHWWLQJ
FRROHUSHUFHQWFRVWLQFUHDVH
There were several hot or overheating
PDUNHWVZKHUHFRQVWUXFWLRQFRVWVZHUH
LQFUHDVLQJDVPLJKWEHH[SHFWHGLQD
FRQVWUXFWLRQERRP (3.1 percent growth in 2018) and
International construction
 market survey 2019
ƒ Amsterdam ±RYHUKHDWLQJPDUNHW
getting warmer, 8.8 percent cost
increase.
ƒ Dublin ±KRWVWD\LQJWKHVDPH
FXUUHQWFRQVWUXFWLRQFRVWLQÀDWLRQ
of 7.0 percent
ƒ Warsaw ±KRWVWD\LQJWKHVDPH
FRQVWUXFWLRQFRVWLQÀDWLRQRI
percent
ƒ Bogotà ± OXNHZDUPPDUNHW
ZDUPLQJXSSHUFHQW
As Bogotà warms up cost escalation
could reach 8.0 percent in 2019.
Construction costs are lower
This year we have prepared a weighted
DYHUDJHFRQVWUXFWLRQFRVWLQÀDWLRQ
ZHLJKWLQJHDFKFRXQWU\E\LWV*'3
This removes the impact of very high
LQÀDWLRQLQVPDOOHUFRXQWULHVRUUHJLRQV
VNHZLQJWKHRYHUDOODYHUDJHH[FHVVLYHO\
2QWKLVEDVLVXVLQJWKLVLPSURYHG
PHWKRGDYHUDJHJOREDOFRQVWUXFWLRQ
FRVWLQÀDWLRQZDVSHUFHQWLQ
HDVLQJLQWRSHUFHQW
Using the same weighted average
WHFKQLTXHZHQRZH[SHFWFRVW
HVFDODWLRQWRQXGJHGRZQWR
percent.
'HVSLWHJOREDOFRQVWUXFWLRQJURZLQJE\
SHUFHQWGXULQJFRQVWUXFWLRQ
costs increased at a slower rate than
in 2017. The principal reason for this
comes from China and the USA.
FRVWLQFUHDVHV ƒ ,Q0H[LFR&LW\FRQVWUXFWLRQFRVW
ƒ In China, average construction cost
escalation in 2017 was 9.0 percent,
DQGWKLVIHOOWRSHUFHQWLQ
In the main, construction cost
escalation in the major cities is
slowing down
ƒ In the USA, the addition of some
lower-cost cities including Atlanta
Indianapolis (2.0 percent) has
EURXJKWWKHDYHUDJHGRZQ
1HYHUWKHOHVVWKHUHDUHPDUNHWV
where construction costs are
LQFUHDVLQJDQGDUHOLNHO\WREHKLJKHU
in 2019. In most cases, the difference
is quite minor. A matter of an
DGGLWLRQDOSHUFHQWRUSHUFHQW
In some cases, however, construction
FRVWVORRNVHWWRMXPSDOLWWOHPRUH
7KHVHLQFOXGH
ƒ 7KHZDUPLQJ5L\DGKPDUNHWZKHUH
some major projects are coming to
FRQVWUXFWLRQLQFOXGLQJDVL[OLQH
Metro Rail in Riyadh, Al Faisaliah
6PDUW&LW\DQGWKHNPKLJK$O
Jeddah Tower. Construction cost
LQFUHDVHVFRXOGUHDFKSHUFHQW
in 2019
ƒ In Qatar, where preparations for the
World Cup are driving construction
LQWKH'RKDFHQWUDOEXVLQHVVGLVWULFW
the airport and nine new soccer
VWDGLXPVFRQVWUXFWLRQFRVWLQÀDWLRQ
FRXOGLQFUHDVHIURPSHUFHQWLQ
2018 to 2.0 percent in 2019
ƒ ,Q0DGULGFRQVWUXFWLRQFRVWLQÀDWLRQ
FRXOGUHDFKSHUFHQWLQDV
JURZLQJFRQ¿GHQFHDQGDVKRUWDJH
RIRI¿FHVDQGDSDUWPHQWVLQWKH
major cities are driving the incentive
to invest
ƒ ,Q-DNDUWDFRQVWUXFWLRQFRVWLQÀDWLRQ
FRXOGUHDFKDVKLJKDVSHUFHQW
LQGULYHQE\VWURQJWUDQVSRUW
infrastructure investment and up to
86'EQRISRWHQWLDO&KLQHVH
LQYHVWPHQWLQEHOWDQGURDGSURMHFWV
LQÀDWLRQFRXOGUHDFKSHUFHQW
LQ'HVSLWHWKHPDUNHWEHLQJ
GHVFULEHGDVOXNHZDUPXSWR
3 million square metres of high-
TXDOLW\PL[HGUHVLGHQWLDORI¿FH
towers are under construction in
WKH¿YHPDMRUFLWLHVRI0H[LFR&LW\
Guadalajara, Monterrey, Querétaro
DQG3XHEODGULYLQJWKHGHPDQGIRU
FRQVWUXFWLRQVHUYLFHVODERXUDQG
materials
ƒ :LWKLQ$XVWUDOLD0HOERXUQH
ORRNVVHWWRVHHWKHODUJHVWULVHV
LQFRQVWUXFWLRQFRVWLQÀDWLRQIURPRQO\
SHUFHQWLQWRSHUFHQW,Q
DELJH[SDQVLRQLQURDGDQGUDLO
FRQVWUXFWLRQWRJHWKHUZLWKDEXR\DQW
commercial construction sector are
now adding to cost increases.
Figure 2 Construction cost inflation
Region Markets Cost inflation in 2018 Forecasted cost inflation in 2019
Johannesburg 4.7% 6.0%
Dar es Salaam 4.0% 4.0%
Africa

Kigali 3.2% 3.2%

Harare 3.0% 3.0%
Kampala 3.0% 3.0%
Nairobi 3.0% 3.0%
Guangzhou 5.0% 5.0%
Jakarta 5.0% 7.5%
Seoul 5.0% 2.0%
Shanghai 5.0% 5.0%
Beijing 3.0% 2.0%
Asia

Ho Chi Minh City 3.0% 3.0%

Tokyo 2.8% 4.0%
Hong Kong 2.5% 4.0%
Bangalore 1.0% 3.0%
Singapore 1.0% 2.0%
Kuala Lumpur 0.0% 0.0%
Melbourne 4.0% 5.0%
Australasia

Auckland 3.5% 4.0%

Christchurch 3.5% 4.0%
Sydney 3.5% 3.5%
Brisbane 2.0% 2.5%
Perth 1.0% 1.5%
Istanbul 15.0% 12.0%
Amsterdam 8.8% 9.0%
Dublin 7.0% 7.0%
Warsaw 6.0% 4.0%
Berlin 4.7% 3.0%
Frankfurt 4.7% 4.0%
Munich 4.7% 3.0%
Madrid 4.0% 5.0%
Moscow 4.0% 4.0%
Europe

Stockholm 4.0% 2.0%

Vienna 4.0% 3.5%
Barcelona 3.5% 2.5%
UK Central 3.3% 2.3%
Paris 2.7% 3.5%
UK North 2.3% 2.1%
London 2.1% 2.5%
Scotland 2.1% 3.1%
UK South 2.0% 2.5%
Northern Ireland 0.5% 1.5%
Zurich 0.5% 0.7%
UAE 1.5% 2.0%
Middle

Doha 0.1% 2.0%

East

Riyadh 0.0% 5.0%

Muscat -1.0% 0.0%
San Francisco 5.0% 6.0%
Seattle 5.0% 6.0%
Vancouver 5.0% 5.0%
Ottawa 4.5% 3.0%
North America

Chicago 4.0% 4.0%

Houston 4.0% 4.0%
Mexico City 4.0% 5.0%
Phoenix 4.0% 3.0%
New York City 3.5% 3.0%
Atlanta 3.1% 4.2%
Toronto 3.0% 3.0%
Edmonton 2.0% 2.0%
Indianapolis 2.0% 4.0%
Buenos Aires 43.4% 18.0%
America
South

Bogotá 6.5% 8.0%

São Paulo 4.5% 4.5%
Santiago 2.1% 2.6%


Overview
*OREDOFRQVWUXFWLRQFRVWSHUIRUPDQFH

Five most expensive places to build

San Francisco
takes the top spot as the most
expensive place to build in the
world, with the average cost of
construction increasing 5.0 percent
in 2018.

Where is the most expensive

region to build?
7RLGHQWLI\WKHPRVWH[SHQVLYHSODFH
WREXLOGWKHDYHUDJHEXLOGFRVWLQ86'
RIVL[GLIIHUHQWW\SHVRIFRQVWUXFWLRQ
ZDVDVVHVVHG

ƒ Apartment high-rise
ƒ 2I¿FHEORFNSUHVWLJH
ƒ /DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH
ƒ General hospital
San New York Hong ƒ Primary and secondary school
1. Francisco 2. city 3. London 4. Zurich 5. Kong ƒ Shopping centre including mall.

7KH¿YHKLJKHVWFRVWFLWLHVUHPDLQ
6DQ)UDQFLVFR1HZ<RUN/RQGRQ
Zurich and Hong Kong. This year,
6DQ)UDQFLVFRUHPRYHV1HZ<RUNIURP
Five least expensive places to build WKHWRSVSRWKDYLQJLQFUHDVHGE\
SHUFHQWLQWKHODVW\HDU6HH¿JXUH

Singapore has construction costs

closest to the average, while the
closest to the median cost of
86'LV$XFNODQG

Low construction costs in Chinese

and Indian cities are not much of a
VXUSULVHKDYLQJEHHQLQWKLVSRVLWLRQ
LQSUHYLRXVVXUYH\V+RZHYHU,VWDQEXO
FRQWLQXHVWRVXUSULVHE\KDYLQJVXFK
ORZFRQVWUXFWLRQFRVWV7KH7XUNLVK
OLUDKDVIDOOHQIURPFORVHWR86'
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1. Bangalore 2. Istanbul 3. Guangzhou 4. Nairobi 5. Beijing
KHOSVH[SODLQWKHGUDPDWLFDOO\ORZ
construction costs when converted
EDFNWR86GROODUV

16 International construction
market survey 2019
Figure 3 Average cost of six building types in USD
Region Markets Average cost of six building types USD
Harare 1,683.3
Kigali 1,085.4
Africa

Kampala 967.3
Johannesburg 952.2
Dar es Salaam 922.3
Nairobi 738.4
Hong Kong 3,749.0
Tokyo 2,660.7
Singapore 2,100.1
Seoul 1,702.8
Kuala Lumpur 992.7
Asia

Jakarta 879.7
Ho Chi Minh City 813.7
Shanghai 764.0
Beijing 756.7
Guangzhou 728.7
Bangalore 582.2
Sydney 2,735.5
Australasia

Melbourne 2,415.5
Auckland 2,272.2
Brisbane 2,262.0
Christchurch 2,238.9
Perth 2,165.8
London 3,790.1
Zurich 3,756.9
Dublin 3,245.1
UK South 2,938.2
Munich 2,924.7
Amsterdam 2,866.4
Vienna 2,816.0
Frankfurt 2,707.2
Scotland 2,698.1
Europe

UK North 2,693.9
UK Central 2,685.7
Paris 2,668.4
Berlin 2,645.8
Stockholm 2,584.4
Northern Ireland 2,291.7
Barcelona 2,238.3
Madrid 2,205.2
Warsaw 1,013.8
Moscow 933.3
Istanbul 611.6
Doha 2,420.6
Middle

UAE 1,742.1
East

Muscat 1,314.1
Riyadh 1,288.0
San Francisco 4,482.7
New York City 3,958.3
Seattle 3,640.0
Chicago 3,188.1
North America

Vancouver 2,720.8
Indianapolis 2,628.6
Phoenix 2,592.7
Atlanta 2,584.8
Houston 2,551.5
Toronto 2,550.7
Edmonton 2,506.5
Ottawa 2,415.7
Mexico City 1,144.7
Santiago 1,430.0
America
South

Buenos Aires 1,310.1

Bogotà 1,224.6
São Paulo 968.2

17
Overview
*OREDOFRQVWUXFWLRQFRVWSHUIRUPDQFH

The overall spread of average UHJLRQ¿JXUHDQGE\PDUNHW¿JXUH When comparing high-cost and
FRQVWUXFWLRQFRVWVLVUHPDUNDEOHDQG
increasing. Bangalore costs are just
13 percent of those in San Francisco.
7KHERWWRPWHQPDUNHWVKDYHDYHUDJH
construction costs of just 22 percent
of the top ten regions. In other words,
\RXFRXOGEXLOG¿YHVLPLODUVWUXFWXUHV
LQWKHERWWRPWHQUHJLRQVIRUWKHVDPH
cost as one in the top ten regions.
In 2018, the average construction
FRVWRIWKHERWWRPWHQUHJLRQVZHUH
SHUFHQWRIWKHDYHUDJHRIWKHWRS
ten regions. At this time, the lowest
FRVWUHJLRQVFRXOGEXLOGIRXUVLPLODU
structures for the same cost as the
DYHUDJHWRSWHQPDUNHWV
Construction labour
The survey includes an assessment of
WKHFRVWRIFRQVWUXFWLRQWUDGHODERXUE\
Figure 4 Average hourly wage (USD) by region
America
North
Australasia
Europe
14.6
Asia
6.4
America
South
6.4
Middle
East
5.1
Africa
0 10
18 International construction
market survey 2019
:HDOVRDVNHGWKHUHVSRQGHQWVWR
indicate the cost to the employer rather
than just the wage, so the rates include,
ZKHUHDSSURSULDWHWUDYHOH[SHQVHV
SHQVLRQFRQWULEXWLRQVDQGKHDOWK
LQVXUDQFHDVZHOODVRWKHUEHQH¿WV
,QVRPHFDVHVWKHVHEXPSWKHODERXU
FRVWXSVXEVWDQWLDOO\DERYHWKHZDJH
The survey again highlights the
PDVVLYHGLVSDULW\EHWZHHQODERXU
costs worldwide. China, India, and
Africa regions have the lowest costs,
while North America has the highest
costs with Europe and Australasia a
OLWWOHEHKLQG7KHKLJKHVWODERXUFRVWV
were recorded in Zurich, where even
DJHQHUDOODERXUHUFRXOGFRVWDVPXFK
DV86'SHUKRXUDQGDVNLOOHG
electrician might cost USD118 per hour.
20 30
Average hourly wage (USD)
ORZFRVWODERXUUHJLRQVLWLVZRUWK
FRQVLGHULQJHGXFDWLRQVNLOOOHYHOVDQG
RYHUDOOODERXUSURGXFWLYLW\*HQHUDOO\
KLJKODERXUFRVWUHJLRQVZLOOLQYHVW
PXFKPRUHKHDYLO\LQODERXUVDYLQJ
machinery and pay close attention to
ODERXUSURGXFWLYLW\%XWZKHUHODERXU
is very low cost it is cost-effective and
HI¿FLHQWWRHPSOR\PRUHODERXU
Labour skills shortages
6XUYH\UHVSRQGHQWVZHUHDVNHGWR
DGYLVHRQWKHVWDWHRIODERXUVNLOOV
VKRUWDJHVLQWKHLUORFDOPDUNHW$UH
WKHUHWUDGHVODERXUVNLOOVVKRUWDJHV
RULVWKHPDUNHWLQEDODQFHRUHYHQLQ
surplus? In this survey the proportion
RIPDUNHWVH[SHULHQFLQJVNLOOVVKRUWDJHV
continues to increase. Two thirds of the
PDUNHWVLQWKLV\HDU¶VVXUYH\DUH
H[SHULHQFLQJVNLOOVVKRUWDJHV
58.2
52.8
40.8
40 50 60
 Figure 5 Average hourly wage by market

Zurich 110.7

Zurich
New York 101.3 remains the market with the
San Francisco 90.0 highest labour costs with an
80+
average hourly wage of USD110.7

Seattle 75.5

70
Chicago 69.6

Sydney 66.1

Melbourne 64.3

60

Atlanta 57.8
Phoenix 57.0

Houston 55.6 Perth 54.2

Indianapolis 54.2 Brisbane 52.7

Munich 51.8
Amsterdam 51.5
50 Vienna 49.9 Vancouver 49.4
Stockholm 48.6 Toronto 48.6
Frankfurt 47.9 Ottawa 47.7
Berlin 46.9
London 46.1
Average hourly wage (USD)

Edmonton 44.6
Paris 43.8
UK South 42.8
Dublin 42.0

Christchurch 39.9
40
Auckland 39.3

UK North 36.7
Scotland 36.5
UK Central 36.5
Barcelona 33.5
Madrid 33.0

30

Northern Ireland 28.3

Tokyo 25.7

Seoul 23.0

Hong Kong 22.4

20

Singapore 17.9

Moscow 12.7

10
Warsaw 10.1
Kuala Lumpur 5.7 Santiago 9.2
Shanghai 5.7 São Paulo 9.2 Doha 8.4
Guangzhou 5.6
Istanbul 7.5 UAE 6.5 Nairobi 7.2
Beijing 5.5
Riyadh 6.2 Dar es Salaam 6.0
Mexico City 5.1 Kigali 5.0
Bogotá 4.9 Muscat 4.5
Ho Chi Minh City 2.7
Johannesburg 4.2
Bangalore 1.3 Buenos Aires 2.3 Kampala 4.2
0 Jakarta 1.2 Harare 4.0

Europe North America Australiasia Asia South America Middle East Africa

19
Overview
*OREDOFRQVWUXFWLRQFRVWSHUIRUPDQFH

7KHQXPEHURIUHJLRQVµLQEDODQFH¶KDV
fallen while the proportion of regions
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$VPLJKWEHH[SHFWHGKRWDQG
RYHUKHDWLQJPDUNHWVDUHH[SHULHQFLQJ
VNLOOVVKRUWDJHV1RQHRIWKHVHUHJLRQV
VDLGWKHLUPDUNHWVZHUHLQEDODQFH
)RUPDQ\KLJKFRVWFRXQWULHVVNLOOV
VKRUWDJHVDUHDQHDUSHUSHWXDOSUREOHP
HDVLQJRQO\ZKHQWKHPDUNHWGLSVLQWR
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8QGHUOLQLQJWKHSHUVLVWHQFHRIVNLOOV
shortages is that some regions with a
FROGPDUNHWVWLOOUHSRUWHGWUDGHVNLOOV
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Northern Ireland. Perth remains a cold
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(OHYHQUHJLRQVFRQVLGHUHGOXNHZDUP
DUHVWLOOUHSRUWLQJVNLOOVVKRUWDJHV
This raises the question of where
ODERXUZLOOFRPHIURPDVDQGZKHQ
WKHVHPDUNHWVKHDWXSIURPOXNHZDUP
to hot. Some may come from other
occupations such as agriculture where
the operation of heavy machinery is
FRPPRQRWKHUVIURPVHUYLFHEDVHG
occupations. But often in the high-
ODERXUFRVWUHJLRQVEDUULHUVWR
HQWU\FDQEHVLJQL¿FDQWVXFKDVD
UHTXLUHPHQWIRUODERXUWRKDYHWUDGH
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Where it is hard to employ additional
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ending in higher construction costs.
Preliminaries and margins
Preliminaries can vary quite widely
within a region, depending on the
type and location of the construction.
$VWKH\WDNHDFFRXQWRIWKHVHWWLQJ
XSFRVWVIRUDFRQVWUXFWLRQMRELQ
regions where there is a high degree
RIFRPSOH[LW\SUHOLPLQDULHVWHQGWR
EHKLJKHU7LJKWFRQVWUXFWLRQVSDFHV
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management, all add to costs.
Typically, higher preliminaries costs
occur in Australasia, Germany, the
8.DQGWKH86$6HH¿JXUH
6RPHRIWKHORZHVWSUR¿WPDUJLQV
among main contractors are in the
United Kingdom, where the average
LVMXVWSHUFHQW$XVWUDODVLDLVRQO\
slightly higher, with New Zealand at
7.0 percent margin. In the USA and
&DQDGDWKHDYHUDJHPDUJLQLV
SHUFHQW6RXWKRIWKHERUGHULQ0H[LFR
margins are higher at 10.0 percent.
,Q6RXWK$PHULFDPDUJLQVWHQGWREH
higher, averaging 8.0 percent.
There was a wide range of main-
contractor margins recorded for
Europe. Overall, most regions recorded
¿YHWRVL[SHUFHQWPDUJLQV+RZHYHU
LQRYHUKHDWHGPDUNHWVVXFKDV
Amsterdam and Sweden, margins
are as high as 10.0 percent.
Asia has some with very high margins.
Margins in Kuala Lumpur, Bangalore,
-DNDUWDDQG+R&KL0LQK&LW\DUHDOO
SHUFHQWRUDERYH,QSUHYLRXV
years, some of the highest margins
KDYHEHHQLQWKH0LGGOH(DVWZKHUH
SHUFHQWPDUJLQVKDYHEHHQ
FRPPRQEXWLQWKHDYHUDJH
is 6.6 percent.

Surplus
Edmonton 7.8% 65.6%
Istanbul (2018: 6.5%) (2018: 58.7%)
Muscat
Riyadh Skills shortage
São Paulo Amsterdam New York City
Atlanta Northern Ireland
Auckland Ottawa
Bangalore Phoenix
In balance
Barcelona 26.6% Beijing
Berlin
San Francisco
Seattle
Bogotá (2018: 34.8%)
Chicago Seoul
Brisbane
Figure 6 Christchurch Shanghai
Buenos Aires
Dublin Singapore
Dar es Salaam Availability of labour Frankfurt Stockholm
Doha
Guangzhou Sydney
Harare
Hong Kong Tokyo
Ho Chi Minh City
Indianapolis Toronto
Houston
Jakarta UK Central
Mexico City
Johannesburg UK North
Moscow
Kampala UK South
Nairobi
Kigali Vancouver
Paris
Kuala Lumpur Vienna
Perth
London Warsaw
Santiago
Madrid Zurich
Scotland
Melbourne
UAE
Munich

20 International construction
market survey 2019
Figure 7 Preliminaries and margins
Region Markets Preliminaries Contractor's margin
Harare 10.0% 12.5%
Kigali 10.0% 8.0%
Africa

Johannesburg 9.0% 5.0%

Dar es Salaam 8.0% 6.0%
Kampala 7.0% 5.0%
Nairobi 5.0% 8.5%
Tokyo 15.0% 8.6%
Ho Chi Minh City 12.0% 10.0%
Hong Kong 12.0% 6.0%
Seoul 12.0% 3.5%
Kuala Lumpur 11.0% 15.0%
Asia

Jakarta 10.0% 10.0%

Bangalore 9.0% 10.0%
Singapore 8.0% 5.0%
Beijing 7.0% 6.0%
Guangzhou 7.0% 6.0%
Shanghai 6.0% 5.0%
Brisbane 16.0% 4.5%
Australasia

Auckland 14.0% 7.0%

Christchurch 14.0% 7.0%
Sydney 14.0% 4.0%
Melbourne 12.0% 4.0%
Perth 12.0% 4.5%
Stockholm 15.0% 10.0%
London 14.0% 4.2%
UK South 13.4% 3.5%
Amsterdam 13.0% 10.0%
Frankfurt 12.5% 5.0%
Northern Ireland 12.5% 3.0%
Dublin 12.0% 4.0%
UK North 11.6% 3.9%
Berlin 11.0% 5.0%
Europe

Munich 11.0% 5.0%

Scotland 11.0% 4.5%
Zurich 11.0% 5.5%
Istanbul 10.0% 5.5%
Vienna 10.0% 5.0%
UK Central 8.5% 5.0%
Moscow 8.0% 7.0%
Paris 7.0% 7.5%
Warsaw 6.0% 6.0%
Barcelona 5.0% 5.5%
Madrid 5.0% 5.5%
Doha 13.0% 7.5%
Middle

UAE 12.0% 8.0%

East

Riyadh 10.0% 7.0%

Muscat 8.0% 4.0%
New York City 13.0% 7.0%
Chicago 12.0% 6.0%
Indianapolis 12.0% 6.0%
Atlanta 11.0% 5.2%
North America

Houston 10.6% 5.0%

Phoenix 10.6% 5.0%
San Francisco 10.0% 7.0%
Toronto 10.0% 6.0%
Vancouver 10.0% 3.5%
Edmonton 9.0% 5.0%
Ottawa 8.0% 3.0%
Seattle 7.0% 4.0%
Mexico City 5.0% 10.0%
Buenos Aires 15.0% 12.0%
America
South

Bogotá 13.0% 6.0%

Santiago 12.4% 10.3%
São Paulo 7.3% 7.4%

21
Overview
0DUNHWFKDOOHQJHV

The trade wars ripple effect

Every year we ask our experts around the world to tell us
about the challenges in their markets. Moving into 2019,
high on the list are concerns over tariffs, which ranked in
the top five issues affecting construction across our global
locations. But with steel a key building material, what is
the real impact import tariffs might have on construction
costs around the world? USA
John Robbins
Managing Director,
USA and North America
Head of Real Estate

john.robbins@turntown.com

$IWHU\HDUVRIOLEHUDOLVLQJWUDGH metre or square foot costs in this To capture the current impact of
UHFHQWO\LPSRVHGWDULIIVRQVWHHO
percent) and aluminium (10 percent)
LPSRUWVKDYHXQVHWWOHG¿QDQFLDO
PDUNHWVDQGVSDUNHGFRQFHUQV
DERXWJOREDOWUDGH
The imposition of tariffs represents
a challenge with real cost implications
for construction. The industry needs to
consider more than ever the amount of
steel in various types of construction.
,IZHNQRZWKHVWHHOGHVLJQZH
can evaluate the degree of impact
a steel import tariff might have on
construction costs around the world.
Steel is a vital component in most
construction, although the steel design
RIEXLOGLQJVYDULHVJUHDWO\GHSHQGLQJRQ
the type of construction. While the
superstructure accounts for the
greatest amount, it also includes piping,
PDQ\OLJKWLQJ¿[WXUHHQFORVXUHV
stairways, ornamental metals, etc.
6WHHO¶VSURSRUWLRQRIDEXLOGLQJ¶V
WRWDOFRVWYDULHVE\FRXQWU\DQGUHJLRQ
As a general guide, we estimate the
SURSRUWLRQDVLQGLFDWHGE\WKHVTXDUH
22 International construction
market survey 2019
SXEOLFDWLRQWHQGVWRUDQJHXSZDUGV
IURPSHUFHQWWRSHUFHQWIRUWKH
PRVWVWHHOLQWHQVLYHEXLOGLQJV
$WWKHORZHUH[WUHPHDSHUFHQWULVH
ZRXOGDGGDERXWRQHSHUFHQWRQWKH
total cost. For the more steel intensive
EXLOGLQJVWKHLQFUHDVHFRXOGWRS
percent.
But not all cost rises from import
WDULIIVZRXOGEHSDVVHGRQLQIXOO$V
HFRQRPLVWVVD\³SULFHVDUHVWLFN\´D
WHUPZKHQJOREDOSULFHULVHVRUIDOOV
are not necessarily passed on in full
immediately. They are often delayed
for various commercial reasons.
Meanwhile, local steel producers and
IDEULFDWRUVQRWLPSDFWHGE\WDULIIV
would also tend to mirror to some
H[WHQWWKHSULFHFKDQJHVLQLPSRUWHG
prices.
tariff for construction, we recently
XQGHUWRRNDFRVWVWXG\RIDVWRU\
EXLOGLQJDWWKH+XGVRQ<DUGV
'HYHORSPHQWFRPSOHWHGEHIRUHWDULIIV
were introduced. We found that if it
ZDVEHLQJEXLOWQRZWKHWDULIIVZRXOG
increase the cost of the core and shell
FRQVWUXFWLRQE\EHWZHHQ86'PDQG
USD100m.
2ZQHUVDQGGHYHORSHUVFDQH[SHFWWR
VSHQGSHUFHQWWRSHUFHQWPRUHRQ
their overall core and shell construction
for tall and supertall steel-framed
EXLOGLQJV)XUWKHUPRUHWDULIIVDUHDOVR
creating delays at customs. This
DIIHFWVEXLOGSURJUDPPHVDQGWXUQLQJ
to local supply doesn’t necessary solve
WKHSUREOHPDORQH,WPHDQVWKLQNLQJ
more creatively around the full supply
FKDLQIURPVWHHOPLOOVWRIDEULFDWRUV
and erectors.
Overall USA steel price demand is
rising given the amount of current
FRQVWUXFWLRQ:KLOHWKHUHKDVEHHQ
VRPHVWDELOLW\DVRIODWHLQWKHSULFHRI
VWHHOIURPZHVWLOOH[SHFWWRVHH
incremental rise across the region.
 Asia
Mark Richards
Managing Director
Asia Real Estate
mark.richards@turntown.com
$VWKHODUJHVWJOREDOSURGXFHURIVWHHO
WKHWDULIILPSDFWDIIHFWVVWHHOH[SRUWV
DFURVV$VLD1HYHUWKHOHVVWKHELJJHVW
LPSDFWKDVEHHQRQVHQWLPHQWDQGIHDU
UDWKHUWKDQH[SRUWHDUQLQJVZKLFK
PDNHXSRQO\DVPDOOSURSRUWLRQRI
WKHWRWDOH[SRUWYDOXH
Tariff concerns are Asia wide, as
regions wonder what else is coming.
)RUH[DPSOHLQ+RQJ.RQJLQFUHDVHG
YROXPHVRIVWHHOLQWKH$VLDPDUNHW
GXHWRDODFNRIH[SRUWRSSRUWXQLWLHV
in the USA, may result in downward
steel costs.
,Q-DSDQWKHHIIHFWLVPRVWO\IHOWE\WKH
DXWRH[SRUWHUVKDYLQJWRFXWPDUJLQVWR
FRPSHWHLQWKH86$PDUNHW,QWKH
ORQJHUWHUPRYHUWKHQH[WWR
Canada
Marcos Sibal
Director
marcos.sibal@turntown.com
&DQDGDLVWKHELJJHVWLQWHUQDWLRQDOEX\HU
of American steel. The introduction of
the USA’s tariffs led Canada to announce
retaliatory tariffs on steel and a variety
of other USA goods. The net effect
was to increase prices of steel and
DOXPLQLXPEDVHGEXLOGLQJSURGXFWV
LQWKH&DQDGLDQPDUNHW
For 2018, the overall impact of the
WDULIIZDVDQLQFUHDVHRIDSSUR[LPDWHO\
SHUFHQWWRSHUFHQWLQRYHUDOO
FRQVWUXFWLRQFRVWDQGVLJQL¿FDQWO\
KLJKHUIRUVWHHOLQWHQVLYHEXLOGLQJV
such as manufacturing or industrial
facilities and warehouses.
7DULIIVDUHOLNHO\WRFRQWLQXHWR
FRQWULEXWHWRKLJKHUFRQVWUXFWLRQ
costs across the region in the short to
Africa
Mark Haselau
Managing Director
mark.haselau@turntown.co.za
Tariffs on steel imports into the USA
DGGWRWKHFRVWRIEXLOGLQJSURGXFWV
HTXLSPHQWDQGPDFKLQHU\H[SRUWHG
from the USA. These additional costs
DIIHFWWKHJOREDOVXSSO\FKDLQVIRU
EXLOGLQJPDWHULDOVDQGHTXLSPHQW
They are especially onerous for
developing countries, such as Africa,
where construction is sensitive to costs
of imported materials and machinery.
)DFHGZLWKULVLQJFRVWVIURPH[LVWLQJ
VXSSOLHUVFRQVWUXFWLRQ¿UPVLQ$IULFDQ
FRXQWULHVIRUH[DPSOHDUHIRUFHGWR
VHHNFKHDSHUDOWHUQDWLYHVIURPRWKHU
UHJLRQVOHVVDIIHFWHGE\WKHWDULIIV
Changing a supplier mid-stream in
DSURMHFWFDUULHVULVNVRIGHOD\V
to schedules, inferior quality and
higher costs.
PRQWKVWKLVLVH[SHFWHGWRWULFNOH
through to the Japanese construction
PDUNHWZLWKVWHHOIDEULFDWRUVORRNLQJDW
ways in which they can mitigate the
cost impact associated with the tariffs,
which will ultimately drive an increase
in the cost of steel.
PHGLXPWHUPWKUHHWRVL[PRQWKV
and will level off until the supply chain
FDWFKHVXSZLWKWKHPDUNHWGHPDQG
/RRNLQJIRUZDUGWKHUHDUHSRVLWLYH
movements in East and West Africa,
where increasing commodity prices
are driving investment decisions and
WKHWDULIIVDUHOLNHO\WRFRQWLQXHWR
FRQWULEXWHWRKLJKHUFRVWVDFURVV
the region.
23
Overview
0DUNHWFKDOOHQJHV

Impact of the steel tariffs

around the world
According to our survey, the impact of tariffs ranked in the top five issues
across our global locations.

Steel price increases

since 2018:
San Francisco, USA

17%
Reinforcement bar 16mm (tonne)
North America
Houston
3KRHQL[

30%
Atlanta
Edmonton
0H[LFR&LW\
Structural steel beams (tonne) 1HZ<RUN&LW\
Ottawa
UAE, Middle East San Francisco
Seattle

22%
Reinforcement bar 16mm (tonne)
Toronto
Chicago
Indianapolis
Vancouver

11%
South America
Santiago
São Paulo
Structural steel beams (tonne) Bogotá
Buenos Aires
Toronto, Canada

20%
Reinforcement bar 16mm (tonne) Impact scale
Not true/no impact

20%
Structural steel beams (tonne)
Slightly true/little impact
Moderately true/moderate impact
True/high impact
Very true/very high impact

International construction
 market survey 2019
 25%
Import tariff could, if passed
through, add up to 25 percent
on a building’s steel input cost.

Asia
Ho Chi Minh City
Seoul
Bangalore
Beijing
Guangzhou
Europe Kuala Lumpur
Paris Shanghai
Scotland Singapore
Moscow Hong Kong
UK Central -DNDUWD
UK North 7RN\R
UK South
Zurich Middle East
Doha
Amsterdam
UAE
Barcelona
Muscat
Berlin
Riyadh
'XEOLQ
)UDQNIXUW
London
Madrid
Munich
Northern Ireland Africa
6WRFNKROP 1DLUREL
,VWDQEXO -RKDQQHVEXUJ
Warsaw Dar es Salaam
Vienna Kampala Australasia

Kigali %ULVEDQH
Harare $XFNODQG
Christchurch
Sydney
0HOERXUQH
Perth


Around the globe
Africa

Kenya Economic overview

Nairobi
Construction opportunities will
change on shift in policy focus
rewel.kariuki@turntown.com
Economic activity in Kenya outpaced
H[SHFWDWLRQVLQZLWKDQQXDO*'3
JURZWKKLWWLQJSHUFHQW,QÀDWLRQ
ZDVSHUFHQWZLWKLQWDUJHWUDQJH
DQGLQWHUHVWUDWHVKDYHEHHQHDVHG
GRZQWRSHUFHQWWRVXSSRUWH[SDQVLRQ
7KHQDWLRQ¶VEXGJHWDQGSROLF\KDYH
EHHQGLUHFWHGWRZDUGV3UHVLGHQW
.HQ\DWWD¶V%LJ)RXU±IRRGVHFXULW\
DIIRUGDEOHKRXVLQJPDQXIDFWXULQJ
DQGDIIRUGDEOHKHDOWKFDUHIRUDOO
Construction market and trends
7KHELJJHVWJURZWKVHFWRUVDUH
residential and social housing, industrial
PDQXIDFWXULQJDQGGLVWULEXWLRQDQG
power and utilities. But the surge in
recent years of high-priced housing and
commercial development has created
an oversupply, suggesting a slowdown
in 2019.
Meanwhile, a cap on interest rates,
OHDGLQJEDQNVWRUDWLRQFUHGLWKDV
suppressed investment.

USD
(exchange
,QWHUQDWLRQDOEXLOGLQJFRVWVSHUP2 of internal area, in 2018 KSH rate: 101)
Airports (Building only)
Domestic terminal, full service 267,000 
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH 200,000 1,980
&DUSDUNV
0XOWLVWRUH\±DERYHJURXQG  
0XOWLVWRUH\±EHORZJURXQG  
Commercial
2I¿FHV±%XVLQHVV3DUN  
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH 72,000 713
&%'2I¿FHV±KLJKULVHSUHVWLJH  
Education
Primary and secondary  
University  
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV  
Regional hospital 103,000 1,020
General hospital (e.g. city teaching hospital)  1,238
Hotels
3 Star travellers 102,000 1,010
6WDUOX[XU\ 130,000 1,287
Resort style 120,000 1,188
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF  
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH  
+LJKWHFKIDFWRU\ODERUDWRU\ 100,000 990
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG  
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH 80,000 792
7RZQKRXVHV±PHGLXPVWDQGDUG 60,000 
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG  
$SDUWPHQWV±KLJKULVH  
$JHGFDUHDIIRUGDEOHXQLWV  
Retail
Large shopping centre including mall  668
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  
Prestige car showroom  718

26 International construction
market survey 2019
In infrastructure, the focus on the
Big Four has limited funding. Several
SURMHFWVDUHGXHWR¿QLVKLQ
including the 9,000 m2 semi-automated
air cargo handling facility
for Mitchell Cotts Freight Kenya Ltd.
7ZRNH\KRVSLWDOLW\SURMHFWVLQ1DLUREL
DUHFXUUHQWO\RQJRLQJDEHG+\DWW
KRWHO¿WRXWLQ:HVWODQGVDQGEHG
four-star hotel apartments under the
$VFRWW6RPHUVHWEUDQGLQ5RVVO\Q
Kenya international building costs
Composite trade rates
Construction cost are set to rise 3 percent &RQVWUXFWLRQRIDIIRUGDEOHKRXVLQJ
LQSXVKHGXSE\ULVLQJODQGDQG and low-cost health facilities should
LPSRUWFRVWV7KHVXSSO\RIVNLOOHG help to offset the slowdown in high-end
ODERXUFXUUHQWO\SUHVHQWVIHZSUREOHPV private sector development.
Future outlook
&RQVWUXFWLRQDFWLYLW\LVOLNHO\WRHDVH
RYHULQOLQHZLWKDQH[SHFWHG
VORZGRZQLQJOREDOJURZWK
USD
(exchange
KSH rate: 101)
([FDYDWHEDVHPHQWP3) (1800m3MRE  
([FDYDWHIRRWLQJVP  3
&RQFUHWHLQVODEP3P3MRE  139
5HLQIRUFHPHQWLQEHDPVWRQQH 120,000 1,188
)RUPZRUNWRVRI¿WRIVODEP2) 700 7
%ORFNZRUNLQZDOOP2EORFNMRE 1,800 18
6WUXFWXUDOVWHHOEHDPVWRQQH  2,376
Pre-cast concrete wall (m2)  
Curtain wall glazing incl support system (m2) (1000m2MRE 20,000 198
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE  32
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE  391
Painting to walls primer + 2 coats (m2)  
Ceramic tiling (m2) (1000m2MRE  
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE  
Carpet medium tufted (m2P2MRE  
Lighting installation (m2P2MRE 1,000 10
&RSSHUSLSHPPWRZDOOPPMRE 2,600 26
)LUHVSULQNOHUVSHUP2P2MRE 3,200 32
Air conditioning incl main plant (m2P2MRE  
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ 800 8
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU 800 8
Group 3 Tradesman eg carpet layer, tiler, plasterer 800 8
*HQHUDOODERXUHU  
Site foreman  
Material costs
Concrete 30 MPa (m3P3MRE 11,000 109
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE 86,000 
&RQFUHWHEORFN[SHU!EORFNMRE 60,000 
6WDQGDUGEULFNSHU  
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE  1,733
Glass pane 10mm tempered (m2) 9,000 89
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP  
PPSODVWHUERDUGP2)  
Emulsion paint (litre)  7
&RSSHUSLSHPPPHWUHPMRE  
&RSSHUFDEOHPHWUH&(PP39&PMRE 360 
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\ 120,000 1,188
Nairobi
Tendering: /XNHZDUP
Market: Staying the same
Cost escalation 2018: 3.0%
Cost escalation 2019: 3.0%
Contractor’s margin: 
Preliminaries: 
Location factor (USD): 
PPP coefficient: 

27
Around the globe
Africa

Rwanda Economic overview

Since 2000, economic growth has
averaged 7.3 percent, among the
Kigali fastest in Africa. Growth in the
medium term should remain at
Growing promise draws increasing or higher than historical averages,
international attention EDVHGRQDVWURQJSLSHOLQHRIWRXULVP
new mining operations, resilient
DJULFXOWXUHDQGGLYHUVL¿HGH[SRUWV
,QÀDWLRQUHPDLQVORZDQGH[SHFWDWLRQV
are within targeted ranges.
([WHUQDOEDODQFHVDQGUHVHUYHEXIIHUV
continued to improve, while the
¿QDQFLDOVHFWRUUHPDLQVKHDOWK\
Construction market and trends
Rwanda understands the importance
of infrastructure in the development
of a competitive private sector.
To this end, the government continues
to invest heavily in infrastructure,
including a new international airport.

elizabeth.natukunda@turntown.com

USD
(exchange
International building costs per m of internal area, in 2018
2
RWF rate: 882)
Airports (Building only)
Domestic terminal, full service  3,779
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH  
Car parks
0XOWLVWRUH\±DERYHJURXQG  
0XOWLVWRUH\±EHORZJURXQG  
Commercial
2I¿FHV±%XVLQHVV3DUN  910
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH  1,010
&%'2I¿FHV±KLJKULVHSUHVWLJH  
Education
Primary and secondary  
University 699,312 793
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV 861,208 976
Regional hospital 1,028,363 1,166
General hospital (e.g. city teaching hospital)  1,721
Hotels
3 Star travellers 1,208,379 1,370
6WDUOX[XU\  1,709
Resort style  1,720
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF  389
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH  
+LJKWHFKIDFWRU\ODERUDWRU\  
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG  
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH  
7RZQKRXVHV±PHGLXPVWDQGDUG  682
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG  
$SDUWPHQWV±KLJKULVH  807
$JHGFDUHDIIRUGDEOHXQLWV  
Retail
Large shopping centre including mall 1,093,778 
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW 793,308 899
Prestige car showroom  891

28 International construction
market survey 2019
Future outlook
Rwanda has introduced initiatives
WRPDNHWKHFRXQWU\DFHQWUH
RIJURZWKGULYHQE\WHFKQRORJ\
foreign investment and tourism.
,WKDVVWUHDPOLQHGWKHEXVLQHVV
DQGWD[UHJLVWUDWLRQV\VWHPWR
attract investment.
Rwanda international building costs
Composite trade rates
The government, through the ministry
of trade and industry, has recently
launched a Made in Rwanda policy. The
SROLF\ZLOOFRQWULEXWHWRWKHFRXQWU\¶V
efforts, which will reduce its trade
GH¿FLWDQGXSVFDOHORFDOPDQXIDFWXULQJ
USD
(exchange
RWF rate: 882)
([FDYDWHEDVHPHQWP3) (1800m3MRE  
([FDYDWHIRRWLQJVP  
&RQFUHWHLQVODEP3P3MRE  
5HLQIRUFHPHQWLQEHDPVWRQQH  
)RUPZRUNWRVRI¿WRIVODEP2) 12,732 
%ORFNZRUNLQZDOOP2EORFNMRE  
6WUXFWXUDOVWHHOEHDPVWRQQH  
Pre-cast concrete wall (m2)  
Curtain wall glazing incl support system (m2) (1000m2MRE  
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE  
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE  
Painting to walls primer + 2 coats (m2)  7
Ceramic tiling (m2) (1000m2MRE  
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE 99,139 112
Carpet medium tufted (m2P2MRE  
Lighting installation (m2P2MRE 121,170 137
&RSSHUSLSHPPWRZDOOPPMRE 27,038 31
)LUHVSULQNOHUVSHUP2P2MRE  73
Air conditioning incl main plant (m2P2MRE  
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ  6
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU  
Group 3 Tradesman eg carpet layer, tiler, plasterer 6,000 7
*HQHUDOODERXUHU  3
Site foreman 10,000 11
Material costs
Concrete 30 MPa (m3P3MRE  236
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE  
&RQFUHWHEORFN[SHU!EORFNMRE  1,398
6WDQGDUGEULFNSHU  
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE 2,639,881 2,993
Glass pane 10mm tempered (m2) 103,816 118
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 6,000 7
PPSODVWHUERDUGP2)  
Emulsion paint (litre) 3,091 
&RSSHUSLSHPPPHWUHPMRE 19,976 23
&RSSHUFDEOHPHWUH&(PP39&PMRE 10,773 12
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\  1,727

Kigali
Tendering: /XNHZDUP
Market: Warmer
Cost escalation 2018: 3.2%
Cost escalation 2019: 3.2%
Contractor’s margin: 8.0%
Preliminaries: 10.0%
Location factor (USD): 
PPP coefficient: 

29
Around the globe
Africa

South Africa Economic overview

Economic growth in South Africa
remains tepid. Annual GDP growth is
Johannesburg KRYHULQJDURXQGSHUFHQWZKLFK
LVSRRUJLYHQWKHPLOOLRQSRSXODWLRQ
Patchy picture in an election year is growing 1.16 percent annually.
1RLPPHGLDWHUHERXQGIROORZHGWKH
QHZSUHVLGHQWWDNLQJRI¿FHHDUO\LQ
2018. Indeed, growth contracted in
the second quarter, although VAT
ZDVUDLVHGIURPWRSHUFHQW
kskinner@turntown.co.za in April 2018.
As South Africans prepare for national
HOHFWLRQVWKLV\HDULQÀDWLRQDQGLQWHUHVW
rates are steady. The rand remains
volatile against major currencies,
unemployment is high and house
prices are falling.
Construction market and trends
The three strongest sectors are mining
and minerals, manufacturing and
GLVWULEXWLRQDQGWUDQVSRUWURDGUDLO
and ports). Commercial and retail have
VORZHGVOLJKWO\DVWKHPDUNHWVDWXUDWHV

USD
(exchange
International building costs per m of internal area, in 2018
2
ZAR rate: 14.3)
Airports (Building only)
Domestic terminal, full service 32,200 
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH 22,600 
Car parks
0XOWLVWRUH\±DERYHJURXQG  
0XOWLVWRUH\±EHORZJURXQG 6,600 
Commercial
2I¿FHV±%XVLQHVV3DUN 9,100 636
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH 12,200 
&%'2I¿FHV±KLJKULVHSUHVWLJH 16,900 1,182
Education
Primary and secondary 10,000 699
University 13,300 930
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV  
Regional hospital  
General hospital (e.g. city teaching hospital)  
Hotels
3 Star travellers  
6WDUOX[XU\  
Resort style 23,800 
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF  
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH  
+LJKWHFKIDFWRU\ODERUDWRU\ 13,000 909
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG 7,700 
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH  
7RZQKRXVHV±PHGLXPVWDQGDUG 8,600 601
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG 9,100 636
$SDUWPHQWV±KLJKULVH 13,300 930
$JHGFDUHDIIRUGDEOHXQLWV 8,300 
Retail
Large shopping centre including mall  
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  727
Prestige car showroom  

30 International construction
market survey 2019
and falling house prices are denting
residential construction.
0LQLQJDQGPHWDOVUHPDLQEXR\DQW
GULYHQE\LPSURYLQJFRPPRGLW\
SULFHVDQGH[SRUWV0LQHH[SDQVLRQV
at Khwezela coal are underway and
a new mine is under construction
at Ivanplats to mine platinum, gold,
FRSSHUDQGQLFNHO
South Africa international building costs
Composite trade rates
$PRQJWKHPL[HGXVHGHYHORSPHQWVLQ
the pipeline, the multi-year USD100m
Jewel City development project is
VWDUWLQJZKLFKLQFOXGHVVL[FLW\EORFNV
of commercial, residential, retail and
SDUNLQJLQ-RKDQQHVEXUJ
$PRQJWKHPDMRUVFKHPHVWRORRN
IRUZDUGWRLVWKHH[SDQVLRQRIWKH
PDQJDQHVHH[SRUWWHUPLQDODWWKH
Port of Ngqura.
Future outlook
The Repo rate was increased to
SHUFHQWLQ1RYHPEHU
DVLQÀDWLRQDU\IDFWRUVWKUHDWHQHG
to increase. While 2019 should see
JURZWKDVORZLQJJOREDOHFRQRP\
DZHDNHUH[FKDQJHUDWHKLJKHU
ZDJHVDQGJOREDORLOSULFHVDOOSRVH
QRWDEOHULVNV
USD
(exchange
ZAR rate: 14.3)
([FDYDWHEDVHPHQWP3) (1800m3MRE 90 6
([FDYDWHIRRWLQJVP 160 11
&RQFUHWHLQVODEP3P3MRE  
5HLQIRUFHPHQWLQEHDPVWRQQH 12,800 
)RUPZRUNWRVRI¿WRIVODEP2) 310 22
%ORFNZRUNLQZDOOP2EORFNMRE  29
6WUXFWXUDOVWHHOEHDPVWRQQH 37,300 2,608
Pre-cast concrete wall (m2) 1,000 70
Curtain wall glazing incl support system (m2) (1000m2MRE  287
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE  29
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE 2,600 182
Painting to walls primer + 2 coats (m2)  3
Ceramic tiling (m2) (1000m2MRE  38
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE  31
Carpet medium tufted (m2P2MRE 360 
Lighting installation (m2P2MRE  
&RSSHUSLSHPPWRZDOOPPMRE 210 
)LUHVSULQNOHUVSHUP2P2MRE  29
Air conditioning incl main plant (m2P2MRE 1,600 112
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ 80 6
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU 60 
Group 3 Tradesman eg carpet layer, tiler, plasterer 60 
*HQHUDOODERXUHU  3
Site foreman 180 13
Material costs
Concrete 30 MPa (m3P3MRE  98
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE 12,000 839
&RQFUHWHEORFN[SHU!EORFNMRE  336
6WDQGDUGEULFNSHU  98
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE 32,700 2,287
Glass pane 10mm tempered (m2)  
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 70 
PPSODVWHUERDUGP2) 130 9
Emulsion paint (litre) 120 8
&RSSHUSLSHPPPHWUHPMRE 80 6
&RSSHUFDEOHPHWUH&(PP39&PMRE 30 2
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\ 11,100 776

Johannesburg
Tendering: Cold
Market: Staying the same
Cost escalation 2018: 
Cost escalation 2019: 6.0%
Contractor’s margin: 
Preliminaries: 9.0%
Location factor (USD): 
PPP coefficient: 

31
Around the globe
Africa

Tanzania Economic overview

Dar es Salaam
Strong growth and infrastructure
spending generate prospects
elizabeth.natukunda@turntown.com
GDP growth in 2018 was 6.6 percent,
close to the 6.8 percent average since
Construction market and trends
Dar es Salaam is seeing strong growth,
with several residential and commercial
*HQHUDOLQÀDWLRQDWSHUFHQW
LVDERRPDVXQWLOUHFHQWO\KLJK
tower projects under construction or
consideration.
LQÀDWLRQXQGHUPLQHGWKHHIIHFW
of its strong growth. 1DWLRQDOO\WKHGHPDQGIRUDIIRUGDEOH
homes is put at three million, and the
Minerals, metals and agricultural FRXQWU\KDVFRPPLWWHGWREXLOG
SURGXFHDUHWKHPDLQH[SRUWV 200,000 houses annually.
with tourism generating most
IRUHLJQH[FKDQJH

USD
(exchange
International building costs per m of internal area, in 2018
2
TZS rate: 2,285)
Airports (Building only)
Domestic terminal, full service  3,862
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH  2,736
Car parks
0XOWLVWRUH\±DERYHJURXQG  
0XOWLVWRUH\±EHORZJURXQG  
Commercial
2I¿FHV±%XVLQHVV3DUN  
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH  829
&%'2I¿FHV±KLJKULVHSUHVWLJH 2,730,709 
Education
Primary and secondary 1,211,188 
University  
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV 2,399,929 
Regional hospital 2,718,786 1,190
General hospital (e.g. city teaching hospital)  
Hotels
3 Star travellers  1,110
6WDUOX[XU\  
Resort style 3,127,873 1,369
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF  
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH  603
+LJKWHFKIDFWRU\ODERUDWRU\ 3,121,683 1,366
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG  
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH  839
7RZQKRXVHV±PHGLXPVWDQGDUG  
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG  636
$SDUWPHQWV±KLJKULVH  
$JHGFDUHDIIRUGDEOHXQLWV  
Retail
Large shopping centre including mall 1,813,362 
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  609
Prestige car showroom 2,102,723 920

32 International construction
market survey 2019
Construction starts this year on a new
86'PURDGFRQQHFWLQJ0DOLQGLLQ
Kenya to Bagamayo in Tanzania and the
Tanzania Burundi road connections are
DOVREHLQJXSJUDGHG7RERRVWWRXULVP
Mwanza airport on the eastern shores
RI/DNH9LFWRULDLVEHLQJH[SDQGHGWR
accommodate Boeing 787 planes.
Tanzania international building costs
Composite trade rates
:RUNLVDOVRVWDUWLQJRQDUDLOZD\IURP
Dar es Salaam to Morogoro in Uganda
with long-term plans to connect the
electric rail to Rwanda and the
'HPRFUDWLF5HSXEOLFRI&RQJR
Future outlook
6WURQJJURZWKVKRXOGFRQWLQXHEDVHG
on residential and commercial real
estate projects in Dar es Salaam and a
ELJLQIUDVWUXFWXUHSURJUDPPHEDVHGRQ
road, rail and power.
)RUHLJQLQYHVWRUVDUHVKRZLQJNHHQ
interest and Dar es Salaam is one of
China’s Belt and Road destinations. Its
fast-growing economy and population
ZLOOPDNH7DQ]DQLDDNH\SOD\HULQ(DVW
African initiatives to increase trade
across the region.
USD
(exchange
TZS rate: 2,285)
([FDYDWHEDVHPHQWP3) (1800m3MRE  
([FDYDWHIRRWLQJVP  3
&RQFUHWHLQVODEP3P3MRE  
5HLQIRUFHPHQWLQEHDPVWRQQH  1,302
)RUPZRUNWRVRI¿WRIVODEP2) 21,620 9
%ORFNZRUNLQZDOOP2EORFNMRE  21
6WUXFWXUDOVWHHOEHDPVWRQQH 8,130,000 
Pre-cast concrete wall (m2)  88
Curtain wall glazing incl support system (m2) (1000m2MRE  181
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE 117,200 
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE  
Painting to walls primer + 2 coats (m2)  
Ceramic tiling (m2) (1000m2MRE 91,300 
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE 107,200 
Carpet medium tufted (m2P2MRE 107,200 
Lighting installation (m2P2MRE  16
&RSSHUSLSHPPWRZDOOPPMRE 38,160 17
)LUHVSULQNOHUVSHUP2P2MRE 87,896 39
Air conditioning incl main plant (m2P2MRE 272,800 119
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ  7
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU  7
Group 3 Tradesman eg carpet layer, tiler, plasterer  7
*HQHUDOODERXUHU 10,000 
Site foreman 20,000 9
Material costs
Concrete 30 MPa (m3P3MRE  
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE  
&RQFUHWHEORFN[SHU!EORFNMRE  690
6WDQGDUGEULFNSHU  
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE  1,826
Glass pane 10mm tempered (m2)  109
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP  9
PPSODVWHUERDUGP2)  3
Emulsion paint (litre) 8,800 
&RSSHUSLSHPPPHWUHPMRE 17,368 8
&RSSHUFDEOHPHWUH&(PP39&PMRE  2
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\ 2,036,260 891

Dar es Salaam
Tendering: /XNHZDUP
Market: Warmer
Cost escalation 2018: 
Cost escalation 2019: 
Contractor’s margin: 6.0%
Preliminaries: 8.0%
Location factor (USD): 
PPP coefficient: 

33
Around the globe
Africa

Uganda Economic overview

Kampala
Public infrastructure investment
paves way for construction growth
elizabeth.natukunda@turntown.com
Set against 3.3 percent annual
population growth, GDP growth
LQFUHDVHGE\SHUFHQWDVRI4
)LYH\HDUVRIH[FKDQJHUDWHIDOOVDUH
adding to local cost pressures, not
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Nevertheless, annual average general
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ZLWKFRQVWUXFWLRQFRVWVDOVRULVLQJE\
3.0 percent.
Construction market and trends
Strong growth sectors currently include
FRPPHUFLDORI¿FHVODUJHPL[HGXVH
developments and private housing.
The largest projects under construction
in Uganda are the Hoima International
$LUSRUWH[SDQVLRQRI(QWHEEH
International Airport, Parliament
RI8JDQGD&KDPEHUVDQG166)
Pension Towers.

USD
(exchange
International building costs per m of internal area, in 2018
2
UGX rate: 3,826)
Airports (Building only)
Domestic terminal, full service  
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH 9,600,723 
Car parks
0XOWLVWRUH\±DERYHJURXQG  
0XOWLVWRUH\±EHORZJURXQG  
Commercial
2I¿FHV±%XVLQHVV3DUN  736
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH  936
&%'2I¿FHV±KLJKULVHSUHVWLJH  1,337
Education
Primary and secondary 2,229,990 
University  808
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV  922
Regional hospital 3,969,936 1,038
General hospital (e.g. city teaching hospital)  1,627
Hotels
3 Star travellers  1,266
6WDUOX[XU\  
Resort style  
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF  377
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH  
+LJKWHFKIDFWRU\ODERUDWRU\  
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG  
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH  
7RZQKRXVHV±PHGLXPVWDQGDUG  
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG  
$SDUWPHQWV±KLJKULVH  
$JHGFDUHDIIRUGDEOHXQLWV  
Retail
Large shopping centre including mall  979
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  839
Prestige car showroom  

International construction
 market survey 2019
8JDQGDDOVRH[SHFWVWRFRQFOXGHWKH
¿QDQFLDOGHDOIRUWKHNP(DVW
Africa Crude Oil pipeline going thorough
Tanzania in Q3 2019, opening the way
for its construction.
DQGQDWLRQDOHOHFWLRQVDUHOLNHO\WR
affect the construction industry,
EULQJLQJDULVNRIHFRQRPLFXQFHUWDLQW\
and increased costs.

Future outlook
With the increasing investment in
LQIUDVWUXFWXUHDQGWKHH[SHFWHG
EHQH¿WVIURPWKHFRXQWU\¶VUHFHQWRLO
VHFWRU8JDQGD¶VHFRQRP\LVOLNHO\WR
grow. The upcoming 2021 Presidential

USD
(exchange
Uganda international building costs UGX rate: 3,826)
Composite trade rates
([FDYDWHEDVHPHQWP3) (1800m3MRE  
([FDYDWHIRRWLQJVP 12,066 3
&RQFUHWHLQVODEP3P3MRE  198
5HLQIRUFHPHQWLQEHDPVWRQQH  1,291
)RUPZRUNWRVRI¿WRIVODEP2)  13
%ORFNZRUNLQZDOOP2EORFNMRE  
6WUXFWXUDOVWHHOEHDPVWRQQH  
Pre-cast concrete wall (m2)  
Curtain wall glazing incl support system (m2) (1000m2MRE  293
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE  
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE  
Painting to walls primer + 2 coats (m2)  
Ceramic tiling (m2) (1000m2MRE  32
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE  
Carpet medium tufted (m2P2MRE  
Lighting installation (m2P2MRE  39
&RSSHUSLSHPPWRZDOOPPMRE 106,982 28
)LUHVSULQNOHUVSHUP2P2MRE  13
Air conditioning incl main plant (m2P2MRE  103
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ 20,000 
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU 12,000 3
Group 3 Tradesman eg carpet layer, tiler, plasterer  7
*HQHUDOODERXUHU 8,000 2
Site foreman  9
Material costs
Concrete 30 MPa (m3P3MRE 780,000 
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE  1,192
&RQFUHWHEORFN[SHU!EORFNMRE  
6WDQGDUGEULFNSHU 300,000 78
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE 8,778,000 
Glass pane 10mm tempered (m2)  
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP  3
PPSODVWHUERDUGP2)  6
Emulsion paint (litre) 12,890 3
&RSSHUSLSHPPPHWUHPMRE 76,792 20
&RSSHUFDEOHPHWUH&(PP39&PMRE  11
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\ 6,200,000 1,620

Kampala
Tendering: /XNHZDUP
Market: Warmer
Cost escalation 2018: 3.0%
Cost escalation 2019: 3.0%
Contractor’s margin: 
Preliminaries: 7.0%
Location factor (USD): 
PPP coefficient: 2619.8


Around the globe
Africa

Zimbabwe Economic overview

6WURQJ¿VFDOFRQVROLGDWLRQPHDVXUHV
DUHH[SHFWHGLQRUGHUWRFXUWDLOEXGJHW
Harare GH¿FLWV1RWZLWKVWDQGLQJWKLVWKH
HFRQRP\LVH[SHFWHGWRJURZDWFLUFD
Currency is the key to SHUFHQWLQDQGGULYHQ
construction’s future PDLQO\E\WKHDJULFXOWXUDODQG
mining sectors.
2YHUDOOFRQVXPHUDQGEXVLQHVV
FRQ¿GHQFHLVH[SHFWHGWRJURZLQ
7KH57*6LV=LPEDEZH¶V
RI¿FLDOFXUUHQF\DQGLWVWDUWHGWKH
year at parity to the US dollar. The
shortage of foreign currency, however,
has seen an evaluation of the local
RTGS in Q1 of 2019. These factors all
impact construction costs, in particular
the supply of construction materials.

tmvundura@turntown.com

International building costs per m2 of internal area, in 2018 USD

Airports (Building only)
Domestic terminal, full service 
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH 3,000
Car parks
0XOWLVWRUH\±DERYHJURXQG 700
0XOWLVWRUH\±EHORZJURXQG 900
Commercial
2I¿FHV±%XVLQHVV3DUN 1,300
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH 1,600
&%'2I¿FHV±KLJKULVHSUHVWLJH 2,200
Education
Primary and secondary 1,300
University 1,700
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV 
Regional hospital 2,300
General hospital (e.g. city teaching hospital) 2,800
Hotels
3 Star travellers 1,900
6WDUOX[XU\ 3,300
Resort style 3,100
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF 700
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH 700
+LJKWHFKIDFWRU\ODERUDWRU\ 1,700
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG 1,000
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH 
7RZQKRXVHV±PHGLXPVWDQGDUG 
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG 800
$SDUWPHQWV±KLJKULVH 1,200
$JHGFDUHDIIRUGDEOHXQLWV 1,100
Retail
Large shopping centre including mall 1,900
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW 
Prestige car showroom 

36 International construction
market survey 2019
Construction market and trends
7KHFRQVWUXFWLRQPDUNHWLVEHLQJGULYHQ
E\WKHQHHGWRVHFXUHIRUHLJQFXUUHQF\
Sectors such as mining and metals,
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SULRULWLVHGE\LQYHVWRUV,QDGGLWLRQ
a shortage of foreign currency has
resulted in increased lead times of
imported materials.
Victoria Falls is the leading investment
destination in the tourism sector and
new investments are planned in the
Zimbabwe international building costs
Composite trade rates
area. In the mining and metals sector,
WKHODUJHVWSURMHFWLVWKH86P
¿UVWFRQVWUXFWLRQVWDJHRIWKH5XVVLDQ
=LPEDEZHDQMRLQWYHQWXUH'DUZHQGDOH
platinum project.
Infrastructure activity has risen gently
ZLWKDIDVWJURZLQJXUEDQSRSXODWLRQ
SUHVHQWLQJWKHQHHGWRH[SDQGDQG
XSJUDGHDJHLQJXWLOLWLHV5HIXUELVKPHQW
RISRZHUVWDWLRQVPD\EHUHVWUDLQHGLQ
the short term.
Future outlook
Currency issues will continue to
GRPLQDWHEXVLQHVVHVDQGFRQVWUXFWLRQ
DFWLYLW\LQ=LPEDEZHIRUWKHPHGLXP
WHUP3URMHFWVZLOOEHJHDUHGWRWKRVH
raising foreign currency and this will
LPSDFWQHJDWLYHO\RQRWKHUPDUNHW
sectors.
A gradual rise in investment will
continue in new projects mostly related
to leisure and hospitality, and mining
and metals.
USD
([FDYDWHEDVHPHQWP3) (1800m3MRE 7
([FDYDWHIRRWLQJVP 13
&RQFUHWHLQVODEP3P3MRE 220
5HLQIRUFHPHQWLQEHDPVWRQQH 
)RUPZRUNWRVRI¿WRIVODEP2) 
%ORFNZRUNLQZDOOP2EORFNMRE 
6WUXFWXUDOVWHHOEHDPVWRQQH 2,820
Pre-cast concrete wall (m2) 
Curtain wall glazing incl support system (m2) (1000m2MRE 
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE 
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE 
Painting to walls primer + 2 coats (m2) 8
Ceramic tiling (m2) (1000m2MRE 
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE 29
Carpet medium tufted (m2P2MRE 
Lighting installation (m2P2MRE 120
&RSSHUSLSHPPWRZDOOPPMRE 7
)LUHVSULQNOHUVSHUP2P2MRE 
Air conditioning incl main plant (m2P2MRE 110
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ 
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU 
Group 3 Tradesman eg carpet layer, tiler, plasterer 
*HQHUDOODERXUHU 3
Site foreman 12
Material costs
Concrete 30 MPa (m3P3MRE 
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE 870
&RQFUHWHEORFN[SHU!EORFNMRE 1,800
6WDQGDUGEULFNSHU 
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE 2,200
Glass pane 10mm tempered (m2) 
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 
PPSODVWHUERDUGP2) 10
Emulsion paint (litre) 
&RSSHUSLSHPPPHWUHPMRE 
&RSSHUFDEOHPHWUH&(PP39&PMRE 0.33
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\ 120

Harare
Tendering: /XNHZDUP &RVWHVFDODWLRQLVEDVHGRQ86'FRQWUDFWV&RVW
HVFDODWLRQEDVHGRQORFDOFXUUHQF\LVDWDQDQQXDOLVHG
Market: Cooler
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Cost escalation 2018: 3.0%*
Cost escalation 2019: 3.0%*
Contractor’s margin: 
Preliminaries: 10.0%
Location factor (USD): 
PPP coefficient: 0.6

37
Around the globe
Asia

China Economic overview

Annual growth eased to 6.6 percent
in 2018, the slowest since 1990, and
86$WUDGHWDULIIVRQ&KLQHVHH[SRUWV
is a concern. Chinese products account
for 21 percent of USA imports, and US
Beijing, Guangzhou, LVH[SHFWHGWRHDVHIXUWKHUWKLV\HDU
Unemployment is at 3.8 percent and
products 8 percent of Chinese imports,
putting China at a disadvantage in a
Shanghai LQÀDWLRQXQGHUFRQWURODWSHUFHQW trade war.
Growth slows as trade tensions Restructuring continues to encourage a
take their toll shift to value-added services, which are
now growing faster than industry and
manufacturing.

tim.lee@turntown.com

Shanghai
USD
Beijing Guangzhou Shanghai (exchange
International building costs per m2 of internal area, in 2018 RMB RMB RMB rate: 6.85)
Airports (Building only)
Domestic terminal, full service 13,000 13,000  1,679
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH 9,000 9,000 9,200 
Car parks
0XOWLVWRUH\±DERYHJURXQG    372
0XOWLVWRUH\±EHORZJURXQG    693
Commercial
2I¿FHV±%XVLQHVV3DUN    
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH 6,900  7,200 
&%'2I¿FHV±KLJKULVHSUHVWLJH 8,300 8,100  
Education
Primary and secondary  3,800 3,700 
University 6,200   818
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV    
Regional hospital    810
General hospital (e.g. city teaching hospital) 6,100   927
Hotels
3 Star travellers   6,000 876
6WDUOX[XU\ 13,000 13,000 11,000 1,606
Resort style 9,000 7,000 7,000 1,022
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF  2,300  
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH 2,700 2,700 3,100 
+LJKWHFKIDFWRU\ODERUDWRU\ 6,000  6,100 891
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG    
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH    723
7RZQKRXVHV±PHGLXPVWDQGDUG    606
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG  2,900  
$SDUWPHQWV±KLJKULVH    606
$JHGFDUHDIIRUGDEOHXQLWV 3,000 3,000  387
Retail
Large shopping centre including mall    818
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  3,600 3,700 
Prestige car showroom    

38 International construction
market survey 2019
Construction market and trends
Residential construction is cooling in
Beijing and Shanghai, partly down to
government measures to dampen the
PDUNHWEXWUHPDLQVKRWLQ*XDQJ]KRX
where average house prices grew
9.3 percent over the year.
Overall costs are slightly higher in
Shanghai than Beijing, with Guangzhou
lowest of the three cities.
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is due to open in 2019. One of the
world’s largest airports, its eight
runways will service 100 million
passengers annually.
Overseas companies are announcing
large projects in China. In Shanghai,
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DQG,NHDSODQVLWVODUJHVWHYHUUHWDLO
and commercial project.
Future outlook
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growth slowing to around 6.3 percent
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other Asian economies such as Japan
and South Korea.
The construction upside is that trade
tensions will prompt China to accelerate
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PRUHWRLWVKRPHEDVHGHQJLQHHULQJ
mining and transportation sectors.

Shanghai
USD
Beijing Guangzhou Shanghai (exchange
China international building costs RMB RMB RMB rate: 6.85)
Composite trade rates
([FDYDWHEDVHPHQWP3) (1800m3MRE  36 36 
([FDYDWHIRRWLQJVP 60   8
&RQFUHWHLQVODEP3P3MRE  710 790 
5HLQIRUFHPHQWLQEHDPVWRQQH 6,300 6,800  912
)RUPZRUNWRVRI¿WRIVODEP2) 90 90 90 13
%ORFNZRUNLQZDOOP2EORFNMRE 190 220  36
6WUXFWXUDOVWHHOEHDPVWRQQH 10,000 10,000  1,321
Pre-cast concrete wall (m2)   310 
Curtain wall glazing incl support system (m2) (1000m2MRE   1,900 277
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE 220  260 38
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE  3,000 3,000 
Painting to walls primer + 2 coats (m2)    8
Ceramic tiling (m2) (1000m2MRE 280 280 310 
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE   310 
Carpet medium tufted (m2P2MRE    
Lighting installation (m2P2MRE 320 320  
&RSSHUSLSHPPWRZDOOPPMRE   68 10
)LUHVSULQNOHUVSHUP2P2MRE 200 200 200 29
Air conditioning incl main plant (m2P2MRE    80
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ    7
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU    6
Group 3 Tradesman eg carpet layer, tiler, plasterer    6
*HQHUDOODERXUHU 26 29 28 
Site foreman   60 9
Material costs
Concrete 30 MPa (m3P3MRE    89
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE    613
&RQFUHWHEORFN[SHU!EORFNMRE    
6WDQGDUGEULFNSHU    
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE    693
Glass pane 10mm tempered (m2) 120 120 220 32
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 28 28 29 
PPSODVWHUERDUGP2) 22 16 18 3
Emulsion paint (litre) 33   
&RSSHUSLSHPPPHWUHPMRE 38 30 38 6
&RSSHUFDEOHPHWUH&(PP39&PMRE 9 9 10 1
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\ 2,700 3,000  

Beijing Guangzhou Shanghai

Tendering: /XNHZDUP /XNHZDUP /XNHZDUP
Market: Staying the same Staying the same Warmer
Cost escalation 2018: 3.0%  
Cost escalation 2019: 2.0%  
Contractor’s margin: 6.0% 6.0% 
Preliminaries: 7.0% 7.0% 6.0%
Location factor (USD): 29.1 30.2 31.1
PPP coefficient:   2.6

39
Around the globe
Asia

China Economic overview

Steady growth in Hong Kong continues,
with GDP annual growth at 2.9 percent
Hong Kong and unemployment at 2.8 percent.
Financial services and real estate
Much promise but nervousness remain mainstays of the economy.
over trade tension The increased economic activity
H[SHFWHGE\WKHµ*UHDW%D\$UHD¶
initiative is starting to provide clarity
on how Hong Kong will operate as an
integrated economy.
rodney.moulder@turntown.com
Rising tensions in international trade
relations has led to fears of a slowdown
and very high commercial rents and
house prices undermine Hong Kong’s
competitive advantage regionally.
Construction market and trends
The Hong Kong International Airport
Three Runway system (3RS) is the
province’s largest ongoing project,
UXQQLQJWKURXJKWR1H[WWRWKH
DLUSRUWDQHZ6N\&LW\$HURWURSROLV

USD
(exchange
International building costs per m of internal area, in 2018
2
HKD rate: 7.81)
Airports (Building only)
Domestic terminal, full service  
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH 32,000 
Car parks
0XOWLVWRUH\±DERYHJURXQG  1,921
0XOWLVWRUH\±EHORZJURXQG 23,300 2,983
Commercial
2I¿FHV±%XVLQHVV3DUN  2,836
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH  
&%'2I¿FHV±KLJKULVHSUHVWLJH 31,000 3,969
Education
Primary and secondary 23,000 
University 30,000 
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV  
Regional hospital  
General hospital (e.g. city teaching hospital) 38,600 
Hotels
3 Star travellers  
6WDUOX[XU\  
Resort style  
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF  2,183
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH  
+LJKWHFKIDFWRU\ODERUDWRU\  
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG  
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH  8,323
7RZQKRXVHV±PHGLXPVWDQGDUG 30,200 3,867
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG  3,201
$SDUWPHQWV±KLJKULVH  
$JHGFDUHDIIRUGDEOHXQLWV  2,183
Retail
Large shopping centre including mall 37,280 
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW 27,220 
Prestige car showroom  

International construction
 market survey 2019
KDVVWDUWHGGHOLYHULQJRI¿FHVKRPHV
shopping and hospitality facilities over
WKHQH[W¿YHWRWHQ\HDUV
The government has committed to
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SXEOLFKRXVLQJZKLOHSULFHVDUHIDOOLQJ
in the oversupplied high-end housing
PDUNHW
China (Hong Kong) international building costs
Composite trade rates
Meanwhile, government commitments
to improve healthcare facilities in the
Hospital Authority’s 2020 plan includes
RYHU86'EQRILQYHVWPHQW
Future outlook
The threat of tariffs and rising trade
WHQVLRQLVXQGHUPLQLQJFRQ¿GHQFHLQ
projects in Hong Kong, which is a major
regional trading port. House prices and
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having overheated. This adds to
investors’ concerns.
The recent tariff truce should yield
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is a successful resolution.
Meanwhile, smaller contractors
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GLI¿FXOWZKLFKZLOOKROGEDFNSURMHFWV
Tier 1 contractors and Chinese
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and the government’s aggressive
investment targets will mean larger
projects proceed.
USD
(exchange
HKD rate: 7.81)
([FDYDWHEDVHPHQWP3) (1800m3MRE  31
([FDYDWHIRRWLQJVP 220 28
&RQFUHWHLQVODEP3P3MRE  173
5HLQIRUFHPHQWLQEHDPVWRQQH  2,113
)RUPZRUNWRVRI¿WRIVODEP2)  
%ORFNZRUNLQZDOOP2EORFNMRE  
6WUXFWXUDOVWHHOEHDPVWRQQH  
Pre-cast concrete wall (m2)  192
Curtain wall glazing incl support system (m2) (1000m2MRE  819
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE  76
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE  960
Painting to walls primer + 2 coats (m2)  
Ceramic tiling (m2) (1000m2MRE 780 100
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE  
Carpet medium tufted (m2P2MRE  77
Lighting installation (m2P2MRE  117
&RSSHUSLSHPPWRZDOOPPMRE  
)LUHVSULQNOHUVSHUP2P2MRE  
Air conditioning incl main plant (m2P2MRE 3,200 
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ 200 26
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU 220 28
Group 3 Tradesman eg carpet layer, tiler, plasterer 160 20
*HQHUDOODERXUHU 120 
Site foreman 200 26
Material costs
Concrete 30 MPa (m3P3MRE 800 102
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE 8,200 
&RQFUHWHEORFN[SHU!EORFNMRE  
6WDQGDUGEULFNSHU  301
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE  2,113
Glass pane 10mm tempered (m2)  307
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 90 12
PPSODVWHUERDUGP2) 110 
Emulsion paint (litre) 70 9
&RSSHUSLSHPPPHWUHPMRE  
&RSSHUFDEOHPHWUH&(PP39&PMRE 20 3
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\ 8,000 

Hong Kong
Tendering: Warm
Market: Staying the same
Cost escalation 2018: 
Cost escalation 2019: 
Contractor’s margin: 6.0%
Preliminaries: 12.0%
Location factor (USD): 96.6
PPP coefficient: 9.8


Around the globe
Asia

India Economic overview

India’s economy remains on a
positive path, despite a slight dip
Construction market and trends
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Bangalore due to reforms, rising oil prices and
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in infrastructure and cost-reducing
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world economies.
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in the economy as the country heads
into general elections this year.
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Development and Regulation Act
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percent, through greater transparency,
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USD
(exchange
International building costs per m of internal area, in 2018
2
INR rate: 72.42)
Airports (Building only)
Domestic terminal, full service 99,000 1,367
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH 80,000 
Car parks
0XOWLVWRUH\±DERYHJURXQG 17,000 
0XOWLVWRUH\±EHORZJURXQG  297
Commercial
2I¿FHV±%XVLQHVV3DUN  
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH  617
&%'2I¿FHV±KLJKULVHSUHVWLJH  683
Education
Primary and secondary  
University  677
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV  
Regional hospital  690
General hospital (e.g. city teaching hospital) 63,000 870
Hotels
3 Star travellers  
6WDUOX[XU\  
Resort style  1,139
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF 30,000 
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH  
+LJKWHFKIDFWRU\ODERUDWRU\  
Residential
Individual detached or terrace style house medium standard  
Individual detached house prestige  
Townhouses medium standard  
Apartments low-rise medium standard 31,000 
Apartments high-rise  
$JHGFDUHDIIRUGDEOHXQLWV  
Retail
Large shopping centre including mall 33,000 
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  
Prestige car showroom 30,000 

International construction
 market survey 2019
The infrastructure sector continues to
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rail, ports and aviation. Airport
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$W%DQJDORUHIRUH[DPSOHWKHUHLV
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,QGLDDLPVWREHWKH¿UVWFRXQWU\WR
open a Hyperloop with construction
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EHWZHHQ3XQHDQG0XPEDL7KH
super-fast, ground transport system
India international building costs
Composite trade rates
could cut travel time from three hours
to 30 minutes.
There is also strong growth in the
ZDUHKRXVLQJVHFWRUGULYHQE\GHPDQG
for third-party logistics, retail, fast-
moving consumer goods, auto and
chemical and pharmaceuticals industries.
Future outlook
Further solid construction growth is
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driver and costs contained. The future
demand for roads, high-speed rail
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projects gaining traction.
The construction sector will remain
competitive. Costs are estimated to
rise just 2 to 3 percent in 2019, despite
VRPHVNLOOVVKRUWDJHV7KHJRYHUQPHQW
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materials.
USD
(exchange
INR rate: 72.42)
([FDYDWHEDVHPHQWP3) (1800m3MRE 837 12
([FDYDWHIRRWLQJVP 963 13
&RQFUHWHLQVODEP3P3MRE  100
5HLQIRUFHPHQWLQEHDPVWRQQH  919
)RUPZRUNWRVRI¿WRIVODEP2)  10
%ORFNZRUNLQZDOOP2EORFNMRE  18
6WUXFWXUDOVWHHOEHDPVWRQQH 111,072 
Pre-cast concrete wall (m2)  130
Curtain wall glazing incl support system (m2) (1000m2MRE 12,000 166
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE  13
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE  789
Painting to walls primer + 2 coats (m2)  
Ceramic tiling (m2) (1000m2MRE  16
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE 1,602 22
Carpet medium tufted (m2P2MRE 2,306 32
Lighting installation (m2P2MRE 3,380 
&RSSHUSLSHPPWRZDOOPPMRE  7
)LUHVSULQNOHUVSHUP2P2MRE 1,076 
Air conditioning incl main plant (m2P2MRE  71
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ 113 2
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU  1
Group 3 Tradesman eg carpet layer, tiler, plasterer 100 1
*HQHUDOODERXUHU 63 1
Site foreman 138 2
Material costs
Concrete 30 MPa (m3P3MRE  62
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE  
&RQFUHWHEORFN[SHU!EORFNMRE  621
6WDQGDUGEULFNSHU  76
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE  621
Glass pane 10mm tempered (m2) 1,668 23
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP  2
PPSODVWHUERDUGP2) 139 2
Emulsion paint (litre) 230 3
&RSSHUSLSHPPPHWUHPMRE  6
&RSSHUFDEOHPHWUH&(PP39&PMRE 70 1
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\ 30,000 

Bangalore
Tendering: Warm
Market: Staying the same
Cost escalation 2018: 1.0%
Cost escalation 2019: 3.0%
Contractor’s margin: 10.0%
Preliminaries: 9.0%
Location factor (USD): 
PPP coefficient: 


Around the globe
Asia

Indonesia Economic overview

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Jakarta years. Its population of 262 million is
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bright outlook SHUFHQWLVVWDEOH
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earnings, which are rising following
a 10 percent fall last year in the
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dipped due to investor pessimism,
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government funding, population growth
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USD
(exchange
International building costs per m of internal area, in 2018
2
IDR rate: 14,872
Airports (Building only)
Domestic terminal, full service  1,681
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH  1,311
Car parks
0XOWLVWRUH\±DERYHJURXQG  370
0XOWLVWRUH\±EHORZJURXQG 7,000,000 
Commercial
2I¿FHV±%XVLQHVV3DUN 9,000,000 
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH  773
&%'2I¿FHV±KLJKULVHSUHVWLJH  1,009
Education
Primary and secondary  
University  773
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV 16,000,000 1,076
Regional hospital  
General hospital (e.g. city teaching hospital) 21,000,000 
Hotels
3 Star travellers  
6WDUOX[XU\ 21,000,000 
Resort style 26,000,000 
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF  
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH 11,000,000 
+LJKWHFKIDFWRU\ODERUDWRU\  1,009
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,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH 13,000,000 
7RZQKRXVHV±PHGLXPVWDQGDUG 8,000,000 
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG 9,000,000 
$SDUWPHQWV±KLJKULVH 13,000,000 
$JHGFDUHDIIRUGDEOHXQLWV 9,000,000 
Retail
Large shopping centre including mall 10,000,000 672
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW 8,000,000 
Prestige car showroom 16,000,000 1,076

International construction
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8SWR86'EQRISURMHFWVKDYH
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part of the Belt and Road programme,
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high-speed rail is moving closer to
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commenced operations and the LRT
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toll-road construction projects ongoing
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Indonesia international building costs
Composite trade rates
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Logistics and low-cost apartment
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economy. More homes and
infrastructure are greatly needed.
However, construction costs are
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pressure to imported materials and
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project delays.
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)RUPZRUNWRVRI¿WRIVODEP2) 210,000 
%ORFNZRUNLQZDOOP2EORFNMRE  16
6WUXFWXUDOVWHHOEHDPVWRQQH 23,000,000 
Pre-cast concrete wall (m2) 1,000,000 67
Curtain wall glazing incl support system (m2) (1000m2MRE 2,200,000 
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE  
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE 6,300,000 
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Ceramic tiling (m2) (1000m2MRE  18
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE  21
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Lighting installation (m2P2MRE  27
&RSSHUSLSHPPWRZDOOPPMRE 130,000 9
)LUHVSULQNOHUVSHUP2P2MRE 300,000 20
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Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ  1
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU  1
Group 3 Tradesman eg carpet layer, tiler, plasterer  1
*HQHUDOODERXUHU  1
Site foreman  2
Material costs
Concrete 30 MPa (m3P3MRE 800,000 
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE 9,000,000 
&RQFUHWHEORFN[SHU!EORFNMRE  706
6WDQGDUGEULFNSHU 700,000 
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE  706
Glass pane 10mm tempered (m2)  32
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 60,000 
PPSODVWHUERDUGP2) 90,000 6
Emulsion paint (litre) 80,000 
&RSSHUSLSHPPPHWUHPMRE 100,000 7
&RSSHUFDEOHPHWUH&(PP39&PMRE  2
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+LUHWPRELOHFUDQHRSHUDWRUGD\ 10,000,000 672

Jakarta
Tendering: /XNHZDUP
Market: Staying the same
Cost escalation 2018: 
Cost escalation 2019: 
Contractor’s margin: 10.0%
Preliminaries: 10.0%
Location factor (USD): 28.0
PPP coefficient: 


Around the globe
Asia

Japan Economic overview

Despite a temporary slowdown in the
second half of 2018, Japan’s annual
Tokyo JURZWKLQERWKDQGLV
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Airports (Building only)
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/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH  
Car parks
0XOWLVWRUH\±DERYHJURXQG  2,009
0XOWLVWRUH\±EHORZJURXQG  
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2I¿FHV±%XVLQHVV3DUN 262,000 2,339
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH 287,000 
&%'2I¿FHV±KLJKULVHSUHVWLJH  3,071
Education
Primary and secondary 237,000 2,116
University 199,000 1,777
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General hospital (e.g. city teaching hospital) 312,000 2,786
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6WDUOX[XU\  
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:DUHKRXVHIDFWRU\XQLWV±EDVLF  
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH 233,000 2,080
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Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG 230,000 
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH 269,000 
7RZQKRXVHV±PHGLXPVWDQGDUG 211,000 
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG 207,000 
$SDUWPHQWV±KLJKULVH 321,000 2,866
$JHGFDUHDIIRUGDEOHXQLWV 187,000 1,670
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Large shopping centre including mall  
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  3,696
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International construction
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causing prices to surge.
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their current portfolio.
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Japan international building costs
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stations.
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new growth in Japan’s real estate
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([FDYDWHEDVHPHQWP3) (1800m3MRE 970 9
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5HLQIRUFHPHQWLQEHDPVWRQQH 111,000 991
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%ORFNZRUNLQZDOOP2EORFNMRE 11,300 101
6WUXFWXUDOVWHHOEHDPVWRQQH 136,000 
Pre-cast concrete wall (m2) 18,600 166
Curtain wall glazing incl support system (m2) (1000m2MRE  1,019
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE 1,820 16
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE 82,000 732
Painting to walls primer + 2 coats (m2) 910 8
Ceramic tiling (m2) (1000m2MRE 6,600 
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE 3,800 
Carpet medium tufted (m2P2MRE  39
Lighting installation (m2P2MRE 9,718 87
&RSSHUSLSHPPWRZDOOPPMRE  23
)LUHVSULQNOHUVSHUP2P2MRE  
Air conditioning incl main plant (m2P2MRE  223
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ 2,600 23
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU 3,100 28
Group 3 Tradesman eg carpet layer, tiler, plasterer 3,300 29
*HQHUDOODERXUHU  22
Site foreman  
Material costs
Concrete 30 MPa (m3P3MRE  
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE 72,000 
&RQFUHWHEORFN[SHU!EORFNMRE 122,000 1,089
6WDQGDUGEULFNSHU 108,000 
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE 89,000 
Glass pane 10mm tempered (m2) 8,900 79
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP  13
PPSODVWHUERDUGP2)  
Emulsion paint (litre) 320 3
&RSSHUSLSHPPPHWUHPMRE  7
&RSSHUFDEOHPHWUH&(PP39&PMRE 210 2
Plant costs
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Tokyo
Tendering: Hot
Market: Staying the same
Cost escalation 2018: 2.8%
Cost escalation 2019: 
Contractor’s margin: 8.6%
Preliminaries: 
Location factor (USD): 72.0
PPP coefficient: 109.2


Around the globe
Asia

Malaysia Economic overview

The economy continues to grow
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Construction market and trends
Government spending on transport
infrastructure is the major driver of
Kuala Lumpur PDLQWDLQLQJDVWHDG\FRXUVHEDVHGRQ
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construction. LRT 3 is currently under
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project delays and cancellations ZKLFKSLFNHGXSODWHLQ DUHVHWWREHUHWHQGHUHGIROORZLQJ
controversy over costs.
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are growing more slowly after the
government introduced policies
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leo.leow@turntown.com

USD
(exchange
International building costs per m of internal area, in 2018
2
MYR rate: 4.13)
Airports (Building only)
Domestic terminal, full service  1,786
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH  
Car parks
0XOWLVWRUH\±DERYHJURXQG 1,200 291
0XOWLVWRUH\±EHORZJURXQG 2,000 
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2I¿FHV±%XVLQHVV3DUN 3,600 872
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH  
&%'2I¿FHV±KLJKULVHSUHVWLJH 6,300 
Education
Primary and secondary  
University  
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV  
Regional hospital  1,090
General hospital (e.g. city teaching hospital)  1,211
Hotels
3 Star travellers  1,380
6WDUOX[XU\  1,683
Resort style  2,627
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF 2,200 
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH  690
+LJKWHFKIDFWRU\ODERUDWRU\  1,172
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,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG 2,700 
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH  
7RZQKRXVHV±PHGLXPVWDQGDUG 1,800 
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG 2,200 
$SDUWPHQWV±KLJKULVH  738
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Retail
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1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  969
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International construction
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Malaysia is popular for medical tourism
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hospital together with medical suites
and a medical tourism hotel underway.
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in Penang and Johore Bahru is
attracting inward investment in new
plants and factories, particularly in the
e-commerce and electronics sectors.
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Composite trade rates
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construction is patchy.
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over controversial cancellations and
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congestion and speed commuting.
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high-tech manufacturing, if investment
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Malaysia attractive.
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&RQFUHWHLQVODEP3P3MRE  
5HLQIRUFHPHQWLQEHDPVWRQQH 3,800 920
)RUPZRUNWRVRI¿WRIVODEP2)  11
%ORFNZRUNLQZDOOP2EORFNMRE  
6WUXFWXUDOVWHHOEHDPVWRQQH  
Pre-cast concrete wall (m2)  61
Curtain wall glazing incl support system (m2) (1000m2MRE  
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE  36
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE 3,000 726
Painting to walls primer + 2 coats (m2) 10 2
Ceramic tiling (m2) (1000m2MRE 130 32
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE  
Carpet medium tufted (m2P2MRE  33
Lighting installation (m2P2MRE  
&RSSHUSLSHPPWRZDOOPPMRE  8
)LUHVSULQNOHUVSHUP2P2MRE  33
Air conditioning incl main plant (m2P2MRE  79
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ 32 8
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU  6
Group 3 Tradesman eg carpet layer, tiler, plasterer  6
*HQHUDOODERXUHU 12 3
Site foreman  11
Material costs
Concrete 30 MPa (m3P3MRE 220 
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE 3,300 799
&RQFUHWHEORFN[SHU!EORFNMRE  682
6WDQGDUGEULFNSHU  103
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE  2,300
Glass pane 10mm tempered (m2)  69
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 17 
PPSODVWHUERDUGP2) 30 7
Emulsion paint (litre)  
&RSSHUSLSHPPPHWUHPMRE 31 8
&RSSHUFDEOHPHWUH&(PP39&PMRE 20 
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Kuala Lumpur
Tendering: /XNHZDUP
Market: Cooler
Cost escalation 2018: 0.0%
Cost escalation 2019: 0.0%
Contractor’s margin: 
Preliminaries: 11.0%
Location factor (USD): 
PPP coefficient: 2.0


Around the globe
Asia

Singapore Economic overview

Singapore
Infrastructure and high-tech boost
a subdued construction sector
Having grown 3.3 percent in 2018,
Singapore’s GDP is forecast to ease
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and 2020.
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and social housing compensating for a
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terminals and designers appointed last
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USD
(exchange
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2
SGD rate: 1.37)
Airports (Building only)
Domestic terminal, full service  
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH  3,038
Car parks
0XOWLVWRUH\±DERYHJURXQG 1,280 
0XOWLVWRUH\±EHORZJURXQG 1,810 1,321
Commercial
2I¿FHV±%XVLQHVV3DUN 2,111 
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH 2,610 
&%'2I¿FHV±KLJKULVHSUHVWLJH 3,028 2,210
Education
Primary and secondary  1,139
University 2,882 
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV  
Regional hospital  2,301
General hospital (e.g. city teaching hospital)  2,991
Hotels
3 Star travellers  
6WDUOX[XU\  3,306
Resort style  
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF  1,637
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH  1,861
+LJKWHFKIDFWRU\ODERUDWRU\  2,339
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,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG  3,038
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH  
7RZQKRXVHV±PHGLXPVWDQGDUG 2,837 2,071
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG 2,083 
$SDUWPHQWV±KLJKULVH 2,683 
$JHGFDUHDIIRUGDEOHXQLWV 1,602 1,170
Retail
Large shopping centre including mall  
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW 2,192 1,600
Prestige car showroom  

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Investment in light rail is maintaining
momentum in construction with MRT
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start in 2020.
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the sector price competitive. In 2018,
construction costs were relatively
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with many school leavers opting for
university and professional occupations.
Future outlook
As a major trading port, Singapore is
hostage to the winds of change caused
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slowdown could slow growth.
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Financial Crisis.
In 2019, construction costs should
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annum until private sector activity
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USD
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([FDYDWHEDVHPHQWP3) (1800m3MRE 80 
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&RQFUHWHLQVODEP3P3MRE 168 122
5HLQIRUFHPHQWLQEHDPVWRQQH 1,611 1,176
)RUPZRUNWRVRI¿WRIVODEP2) 39 29
%ORFNZRUNLQZDOOP2EORFNMRE 69 
6WUXFWXUDOVWHHOEHDPVWRQQH  3,111
Pre-cast concrete wall (m2)  110
Curtain wall glazing incl support system (m2) (1000m2MRE  
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE 27 19
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE 896 
Painting to walls primer + 2 coats (m2) 10 7
Ceramic tiling (m2) (1000m2MRE 92 67
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE  62
Carpet medium tufted (m2P2MRE 67 
Lighting installation (m2P2MRE 217 
&RSSHUSLSHPPWRZDOOPPMRE 29 21
)LUHVSULQNOHUVSHUP2P2MRE 87 63
Air conditioning incl main plant (m2P2MRE 283 206
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ 30 22
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU 21 
Group 3 Tradesman eg carpet layer, tiler, plasterer 29 21
*HQHUDOODERXUHU 18 13
Site foreman 29 21
Material costs
Concrete 30 MPa (m3P3MRE  
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE  911
&RQFUHWHEORFN[SHU!EORFNMRE  
6WDQGDUGEULFNSHU 371 271
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE 2,287 1,669
Glass pane 10mm tempered (m2) 127 93
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 13 9
PPSODVWHUERDUGP2) 8 6
Emulsion paint (litre) 19 
&RSSHUSLSHPPPHWUHPMRE  10
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Plant costs
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Singapore
Tendering: /XNHZDUP
Market: Staying the same
Cost escalation 2018: 1.0%
Cost escalation 2019: 2.0%
Contractor’s margin: 
Preliminaries: 8.0%
Location factor (USD): 63.7
PPP coefficient: 1.2


Around the globe
Asia

South Korea Economic overview

Korea’s GDP growth rate slowed in
2018 to 2.7 percent from 3.1 percent
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and vehicles.
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in value terms in 2018. The government
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overestimated, so investment will focus
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than new starts.

USD
(exchange
International building costs per m of internal area, in 2018
2
KRW rate: 1,118)
Airports (Building only)
Domestic terminal, full service  3,207
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH  
Car parks
0XOWLVWRUH\±DERYHJURXQG 772,720 691
0XOWLVWRUH\±EHORZJURXQG  1,007
Commercial
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&%'2I¿FHV±KLJKULVHSUHVWLJH 2,389,760 2,138
Education
Primary and secondary  
University 1,912,610 1,711
Hospitals
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Regional hospital  2,012
General hospital (e.g. city teaching hospital) 2,389,760 2,138
Hotels
3 Star travellers 2,069,000 
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Resort style  
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF  1,110
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH  863
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Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG  
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH  2,098
7RZQKRXVHV±PHGLXPVWDQGDUG  1,678
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG  
$SDUWPHQWV±KLJKULVH 1,931,070 1,727
$JHGFDUHDIIRUGDEOHXQLWV  
Retail
Large shopping centre including mall  
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  1,171
Prestige car showroom  2,306

International construction
 market survey 2019
Despite the slowdown several projects
are underway. Danginlee Power station
LQ6HRXOLVEHLQJUHEXLOWXQGHUJURXQG
after 87 years of operation, with the
UHPDLQLQJDERYHJURXQGEXLOGLQJV
repurposed as a cultural centre and
open spaces.
+RWHOFRQVWUXFWLRQLVEXR\DQWLQ6HRXO
with more than 100 projects under
consideration or construction.
+RXVHEXLOGLQJKDVVORZHGRXWVLGHRI
6HRXOZLWKUHJLRQDOEXLOGHUV¿QGLQJLW
tough to sell the apartments recently
completed.
Seoul’s Incheon airport phase 3
H[SDQVLRQLVXQGHUFRQVLGHUDWLRQ
and may include a low-cost carrier
FRPSRQHQW0HDQZKLOHIXUWKHUZRUN
LVXQGHUZD\WRH[WHQG6HRXO¶VNP
PHWURUDLOZD\E\NPE\
Future outlook
&RQVWUXFWLRQDVLJQL¿FDQWSDUWRI
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IXUWKHULQDVSXEOLFDQGSULYDWH
investment drops.
([SRUWVHFWRUVDQGKLJKWHFKLQGXVWULHV
should remain relatively unscathed, so
construction supporting these should
SHUIRUPEHWWHU

USD
(exchange
South Korea international building costs KRW rate: 1,118)
Composite trade rates
([FDYDWHEDVHPHQWP3) (1800m3MRE 7,680 7
([FDYDWHIRRWLQJVP 7,680 7
&RQFUHWHLQVODEP3P3MRE  139
5HLQIRUFHPHQWLQEHDPVWRQQH  1,290
)RUPZRUNWRVRI¿WRIVODEP2)  32
%ORFNZRUNLQZDOOP2EORFNMRE  
6WUXFWXUDOVWHHOEHDPVWRQQH  2,071
Pre-cast concrete wall (m2)  273
Curtain wall glazing incl support system (m2) (1000m2MRE  328
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE  
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE  
Painting to walls primer + 2 coats (m2)  
Ceramic tiling (m2) (1000m2MRE  
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE  38
Carpet medium tufted (m2P2MRE 61,070 
Lighting installation (m2P2MRE  
&RSSHUSLSHPPWRZDOOPPMRE  12
)LUHVSULQNOHUVSHUP2P2MRE  
Air conditioning incl main plant (m2P2MRE  221
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ  
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU  
Group 3 Tradesman eg carpet layer, tiler, plasterer  
*HQHUDOODERXUHU 17,800 16
Site foreman 37,800 
Material costs
Concrete 30 MPa (m3P3MRE  77
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE 770,000 689
&RQFUHWHEORFN[SHU!EORFNMRE 690,000 617
6WDQGDUGEULFNSHU 79,700 71
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE 1,260,000 1,127
Glass pane 10mm tempered (m2)  21
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 6,930 6
PPSODVWHUERDUGP2) 3,990 
Emulsion paint (litre)  
&RSSHUSLSHPPPHWUHPMRE 7,330 7
&RSSHUFDEOHPHWUH&(PP39&PMRE  2
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\  979

Seoul
Tendering: /XNHZDUP
Market: Cooler
Cost escalation 2018: 
Cost escalation 2019: 2.0%
Contractor’s margin: 
Preliminaries: 12.0%
Location factor (USD): 
PPP coefficient: 


Around the globe
Asia

Vietnam Economic overview

9LHWQDP¶V*'3JURZWKDWRUDERXW
6 percent for a decade, grew faster in
Ho Chi Minh City GULYHQE\H[SRUWVRIHOHFWURQLF
equipment, clothing and footwear
Young, vibrant and abounding and services.
with optimism
,WVYLEUDQF\LVSDUWO\GRZQWRLWV
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1 percent annually and its youthfulness,
with half its people under 30.
7KHJRYHUQPHQWHQFRXUDJHVLQERXQG
foreign investment with incentives and
steps to improve transparency.
Construction market and trends
The current leading construction
sectors in Ho Chi Minh City are
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transport infrastructure and airports.

viethung.le@turntown.com

USD
(exchange
International building costs per m of internal area, in 2018
2
VND rate: 23,358)
Airports (Building only)
Domestic terminal, full service ± ±
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH ± ±
Car parks
0XOWLVWRUH\±DERYHJURXQG  
0XOWLVWRUH\±EHORZJURXQG 18,787,200 
Commercial
2I¿FHV±%XVLQHVV3DUN 18,787,200 
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH  1,106
&%'2I¿FHV±KLJKULVHSUHVWLJH  1,307
Education
Primary and secondary 12,211,680 
University  
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV ± ±
Regional hospital ± ±
General hospital (e.g. city teaching hospital) ± ±
Hotels
3 Star travellers  1,307
6WDUOX[XU\  2,068
Resort style ± ±
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF  
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH  
+LJKWHFKIDFWRU\ODERUDWRU\  618
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG 10,098,120 
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH 11,272,320 
7RZQKRXVHV±PHGLXPVWDQGDUG  617
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG 17,378,160 
$SDUWPHQWV±KLJKULVH 18,787,200 
$JHGFDUHDIIRUGDEOHXQLWV 10,300,000 
Retail
Large shopping centre including mall  1,022
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  
Prestige car showroom  1,106

International construction
 market survey 2019
+R&KL0LQK&LW\H[SHFWVVHYHUDO
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Eco Smart City in the Thu Thiem area,
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Lotte Group.
Within Thu Thiem, the new Empire City
site preparations are underway for an
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and high-end apartments.
Vietnam international building costs
Composite trade rates
Beside the new Long Thanh
,QWHUQDWLRQDODLUSRUWZLWKWKH¿UVW
SKDVHSODQQHGWREHFRPSOHWHGLQ
the government has revived plans to
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transportation needs.
Future outlook
7KHPDUNHWLQ9LHWQDPLVZDUPUDWKHU
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particularly in Ho Chi Minh City. The
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under construction plus road and rail
improvements to service the massive
population growth.
Construction costs in Vietnam, among
the lowest in Asia, are forecast to rise
E\SHUFHQWLQ
USD
(exchange
VND rate: 23,358)
([FDYDWHEDVHPHQWP3) (1800m3MRE 92,700 
([FDYDWHIRRWLQJVP 92,700 
&RQFUHWHLQVODEP3P3MRE  110
5HLQIRUFHPHQWLQEHDPVWRQQH 23,690,000 
)RUPZRUNWRVRI¿WRIVODEP2) 226,600 10
%ORFNZRUNLQZDOOP2EORFNMRE 618,000 26
6WUXFWXUDOVWHHOEHDPVWRQQH  
Pre-cast concrete wall (m2)  
Curtain wall glazing incl support system (m2) (1000m2MRE  302
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE  33
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE  
Painting to walls primer + 2 coats (m2) 123,600 
Ceramic tiling (m2) (1000m2MRE  37
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE  70
Carpet medium tufted (m2P2MRE 1,878,720 80
Lighting installation (m2P2MRE  
&RSSHUSLSHPPWRZDOOPPMRE  8
)LUHVSULQNOHUVSHUP2P2MRE  
Air conditioning incl main plant (m2P2MRE 2,060,000 88
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ  
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU 63,600 3
Group 3 Tradesman eg carpet layer, tiler, plasterer 63,600 3
*HQHUDOODERXUHU  2
Site foreman 106,000 
Material costs
Concrete 30 MPa (m3P3MRE 1,313,000 
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE  
&RQFUHWHEORFN[SHU!EORFNMRE 10,100,000 
6WDQGDUGEULFNSHU  
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE 30,000,000 
Glass pane 10mm tempered (m2)  193
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP  7
PPSODVWHUERDUGP2) 91,910 
Emulsion paint (litre) 211,182 9
&RSSHUSLSHPPPHWUHPMRE 111,100 
&RSSHUFDEOHPHWUH&(PP39&PMRE  2
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\ 20,600,000 882

Ho Chi Minh City

Tendering: Warm
Market: Staying the same
Cost escalation 2018: 3.0%
Cost escalation 2019: 3.0%
Contractor’s margin: 10.0%
Preliminaries: 12.0%
Location factor (USD): 
PPP coefficient: 


Around the globe
Australasia

Australia Economic overview

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foreign investors, and oversupply
dampened the energetic apartment
Brisbane, LQIUDVWUXFWXUHKDVEROVWHUHGWKH
Australian economy. Annual GDP
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Melbourne, growth reached 2.3 percent for

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Perth and Sydney for advanced nations.
A boost from public infrastructure 6KRUWWHUPYLVLWRUQXPEHUVKLW
investment 10 million, lifting tourism and
education and raising demand
kim.hayes@turntown.com for hotels. However, falling prices,
Construction market and trends
$QDOUHDG\EXV\FRQVWUXFWLRQVHFWRU
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6\GQH\$LUSRUW¿QDOO\VWDUWHGZLWK
86'EQWRGHOLYHUWKHSURMHFWWKURXJK

Sydney
USD
Brisbane Melbourne Perth Sydney (exchange
International building costs per m2 of internal area, in 2018 AUD AUD AUD AUD rate: 1.38)
Airports (Building only)
Domestic terminal, full service     
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH   3,839  3,297
Car parks
0XOWLVWRUH\±DERYHJURXQG   820 980 710
0XOWLVWRUH\±EHORZJURXQG  1,800 1,716  
Commercial
2I¿FHV±%XVLQHVV3DUN    1,900 1,377
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH 3,200    
&%'2I¿FHV±KLJKULVHSUHVWLJH     
Education
Primary and secondary   1,786  
University   3,099  3,007
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV   2,933  
Regional hospital 3,789    2,971
General hospital (e.g. city teaching hospital)    6,100 
Hotels
3 Star travellers 2,700 2,700  3,000 
6WDUOX[XU\     
Resort style 3,800    2,971
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF  830 770 880 638
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH 1,122 1,100   833
+LJKWHFKIDFWRU\ODERUDWRU\ 3,800  3,960  
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG  1,900   1,630
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH  3,000 2,883  3,007
7RZQKRXVHV±PHGLXPVWDQGDUG  2,000 1,786 2,200 
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG 1,973  1,826  
$SDUWPHQWV±KLJKULVH 2,861  2,793 3,100 
$JHGFDUHDIIRUGDEOHXQLWV  3,100  2,900 2,101
Retail
Large shopping centre including mall 2,700    2,138
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  2,100 1,786  1,630
Prestige car showroom 2,700   2,900 2,101

International construction
 market survey 2019
the government-owned Western
6\GQH\$LUSRUW86'EQLVDOORFDWHG
to Defence’s Capital Facilities over
four years.
,Q%ULVEDQHWKH86'EQ4XHHQ¶V
Wharf project will dominate construction.
0HDQZKLOHWKH86'EQ&URVV5LYHU
Rail underground is underway in the
FLW\&RQVWUXFWLRQLQ3HUWKLVSLFNLQJXS
with a new Ritz Carlton, the Chevron
headquarters tower and Metronet.
Australia international building costs
Composite trade rates
$FWLYLW\LQ6\GQH\DQG0HOERXUQH However, house prices sliding in
KDVEXPSHGXSFRVWVDQGOHGWR 6\GQH\DQG0HOERXUQHFRXOGFXUE
VNLOOVKRUWDJHVDQGVXSSO\FKDLQ discretionary spending, raising
ERWWOHQHFNVSXWWLQJVWUHVVRQ GRZQVLGHULVNVODWHULQ7KLV
schedules. Elsewhere, pressures ZLOOEHRIIVHWE\SXEOLFO\IXQGHG
are more muted. infrastructure, private developer-led
DQGODUJHUHVRXUFHEDVHGSURMHFWV
Future outlook
Prospects in 2019 are promising,
with commercial, health, defence, retail
and hotel construction rising in parallel
with massive multi-year road and rail
projects underway.
Sydney
USD
Brisbane Melbourne Perth Sydney (exchange
AUD AUD AUD AUD rate: 1.38)
([FDYDWHEDVHPHQWP3) (1800m3MRE   20  36
([FDYDWHIRRWLQJVP  60 31  
&RQFUHWHLQVODEP3P3MRE 310  260  
5HLQIRUFHPHQWLQEHDPVWRQQH  3,000 1,991  
)RUPZRUNWRVRI¿WRIVODEP2)     127
%ORFNZRUNLQZDOOP2EORFNMRE   122  112
6WUXFWXUDOVWHHOEHDPVWRQQH    6,000 
Pre-cast concrete wall (m2)     308
Curtain wall glazing incl support system (m2) (1000m2MRE   1,103  
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE 36   38 28
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE    880 638
Painting to walls primer + 2 coats (m2)  16 12 17 12
Ceramic tiling (m2) (1000m2MRE  120   91
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE   67  62
Carpet medium tufted (m2P2MRE 71 63   
Lighting installation (m2P2MRE 91  81  69
&RSSHUSLSHPPWRZDOOPPMRE  77  60 
)LUHVSULQNOHUVSHUP2P2MRE  60   
Air conditioning incl main plant (m2P2MRE  320 330 360 261
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ 86 100 88  76
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU 70 90 77  69
Group 3 Tradesman eg carpet layer, tiler, plasterer 70 90 70 90 
*HQHUDOODERXUHU     
Site foreman 98 110   83
Material costs
Concrete 30 MPa (m3P3MRE 170 230 179 220 
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE   1,218 1,300 
&RQFUHWHEORFN[SHU!EORFNMRE    3,600 2,609
6WDQGDUGEULFNSHU   773 810 
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE   1,910  1,812
Glass pane 10mm tempered (m2) 312    192
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP    3 2
PPSODVWHUERDUGP2) 8 10 9 11 8
Emulsion paint (litre) 13  12  11
&RSSHUSLSHPPPHWUHPMRE 13 17 18 13 9
&RSSHUFDEOHPHWUH&(PP39&PMRE 6    3
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\ 2,200  1,730 2,320 1,681

Brisbane Melbourne Perth Sydney

Tendering: Warm Hot Cold Hot
Market: Warmer Staying the same Warmer Staying the same
Cost escalation 2018: 2.0%  1.0% 
Cost escalation 2019:    
Contractor’s margin:    
Preliminaries: 16.0% 12.0% 12.0% 
Location factor (USD): 93.8 112.1 86.1 107.0
PPP coefficient: 1.8 2.1 1.7 2.0


Around the globe
Australasia

New Zealand Economic overview

The New Zealand economy grew steadily
in 2018. Annual GDP growth was running
Construction market and trends
Construction activity remains strong with
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Auckland and DWSHUFHQWLQÀDWLRQZDVXQGHU
control at 1.9 percent and unemployment
infrastructure, health, education and
residential sectors.
Christchurch GRZQWRSHUFHQW
Major infrastructure projects include
A stable economy supports +RXVHSULFHVÀDWWHQHGLQ$XFNODQGDQG WKH86'EQ&LW\5DLOOLQNVFKHPHLQ
construction &KULVWFKXUFKEXWWKH\DUHVWLOOULVLQJLQ $XFNODQG7KHNPGRXEOHUDLOWXQQHOLV
many other areas, driving demand for currently one of the largest infrastructure
apartments and prompting government schemes underway in the country.
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kim.hayes@turntown.com

Christchurch
Auckland Christchurch USD (exchange
International building costs per m of internal area, in 2018
2
NZD NZD rate: 1.5)
Airports (Building only)
Domestic terminal, full service ± ± ±
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH ± ± ±
Car parks
0XOWLVWRUH\±DERYHJURXQG 700 700 
0XOWLVWRUH\±EHORZJURXQG 1,800  1,167
Commercial
2I¿FHV±%XVLQHVV3DUN 1,800 1,800 1,200
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH 3,000 3,100 2,067
&%'2I¿FHV±KLJKULVHSUHVWLJH   2,733
Education
Primary and secondary   1,833
University 3,000 2,900 1,933
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV   
Regional hospital   2,800
General hospital (e.g. city teaching hospital)   3,300
Hotels
3 Star travellers   2,033
6WDUOX[XU\   
Resort style ± ±
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF 1,000 1,000 667
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH   933
+LJKWHFKIDFWRU\ODERUDWRU\   3,033
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG 2,000 2,000 1,333
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH 2,000 2,000 1,333
7RZQKRXVHV±PHGLXPVWDQGDUG   
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG 2,000  1,367
$SDUWPHQWV±KLJKULVH 3,600  2,267
$JHGFDUHDIIRUGDEOHXQLWV  2,800 1,867
Retail
Large shopping centre including mall 3,600  2,367
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  1,800 1,200
Prestige car showroom 2,100  

International construction
 market survey 2019
An injection of government funds
to improve hospitals has livened
the health sector.
(GXFDWLRQKDVDOVREHQH¿WWHGIURP
government money. The University
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USD110m Christchurch campus.
New Zealand international building costs
Composite trade rates
Future outlook
Construction prospects in New Zealand
UHPDLQSRVLWLYHVXSSRUWHGE\DVWDEOH
HFRQRP\DQGDKHDOWK\SLSHOLQHRIZRUN
Population growth is running at
2.1 percent annually, raising demand
for housing, infrastructure, education,
health and sports facilities. The natural
resources sector is declining due to
government policy around coal mining
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pipeline closures.
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With a relatively small population,
FRQWUDFWRUVDOVRWHQGWREHUHODWLYHO\
smaller. This limits the scope for
economies of scale in the supply chain.
Christchurch
Auckland Christchurch USD (exchange
NZD NZD rate: 1.5)
([FDYDWHEDVHPHQWP3) (1800m3MRE   29
([FDYDWHIRRWLQJVP  87 
&RQFUHWHLQVODEP3P3MRE 378 320 213
5HLQIRUFHPHQWLQEHDPVWRQQH   2,673
)RUPZRUNWRVRI¿WRIVODEP2)  168 112
%ORFNZRUNLQZDOOP2EORFNMRE 118 121 80
6WUXFWXUDOVWHHOEHDPVWRQQH   3,267
Pre-cast concrete wall (m2)  287 191
Curtain wall glazing incl support system (m2) (1000m2MRE   
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE   23
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE 1,330  893
Painting to walls primer + 2 coats (m2) 18 19 13
Ceramic tiling (m2) (1000m2MRE   98
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE 91  62
Carpet medium tufted (m2P2MRE   33
Lighting installation (m2P2MRE 60 60 
&RSSHUSLSHPPWRZDOOPPMRE   28
)LUHVSULQNOHUVSHUP2P2MRE 120 120 80
Air conditioning incl main plant (m2P2MRE   232
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ   
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU   37
Group 3 Tradesman eg carpet layer, tiler, plasterer 60 62 
*HQHUDOODERXUHU   32
Site foreman 100 100 67
Material costs
Concrete 30 MPa (m3P3MRE 278 212 
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE   1,960
&RQFUHWHEORFN[SHU!EORFNMRE   
6WDQGDUGEULFNSHU 1,300 1,320 880
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE   993
Glass pane 10mm tempered (m2)   
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 6 7 
PPSODVWHUERDUGP2) 11 11 7
Emulsion paint (litre) 6 6 
&RSSHUSLSHPPPHWUHPMRE 6 6 
&RSSHUFDEOHPHWUH&(PP39&PMRE 2 2 1
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\ 300 300 200

Auckland Christchurch
Tendering: Warm Warm
Market: Staying the same Staying the same
Cost escalation 2018:  
Cost escalation 2019:  
Contractor’s margin: 7.0% 7.0%
Preliminaries:  
Location factor (USD): 77.9 76.9
PPP coefficient: 1.6 


Around the globe
Europe

Austria Economic overview

Vienna
A strong economy is supporting
broad-based construction growth
florian.krauss@turntown.com
$XVWULDLVDPRQJWKHPRUHEXR\DQW
European nations with annual GDP
growth running at 2.2 percent in 2018.
House prices jumped last year and are
H[SHFWHGWRFRQWLQXHULVLQJLQ
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percent in the third quarter, is falling.
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rate at zero and with the rate at the
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percent, the promise of economic
H[SDQVLRQORRNVJRRG
Construction market and trends
7KH$XVWULDQFRQVWUXFWLRQPDUNHWORRNV
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E\SHUFHQWLQDQGWKLVLV
forecast to continue in 2019 with
DWRSHUFHQWULVH

USD
(exchange
International building costs per m of internal area, in 2018
2
EUR rate: 0.85)
Airports (Building only)
Domestic terminal, full service  
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH  3,087
Car parks
0XOWLVWRUH\±DERYHJURXQG 676 796
0XOWLVWRUH\±EHORZJURXQG 1,112 1,308
Commercial
2I¿FHV±%XVLQHVV3DUN 2,019 
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH 2,818 
&%'2I¿FHV±KLJKULVHSUHVWLJH 3,628 
Education
Primary and secondary 2,008 2,363
University 2,316 
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV  2,881
Regional hospital  
General hospital (e.g. city teaching hospital)  
Hotels
3 Star travellers 1,918 
6WDUOX[XU\  
Resort style  
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF 687 808
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH 861 1,013
+LJKWHFKIDFWRU\ODERUDWRU\ 2,213 
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG 1,332 
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH 1,916 
7RZQKRXVHV±PHGLXPVWDQGDUG 1,373 
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG  1,796
$SDUWPHQWV±KLJKULVH  
$JHGFDUHDIIRUGDEOHXQLWV  1,899
Retail
Large shopping centre including mall  2,688
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW 2,131 
Prestige car showroom  

60 International construction
market survey 2019
Demand is high, particularly in
Vienna and surrounding regions where
there are several large-scale projects
across various sectors. There is very
KLJKGHPDQGIRUDIIRUGDEOHKRXVLQJ
GULYLQJODUJHVFDOHXUEDQUHVLGHQWLDO
development.
Local construction and M&E companies
DUHFRSLQJZLWKWKHGHPDQGEXW
competition is decreasing leading to
rising construction prices and longer
lead times.
Austria international building costs
Composite trade rates
,QJHQHUDOWKHFRVWLPSDFWWHQGVWREH
lower on smaller projects.
Future outlook
7KH¿UVWKDOIRILVORRNLQJSRVLWLYH
EXWWKHUHDUHVLJQVRIFRROLQJDVPDMRU
RI¿FHGHYHORSPHQWVFRPSOHWHODWHULQ
WKH\HDU2WKHUVHFWRUVVKRXOGEHPRUH
UREXVWZLWKDQ\VORZGRZQPRUHPXWHG
3XEOLFO\IXQGHGLQIUDVWUXFWXUHLV
H[SHFWHGWRVXSSRUWUDLODQGDLUSRUW
projects. High-tech and manufacturing
VKRXOGEHQH¿WIURPJURZLQJGHPDQG
and there is a continuing strong focus
RQGHYHORSPHQWOLQNHGWRWKHOLIH
sciences.
USD
(exchange
EUR rate: 0.85)
([FDYDWHEDVHPHQWP3) (1800m3MRE 17 20
([FDYDWHIRRWLQJVP 32 37
&RQFUHWHLQVODEP3P3MRE 162 190
5HLQIRUFHPHQWLQEHDPVWRQQH 1,727 2,032
)RUPZRUNWRVRI¿WRIVODEP2)  61
%ORFNZRUNLQZDOOP2EORFNMRE 86 101
6WUXFWXUDOVWHHOEHDPVWRQQH  
Pre-cast concrete wall (m2) 137 162
Curtain wall glazing incl support system (m2) (1000m2MRE 779 917
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE 62 73
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE 1,066 
Painting to walls primer + 2 coats (m2) 9 11
Ceramic tiling (m2) (1000m2MRE 68 80
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE  
Carpet medium tufted (m2P2MRE 33 39
Lighting installation (m2P2MRE 71 
&RSSHUSLSHPPWRZDOOPPMRE  
)LUHVSULQNOHUVSHUP2P2MRE 99 116
Air conditioning incl main plant (m2P2MRE 113 133
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ  
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU  
Group 3 Tradesman eg carpet layer, tiler, plasterer  
*HQHUDOODERXUHU 32 38
Site foreman  
Material costs
Concrete 30 MPa (m3P3MRE  
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE 1,031 1,213
&RQFUHWHEORFN[SHU!EORFNMRE 3,673 
6WDQGDUGEULFNSHU  991
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE 2,316 
Glass pane 10mm tempered (m2) 126 
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP  
PPSODVWHUERDUGP2)  
Emulsion paint (litre) 7 8
&RSSHUSLSHPPPHWUHPMRE 10 12
&RSSHUFDEOHPHWUH&(PP39&PMRE 6 7
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\  

Vienna
Tendering: Hot
Market: Staying the same
Cost escalation 2018: 
Cost escalation 2019: 
Contractor’s margin: 
Preliminaries: 10.0%
Location factor (USD): 
PPP coefficient: 1.1

61
Around the globe
Europe

France Economic overview

The French economy slowed slightly
with annual GDP growth ending the
Paris year at 0.9 percent from 2.8 percent
LQ,QÀDWLRQUHPDLQVORZDW
Transport projects lift construction SHUFHQWEXWXQHPSOR\PHQWDW
prospects percent is an issue. Meanwhile, the
policy interest rate is anchored at zero.
gael.lehimas@turntown.com
Construction market and trends
7KHPDUNHWUHPDLQVZDUPEROVWHUHGE\
real estate and transport. Real estate
prices are still rising and last year in
3DULVKLWDQHZSHDN
Large transport schemes, such as the
PDVVLYH*UDQG3DULV([SUHVVSURMHFW
continue to support construction and
RSHQRWKHURSSRUWXQLWLHV:RUNRQWKH
UDSLGWUDQVLWVFKHPHOLQNLQJWKHFLW\¶V
VXEXUEVZLOOFRQWLQXHXQWLO

USD
(exchange
International building costs per m of internal area, in 2018
2
EUR rate: 0.85)
Airports (Building only)
Domestic terminal, full service  
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH  
Car parks
0XOWLVWRUH\±DERYHJURXQG 609 716
0XOWLVWRUH\±EHORZJURXQG 1,199 
Commercial
2I¿FHV±%XVLQHVV3DUN 1,762 2,073
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH  
&%'2I¿FHV±KLJKULVHSUHVWLJH  
Education
Primary and secondary 1,668 1,962
University 2,137 
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV  
Regional hospital 2,929 
General hospital (e.g. city teaching hospital)  
Hotels
3 Star travellers 2,033 2,391
6WDUOX[XU\ 3,680 
Resort style 2,710 3,189
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF  883
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH 928 1,091
+LJKWHFKIDFWRU\ODERUDWRU\ 1,897 2,232
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG 1,301 
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH  
7RZQKRXVHV±PHGLXPVWDQGDUG 1,303 
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG 1,616 1,901
$SDUWPHQWV±KLJKULVH  
$JHGFDUHDIIRUGDEOHXQLWV 1,876 2,207
Retail
Large shopping centre including mall 2,398 2,821
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW 2,009 2,363
Prestige car showroom 2,606 3,066

62 International construction
market survey 2019
It includes four new metro lines
connecting seven economic centres
ZKLFKXQORFNRSSRUWXQLWLHVIRU
residential construction.
:RUNLVFRQWLQXLQJRQWKHPDMRU
KLJKVSHHGUDLOOLQHOLQNLQJ/\RQLQ
France to Turin in Italy, although
recent political issues have clouded
its future.
France international building costs
Composite trade rates
There are also several plans, with 0HDQZKLOHFRQVWUXFWLRQFRVWVDUHOLNHO\
LQYHVWPHQWWRWDOOLQJDURXQG86'EQ to rise 2.3 percent, ahead of current
WRH[SDQGDQGXSJUDGHPDMRU)UHQFK JHQHUDOLQÀDWLRQ
airports.
Future outlook
Prospects for the French construction
LQGXVWU\DUHEULJKWZLWKSOHQW\RI
transport and airport schemes in the
pipeline. Sport, leisure and hospitality
should also continue to thrive as Paris
prepares for the Olympic Games
LQ
USD
(exchange
EUR rate: 0.85)
([FDYDWHEDVHPHQWP3) (1800m3MRE  17
([FDYDWHIRRWLQJVP 28 32
&RQFUHWHLQVODEP3P3MRE  172
5HLQIRUFHPHQWLQEHDPVWRQQH  
)RUPZRUNWRVRI¿WRIVODEP2)  
%ORFNZRUNLQZDOOP2EORFNMRE 68 80
6WUXFWXUDOVWHHOEHDPVWRQQH 3,336 
Pre-cast concrete wall (m2) 120 
Curtain wall glazing incl support system (m2) (1000m2MRE 678 797
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE 71 83
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE 1,033 
Painting to walls primer + 2 coats (m2) 12 
Ceramic tiling (m2) (1000m2MRE 68 80
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE 36 
Carpet medium tufted (m2P2MRE  
Lighting installation (m2P2MRE  76
&RSSHUSLSHPPWRZDOOPPMRE 32 38
)LUHVSULQNOHUVSHUP2P2MRE  99
Air conditioning incl main plant (m2P2MRE 120 
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ  
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU  
Group 3 Tradesman eg carpet layer, tiler, plasterer 33 39
*HQHUDOODERXUHU 26 31
Site foreman  
Material costs
Concrete 30 MPa (m3P3MRE 106 
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE 928 1,091
&RQFUHWHEORFN[SHU!EORFNMRE  3,311
6WDQGDUGEULFNSHU 678 797
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE 1,762 2,073
Glass pane 10mm tempered (m2)  172
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 3 
PPSODVWHUERDUGP2)  
Emulsion paint (litre) 6 7
&RSSHUSLSHPPPHWUHPMRE 7 9
&RSSHUFDEOHPHWUH&(PP39&PMRE 3 
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\  

Paris
Tendering: Warm
Market: Staying the same
Cost escalation 2018: 2.7%
Cost escalation 2019: 2.3%
Contractor’s margin: 
Preliminaries: 7.0%
Location factor (USD): 
PPP coefficient: 1.0

63
Around the globe
Europe

Germany Economic overview

Annual GDP growth dipped in 2018 to
SHUFHQWIURPSHUFHQWLQ
Construction market and trends
Federal statistics show strong growth
across all sectors of construction.
Berlin, Frankfurt ,QÀDWLRQZKLFKKDGEHHQULVLQJIHOO
towards the end of 2018, ending at
7KHPDUNHWLVKRW$VKRUWDJHRI
land and a rising population has
and Munich 1.9 percent. Unemployment at 3.3
percent is among the lowest in Europe.
generated high demand for housing
and commercial units.
An attractive market for investors
keeping construction busy *HUPDQ\UHPDLQVDQDWWUDFWLYHPDUNHW
for international investors and this is
UHÀHFWHGLQWKHVWURQJSHUIRUPDQFH
of the construction sector.
stefan.reimoser@turntown.com

Munich
USD
Berlin Frankfurt Munich (exchange
International building costs per m2 of internal area, in 2018 EUR EUR EUR rate: 0.85)
Airports (Building only)
Domestic terminal, full service 3,317  3,667 
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH   2,726 3,207
Car parks
0XOWLVWRUH\±DERYHJURXQG   702 826
0XOWLVWRUH\±EHORZJURXQG  1,069  
Commercial
2I¿FHV±%XVLQHVV3DUN 1,897  2,097 
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH  2,709 2,927 
&%'2I¿FHV±KLJKULVHSUHVWLJH   3,768 
Education
Primary and secondary 1,887 1,931 2,086 
University 2,176 2,226  2,830
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV 2,301   2,993
Regional hospital 3,062 3,133  3,982
General hospital (e.g. city teaching hospital) 3,368  3,723 
Hotels
3 Star travellers 1,799  1,989 
6WDUOX[XU\  3,610 3,888 
Resort style 2,277 2,337  2,961
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF  660 713 839
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH 809 828  
+LJKWHFKIDFWRU\ODERUDWRU\ 2,080 2,128 2,299 
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG  1,281  1,628
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH 1,800  1,990 
7RZQKRXVHV±PHGLXPVWDQGDUG 1,290 1,320  1,678
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG    1,866
$SDUWPHQWV±KLJKULVH  1,918 2,072 
$JHGFDUHDIIRUGDEOHXQLWV   1,676 1,972
Retail
Large shopping centre including mall  2,197 2,373 2,792
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW 2,003   
Prestige car showroom 2,278 2,331  2,963

International construction
 market survey 2019
House prices are high compared to
SUHYLRXV\HDUVGXHWRJHQWUL¿FDWLRQ
in most major cities in Germany.
Foreign investors continue to focus
on real estate in Berlin, as a slight
decline in prices has made the city
YHU\DWWUDFWLYH%XWVNLOOVVKRUWDJHV
do act as a drag.
Large projects are numerous.
,Q)UDQNIXUWZRUNKDVVWDUWHGRQ)RXU
DPL[HGXVHGHYHORSPHQWLQFOXGLQJ
IRXUKLJKULVHEXLOGLQJVZKLFKZLOOUXQ
to 2023. The project consists of 600
apartments, two hotels plus retail units.
7KHSODQQHG86'PH[SDQVLRQRI
Munich airport due to open in 2023 will
EROVWHUFRQVWUXFWLRQLQVRXWK*HUPDQ\
Future outlook
$OWKRXJKWKHHIIHFWRI%UH[LWLVKDUG
to predict, further economic growth
LVH[SHFWHGZKLFKZLOOLQWXUQVXSSRUW
growth in construction.
The IT industry has a strong presence
DFURVVWKHFRXQWU\ZKLFKLVH[SHFWHGWR
NHHSJURZLQJZLWKDWWHQWLRQIRFXVHGRQ
Berlin and Munich.

Munich
USD
Berlin Frankfurt Munich (exchange
Germany international building costs EUR EUR EUR rate: 0.85)
Composite trade rates
([FDYDWHEDVHPHQWP3) (1800m3MRE 16 17 18 21
([FDYDWHIRRWLQJVP 30 31 33 39
&RQFUHWHLQVODEP3P3MRE   168 198
5HLQIRUFHPHQWLQEHDPVWRQQH 1,623 1,661  2,111
)RUPZRUNWRVRI¿WRIVODEP2)    63
%ORFNZRUNLQZDOOP2EORFNMRE 81 83 89 
6WUXFWXUDOVWHHOEHDPVWRQQH    
Pre-cast concrete wall (m2) 129 132  168
Curtain wall glazing incl support system (m2) (1000m2MRE 732  809 
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE  60  76
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE 1,001  1,107 1,302
Painting to walls primer + 2 coats (m2) 9 9 10 11
Ceramic tiling (m2) (1000m2MRE   70 83
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE 32 33 36 
Carpet medium tufted (m2P2MRE 31 32  
Lighting installation (m2P2MRE 67 68  87
&RSSHUSLSHPPWRZDOOPPMRE 32 33 36 
)LUHVSULQNOHUVSHUP2P2MRE 93  102 120
Air conditioning incl main plant (m2P2MRE 107 109 118 139
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ    62
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU    
Group 3 Tradesman eg carpet layer, tiler, plasterer    
*HQHUDOODERXUHU 30 31 33 39
Site foreman    
Material costs
Concrete 30 MPa (m3P3MRE 127 130  
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE 969 991 1,071 1,260
&RQFUHWHEORFN[SHU!EORFNMRE    
6WDQGDUGEULFNSHU 791 810  1,029
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE 2,176 2,227  2,830
Glass pane 10mm tempered (m2) 118 121 131 
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP    6
PPSODVWHUERDUGP2)    6
Emulsion paint (litre) 7 7 7 8
&RSSHUSLSHPPPHWUHPMRE 10 10 11 13
&RSSHUFDEOHPHWUH&(PP39&PMRE  6 6 7
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\ 1,260 1,289 1,393 1,639

Berlin Frankfurt Munich

Tendering: Hot Hot Hot
Market: Staying the same Warmer Staying the same
Cost escalation 2018:   
Cost escalation 2019: 3.0%  3.0%
Contractor’s margin:   
Preliminaries: 11.0%  11.0%
Location factor (USD): 83.9  92.8
PPP coefficient: 1.0 1.0 1.1


Around the globe
Europe

Ireland Economic overview

,UHODQGLVHQMR\LQJDVWURQJEXUVWRI
growth in 2018, with estimated GDP
Construction market and trends
7KH,ULVKPDUNHWLVKRWZLWKRI¿FLDO
¿JXUHVIRU4VKRZLQJDQQXDO
Dublin growth at 7.8 percent. The European
Commission forecasts further strong
growth in construction gross value
DGGHGDERYHSHUFHQW
Construction surges on a burst JURZWKRISHUFHQWWKLV\HDUDQG
of economic growth 3.8 percent in 2020. ,QZKDWLVWKH¿UVWZDYHRIODUJH
projects following an upturn in economic
8QHPSOR\PHQWGURSSHGWRSHUFHQW SHUIRUPDQFHWKHUHLVDORWRIRI¿FH
at the end of 2018 from 6.2 percent residential and student residential
a year earlier, while annual consumer projects underway.
LQÀDWLRQURVHIURPSHUFHQWWR
mark.kelly@turntown.com 0.7 percent over the same period.

USD
(exchange
International building costs per m of internal area, in 2018
2
EUR rate: 0.85)
Airports (Building only)
Domestic terminal, full service  
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH  
Car parks
0XOWLVWRUH\±DERYHJURXQG  1,000
0XOWLVWRUH\±EHORZJURXQG  
Commercial
2I¿FHV±%XVLQHVV3DUN 2,100 
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH 2,800 
&%'2I¿FHV±KLJKULVHSUHVWLJH 3,700 
Education
Primary and secondary  2,176
University  
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV 2,900 
Regional hospital  
General hospital (e.g. city teaching hospital)  
Hotels
3 Star travellers  
6WDUOX[XU\ 3,600 
Resort style  
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF  1,206
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH 1,300 
+LJKWHFKIDFWRU\ODERUDWRU\  
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG 1,900 
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH  
7RZQKRXVHV±PHGLXPVWDQGDUG 1,900 
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG 2,300 2,706
$SDUWPHQWV±KLJKULVH  
$JHGFDUHDIIRUGDEOHXQLWV  2,882
Retail
Large shopping centre including mall 3,000 
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  
Prestige car showroom  3,706

66 International construction
market survey 2019
$PRQJWKHODUJHVWRQJRLQJEXLOGLQJ
projects is the EUR200m Grangegorman
PPP New Educational Campus project
which is due to open for the 2020/21
academic year.
Future outlook
The economy is set to continue
LPSURYLQJEXWWKHLPSDFWRI%UH[LW
FDVWVDQXQSUHGLFWDEOHFORXG\HW
FRQVWUXFWLRQLQYHVWPHQWLVH[SHFWHG
WREHPDLQWDLQHG
Ireland international building costs
Composite trade rates
,UHODQG¶VELJJHVWLQIUDVWUXFWXUHSURMHFW
RQWKHKRUL]RQLVWKH(85EQ'XEOLQ
0HWUROLQNUXQQLQJNPQRUWKWR
VRXWKDQGOLQNLQJ'XEOLQ$LUSRUWWR
the city centre.
Other future investment includes a
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6W-DPHV¶V*DWHVLWHWKHQHZ)DFHERRN
KHDGTXDUWHUV¿WRXWDQGFDSLWDO
SURJUDPPHVIRU'XEOLQ$LUSRUWDQG
Irish Water.
USD
(exchange
EUR rate: 0.85)
([FDYDWHEDVHPHQWP3) (1800m3MRE  18
([FDYDWHIRRWLQJVP  30
&RQFUHWHLQVODEP3P3MRE  
5HLQIRUFHPHQWLQEHDPVWRQQH 1,200 
)RUPZRUNWRVRI¿WRIVODEP2)  
%ORFNZRUNLQZDOOP2EORFNMRE  
6WUXFWXUDOVWHHOEHDPVWRQQH 2,200 
Pre-cast concrete wall (m2) 110 129
Curtain wall glazing incl support system (m2) (1000m2MRE  882
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE 68 80
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE 900 
Painting to walls primer + 2 coats (m2) 10 12
Ceramic tiling (m2) (1000m2MRE 90 106
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE  
Carpet medium tufted (m2P2MRE  
Lighting installation (m2P2MRE  76
&RSSHUSLSHPPWRZDOOPPMRE  61
)LUHVSULQNOHUVSHUP2P2MRE 110 129
Air conditioning incl main plant (m2P2MRE 200 
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ  
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU 38 
Group 3 Tradesman eg carpet layer, tiler, plasterer 38 
*HQHUDOODERXUHU 27 32
Site foreman 39 
Material costs
Concrete 30 MPa (m3P3MRE 120 
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE  
&RQFUHWHEORFN[SHU!EORFNMRE 709 
6WDQGDUGEULFNSHU 600 706
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE  
Glass pane 10mm tempered (m2)  
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 6 7
PPSODVWHUERDUGP2) 8 9
Emulsion paint (litre) 8 9
&RSSHUSLSHPPPHWUHPMRE 16 19
&RSSHUFDEOHPHWUH&(PP39&PMRE 11 12
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\  

Dublin
Tendering: Hot
Market: Staying the same
Cost escalation 2018: 7.0%
Cost escalation 2019: 7.0%
Contractor’s margin: 
Preliminaries: 12.0%
Location factor (USD): 98.6
PPP coefficient: 1.1

67
Around the globe
Europe

Netherlands Economic overview

Amsterdam
Construction surges on the back
of a strong and stable economy
luke.bartolo@turntown.com
The Dutch economy remains a picture
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show as world trade growth slowed
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GDP growth in the Netherlands is
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6OLJKWO\GRZQRQEXWVWLOO
strong. Domestic spending is surging
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incomes, and rising consumer
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However, many sentiment indicators
have fallen with uncertainties over the
86$&KLQDWUDGHFRQÀLFWWKH(8,WDOLDQ
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spending this year.
Construction market and trends
Construction is the fastest-growing
sector of the Dutch economy. It is
RYHUKHDWLQJZDUPHGE\SHUFHQW

USD
(exchange
International building costs per m of internal area, in 2018
2
EUR rate: 0.85)
Airports (Building only)
Domestic terminal, full service  
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH 2,778 3,269
Car parks
0XOWLVWRUH\±DERYHJURXQG 686 807
0XOWLVWRUH\±EHORZJURXQG  
Commercial
2I¿FHV±%XVLQHVV3DUN 1,932 2,273
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH 2,629 3,093
&%'2I¿FHV±KLJKULVHSUHVWLJH 3,178 3,739
Education
Primary and secondary 1,798 
University 2,330 
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV  
Regional hospital  
General hospital (e.g. city teaching hospital) 3,738 
Hotels
3 Star travellers 2,206 
6WDUOX[XU\ 3,896 
Resort style 2,903 
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF 820 
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH 1,072 1,261
+LJKWHFKIDFWRU\ODERUDWRU\ 2,090 
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG  1,687
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH 2,006 2,360
7RZQKRXVHV±PHGLXPVWDQGDUG  1,687
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG  
$SDUWPHQWV±KLJKULVH  2,629
$JHGFDUHDIIRUGDEOHXQLWV  
Retail
Large shopping centre including mall  
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW 2,330 
Prestige car showroom  

68 International construction
market survey 2019
growth in 2018 and with similar growth
H[SHFWHGWKLV\HDU
8QVXUSULVLQJO\WUDGHVNLOOVDUHD
SUREOHP
Among the large projects underway are
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Schiphol-Amsterdam-Almere, the
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KHDGRI¿FHVIRU%RRNLQJFRPLQ
Amsterdam, and the Zalmhaven Tower,
DQLFRQLFPKLJKUHVLGHQWLDOWRZHULQ
Rotterdam.
Netherlands international building costs
Composite trade rates
Meanwhile, Amsterdam is also %UH[LWXQFHUWDLQW\DQGRWKHUEXEEOLQJ
EHQH¿WWLQJIURPRQJRLQJGHYHORSPHQW JOREDOWHQVLRQVSUHVHQWSRWHQWLDOULVNV
RIWKH=XLGDVEXVLQHVVGLVWULFW WRJURZWKEXWIRUHFDVWHUVSRLQWWR*'3
2.1 percent growth for 2019.
Future outlook
7KHHFRQRP\VKRXOGH[SDQGPRUH
PRGHUDWHO\QH[W\HDUDVGRPHVWLF
demand eases. But it will continue to
SHUIRUPZHOOVXSSRUWHGE\PDQXIDFWXULQJ
capacity, high utilisation rates, low
¿QDQFLQJFRVWVORZXQHPSOR\PHQWDQG
VROLGH[SDQVLRQVLQH[SRUWVDQG¿[HG
investment.
USD
(exchange
EUR rate: 0.85)
([FDYDWHEDVHPHQWP3) (1800m3MRE  17
([FDYDWHIRRWLQJVP 28 33
&RQFUHWHLQVODEP3P3MRE 173 203
5HLQIRUFHPHQWLQEHDPVWRQQH  
)RUPZRUNWRVRI¿WRIVODEP2) 32 38
%ORFNZRUNLQZDOOP2EORFNMRE 89 
6WUXFWXUDOVWHHOEHDPVWRQQH  3,708
Pre-cast concrete wall (m2) 212 
Curtain wall glazing incl support system (m2) (1000m2MRE 731 861
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE 91 108
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE 1,296 
Painting to walls primer + 2 coats (m2) 19 23
Ceramic tiling (m2) (1000m2MRE 78 92
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE  63
Carpet medium tufted (m2P2MRE  
Lighting installation (m2P2MRE 79 93
&RSSHUSLSHPPWRZDOOPPMRE 30 
)LUHVSULQNOHUVSHUP2P2MRE  60
Air conditioning incl main plant (m2P2MRE 196 230
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ  
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU  
Group 3 Tradesman eg carpet layer, tiler, plasterer  
*HQHUDOODERXUHU  
Site foreman 61 71
Material costs
Concrete 30 MPa (m3P3MRE 101 119
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE  990
&RQFUHWHEORFN[SHU!EORFNMRE 3,896 
6WDQGDUGEULFNSHU  
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE  1,822
Glass pane 10mm tempered (m2)  177
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 2 2
PPSODVWHUERDUGP2) 6 7
Emulsion paint (litre) 10 12
&RSSHUSLSHPPPHWUHPMRE 6 7
&RSSHUFDEOHPHWUH&(PP39&PMRE 2 3
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\ 1,113 1,310

Amsterdam
Tendering: Overheating
Market: Warmer
Cost escalation 2018: 8.8%
Cost escalation 2019: 9.0%
Contractor’s margin: 10.0%
Preliminaries: 13.0%
Location factor (USD): 
PPP coefficient: 1.0

69
Around the globe
Europe

Poland Economic overview

Warsaw
Opportunities in a hot market
despite growing skills shortages
marcin.pawlowicz@turntown.com
Poland enjoyed another year of fast
HFRQRPLFJURZWKLQ$WSHUFHQW
LWZDVZHOODERYHPRVWRWKHU(XURSHDQ
nations. And the primary economic
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UDWHKDVEHHQXQFKDQJHGVLQFH
and should remain so throughout this
\HDU([FKDQJHUDWHÀXFWXDWLRQVKDYH
EHHQPLQRUZLWKDULVHRISHUFHQW
in 2018.
8QHPSOR\PHQWLVSHUFHQWDQG
GHFUHDVLQJZKLOHLQÀDWLRQHQGHGWKH
year at 1.1 percent.
Construction market and trends
7KHFRQVWUXFWLRQPDUNHWLVKRW7KHUH
was high demand for apartments in
XUEDQDUHDVWKURXJKRXWDQG
DQGSULFHVKDYHEHHQULVLQJE\XSWR
10 percent in a year. In the main cities,
growth in residential development is
PDLQO\GULYHQE\WKHUHQWDOPDUNHW

USD
(exchange
International building costs per m of internal area, in 2018
2
PLN rate: 3.67)
Airports (Building only)
Domestic terminal, full service 9,606 2,617
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH  
Car parks
0XOWLVWRUH\±DERYHJURXQG  
0XOWLVWRUH\±EHORZJURXQG  
Commercial
2I¿FHV±%XVLQHVV3DUN  1,092
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH  
&%'2I¿FHV±KLJKULVHSUHVWLJH  
Education
Primary and secondary 2,971 810
University  
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV 3,063 
Regional hospital  
General hospital (e.g. city teaching hospital)  1,126
Hotels
3 Star travellers  1,363
6WDUOX[XU\  
Resort style  
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF 1,910 
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH  700
+LJKWHFKIDFWRU\ODERUDWRU\ 3,872 
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG  
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH  
7RZQKRXVHV±PHGLXPVWDQGDUG 2,882 
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG  
$SDUWPHQWV±KLJKULVH  
$JHGFDUHDIIRUGDEOHXQLWV  
Retail
Large shopping centre including mall  997
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  
Prestige car showroom  1,090

70 International construction
market survey 2019
The strong economy is driving the
RI¿FHVVHFWRUZLWKUHODWLYHO\ORZFRVW
ODERXUDQGKLJKO\TXDOL¿HGVSHFLDOLVWV
Poland has much to attract corporate
EXVLQHVVHV
Future outlook
7KHFRQVWUXFWLRQPDUNHWORRNVVHWWR
remain hot although the residential
VHFWRULVOLNHO\WRVWDELOLVH
Poland international building costs
Composite trade rates
Increasing demand for energy and The growing corporate presence in
modernising the infrastructure are the Poland will mean opportunities for
NH\GULYHUVIRULQYHVWPHQWE\WKHSRZHU RI¿FH¿WRXWVDQGGDWDFHQWUHV
and utilities sector over the long term.
0HDQZKLOHWKHSULYDWHKHDOWKPDUNHW
is growing as Poland’s population is
DJHLQJDQGWKHSXEOLFVHFWRULVVHHQ
as inadequate to meet the needs.
USD
(exchange
PLN rate: 3.67)
([FDYDWHEDVHPHQWP3) (1800m3MRE 28 8
([FDYDWHIRRWLQJVP 107 29
&RQFUHWHLQVODEP3P3MRE  177
5HLQIRUFHPHQWLQEHDPVWRQQH  1,361
)RUPZRUNWRVRI¿WRIVODEP2) 109 30
%ORFNZRUNLQZDOOP2EORFNMRE  37
6WUXFWXUDOVWHHOEHDPVWRQQH  
Pre-cast concrete wall (m2)  
Curtain wall glazing incl support system (m2) (1000m2MRE  
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE 129 
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE 2,936 800
Painting to walls primer + 2 coats (m2) 19 
Ceramic tiling (m2) (1000m2MRE 136 37
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE  28
Carpet medium tufted (m2P2MRE 107 29
Lighting installation (m2P2MRE 133 36
&RSSHUSLSHPPWRZDOOPPMRE 82 22
)LUHVSULQNOHUVSHUP2P2MRE 81 22
Air conditioning incl main plant (m2P2MRE  177
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ 36 10
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU  11
Group 3 Tradesman eg carpet layer, tiler, plasterer 36 10
*HQHUDOODERXUHU 36 10
Site foreman  
Material costs
Concrete 30 MPa (m3P3MRE 292 79
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE 3,029 
&RQFUHWHEORFN[SHU!EORFNMRE  
6WDQGDUGEULFNSHU 1,037 283
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE  2,078
Glass pane 10mm tempered (m2) 396 108
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 9 2
PPSODVWHUERDUGP2) 13 
Emulsion paint (litre)  1
&RSSHUSLSHPPPHWUHPMRE 19 
&RSSHUFDEOHPHWUH&(PP39&PMRE  1
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\  

Warsaw
Tendering: Hot
Market: Staying the same
Cost escalation 2018: 6.0%
Cost escalation 2019: 
Contractor’s margin: 6.0%
Preliminaries: 6.0%
Location factor (USD): 
PPP coefficient: 2.1

71
Around the globe
Europe

Russia Economic overview

Russia’s annual GDP growth rate was
UXQQLQJDWSHUFHQWLQWKHWKLUG
+RXVHSULFHVKDYHSLFNHGXSDJDLQLQ
Moscow after two years of decline.

Moscow quarter of 2018. Construction market and trends

Little sign of a bounce following Western sanctions have hindered
the World Cup JURZWKDQGORZHUHGWKHH[FKDQJHUDWH
EXWKLJKHURLOSULFHVKHOSHGWROLIWWKH
URXEOHODWHULQ8QHPSOR\PHQWLV
EHORZSHUFHQWDQGLQÀDWLRQEHORZ
SHUFHQWZKLOHLQWHUHVWUDWHVDW
SHUFHQWUHSUHVHQWDVOLJKWVKRUW
alper.tufan@turntown.com term rise.
7KH:RUOG&XSZDVDVXFFHVVEXWLW
has not warmed Russia’s construction
PDUNHW,WUHPDLQVFROG$FWLYLW\GRHV
however continue apace in Moscow
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Moscow river.

USD
(exchange
International building costs per m of internal area, in 2018
2
RUB rate: 66.38)
Airports (Building only)
Domestic terminal, full service 190,000 2,862
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH  2,168
Car parks
0XOWLVWRUH\±DERYHJURXQG 32,600 
0XOWLVWRUH\±EHORZJURXQG 38,000 
Commercial
2I¿FHV±%XVLQHVV3DUN 62,100 936
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH 67,200 1,012
&%'2I¿FHV±KLJKULVHSUHVWLJH 79,700 1,201
Education
Primary and secondary  
University  
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV  823
Regional hospital 76,300 
General hospital (e.g. city teaching hospital) 86,700 1,306
Hotels
3 Star travellers 70,900 1,068
6WDUOX[XU\ 131,100 
Resort style 97,900 
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF  
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH  
+LJKWHFKIDFWRU\ODERUDWRU\  1,139
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG 32,100 
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH  731
7RZQKRXVHV±PHGLXPVWDQGDUG 38,600 
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG  
$SDUWPHQWV±KLJKULVH  731
$JHGFDUHDIIRUGDEOHXQLWV 32,100 
Retail
Large shopping centre including mall  
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  737
Prestige car showroom 60,100 

72 International construction
market survey 2019
Major projects outside the capital
include the under-construction Moscow
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PDVVLYH3RZHURI6LEHULDJDVSLSHOLQH
SURMHFWLVRQJRLQJDQGZRUNVWDUWHG
last year on its Amur Processing Plant,
the largest such plant in Russia.
Russia international building costs
Composite trade rates
Future outlook
7KHPDUNHWORRNVVHWWRVWD\FROGLQ
2019. Residential construction costs
are set to rise in 2019, with legislation
FKDQJHVIRUQHZEXLOWUHVLGHQFHV
(VFURZDFFRXQWVZLOOEHPDQGDWRU\
for developers from July 2019 and
VAT has risen from 18 to 20 percent.
7KHUHVKRXOGEHJURZWKLQKRXVLQJ
ZRUNEDVHGRQFXUUHQWSURMHFWVDQG
development of New Moscow Area.
7KHUHKDVDOVREHHQDQLQFUHDVHLQ
projects related to retail, transport
and education.
+LJKHUFRPPRGLW\SULFHVVKRXOGERRVW
ZRUNLQWKHRLODQGJDVVHFWRU
USD
(exchange
RUB rate: 66.38)
([FDYDWHEDVHPHQWP3) (1800m3MRE 670 10
([FDYDWHIRRWLQJVP 900 
&RQFUHWHLQVODEP3P3MRE  
5HLQIRUFHPHQWLQEHDPVWRQQH 77,200 1,163
)RUPZRUNWRVRI¿WRIVODEP2)  26
%ORFNZRUNLQZDOOP2EORFNMRE 2,110 32
6WUXFWXUDOVWHHOEHDPVWRQQH  
Pre-cast concrete wall (m2) 10,100 
Curtain wall glazing incl support system (m2) (1000m2MRE  871
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE 3,300 
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE 36,600 
Painting to walls primer + 2 coats (m2) 680 10
Ceramic tiling (m2) (1000m2MRE  
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE  
Carpet medium tufted (m2P2MRE  
Lighting installation (m2P2MRE 3,900 
&RSSHUSLSHPPWRZDOOPPMRE 690 10
)LUHVSULQNOHUVSHUP2P2MRE 1,800 27
Air conditioning incl main plant (m2P2MRE 9,800 
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ 870 13
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU 870 13
Group 3 Tradesman eg carpet layer, tiler, plasterer 870 13
*HQHUDOODERXUHU 770 12
Site foreman 1,270 19
Material costs
Concrete 30 MPa (m3P3MRE  78
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE 38,900 
&RQFUHWHEORFN[SHU!EORFNMRE  1,200
6WDQGDUGEULFNSHU  212
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE  887
Glass pane 10mm tempered (m2) 8,100 122
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 260 
PPSODVWHUERDUGP2) 160 2
Emulsion paint (litre)  1
&RSSHUSLSHPPPHWUHPMRE 370 6
&RSSHUFDEOHPHWUH&(PP39&PMRE  1
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\  

Moscow
Tendering: Cold
Market: Staying the same
Cost escalation 2018: 
Cost escalation 2019: 
Contractor’s margin: 7.0%
Preliminaries: 8.0%
Location factor (USD): 
PPP coefficient: 

73
Around the globe
Europe

Spain Economic overview

Although Spain’s economy was among
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+RXVHSULFHVKDYHEHHQULVLQJLQFHQWUDO
Madrid, Barcelona and coastal areas.
Policy interest rates remain at zero,
Barcelona and *'3JURZWKDWSHUFHQWLQZDV
slower than the 3.1 percent achieved
EXWWKHUHDUHH[SHFWDWLRQVRIDULVH
WRSHUFHQWE\WKHHQGRI
Madrid in 2019.
Solid growth and rising demand 8QHPSOR\PHQWUHPDLQVKLJKDERYH
warm the construction market SHUFHQWE\WKHHQGRIEXWLWLV
FRPLQJGRZQ,WZDVDERYHSHUFHQW
DWWKHVWDUWRIDQGDERYH
20 percent in 2019.
peter.dobson@turntown.com

Madrid
USD
Barcelona Madrid (exchange
International building costs per m2 of internal area, in 2018 EUR EUR rate: 0.85)
Airports (Building only)
Domestic terminal, full service   
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH   
Car parks
0XOWLVWRUH\±DERYHJURXQG   
0XOWLVWRUH\±EHORZJURXQG 808 796 936
Commercial
2I¿FHV±%XVLQHVV3DUN 1,202  1,393
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH  2,260 
&%'2I¿FHV±KLJKULVHSUHVWLJH   
Education
Primary and secondary 1,238 1,220 
University   
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV  2,110 
Regional hospital 2,813 2,772 3,261
General hospital (e.g. city teaching hospital)  3,038 
Hotels
3 Star travellers 1,866 1,839 2,163
6WDUOX[XU\  3,028 
Resort style 2,086  
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF   
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH 710 700 823
+LJKWHFKIDFWRU\ODERUDWRU\   1,773
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG 1,171  
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH 1,991 1,961 2,307
7RZQKRXVHV±PHGLXPVWDQGDUG   1,629
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG 1,288 1,269 
$SDUWPHQWV±KLJKULVH   2,018
$JHGFDUHDIIRUGDEOHXQLWV 1,667  1,933
Retail
Large shopping centre including mall   
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  1,830 
Prestige car showroom  2,368 2,786

International construction
 market survey 2019
Construction market and trends
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investment is fuelling demand in
metropolitan cities.
There is growing demand for high-
quality housing in Madrid, Barcelona
and coastal areas and high-quality
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Spain international building costs
Composite trade rates
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higher than last year.
Future outlook
7KHPDUNHWLVH[SHFWHGWRZDUPXS
LQDVFRQ¿GHQFHLQWKH6SDQLVK
PDUNHWLQFUHDVHV,QWHUHVWUDWHVDUH
VHWWRUHPDLQORZDQGEDQNVVHHP
prepared to continue lending to
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EXGJHWLVH[SHFWHGWRUHFHLYHD
SHUFHQWERRVWIRU
Madrid
USD
Barcelona Madrid (exchange
EUR EUR rate: 0.85)
([FDYDWHEDVHPHQWP3) (1800m3MRE 12 12 
([FDYDWHIRRWLQJVP 19 19 22
&RQFUHWHLQVODEP3P3MRE  163 192
5HLQIRUFHPHQWLQEHDPVWRQQH 1,191  1,381
)RUPZRUNWRVRI¿WRIVODEP2) 31 30 36
%ORFNZRUNLQZDOOP2EORFNMRE 37 37 
6WUXFWXUDOVWHHOEHDPVWRQQH   
Pre-cast concrete wall (m2) 83 82 96
Curtain wall glazing incl support system (m2) (1000m2MRE 619 610 718
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE   60
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE  902 1,061
Painting to walls primer + 2 coats (m2) 8 7 9
Ceramic tiling (m2) (1000m2MRE   
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE   
Carpet medium tufted (m2P2MRE 31 31 36
Lighting installation (m2P2MRE 83 82 96
&RSSHUSLSHPPWRZDOOPPMRE 23 23 27
)LUHVSULQNOHUVSHUP2P2MRE 29 29 
Air conditioning incl main plant (m2P2MRE 113 111 131
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ 37 36 
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU 32 31 37
Group 3 Tradesman eg carpet layer, tiler, plasterer 26 26 31
*HQHUDOODERXUHU 19 19 22
Site foreman   
Material costs
Concrete 30 MPa (m3P3MRE 86  100
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE 837  971
&RQFUHWHEORFN[SHU!EORFNMRE 2,096  
6WDQGDUGEULFNSHU 369  
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE 1,622  1,880
Glass pane 10mm tempered (m2)  93 110
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP   6
PPSODVWHUERDUGP2)   6
Emulsion paint (litre)   6
&RSSHUSLSHPPPHWUHPMRE   
&RSSHUFDEOHPHWUH&(PP39&PMRE   
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\  1,220 

Barcelona Madrid
Tendering: Warm Warm
Market: Warmer Warmer
Cost escalation 2018:  
Cost escalation 2019:  
Contractor’s margin:  
Preliminaries:  
Location factor (USD): 70.7 70.9
PPP coefficient: 0.8 0.8


Around the globe
Europe

Sweden Economic overview

Stockholm
A hint of cooling, but infrastructure
spending offers sound promise
nima.aase@turntown.com
Sweden’s third quarter GDP in 2018
although 1.6 percent up on a year
earlier dipped slightly on the previous
quarter. Despite this hint of cooling, GDP
JURZWKIRUVKRXOGHQGFRPIRUWDEO\
DERYHSHUFHQW
,QÀDWLRQRISHUFHQWZDVSXVKHGXSE\
higher housing and utility costs and the
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House prices fell slightly over the year
and housing starts dipped.
Construction market and trends
One of the fastest-growing sectors
LVGDWDFHQWUHVGULYHQE\DWWUDFWLYH
natural cooling, low energy costs and
DKLJKO\UHOLDEOHHOHFWULFLW\JULG
7KHRI¿FHVVHFWRUDSSHDUVVROLG
with occupancy strong and less than
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6WRFNKROP¶VFHQWUDOEXVLQHVVGLVWULFW
*RWKHQEXUJDQG0DOP|DUHDOVR
warming. There is rising investment
LQÀH[LEOHRI¿FHKRWHOVROXWLRQV

USD
(exchange
International building costs per m of internal area, in 2018
2
SEK rate: 8.8)
Airports (Building only)
Domestic terminal, full service  
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH 28,613 
Car parks
0XOWLVWRUH\±DERYHJURXQG  1,070
0XOWLVWRUH\±EHORZJURXQG 13,707 
Commercial
2I¿FHV±%XVLQHVV3DUN  
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH 27,079 3,077
&%'2I¿FHV±KLJKULVHSUHVWLJH 32,733 3,720
Education
Primary and secondary 20,270 2,303
University  2,100
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV  3,127
Regional hospital  2,810
General hospital (e.g. city teaching hospital)  2,763
Hotels
3 Star travellers  
6WDUOX[XU\  
Resort style 29,901 3,398
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF 9,022 
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH 11,669 1,326
+LJKWHFKIDFWRU\ODERUDWRU\  
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG 12,007 
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH 20,662 
7RZQKRXVHV±PHGLXPVWDQGDUG 12,007 
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG  
$SDUWPHQWV±KLJKULVH 23,021 2,616
$JHGFDUHDIIRUGDEOHXQLWV 17,722 
Retail
Large shopping centre including mall  2,779
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW 23,999 2,727
Prestige car showroom  3,178

76 International construction
market survey 2019
$OPRVW86'EQRILQYHVWPHQWLQ
new rail and road infrastructure and
UHVWRUDWLYHZRUNVLVSODQQHGIRU
SRWHQWLDOO\PRUHWKDQORFDO¿UPV
can deliver.
+RXVHEXLOGLQJKDVVORZHGZLWKSULFHV
and activity falling.
/DERXULVFRVWO\LQ6ZHGHQFRPSDUHG
with other major European countries,
although materials prices are similar.
Importantly, the industry has a
Sweden international building costs
Composite trade rates
reputation for delivering projects on FDSDFLW\RIORFDOFRQWUDFWRUVPD\EH
WLPHDQGEXGJHW stretched, opening opportunities
for foreign contractors.
Future outlook
:HDNHUFRQVXPSWLRQDQGDIDOOLQKRXVH
prices points to Sweden’s economy
cooling in late 2018, although this might
EHDWHPSRUDU\GLS
Industrial, manufacturing, commercial
RI¿FHV¿WRXWDQGLQIUDVWUXFWXUHVWLOO
ORRNVWURQJDQGSURYLGHVXSSRUWIRU
the construction sector. Indeed, the
USD
(exchange
SEK rate: 8.8)
([FDYDWHEDVHPHQWP3) (1800m3MRE 99 11
([FDYDWHIRRWLQJVP 288 33
&RQFUHWHLQVODEP3P3MRE  170
5HLQIRUFHPHQWLQEHDPVWRQQH 16,233 
)RUPZRUNWRVRI¿WRIVODEP2) 330 37
%ORFNZRUNLQZDOOP2EORFNMRE 917 
6WUXFWXUDOVWHHOEHDPVWRQQH  
Pre-cast concrete wall (m2)  173
Curtain wall glazing incl support system (m2) (1000m2MRE  
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE 937 107
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE 12,000 
Painting to walls primer + 2 coats (m2) 180 20
Ceramic tiling (m2) (1000m2MRE 1,000 
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE  
Carpet medium tufted (m2P2MRE  
Lighting installation (m2P2MRE  92
&RSSHUSLSHPPWRZDOOPPMRE 309 
)LUHVSULQNOHUVSHUP2P2MRE  
Air conditioning incl main plant (m2P2MRE 2,000 227
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ  
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU  
Group 3 Tradesman eg carpet layer, tiler, plasterer  
*HQHUDOODERXUHU 380 
Site foreman  63
Material costs
Concrete 30 MPa (m3P3MRE  118
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE 8,673 986
&RQFUHWHEORFN[SHU!EORFNMRE  
6WDQGDUGEULFNSHU  
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE  1,813
Glass pane 10mm tempered (m2)  177
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 21 2
PPSODVWHUERDUGP2)  2
Emulsion paint (litre) 100 11
&RSSHUSLSHPPPHWUHPMRE 70 8
&RSSHUFDEOHPHWUH&(PP39&PMRE  2
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\ 12,000 

Stockholm
Tendering: Warm
Market: Cooler
Cost escalation 2018: 
Cost escalation 2019: 2.0%
Contractor’s margin: 10.0%
Preliminaries: 
Location factor (USD): 81.3
PPP coefficient: 9.7

77
Around the globe
Europe

Switzerland Economic overview

Annual GDP growth in Switzerland
ZDVUXQQLQJDWSHUFHQWLQWKHWKLUG
Zurich quarter of 2018.
)RFXVVKLIWVWR¿QDQFH 8QHPSOR\PHQWDWDURXQGSHUFHQW
and IT infrastructure in late 2018 was close to the ten-year
ORZ$QQXDOLQÀDWLRQZDVUXQQLQJDW
0.9 percent.
mark.utting@turntown.com
Rising consumption in the Eurozone
LVSXWWLQJSUHVVXUHRQ¿QDQFLDO
institutions to raise interest rates
WRNHHSLQÀDWLRQLQFKHFN7KLVFRXOG
impact on the Swiss economy and
lower growth.
Construction market and trends
6ZLW]HUODQG¶VFRQVWUXFWLRQPDUNHW
was warm in 2018. But with fewer
civil engineering projects coming
WKURXJKELJJHUFLYLOV¿UPVDUHWXUQLQJ
attention to large-scale property

USD
(exchange
International building costs per m of internal area, in 2018
2
CHF rate: 0.96)
Airports (Building only)
Domestic terminal, full service  
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH  
Car parks
0XOWLVWRUH\±DERYHJURXQG  1,193
0XOWLVWRUH\±EHORZJURXQG  
Commercial
2I¿FHV±%XVLQHVV3DUN  2,969
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH  
&%'2I¿FHV±KLJKULVHSUHVWLJH  
Education
Primary and secondary  
University  3,380
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV  3,807
Regional hospital  
General hospital (e.g. city teaching hospital)  
Hotels
3 Star travellers  3,370
6WDUOX[XU\  6,276
Resort style  
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF  
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH  1,708
+LJKWHFKIDFWRU\ODERUDWRU\  3,380
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG  2,130
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH  3,177
7RZQKRXVHV±PHGLXPVWDQGDUG  
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG 2,280 
$SDUWPHQWV±KLJKULVH 3,300 
$JHGFDUHDIIRUGDEOHXQLWV  2,776
Retail
Large shopping centre including mall  3,911
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  
Prestige car showroom  

78 International construction
market survey 2019
SURMHFWVORZHULQJWHQGHUSULFHV±
WKRXJKQRWQHFHVVDULO\¿QDODFFRXQW
construction costs.
$QRYHUVXSSO\LQKRXVLQJLVOLNHO\WR
suppress growth in 2019, despite a
VWURQJ¿QLVKWR
Most major data centre providers in
Europe are positioning themselves in
WKHORFDO6ZLVVPDUNHWLQZKDWLVD
growth sector. IT companies continue
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Switzerland international building costs
Composite trade rates
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heavily in Zurich.
Future outlook
Construction output should hold steady
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among the lowest in Europe, attracting
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Basel and Geneva.
After a surge, the housing sector is
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transport infrastructure is well
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SORXJKHGLQWR¿EUHRSWLFFRQQHFWLYLW\
infrastructure and data centres.
Meanwhile, Lausanne is preparing to
host the Winter Youth Olympics in 2020.
USD
(exchange
CHF rate: 0.96)
([FDYDWHEDVHPHQWP3) (1800m3MRE 29 30
([FDYDWHIRRWLQJVP  
&RQFUHWHLQVODEP3P3MRE  269
5HLQIRUFHPHQWLQEHDPVWRQQH  
)RUPZRUNWRVRI¿WRIVODEP2) 79 82
%ORFNZRUNLQZDOOP2EORFNMRE 132 138
6WUXFWXUDOVWHHOEHDPVWRQQH  
Pre-cast concrete wall (m2) 199 207
Curtain wall glazing incl support system (m2) (1000m2MRE  
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE 97 101
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE  1,661
Painting to walls primer + 2 coats (m2)  
Ceramic tiling (m2) (1000m2MRE  161
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE 70 73
Carpet medium tufted (m2P2MRE  88
Lighting installation (m2P2MRE 110 
&RSSHUSLSHPPWRZDOOPPMRE  
)LUHVSULQNOHUVSHUP2P2MRE 101 
Air conditioning incl main plant (m2P2MRE 167 
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ 113 118
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU 112 117
Group 3 Tradesman eg carpet layer, tiler, plasterer  109
*HQHUDOODERXUHU  99
Site foreman 130 
Material costs
Concrete 30 MPa (m3P3MRE 209 218
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE  
&RQFUHWHEORFN[SHU!EORFNMRE  
6WDQGDUGEULFNSHU  1,296
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE  
Glass pane 10mm tempered (m2) 188 196
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 7 7
PPSODVWHUERDUGP2) 9 9
Emulsion paint (litre) 10 10
&RSSHUSLSHPPPHWUHPMRE 17 18
&RSSHUFDEOHPHWUH&(PP39&PMRE 11 11
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\  

Zurich
Tendering: Warm
Market: Staying the same
Cost escalation 2018: 
Cost escalation 2019: 0.7%
Contractor’s margin: 
Preliminaries: 11.0%
Location factor (USD): 
PPP coefficient: 2.2

79
Around the globe
Europe

Turkey Economic overview

7XUNH\¶VHFRQRP\LVH[SHULHQFLQJ
DGLI¿FXOWSHULRG$VWURQJUHFRYHU\
volatile, with the lira falling despite
KLNHVLQWKHSROLF\LQWHUHVWUDWH
This is putting acute upward pressure
Istanbul LQZDVIROORZHGE\WXUEXOHQFH
in early 2018 related to election on prices.
3ROLWLFDODQG¿QDQFLDOULVNVFRRO uncertainties and persisting regional
the construction market Construction market and trends
geopolitical tensions, which created
Construction has chilled with projects
ULVNV*'3JUHZE\SHUFHQW
VORZHGGXHWR¿QDQFLDOWXUEXOHQFH
year-on-year in the third quarter
UHVXOWLQJLQDVXUSOXVRIVNLOOHGODERXU
RIVORZLQJIURPDSHUFHQW
Investors have headed for housing
H[SDQVLRQLQWKHSUHYLRXVWKUHHPRQWK
projects where demand seems more
SHULRG7KHH[FKDQJHUDWHLVKLJKO\
alper.tufan@turntown.com

USD
(exchange
International building costs per m of internal area, in 2018
2
TRY rate: 5.7)
Airports (Building only)
Domestic terminal, full service 9,188 1,612
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH  
Car parks
0XOWLVWRUH\±DERYHJURXQG 1,683 
0XOWLVWRUH\±EHORZJURXQG 1,936 
Commercial
2I¿FHV±%XVLQHVV3DUN 3,623 636
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH  779
&%'2I¿FHV±KLJKULVHSUHVWLJH  823
Education
Primary and secondary  
University 3,600 631
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV  
Regional hospital  
General hospital (e.g. city teaching hospital)  
Hotels
3 Star travellers  
6WDUOX[XU\  1,301
Resort style  961
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF 1,898 333
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH  
+LJKWHFKIDFWRU\ODERUDWRU\  
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG 2,266 398
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH  
7RZQKRXVHV±PHGLXPVWDQGDUG  
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG 2,629 
$SDUWPHQWV±KLJKULVH  602
$JHGFDUHDIIRUGDEOHXQLWV  
Retail
Large shopping centre including mall 3,393 
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  
Prestige car showroom  618

80 International construction
market survey 2019
FHUWDLQDQGLPSRUWDQWO\SD\EDFNWLPHV
are shorter, with investors needing
to repay loans in foreign currency.
Meanwhile, residential development
DQGXUEDQUHQRYDWLRQSURMHFWVDUH
pushing demand for power and utility
projects and regional growth is spurring
retail development.
,VWDQEXO¶VQHZDLUSRUWY\LQJWR
EHDPRQJWKHZRUOG¶VELJJHVW
remains under construction, although
LQDXJXUDWHGLQ2FWREHUIRUSDUWLDO
RSHQLQJLQ'HFHPEHU2WKHUWUDQVSRUW
SURMHFWVERWKURDGDQGUDLOOLQNLQJ
to the airport are under construction.
Among other major projects is a new
EULGJHRYHUWKH'DUGDQHOOHVVWUDLW
ZKHUHZRUNKDVVWDUWHG
Future outlook
:HDNGHPDQGFXUUHQF\YRODWLOLW\ZLWK
KLJKLQÀDWLRQDQGLQWHUHVWUDWHVPDNHV
LWWRXJKIRUFRQVWUXFWLRQLQ7XUNH\
But the government is trying to support
FRQVWUXFWLRQZLWKWD[FXWVDQGFKHDSHU
long-term loans.

USD
(exchange
Turkey international building costs TRY rate: 5.7)
Composite trade rates
([FDYDWHEDVHPHQWP3) (1800m3MRE  9
([FDYDWHIRRWLQJVP  9
&RQFUHWHLQVODEP3P3MRE  70
5HLQIRUFHPHQWLQEHDPVWRQQH  702
)RUPZRUNWRVRI¿WRIVODEP2) 100 18
%ORFNZRUNLQZDOOP2EORFNMRE 120 21
6WUXFWXUDOVWHHOEHDPVWRQQH 7,000 1,228
Pre-cast concrete wall (m2)  79
Curtain wall glazing incl support system (m2) (1000m2MRE  263
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE  
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE 1,200 211
Painting to walls primer + 2 coats (m2)  
Ceramic tiling (m2) (1000m2MRE 170 30
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE 120 21
Carpet medium tufted (m2P2MRE  26
Lighting installation (m2P2MRE  26
&RSSHUSLSHPPWRZDOOPPMRE  13
)LUHVSULQNOHUVSHUP2P2MRE 100 18
Air conditioning incl main plant (m2P2MRE 700 123
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ  9
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU  8
Group 3 Tradesman eg carpet layer, tiler, plasterer  8
*HQHUDOODERXUHU 30 
Site foreman  13
Material costs
Concrete 30 MPa (m3P3MRE 210 37
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE  
&RQFUHWHEORFN[SHU!EORFNMRE 3,100 
6WDQGDUGEULFNSHU 1,000 
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE 3,800 667
Glass pane 10mm tempered (m2) 220 39
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 10 2
PPSODVWHUERDUGP2) 12 2
Emulsion paint (litre) 16 3
&RSSHUSLSHPPPHWUHPMRE 30 
&RSSHUFDEOHPHWUH&(PP39&PMRE 10 2
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\ 3,000 

Istanbul
Tendering: Cold
Market: Cooler
Cost escalation 2018: 
Cost escalation 2019: 12.0%
Contractor’s margin: 
Preliminaries: 10.0%
Location factor (USD): 
PPP coefficient: 1.8

81
Around the globe
Europe

UK Economic overview
London drives the UK economy.
The capital’s economic growth rate is
Construction market and trends
Although construction output continued
to rise in the initial period following the
London VHWWRVORZIXUWKHULQZLWK%UH[LW
uncertainty casting a shadow. Despite
%UH[LWUHIHUHQGXPLQWKHEXLOW
environment sector materially lost
Infrastructure growth should WKLVVRIWHQLQJLQDFWLYLW\VLJQL¿FDQW momentum during 2018, concluding
soften the effects of easing commitment to London’s infrastructure with a -1.7 percent quarter on quarter
commercial activity capital projects and programmes, JURZWKUDWHLQ4
sustained foreign and direct investment
DUHH[SHFWHGWRFRPSHQVDWHIRUWKH
RQJRLQJGUDJRQEXVLQHVVFRQ¿GHQFH

paul.connolly@turntown.co.uk

USD
(exchange
,QWHUQDWLRQDOEXLOGLQJFRVWVSHUP of internal area, in 2018
2
GBP rate: 0.76)
Airports (Building only)
Domestic terminal, full service  
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH 2,992 3,937
Car parks

0XOWLVWRUH\±DERYHJURXQG  982

0XOWLVWRUH\±EHORZJURXQG  
Commercial
2I¿FHV±%XVLQHVV3DUN  3,289
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH 2,900 3,816
&%'2I¿FHV±KLJKULVHSUHVWLJH  
Education
Primary and secondary  
University  
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV 2,867 3,772
Regional hospital  
General hospital (e.g. city teaching hospital)  
Hotels
3 Star travellers  
6WDUOX[XU\  
Resort style  
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF 920 1,211
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH 1,099 
+LJKWHFKIDFWRU\ODERUDWRU\ 2,200 
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG  2,687
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH  
7RZQKRXVHV±PHGLXPVWDQGDUG 2,961 3,896
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG 2,676 
$SDUWPHQWV±KLJKULVH 3,609 
$JHGFDUHDIIRUGDEOHXQLWV 2,200 
Retail
Large shopping centre including mall  2,816
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  
Prestige car showroom 1,809 2,380

82 International construction
market survey 2019
0DMRU8.JRYHUQPHQWEDFNHG
investments in rail transport and
utilities are acting as a counterweight
to the softening residential and
commercial sectors. It was no surprise
to see a return in client appetite to use
the single stage tender procurement
route in construction in 2018. This has
continued into 2019.
Future outlook
6NLOOVKRUWDJHVDUHDNH\FKDOOHQJH
LQWKHEXLOWHQYLURQPHQW$QDJHLQJ
ZRUNIRUFHFRPELQHGZLWKUHVXUJHQW
economic performance in Eastern
Europe and the uncertainty created for
EU nationals residing in London, are a
JHQXLQHEDUULHUWREXLOGLQJDSSURSULDWH
FDSDELOLW\LQWKHVXSSO\FKDLQ$
ZHDNHQLQJSRXQGULVLQJPDWHULDOLQSXW
prices and the use of single stage, will
GULYHVRPHXQSUHGLFWDELOLW\LQWHQGHU
SULFLQJGXULQJWKH¿UVWKDOIRI
7KHVHFWRUHQMR\HGWKHXQHQYLDEOH
reputation of topping the UK league
WDEOHRIQHZFRPSDQ\LQVROYHQFLHV
in 2018. The annual growth rate in
FRQVWUXFWLRQLQVROYHQFLHVSHDNHGLQ
4DWSHUFHQWFRQWULEXWLQJ
WRWKHKLJKHVWDQQXDOQXPEHURI
insolvencies seen in the industry
since 2013.
USD
(exchange
8./RQGRQLQWHUQDWLRQDOEXLOGLQJFRVWV GBP rate: 0.76)
Composite trade rates
([FDYDWHEDVHPHQWP3) (1800m3MRE  20
([FDYDWHIRRWLQJVP 23 30
&RQFUHWHLQVODEP3P3MRE 177 233
5HLQIRUFHPHQWLQEHDPVWRQQH  
)RUPZRUNWRVRI¿WRIVODEP2)  
%ORFNZRUNLQZDOOP2EORFNMRE 67 88
6WUXFWXUDOVWHHOEHDPVWRQQH 2,600 
Pre-cast concrete wall (m2) 130 171
Curtain wall glazing incl support system (m2) (1000m2MRE 911 1,199
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE 60 79
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE 1,097 
Painting to walls primer + 2 coats (m2) 9 12
Ceramic tiling (m2) (1000m2MRE 107 
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE  
Carpet medium tufted (m2P2MRE 36 
Lighting installation (m2P2MRE 100 132
&RSSHUSLSHPPWRZDOOPPMRE  66
)LUHVSULQNOHUVSHUP2P2MRE  
Air conditioning incl main plant (m2P2MRE 200 263
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ  
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU 38 
Group 3 Tradesman eg carpet layer, tiler, plasterer  
*HQHUDOODERXUHU  31
Site foreman  62
Material costs
Concrete 30 MPa (m3P3MRE 138 181
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE 1,063 1,399
&RQFUHWHEORFN[SHU!EORFNMRE 1,128 
6WDQGDUGEULFNSHU  686
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE 2,160 
Glass pane 10mm tempered (m2) 110 
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP  6
PPSODVWHUERDUGP2) 7 9
Emulsion paint (litre) 6 8
&RSSHUSLSHPPPHWUHPMRE 6 8
&RSSHUFDEOHPHWUH&(PP39&PMRE 3 
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\  

London
Tendering: /XNHZDUP
Market: Staying the same
Cost escalation 2018: 2.1%
Cost escalation 2019: 
Contractor’s margin: 
Preliminaries: 
Location factor (USD): 100.0
PPP coefficient: 1.0

83
Around the globe
Europe

UK Economic overview
8.HFRQRPLFJURZWKKLWDVL[\HDUORZ
RISHUFHQWLQ7KLVJURZWKLV
Other regions polarised across the UK regions, for
H[DPSOH6FRWODQGWKH1RUWK:HVW
UK’s regional cities are pushing DQGWKH6RXWK:HVWDUHH[FHHGLQJWKH
for growth 8.DVDZKROHDWSHUFHQWRUDERYH
Wales and Northern Ireland, in contrast
KDYHJURZQE\MXVWDQGSHUFHQW
respectively.
Despite economic fundamentals
remaining strong, with record low
XQHPSOR\PHQW¿JXUHVEHLQJFORVH
WRSHUFHQWDQGWKHFRQVXPHUSULFH
LQGH[UXQQLQJFORVHWRWKH%DQNRI
(QJODQGSHUFHQWWDUJHWIRUHFDVWHUV
H[SHFWWKH8.¶VHFRQRPLFRXWORRNWR
UHPDLQVXEGXHGQRWZLWKVWDQGLQJWKH
hot spots of Birmingham and
Manchester.

paul.connolly@turntown.co.uk

Northern
Ireland Scotland North Central South
International building costs per m of internal area, in 2018
2
GBP GBP GBP GBP GBP
Airports (Building only)
Domestic terminal, full service 2,910 3,330  3,297 3,601
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH     
Car parks
0XOWLVWRUH\DERYHJURXQG  600  663 677
0XOWLVWRUH\EHORZJURXQG 820 860 913  1,068
Commercial
2I¿FHV±%XVLQHVV3DUN  1,718 1,610 1,779 1,970
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH 1,620  1,839 1,900 
&%'2I¿FHV±KLJKULVHSUHVWLJH 2,130    2,890
Education
Primary and secondary 1,360  1,620  1,828
University 1,930  2,386 2,273 
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV  1,777 1,818 1,630 1,970
Regional hospital  2,677  2,688 2,760
General hospital (e.g. city teaching hospital)  3,167 3,223 3,201 3,380
Hotels
3 Star travellers  1,670 1,790 1,820 1,970
6WDUOX[XU\  2,613 2,700  2,920
Resort style 2,080 2,303  2,328 
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF 700 717   790
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH 770 830 820  
+LJKWHFKIDFWRU\ODERUDWRU\  1,800   1,910
Residential
Individual detached or terrace style house medium standard 1,100    
Individual detached house prestige   1,738  
Townhouses medium standard 1,380 1,600   
Apartments low-rise medium standard  1,737 1,778 1,767 2,080
Apartments high-rise   2,321 2,233 
$JHGFDUHDIIRUGDEOHXQLWV  1,710 1,613 1,693 1,860
Retail
Large shopping centre including mall  1,783 1,781 1,873 
1HLJKERXUKRRGLQFOVXSHUPDUNHW 1,060 1,167  1,281 
Prestige car showroom  1,607   1,660

International construction
 market survey 2019
Construction market and trends
The UK regional devolution strategy,
ZKLFKVDZPHWURPD\RUVWDNLQJSRZHUV
for strategic development within city
UHJLRQVLQKDVFOHDUO\EHHQ
positive for UK construction regionally.
The North West, particularly
Greater Manchester, is a hot spot.
Infrastructure investment in trams and
0DQFKHVWHU$LUSRUWLVUHÀHFWLQJIRUHLJQ
direct investment in the residential and
leisure sectors.
UK (other regions) international building costs
Composite trade rates
Elsewhere in the UK, the main civils
ZRUNIRUWKH+6OLQNIURP/RQGRQ
to Birmingham, commences in 2019.
7KH&DPEULGJH0LOWRQ.H\QHV2[IRUG
FRUULGRUDOVRDFWVRQDEHDFRQ
for growth.
Future outlook
Although UK construction output is
H[SHFWHGWRZHDNHQRYHUDOOLQ
many of the UK regions will enjoy
UREXVWSHUIRUPDQFH7KH8.¶VFHQWUDO
and south regions are predicted to
Northern
Ireland
GBP
RXWSHUIRUP/RQGRQEHWZHHQ
(set to reach 2.3 and 2.2 percent
respectively). The north’s growth,
KRZHYHULVH[SHFWHGWRWXUQQHJDWLYH
DWSHUFHQW
With margins compressed, insolvencies
RQWKHULVHDQG%UH[LWRXWFRPHV
XQFHUWDLQWHQGHUSULFHLQÀDWLRQ
forecasting, particularly in the
construction sector, remains volatile.
Scotland North Central South
GBP GBP GBP GBP
([FDYDWHEDVHPHQWP3) (1800m3MRE 6 13 13 11 16
([FDYDWHIRRWLQJVP 12 17 19 18 20
&RQFUHWHLQVODEP3P3MRE 87    170
5HLQIRUFHPHQWLQEHDPVWRQQH     
)RUPZRUNWRVRI¿WRIVODEP2)     
%ORFNZRUNLQZDOOP2EORFNMRE 27    
6WUXFWXUDOVWHHOEHDPVWRQQH    1,900 2,290
Pre-cast concrete wall (m2) 78  98  100
Curtain wall glazing incl support system (m2) (1000m2MRE     
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE 31 38  36 
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE 600  706 678 
Painting to walls primer + 2 coats (m2) 6 7 7 9 8
Ceramic tiling (m2) (1000m2MRE     
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE  31 30 33 
Carpet medium tufted (m2P2MRE 23 28 28 30 32
Lighting installation (m2P2MRE 60 66 61  76
&RSSHUSLSHPPWRZDOOPPHWUHMRE 23 30 28 26 28
)LUHVSULQNOHUVSHUP2P2MRE   39  
Air conditioning incl main plant (m2P2MRE 92 132 123 120 
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ 27    39
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU 23 29 28 27 
Group 3 Tradesman eg carpet layer, tiler, plasterer 20 26 27 26 
*HQHUDOODERXUHU 16 22 21 23 22
Site foreman 30    
Material costs
Concrete 30 MPa (m3P3MRE 70 97   122
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE 730 870 880 880 1,000
&RQFUHWHEORFN[SHU!EORFNMRE  830  800 
6WDQGDUGEULFNSHU 380    
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE 1,260  1,600 1,600 1,996
Glass pane 10mm tempered (m2)   103 98 101
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP     
PPSODVWHUERDUGP2)     
Emulsion paint (litre)     
&RSSHUSLSHPPPHWUHPHWUHMRE 6 6   6
&RSSHUFDEOHPHWUH&(PP39&PMRE 3 3 2 2 3
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\    936 

Northern Ireland Scotland North Central South

Tendering: Cold /XNHZDUP Warm Warm /XNHZDUP
Market: Staying the same Staying the same Staying the same Warmer Staying the same
Cost escalation 2018:  2.1% 2.3% 3.3% 2.0%
Cost escalation 2019:  3.1% 2.1%  
Contractor’s margin: 3.0%  3.9%  
Preliminaries:  11.0% 11.6%  
Location factor (USD): 61.9 76.1 78.2 79.3 87.6
PPP coefficient: 0.6 0.8 0.8 0.8 0.9


Around the globe
Middle East

Oman Economic overview

Oman’s GDP grew 2.1 percent,
PRGHVWE\KLVWRULFVWDQGDUGVEXW
Special Economic Zone, which aims to
attract foreign investment.

Muscat higher oil prices and natural gas

Higher oil revenues should boost
non-oil sector developments
kevin.corrigan@turntown.com
production starting at Khazzan oil
¿HOGKDVOLIWHGWKHJURZWKIRUHFDVW
IRUWRSHUFHQW
Efforts to diversify the economy
continue with investment in
manufacturing, logistics and tourism.
This push is apparent in the Duqm
Construction market and trends
7KHUHDOHVWDWHPDUNHWLVVWLOOVWUXJJOLQJ
with oversupply and low demand, partly
GXHWRH[SDWYLVDUHVWULFWLRQV
With the new airport open, investment
in the hospitality sector should rise at
an estimated 3 percent annually over
ten years.

USD
(exchange
International building costs per m of internal area, in 2018
2
OMR rate: 0.39)
Airports (Building only)
Domestic terminal, full service  
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH 900 2,308
Car parks
0XOWLVWRUH\±DERYHJURXQG 280 718
0XOWLVWRUH\±EHORZJURXQG  897
Commercial
2I¿FHV±%XVLQHVV3DUN 360 923
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH  1,090
&%'2I¿FHV±KLJKULVHSUHVWLJH  
Education
Primary and secondary  1,218
University  
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV  1,282
Regional hospital 600 
General hospital (e.g. city teaching hospital)  1,923
Hotels
3 Star travellers 630 
6WDUOX[XU\  
Resort style  
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF  897
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH 320 821
+LJKWHFKIDFWRU\ODERUDWRU\  1,282
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG  
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH 730 1,872
7RZQKRXVHV±PHGLXPVWDQGDUG  
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG  987
$SDUWPHQWV±KLJKULVH  1,282
$JHGFDUHDIIRUGDEOHXQLWV ± ±
Retail
Large shopping centre including mall  
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  1,179
Prestige car showroom 730 1,872

86 International construction
market survey 2019
The development of Duqm as an
industrial city port is gathering pace,
with reports of strong private sector
interest in investing in the proposed
86'EQIUHLJKWUDLOZD\OLQHIURP 
Al Shuwamiyah to Duqm and further
reports of Chinese investment.
Future outlook
Several government-funded
infrastructure projects are in the
pipeline which could invigorate the
FRQVWUXFWLRQPDUNHW7KHVHLQFOXGH
Oman international building costs
Composite trade rates
WKH$O%DWLQDKH[SUHVVZD\ZDWHU
QHWZRUNVKRVSLWDOVDQGUHQHZDEOH
energy, which would also open
development opportunities near the
airport. Proposals to set up free zones
in Buraimi and Musandam are still
under review.
But there are threats to costs. Oman
KDV\HWWRGHFODUHDQRI¿FLDOGDWHIRU
the roll-out of VAT. This would raise
LQÀDWLRQFXUUHQWO\DWSHUFHQWIXUWKHU
GDPSHQLQJDZHDNUHDOHVWDWHPDUNHW
USD
(exchange
OMR rate: 0.39)
([FDYDWHEDVHPHQWP3) (1800m3MRE 3 8
([FDYDWHIRRWLQJVP 3 8
&RQFUHWHLQVODEP3P3MRE  87
5HLQIRUFHPHQWLQEHDPVWRQQH  872
)RUPZRUNWRVRI¿WRIVODEP2) 7 18
%ORFNZRUNLQZDOOP2EORFNMRE 10 26
6WUXFWXUDOVWHHOEHDPVWRQQH 880 
Pre-cast concrete wall (m2)  
Curtain wall glazing incl support system (m2) (1000m2MRE  
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE  38
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE  1,026
Painting to walls primer + 2 coats (m2) 2 
Ceramic tiling (m2) (1000m2MRE 10 26
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE 9 23
Carpet medium tufted (m2P2MRE 27 69
Lighting installation (m2P2MRE  
&RSSHUSLSHPPWRZDOOPPMRE 10 26
)LUHVSULQNOHUVSHUP2P2MRE 12 31
Air conditioning incl main plant (m2P2MRE  103
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ 2 
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU 2 
Group 3 Tradesman eg carpet layer, tiler, plasterer 2 
*HQHUDOODERXUHU 1 3
Site foreman  10
Material costs
Concrete 30 MPa (m3P3MRE 22 
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE  
&RQFUHWHEORFN[SHU!EORFNMRE 170 
6WDQGDUGEULFNSHU  
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE  
Glass pane 10mm tempered (m2) 70 179
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 1 3
PPSODVWHUERDUGP2) 2 
Emulsion paint (litre) 2 
&RSSHUSLSHPPPHWUHPMRE 3 6
&RSSHUFDEOHPHWUH&(PP39&PMRE 1 3
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\ 200 

Muscat
Tendering: Cold
Market: Warmer
Cost escalation 2018: -1.0%
Cost escalation 2019: 0.0%
Contractor’s margin: 
Preliminaries: 8.0%
Location factor (USD): 
PPP coefficient: 0.2

87
Around the globe
Middle East

Qatar Economic overview

$WSHUFHQW4DWDU¶VDQQXDO*'3LV
ZHDNE\KLVWRULFVWDQGDUGVEXWULVLQJ
Doha as the economy is easing itself out of a
VRIWSDWFK,QÀDWLRQLVPLOGO\QHJDWLYH
World Cup deadline should boost ZLWKSULFHVGURSSLQJE\SHUFHQW
activity over 2018.
Construction market and trends
0DUNHWFRQGLWLRQVDUHFXUUHQWO\
FKDOOHQJLQJZLWKERUGHUUHVWULFWLRQV
leading to increases in some prices
david.esmith@turntown.com as alternative procurement routes
DUHRSHQHGWREULQJPDWHULDOVLQWRWKH
country. Despite this, several major
projects are underway, not least seven
QHZVWDWHRIWKHDUWVWDGLXPVEHLQJ
EXLOWIRUWKHIRRWEDOO:RUOG&XSLQ
Other projects include Lusail City, a
JUHHQ¿HOGVLWHGHYHORSPHQWFRYHULQJ
VTXDUHNLORPHWUHVWKDWZLOOKRXVH
200,000 people when completed in
2020. The scheme includes schools,
DKRVSLWDORI¿FHVUHWDLODQGDOLJKW
UDLODQGPHWUROLQN

USD
(exchange
International building costs per m of internal area, in 2018
2
QAR rate: 3.64)
Airports (Building only)
Domestic terminal, full service ± ±
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH ± ±
Car parks

0XOWLVWRUH\±DERYHJURXQG  

0XOWLVWRUH\±EHORZJURXQG  1,163
Commercial
2I¿FHV±%XVLQHVV3DUN  
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH 7,160 1,967
&%'2I¿FHV±KLJKULVHSUHVWLJH 10,920 3,000
Education
Primary and secondary  2,102
University 7,720 2,121
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV  
Regional hospital 13,030 
General hospital (e.g. city teaching hospital) 13,870 3,810
Hotels
3 Star travellers  2,066
6WDUOX[XU\  3,718
Resort style  
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF  1,266
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH  
+LJKWHFKIDFWRU\ODERUDWRU\ 6,770 1,860
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG  1,902
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH  2,718
7RZQKRXVHV±PHGLXPVWDQGDUG  
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG  1,609
$SDUWPHQWV±KLJKULVH 7,390 2,030
$JHGFDUHDIIRUGDEOHXQLWV ± ±
Retail
Large shopping centre including mall 7,920 2,176
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  
Prestige car showroom  

88 International construction
market survey 2019
0VKHLUHE'RZQWRZQ'RKDLV Future outlook
undergoing massive regeneration with Despite the recovery in crude oil prices
QHZKRWHOVDSDUWPHQWVDQGRI¿FHVGXH in 2018 construction is well down on
for completion in 2020. WKHERRP\HDUVRIWKHUHFHQWSDVW
%XWDFWLYLW\LVH[SHFWHGWRSLFNXS
7KHVTXDUHPHWUHH[WHQVLRQ as the World Cup deadline looms and
of Hamad International airport will SUHVVXUHEXLOGVWR¿QLVKWKHVWDGLXPV
FDWHUIRUXSWRPLOOLRQSDVVHQJHUV
D\HDUE\2WKHUWUDQVSRUW
schemes include Doha Metro rail, a new
NPUDLOQHWZRUNWKDWZLOOHYHQWXDOO\
LQFOXGHVWDWLRQV

USD
(exchange
Qatar international building costs QAR rate: 3.64)
Composite trade rates
([FDYDWHEDVHPHQWP3) (1800m3MRE 36 10
([FDYDWHIRRWLQJVP  13
&RQFUHWHLQVODEP3P3MRE  
5HLQIRUFHPHQWLQEHDPVWRQQH  
)RUPZRUNWRVRI¿WRIVODEP2)  
%ORFNZRUNLQZDOOP2EORFNMRE 180 
6WUXFWXUDOVWHHOEHDPVWRQQH 12,930 
Pre-cast concrete wall (m2)  180
Curtain wall glazing incl support system (m2) (1000m2MRE 1,960 
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE 190 
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE  
Painting to walls primer + 2 coats (m2)  7
Ceramic tiling (m2) (1000m2MRE 280 77
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE  
Carpet medium tufted (m2P2MRE 300 82
Lighting installation (m2P2MRE  106
&RSSHUSLSHPPWRZDOOPPMRE 61 17
)LUHVSULQNOHUVSHUP2P2MRE  
Air conditioning incl main plant (m2P2MRE  227
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ  12
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU  11
Group 3 Tradesman eg carpet layer, tiler, plasterer 26 7
*HQHUDOODERXUHU  
Site foreman  12
Material costs
Concrete 30 MPa (m3P3MRE  96
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE  679
&RQFUHWHEORFN[SHU!EORFNMRE  1,168
6WDQGDUGEULFNSHU  838
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE  1,882
Glass pane 10mm tempered (m2) 760 209
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 20 
PPSODVWHUERDUGP2) 13 
Emulsion paint (litre) 12 3
&RSSHUSLSHPPPHWUHPMRE 16 
&RSSHUFDEOHPHWUH&(PP39&PMRE 3 1
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\  

Doha
Tendering: Cold
Market: Staying the same
Cost escalation 2018: 0.1%
Cost escalation 2019: 2.0%
Contractor’s margin: 
Preliminaries: 13.0%
Location factor (USD): 
PPP coefficient: 

89
Around the globe
Middle East

Saudi Arabia Economic overview

6DXGL$UDELDDODUJHQDWLRQLQWKH
region with 32.6 million people, has
PRVWRIEHIRUHIDOOLQJEDFNODWH
in the year.

Riyadh seen modest growth in the economy.

Picking up pace on oil and
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simon.trafford@turntown.com
$QQXDO*'3JURZWKDWSHUFHQWE\
the third quarter of 2018 was up after
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The nation is highly reliant on oil and
WKHJRYHUQPHQWOLNHPDQ\LQWKH
0LGGOH(DVWLVLQWHQWRQEURDGHQLQJWKH
HFRQRPLFEDVH2LOSULFHVURVHWKURXJK
Construction market and trends
The mood in the construction sector
is optimistic. Demand for housing
is growing with the Saudi Ministry
seeing a need for 3 million new homes
E\0L[HGXVHGHYHORSPHQWV
GRPLQDWHWKHFRQVWUXFWLRQVFHQHEXW
costs are starting to rise, and approvals
FDQEHFRPSOH[DQGSURORQJHG

USD
(exchange
International building costs per m of internal area, in 2018
2
SAR rate: 3.75)
Airports (Building only)
Domestic terminal, full service  3,867
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH 10,000 2,667
Car parks
0XOWLVWRUH\±DERYHJURXQG 2,100 
0XOWLVWRUH\±EHORZJURXQG 3,200 
Commercial
2I¿FHV±%XVLQHVV3DUN  
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH  1,333
&%'2I¿FHV±KLJKULVHSUHVWLJH 6,000 1,600
Education
Primary and secondary  1,307
University 6,100 1,627
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV  
Regional hospital 7,000 1,867
General hospital (e.g. city teaching hospital) ± ±
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3 Star travellers  
6WDUOX[XU\  2,200
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:DUHKRXVHIDFWRU\XQLWV±EDVLF ± ±
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH  893
+LJKWHFKIDFWRU\ODERUDWRU\  1,320
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,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG  1,280
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH  
7RZQKRXVHV±PHGLXPVWDQGDUG  1,227
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG  1,133
$SDUWPHQWV±KLJKULVH  1,280
$JHGFDUHDIIRUGDEOHXQLWV ± ±
Retail
Large shopping centre including mall  1,360
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  1,307
Prestige car showroom 7,800 2,080

90 International construction
market survey 2019
&XUUHQWODUJHPL[HGXVHSURMHFWV
LQFOXGH$O)DLVDOLDK6PDUW&LW\WREH
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RI0DNNDKZLWKQHDUO\DPLOOLRQKRPHV
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people who will enjoy smart
city services.
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WKH'DKL\DW$O)XUVDQPL[HGXVH
VFKHPHNPQRUWKRI5L\DGK
,WZLOOVHHKRPHVEXLOW
Saudi Arabia international building costs
Composite trade rates
with infrastructure, educational and
FRPPHUFLDOEXLOGLQJVDQGUHVHDUFK
and development centres.
8SWR86'EQLVH[SHFWHGWREH
VSHQWRYHUWLPHH[SDQGLQJIDFLOLWLHV
at the Grand Mosque to include new
EXLOGLQJVSUD\HUKDOOVDQGFHUHPRQLDO
areas.
Future outlook
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QRQRLOHFRQRPLFDFWLYLW\LVOLNHO\WR
EROVWHUWKHHFRQRP\LQ
2SSRUWXQLWLHVFRXOGDOVRÀRZIURPWKH
National Transformation Program aimed
at improving education, social reforms
DQGHFRQRPLFGLYHUVL¿FDWLRQ
USD
(exchange
SAR rate: 3.75)
([FDYDWHEDVHPHQWP3) (1800m3MRE 23 6
([FDYDWHIRRWLQJVP  9
&RQFUHWHLQVODEP3P3MRE 281 
5HLQIRUFHPHQWLQEHDPVWRQQH  
)RUPZRUNWRVRI¿WRIVODEP2) 121 32
%ORFNZRUNLQZDOOP2EORFNMRE  31
6WUXFWXUDOVWHHOEHDPVWRQQH 11,000 2,933
Pre-cast concrete wall (m2)  120
Curtain wall glazing incl support system (m2) (1000m2MRE 1,800 
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE 200 
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE  1,333
Painting to walls primer + 2 coats (m2)  7
Ceramic tiling (m2) (1000m2MRE  
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE 200 
Carpet medium tufted (m2P2MRE 320 
Lighting installation (m2P2MRE 220 
&RSSHUSLSHPPWRZDOOPPMRE 100 27
)LUHVSULQNOHUVSHUP2P2MRE 120 32
Air conditioning incl main plant (m2P2MRE  
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ  7
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU  7
Group 3 Tradesman eg carpet layer, tiler, plasterer  7
*HQHUDOODERXUHU 18 
Site foreman  9
Material costs
Concrete 30 MPa (m3P3MRE 189 
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE 2,373 633
&RQFUHWHEORFN[SHU!EORFNMRE  
6WDQGDUGEULFNSHU 2,100 
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE 7,000 1,867
Glass pane 10mm tempered (m2) 680 181
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP  
PPSODVWHUERDUGP2) 11 3
Emulsion paint (litre) 33 9
&RSSHUSLSHPPPHWUHPMRE 27 7
&RSSHUFDEOHPHWUH&(PP39&PMRE 10 3
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+LUHWPRELOHFUDQHRSHUDWRUGD\  

Riyadh
Tendering: Cold
Market: Warmer
Cost escalation 2018: 0.0%
Cost escalation 2019: 
Contractor’s margin: 7.0%
Preliminaries: 10.0%
Location factor (USD): 39.9
PPP coefficient: 2.0

91
Around the globe
Middle East

UAE Economic overview

The economic performance across all
VHFWRUVLQWKH8$(KDVEHHQSRVLWLYH
Construction market and trends
The construction sector is optimistic,
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Abu Dhabi EXWPL[HGSRVVLEO\DUHVXOWRI9$7
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centres, power and utilities and
transport infrastructure.
and Dubai IRUHFDVWLVH[SHFWHGWRKDYHJURZQ
2.9 percent in 2018, up from 0.8 'XEDL¶V([SRUHPDLQVDFDWDO\VW
Opportunities emerge as the SHUFHQWLQDOWKRXJKEHORZWKH IRUGHYHORSPHQWDFURVV'XEDLDQGZLOO
economy perks up SRVW*)&DYHUDJHRISHUFHQW XQGRXEWHGO\EHFRPHWKHNH\GULYHULQ
VWDELOLVLQJWKHPDUNHWWKURXJKRXW
The country’s economy rests heavily and into 2020.
on tourism, services and mineral fuels
adam.ralph@turntown.com including oil.

USD
(exchange
International building costs per m of internal area, in 2018
2
AED rate: 3.67)
Airports (Building only)
Domestic terminal, full service  
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH  3,106
Car parks
0XOWLVWRUH\±DERYHJURXQG 2,800 763
0XOWLVWRUH\±EHORZJURXQG 3,300 899
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2I¿FHV±%XVLQHVV3DUN  1,281
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH  1,390
&%'2I¿FHV±KLJKULVHSUHVWLJH  1,787
Education
Primary and secondary  
University 8,000 2,180
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV 6,000 
Regional hospital 7,800 
General hospital (e.g. city teaching hospital)  
Hotels
3 Star travellers  1,771
6WDUOX[XU\ 10,100 
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Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF 2,600 708
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH  
+LJKWHFKIDFWRU\ODERUDWRU\  
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,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG  
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH  
7RZQKRXVHV±PHGLXPVWDQGDUG  
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG  
$SDUWPHQWV±KLJKULVH  
$JHGFDUHDIIRUGDEOHXQLWV ± ±
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Large shopping centre including mall  
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  
Prestige car showroom 8,800 2,398

92 International construction
market survey 2019
$EX'KDELKDVEHHQPXWHGDOWKRXJK
the recent government stimulus
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and in some cases reignite, the private
developer sectors.
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way-out proposals mooted in recent
UAE international building costs
Composite trade rates
years. With this comes greater emphasis
on cost effectiveness.
The slight recovery in oil prices will
support government spending on
infrastructure and economic
development programmes. Diversifying
away from oil and gas is a priority and
this will drive construction.
USD
(exchange
AED rate: 3.67)
([FDYDWHEDVHPHQWP3) (1800m3MRE  7
([FDYDWHIRRWLQJVP 30 8
&RQFUHWHLQVODEP3P3MRE  127
5HLQIRUFHPHQWLQEHDPVWRQQH  1,090
)RUPZRUNWRVRI¿WRIVODEP2)  
%ORFNZRUNLQZDOOP2EORFNMRE 130 
6WUXFWXUDOVWHHOEHDPVWRQQH 11,000 2,997
Pre-cast concrete wall (m2)  123
Curtain wall glazing incl support system (m2) (1000m2MRE 1,800 
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE 200 
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE  1,362
Painting to walls primer + 2 coats (m2)  7
Ceramic tiling (m2) (1000m2MRE  
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE 200 
Carpet medium tufted (m2P2MRE 320 87
Lighting installation (m2P2MRE 280 76
&RSSHUSLSHPPWRZDOOPPMRE ± ±
)LUHVSULQNOHUVSHUP2P2MRE  
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*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ 28 8
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU 26 7
Group 3 Tradesman eg carpet layer, tiler, plasterer 26 7
*HQHUDOODERXUHU 16 
Site foreman 60 16
Material costs
Concrete 30 MPa (m3P3MRE  67
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE 2,200 
&RQFUHWHEORFN[SHU!EORFNMRE  
6WDQGDUGEULFNSHU ± ±
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE 7,800 
Glass pane 10mm tempered (m2) 680 
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP  
PPSODVWHUERDUGP2)  
Emulsion paint (litre) 10 3
&RSSHUSLSHPPPHWUHPMRE ± ±
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+LUHWPRELOHFUDQHRSHUDWRUGD\ 2,700 736

UAE
Tendering: /XNHZDUP
Market: Staying the same
Cost escalation 2018: 
Cost escalation 2019: 2.0%
Contractor’s margin: 8.0%
Preliminaries: 12.0%
Location factor (USD): 
PPP coefficient: 2.0

93
Around the globe
North America

Canada Economic overview

Canada’s economy has slowed. Annual
GDP growth dipped to 1.9 percent in
Construction market and trends
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Vancouver, Ottawa, mid-2018 from 3.8 percent a year
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projects. High demand and foreign
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investment still drive the housing
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Toronto After steadily rising, house prices
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their primary activities.
Bright prospects, but not without OHYHOOHGRIILQDQGWKHWZRELJJHVW
challenges PDUNHWV7RURQWRDQG9DQFRXYHUVKRZ Toronto has seen a sharp rise in
signs of softening. UHVLGHQWLDODQGRI¿FHGHYHORSPHQW
gerard.mccabe@turntown.com

Toronto
USD
Vancouver Ottawa Edmonton Toronto (exchange
International building costs per m2 of internal area, in 2018 CAD CAD CAD CAD rate: 1.28)
Airports (Building only)
Domestic terminal, full service 8,809 6,873 6,700  
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH     
Car parks
0XOWLVWRUH\±DERYHJURXQG  970 920  716
0XOWLVWRUH\±EHORZJURXQG  1,829 1,300 1,391 1,078
Commercial
2I¿FHV±%XVLQHVV3DUN  2,278 2,300  
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH   2,800  2,128
&%'2I¿FHV±KLJKULVHSUHVWLJH   3,700  
Education
Primary and secondary 2,896 2,081 2,000 2,112 1,637
University 3,929    
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV  3,037   
Regional hospital     
General hospital (e.g. city teaching hospital)  7,902 7,700 7,918 6,138
Hotels
3 Star travellers     1,808
6WDUOX[XU\     
Resort style 3,681 2,868 3,100 3,167 
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:DUHKRXVHIDFWRU\XQLWV±EDVLF 1,023 816 1,000  818
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH 1,319 928 1,100 1,161 900
+LJKWHFKIDFWRU\ODERUDWRU\   2,300  
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG 3,203 2,306 3,100 3,220 
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH     
7RZQKRXVHV±PHGLXPVWDQGDUG 1,668  1,300  1,228
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG  2,306 1,700 2,112 1,637
$SDUWPHQWV±KLJKULVH 3,337 2,106  2,006 
$JHGFDUHDIIRUGDEOHXQLWV 2,099 2,278  2,270 1,760
Retail
Large shopping centre including mall 2,368 2,193   2,210
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW 1,900 2,000 2,000 1,900 
Prestige car showroom   2,600  2,292

International construction
 market survey 2019
VXSSRUWHGE\LWVOLYHO\¿QDQFLDOVHUYLFHV
and manufacturing industries.
,QZDUGPLJUDWLRQLVDELJGULYHULQ
Vancouver and there are plans to allow
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and contain high residential real estate
prices. But attention within the British
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drawn north to Kitimat, following a
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natural gas (LNG) projects.
Construction in Ottawa is currently
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projects.
Meanwhile, Edmonton’s construction
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slumped when the latest mining and
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DIÀLFWLQJ&DOJDU\
Future outlook
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Migration is strong and LNG is a growth
area promising massive investment and
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across the country’s economy.
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supply could restrain growth in the
year ahead.

Toronto
USD
Vancouver Ottawa Edmonton Toronto (exchange
Canada international building costs CAD CAD CAD CAD rate: 1.28)
Composite trade rates
([FDYDWHEDVHPHQWP3) (1800m3MRE  18  20 16
([FDYDWHIRRWLQJVP  32   27
&RQFUHWHLQVODEP3P3MRE 200 236   
5HLQIRUFHPHQWLQEHDPVWRQQH   2,100  1,938
)RUPZRUNWRVRI¿WRIVODEP2)   160  136
%ORFNZRUNLQZDOOP2EORFNMRE  200 170  137
6WUXFWXUDOVWHHOEHDPVWRQQH     
Pre-cast concrete wall (m2)  210  300 
Curtain wall glazing incl support system (m2) (1000m2MRE     
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE     39
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE 1,000  1,300 1,300 1,008
Painting to walls primer + 2 coats (m2) 12 8 12 12 9
Ceramic tiling (m2) (1000m2MRE 130  110 110 
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE 70    
Carpet medium tufted (m2P2MRE     
Lighting installation (m2P2MRE 86 88   
&RSSHUSLSHPPWRZDOOPPMRE 78 78 76 76 
)LUHVSULQNOHUVSHUP2P2MRE     33
Air conditioning incl main plant (m2P2MRE     190
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ 70 71 70 72 
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU  63 60  
Group 3 Tradesman eg carpet layer, tiler, plasterer 60   60 
*HQHUDOODERXUHU 60    
Site foreman   90 86 66
Material costs
Concrete 30 MPa (m3P3MRE 190 121   
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE   2,100 1,900 
&RQFUHWHEORFN[SHU!EORFNMRE 1,780 1,773 1,800 1,689 1,309
6WDQGDUGEULFNSHU 1,113 1,109 1,100  818
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE 2,800 3,296  3,139 
Glass pane 10mm tempered (m2) 378 372 360  
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 8 7 7 7 
PPSODVWHUERDUGP2)  11 12 12 9
Emulsion paint (litre) 12 11 12 12 9
&RSSHUSLSHPPPHWUHPMRE 12 11 12 12 9
&RSSHUFDEOHPHWUH&(PP39&PMRE 9 8 9 9 7
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\     

Vancouver Ottawa Edmonton Toronto

Tendering: Hot Hot Hot Hot
Market: Staying the same Warmer Staying the same Warmer
Cost escalation 2018:   2.0% 3.0%
Cost escalation 2019:  3.0% 2.0% 3.0%
Contractor’s margin:  3.0%  6.0%
Preliminaries: 10.0% 8.0% 9.0% 10.0%
Location factor (USD): 120.1  99.2 106.2
PPP coefficient: 2.2 1.8 1.9 1.9


Around the globe
North America

Mexico Economic overview

Mexico City
New trade deal and a booming
USA add reasons for cheer
jacquelina.dankfort@turntown.com
0H[LFR¶V*'3ZDVHVWLPDWHGWR
KDYHJURZQSHUFHQWLQDQGLV
forecast to grow to 2.7 percent in 2019.
0H[LFR¶V*'3JURZWKUDWHHVWLPDWHG
DWSHUFHQWLQE\WKH,0)LV
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to 2020. Meanwhile, the population
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1 percent annually.
Foreign direct investment is strong with
SHUFHQWIURP86$DQGSHUFHQW
IURP6SDLQ+RZHYHU0H[LFRGRHVVXIIHU
IURPVNLOOVKRUWDJHVDQGDEUDLQGUDLQ
Construction market and trends
Residential is the fastest growing sector
GULYHQE\KLJKGHPDQGZKLFKKDV
pushed up property values and rents.
0L[HGXVHGHYHORSPHQWVDUHDOVREHLQJ
EXLOWDFURVVWKHFRXQWU\HVSHFLDOO\LQ
ODUJHUXUEDQFHQWUHV

USD
(exchange
International building costs per m of internal area, in 2018
2
MXN rate: 18.87)
Airports (Building only)
Domestic terminal, full service  
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH  1,860
Car parks
0XOWLVWRUH\±DERYHJURXQG  
0XOWLVWRUH\±EHORZJURXQG 16,238 861
Commercial
2I¿FHV±%XVLQHVV3DUN 11,920 632
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH 19,198 1,017
&%'2I¿FHV±KLJKULVHSUHVWLJH 27,910 
Education
Primary and secondary  827
University 23,001 1,219
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV 21,669 
Regional hospital 28,170 
General hospital (e.g. city teaching hospital)  
Hotels
3 Star travellers  
6WDUOX[XU\  1,802
Resort style 39,722 
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF  
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH 11,730 622
+LJKWHFKIDFWRU\ODERUDWRU\  
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG  
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH 19,198 1,017
7RZQKRXVHV±PHGLXPVWDQGDUG  
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG 9,913 
$SDUWPHQWV±KLJKULVH 13,917 738
$JHGFDUHDIIRUGDEOHXQLWV  
Retail
Large shopping centre including mall 19,800 
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  819
Prestige car showroom  1,301

96 International construction
market survey 2019
7KHPDUNHWIRUVKRSSLQJFHQWUHVLV new runways at Santa Lucia military 7RUUHV2ELVSDGRLQ0RQWHUUH\DWP
EXR\DQWZLWKGHYHORSHUVQRZWDUJHWLQJ
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investment. However, local government
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railroad connecting Cancun and
Palenque to other destinations in the
Yucatan, is a government priority.
,QWKH¿YHFLWLHVRI0H[LFR&LW\
KLJKVHWWREHFRPSOHWHGWKLV\HDU
among the tallest.
Future outlook
$ERRPLQJ86$HFRQRP\DQGWLJKW
ODERXUPDUNHWVRQERWKVLGHVRIWKH5LR
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,QWHUQDWLRQDO$LUSRUW1$,0KDYHEHHQ Guadalajara, Monterrey, Queretaro and 7KHQHZ8QLWHG6WDWHV0H[LFR&DQDGD
VXVSHQGHGLQIDYRXURIH[SDQGLQJWKH 3XHEODDURXQGPLOOLRQVTXDUHPHWUHV Agreement (USMCA) replacing NAFTA
FLW\¶VDLUSRUWLQIUDVWUXFWXUHE\EXLOGLQJ RIFRUSRUDWHRI¿FHVDUHEHLQJEXLOWDQG should add certainty easing fears of
high-rise towers are in vogue, with damaging tariffs.

USD
(exchange
Mexico international building costs MXN rate: 18.87)
Composite trade rates
([FDYDWHEDVHPHQWP3) (1800m3MRE  7
([FDYDWHIRRWLQJVP  3
&RQFUHWHLQVODEP3P3MRE 3,392 180
5HLQIRUFHPHQWLQEHDPVWRQQH  
)RUPZRUNWRVRI¿WRIVODEP2) 391 21
%ORFNZRUNLQZDOOP2EORFNMRE  23
6WUXFWXUDOVWHHOEHDPVWRQQH 38,808 
Pre-cast concrete wall (m2)  129
Curtain wall glazing incl support system (m2) (1000m2MRE  212
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE 330 17
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE 8,802 
Painting to walls primer + 2 coats (m2) 80 
Ceramic tiling (m2) (1000m2MRE  
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE  29
Carpet medium tufted (m2P2MRE 700 37
Lighting installation (m2P2MRE 2,200 117
&RSSHUSLSHPPWRZDOOPPMRE 131 7
)LUHVSULQNOHUVSHUP2P2MRE  21
Air conditioning incl main plant (m2P2MRE 3,000 
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ 113 6
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU 108 6
Group 3 Tradesman eg carpet layer, tiler, plasterer 98 
*HQHUDOODERXUHU 63 3
Site foreman  7
Material costs
Concrete 30 MPa (m3P3MRE  119
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE  877
&RQFUHWHEORFN[SHU!EORFNMRE 17,290 916
6WDQGDUGEULFNSHU 2,990 
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE 33,619 1,782
Glass pane 10mm tempered (m2)  108
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP  2
PPSODVWHUERDUGP2) 121 6
Emulsion paint (litre)  
&RSSHUSLSHPPPHWUHPMRE 101 
&RSSHUFDEOHPHWUH&(PP39&PMRE 19 1
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\  

Mexico City
Tendering: /XNHZDUP
Market: Staying the same
Cost escalation 2018: 
Cost escalation 2019: 
Contractor’s margin: 10.0%
Preliminaries: 
Location factor (USD): 39.8
PPP coefficient: 10.1

97
Around the globe
North America

USA Economic overview

1HZ<RUN¶VHFRQRP\DQGWKDWRI
$WODQWDUHPDLQYHU\DFWLYH,QERWK
New York City cities, unemployment dipped in 2018
WRUHFRUGORZVLQ1HZ<RUN&LW\RI
and Atlanta MXVWDERYHSHUFHQWDQGMXVWEHORZ
SHUFHQWLQ$WODQWD
More jobs and rising wages are
supporting construction activity %RWKFRQVWUXFWLRQPDUNHWVUHPDLQ
VWURQJVXSSRUWHGE\H[SDQGLQJ
employment and rising real earnings.
Construction market and trends
There are several major commercial
EXLOGLQJSURMHFWVRQWKH:HVW6LGHRI
Manhattan. The Hudson Yards area will
FRQWLQXHIRUDWOHDVWWKHQH[W¿YH\HDUV
with phase 2, the western portion
of the development, Hudson Yards.
JP Morgan Chase is also planning to
start construction this year on its new
headquarters at an estimated cost
RI86'EQ

john.robbins@turntown.com

New York City Atlanta

USD USD
International building costs per m2 of internal area, in 2018 (m2) (ft2) (m2) (ft2)
Airports (Building only)
Domestic terminal, full service 6700 623  
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH 3810  2,999 279
Car parks
0XOWLVWRUH\DERYHJURXQG    
0XOWLVWRUH\EHORZJURXQG    106
Commercial
2I¿FHV±%XVLQHVV3DUN  283 1,373 128
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH   2,361 219
&%'2I¿FHV±KLJKULVHSUHVWLJH 6,170  3,777 
Education
Primary and secondary  236  200
University  377  
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV 3,130 291  228
Regional hospital   3,176 
General hospital (e.g. city teaching hospital) 6,090  3,921 
Hotels
3 Star travellers 3,020 281  166
6WDUOX[XU\   3,916 
Resort style 3,680   
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF 1,320 123 726 67
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH 1,800 167  98
+LJKWHFKIDFWRU\ODERUDWRU\    
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG  288  139
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH  377 2,937 273
7RZQKRXVHV±PHGLXPVWDQGDUG 2,030 189  102
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG  228  126
$SDUWPHQWV±KLJKULVH 3,300 307 1,707 
$JHGFDUHDIIRUGDEOHXQLWV  198 1,290 120
Retail
Large shopping centre including mall    269
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW 2,030 189 1,289 120
Prestige car showroom  321 3,161 

98 International construction
market survey 2019
The hospitality sector has shown
VWURQJJURZWKDVDNH\SDUWRIPL[HG
XVHGHYHORSPHQWVLQFOXGLQJOX[XU\
residential and retail spaces on
street level.
Among an array of major projects
DUHWKH86'EQ/RQJ,VODQG6RXQG
7XQQHOFRQWLQXDWLRQRIWKH86'EQ
6HFRQG$YHQXH6XEZD\3URMHFWDQG
WKH86'EQ*DWHZD\7XQQHOWKH
86'EQ(DVWVLGH$FFHVV3URMHFW
that is currently underway and the
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([SDQVLRQLVVHWWREHJLQLQ
There is a strong emerging trend in the
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UHSODFLQJWKHVDWXUDWHGOX[XU\PDUNHW
in volume terms.
In Atlanta, construction is underway
RQWKH86'EQ6ZLWFK'DWD&HQWHU
Campus in Lithia Springs, and the
86'EQ$VVHPEO\<DUGV0L[HG8VH
Development in Doraville.
Future outlook
Steady activity is forecast for the
infrastructure and transport sector,
with spending at all major airports and
XSJUDGHVLQUDLODQGURDGQHWZRUNV
Education is drawing ever greater
attention where prospects for
construction are rising.

New York City Atlanta

USD USD
USA (New York City) international building costs (m2) (ft2) (m2) (ft2)
Composite trade rates
([FDYDWHEDVHPHQWP3) (1800m3MRE  1  1
([FDYDWHIRRWLQJVP  12 19 6
&RQFUHWHLQVODEP3P3MRE 330 9 306 9
5HLQIRUFHPHQWLQEHDPVWRQQH 2,130 1,936 1,769 1,609
)RUPZRUNWRVRI¿WRIVODEP2)  9  6
%ORFNZRUNLQZDOOP2EORFNMRE 270  112 10
6WUXFWXUDOVWHHOEHDPVWRQQH 6,600 6,000  
Pre-cast concrete wall (m2) 290 27  26
Curtain wall glazing incl support system (m2) (1000m2MRE 1,930 179 1,169 109
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE  9 67 6
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE    
Painting to walls primer + 2 coats (m2) 22 2 17 2
Ceramic tiling (m2) (1000m2MRE  16 108 10
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE  10 69 6
Carpet medium tufted (m2P2MRE 70 7  6
Lighting installation (m2P2MRE    
&RSSHUSLSHPPWRZDOOPPMRE 60 18  16
)LUHVSULQNOHUVSHUP2P2MRE 60 6 37 3
Air conditioning incl main plant (m2P2MRE   311 29
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ 129 129 72 72
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU 100 100 63 63
Group 3 Tradesman eg carpet layer, tiler, plasterer 88 88  
*HQHUDOODERXUHU 88 88  
Site foreman   101 101
Material costs
Concrete 30 MPa (m3P3MRE 160   
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE   1,111 1,010
&RQFUHWHEORFN[SHU!EORFNMRE 1,370 1,370  
6WDQGDUGEULFNSHU    
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE 2,890 2,627 2,269 2,063
Glass pane 10mm tempered (m2)   266 
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP  2 6 2
PPSODVWHUERDUGP2) 12 1 11 1
Emulsion paint (litre) 7 27 7 26
&RSSHUSLSHPPPHWUHPMRE 13   
&RSSHUFDEOHPHWUH&(PP39&PMRE 6 2 7 2
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\ 3,860 3,860 2,279 2,279
New York City Atlanta
Tendering: Warm Warm
Market: Staying the same Staying the same
Cost escalation 2018:  3.1%
Cost escalation 2019: 3.0% 
Contractor’s margin: 7.0% 
Preliminaries: 13.0% 11.0%
Location factor (USD):  102.6
PPP coefficient: 2.2 1.6

99
Around the globe
North America

USA Economic overview

The mood in the central states of the
86$LVPL[HG8QHPSOR\PHQWLVGRZQ
Chicago, WREHORZSHUFHQWDQGUHDOZDJH
growth is supportive.
Indianapolis and But as the Chicago Fed Survey of
Houston %XVLQHVV&RQGLWLRQVVKRZVEXVLQHVV
sentiment is volatile. It saw optimism
Uncertainty clouds sound economic GLYHLQIROORZLQJWULFN\WUDGH
fundamentals negotiations and the government
shutdown.
john.robbins@turntown.com
Construction market and trends
Construction in Chicago, Indianapolis
DQG+RXVWRQLVJURZLQJZRUNIRUFHV
KDYHH[SDQGHGLQDOOWKHVHFLWLHV
/DERXUFRVWVDUHKLJKLQ&KLFDJRDQG
,QGLDQDSROLVKDVDVNLOOVVKRUWDJH
Top-performing sectors in Chicago
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and sports, leisure and hospitality, with
transport performing relatively well.
+LJKSUR¿OHSURMHFWVLQFOXGLQJWKH

Chicago Indianapolis Houston

USD USD USD
International building costs per m of internal area, in 2018
2
(m )
2
(ft2) (m2) (ft2) (m )
2
(ft2)
Airports (Building only)
Domestic terminal, full service      
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH  322 3,090 287 2,887 268
Car parks
0XOWLVWRUH\±DERYHJURXQG 792     
0XOWLVWRUH\±EHORZJURXQG    109 1,098 102
Commercial
2I¿FHV±%XVLQHVV3DUN     1,322 123
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH 3,182 296 2,318  2,273 211
&%'2I¿FHV±KLJKULVHSUHVWLJH   3,709  3,636 338
Education
Primary and secondary  232  229  228
University 3,788     303
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV 3,071    2,363 220
Regional hospital   3,271   
General hospital (e.g. city teaching hospital)      
Hotels
3 Star travellers   1,839 171 1,718 160
6WDUOX[XU\     3,770 
Resort style 3,139 292  231  216
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF 978 91 712 66 698 
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH    97 1,020 
+LJKWHFKIDFWRU\ODERUDWRU\   3,928   
Residential

,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG 1,730 161  137  

,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH  368  268 2,827 263
7RZQKRXVHV±PHGLXPVWDQGDUG  117  100  98
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG     1,308 122
$SDUWPHQWV±KLJKULVH  191 1,676   
$JHGFDUHDIIRUGDEOHXQLWV  133 1,267 118  
Retail
Large shopping centre including mall  311   2,786 
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW 1,613  1,266 118  
Prestige car showroom  311  288  283

100 International construction

market survey 2019
2EDPDOLEUDU\FXUUHQWO\XQGHU
construction, is driving regeneration
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In Indianapolis, the health and sports,
education, leisure and hospitality
sectors are strong. Construction costs
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RIGHQWLQJWKHFXUUHQW86'EQZRUWK
of projects in the pipeline.
Houston construction starts for the
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a year. Construction has seen moderate
growth at around 2 to 3 percent
annually with healthcare and higher
education leading.
Future outlook
7KHHIIHFWRIWDULIIVLVFDXVLQJSRFNHWV
of stress, particularly in Indianapolis.
Chicago’s slow population and
employment growth is resulting in a
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,Q,QGLDQDSROLVSURVSHFWVORRNEULJKWHU
VXSSRUWHGE\DVWURQJPDUNHWLQ
Indiana. Houston’s strong population
growth will continue to underpin growth
in construction generally.

Chicago Indianapolis Houston

USD USD USD
USA (other regions) international building costs (m2) (ft2) (m2) (ft2) (m2) (ft2)
Composite trade rates
([FDYDWHEDVHPHQWP3) (1800m3MRE 16 1  1 13 1
([FDYDWHIRRWLQJVP 22 7 20 6 19 6
&RQFUHWHLQVODEP3P3MRE  10 316 9  8
5HLQIRUFHPHQWLQEHDPVWRQQH   1,823  1,703 
)RUPZRUNWRVRI¿WRIVODEP2)  7 66 6 61 6
%ORFNZRUNLQZDOOP2EORFNMRE 130 12 116 11 108 10
6WUXFWXUDOVWHHOEHDPVWRQQH      
Pre-cast concrete wall (m2) 328 30 292 27 273 
Curtain wall glazing incl support system (m2) (1000m2MRE  126  112 1,126 
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE 77 7 69 6  6
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE   1,323 1,323 1,237 1,237
Painting to walls primer + 2 coats (m2) 19 2 17 2 16 1
Ceramic tiling (m2) (1000m2MRE  12 112 10  10
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE 79 7 71 7 66 6
Carpet medium tufted (m2P2MRE  7 66 6 62 6
Lighting installation (m2P2MRE 189 18 169 16  
&RSSHUSLSHPPWRZDOOPPMRE 60 18  16  
)LUHVSULQNOHUVSHUP2P2MRE   39  36 3
Air conditioning incl main plant (m2P2MRE  33 320 30 299 28
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ 79 79 63 63 70 70
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU     60 60
Group 3 Tradesman eg carpet layer, tiler, plasterer 77 77    
*HQHUDOODERXUHU      
Site foreman   66 66 97 97
Material costs
Concrete 30 MPa (m3P3MRE      
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE 1,070 973 1,070 973 1,070 973
&RQFUHWHEORFN[SHU!EORFNMRE      
6WDQGDUGEULFNSHU      
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE  1,986  1,986  1,986
Glass pane 10mm tempered (m2)      
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 6 2 6 2 6 2
PPSODVWHUERDUGP2) 10 1 10 1 10 1
Emulsion paint (litre) 7  7  7 
&RSSHUSLSHPPPHWUHPMRE      
&RSSHUFDEOHPHWUH&(PP39&PMRE 7 2 7 2 7 2
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\ 3,072 3072 1,360 1360  

Chicago Indianapolis Houston

Tendering: Warm Hot Warm
Market: Staying the same Warmer Warmer
Cost escalation 2018:  2.0% 
Cost escalation 2019:   
Contractor’s margin: 6.0% 6.0% 
Preliminaries: 12.0% 12.0% 10.6%
Location factor (USD):   98.3
PPP coefficient: 1.8  

101
Around the globe
North America

USA Economic overview

San Francisco,
Seattle and Phoenix
Cost pressures an issue as
workloads continue to rise
john.robbins@turntown.com
The western states enjoyed some of the
fastest economic growth in the USA in
In San Francisco, where demand
LVEHLQJGULYHQE\PDMRUWHFK¿UPV
and the cost of living is high, overall
2018 with unemployment in all three
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in high levels of construction in all 7KHED\DUHDFRQVWUXFWLRQLVWKHKRWWHVW
three cities. PDUNHWLQWKH86$DQG6LOLFRQ9DOOH\¶V
WHFKJLDQWVDUHEXLOGLQJFRPPHUFLDO
Construction market and trends RI¿FHVZRUWKPRUHWKDQ86'EQ
'HPDQGIRUQHZEXLOGFRPPHUFLDO WDUJHWLQJFRPSOHWLRQZLWKLQ¿YH\HDUV
EXLOGLQJVLQDOOWKUHHFLWLHVLV
outstripping supply.

San Francisco Seattle Phoenix

USD USD USD
International building costs per m of internal area, in 2018
2
(m2) (ft2) (m )
2
(ft2) (m )
2
(ft2)
Airports (Building only)
Domestic terminal, full service 6,930     
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH 3,960 368  318 2,966 276
Car parks
0XOWLVWRUH\±DERYHJURXQG  137 1,000 93 732 68
0XOWLVWRUH\±EHORZJURXQG 2,360 219   1,127 
Commercial
2I¿FHV±%XVLQHVV3DUN 3,230 300  218  
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH   2,720  2,292 213
&%'2I¿FHV±KLJKULVHSUHVWLJH 6,730     
Education
Primary and secondary 2,690   232  
University  383 3,200 297  306
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV    231  227
Regional hospital 7,776 723  386 3,121 290
General hospital (e.g. city teaching hospital) 8,136     
Hotels
3 Star travellers 3,230 300   1,767 
6WDUOX[XU\     3,817 
Resort style      222
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF 1,310 122 1,190 111 718 67
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH 1,680   138 1,030 96
+LJKWHFKIDFWRU\ODERUDWRU\      
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG 3,010 280  232  137
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH     2,882 268
7RZQKRXVHV±PHGLXPVWDQGDUG   1,780   100
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG 2,800 260  188 1,333 
$SDUWPHQWV±KLJKULVH 3,770   218 1,672 
$JHGFDUHDIIRUGDEOHXQLWV 2,260 210  160 1,282 119
Retail
Large shopping centre including mall 3,890 362  331  263
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  181  132  116
Prestige car showroom  283 3,090 287 3,096 288

102 International construction

market survey 2019
In Seattle, several large-scale
developments were approved or
started last year. These include
0LFURVRIW¶VF86'EQFDPSXVH[SDQVLRQ
6HD7DF$LUSRUW¶VF86'EQPDVWHUSODQ
GHYHORSPHQWDQGWKHF86'P
KeyArena renovation.
There are, however, signs of cooling
in the residential sector.
USA (other regions) international building costs
Composite trade rates
,Q3KRHQL[WKHSDFHRIJURZWK
particularly in manufacturing,
emerging tech and higher education,
has stretched resources creating cost
LVVXHVDQGVKRUWDJHVZLWKERWK
PDWHULDOVDQGODERXU$PRQJWKHELJ
SURMHFWVLV,QWHO¶V86'EQ)DE
factory in Chandler, currently under
construction.
San Francisco
USD
(m2) (ft2)
Future outlook
The outcome of the USA mid-term
elections could impact on major
economic issues, such as immigration,
trade policy or economic reforms,
leading to a shift sentiment and in turn
construction activity.
7KHELJLVVXHIDFLQJFRQVWUXFWLRQLQWKH
three cities is increasing costs driven
E\KLJKDQGULVLQJOHYHOVRIGHPDQGDQG
growing shortages, with the impact of
tariffs increasing upward pressures.
Seattle Phoenix
USD USD
(m2) (ft2) (m2) (ft2)
([FDYDWHEDVHPHQWP3) (1800m3MRE 30 1 27 1 13 1
([FDYDWHIRRWLQJVP 32 10  19 19 6
&RQFUHWHLQVODEP3P3MRE  10 380 11  9
5HLQIRUFHPHQWLQEHDPVWRQQH 2,230 2,027    
)RUPZRUNWRVRI¿WRIVODEP2) 100 9 110 10 63 6
%ORFNZRUNLQZDOOP2EORFNMRE  17 110 10 111 10
6WUXFWXUDOVWHHOEHDPVWRQQH      
Pre-cast concrete wall (m2) 320 30   281 26
Curtain wall glazing incl support system (m2) (1000m2MRE   1,300 121  108
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE 120 11 71 7 66 6
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE     1,273 1,273
Painting to walls primer + 2 coats (m2) 16 1 8 1 16 2
Ceramic tiling (m2) (1000m2MRE 160  180 17 107 10
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE 80 7 77 7 68 6
Carpet medium tufted (m2P2MRE 70 7 62 6  6
Lighting installation (m2P2MRE  17 180 17 162 
&RSSHUSLSHPPWRZDOOPPMRE 60 18  16  16
)LUHVSULQNOHUVSHUP2P2MRE 80 7   37 3
Air conditioning incl main plant (m2P2MRE    39 308 29
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ     71 71
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU   71 71 62 62
Group 3 Tradesman eg carpet layer, tiler, plasterer 80 80    
*HQHUDOODERXUHU 70 70 61 61  
Site foreman 130 130 119 119 100 100
Material costs
Concrete 30 MPa (m3P3MRE      
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE  1,273  886 1,101 1,001
&RQFUHWHEORFN[SHU!EORFNMRE      
6WDQGDUGEULFNSHU 600 600    
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE  3,182    
Glass pane 10mm tempered (m2) 280 26 300 28  
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP     6 6
PPSODVWHUERDUGP2) 12 1 11 1 11 1
Emulsion paint (litre) 8 30 7 27 7 26
&RSSHUSLSHPPPHWUHPMRE   11 3  
&RSSHUFDEOHPHWUH&(PP39&PMRE 7 2 6 2 7 2
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\   3,300 3,300  

San Francisco Seattle Phoenix

Tendering: Overheating Overheating Warm
Market: Warmer Staying the same Warmer
Cost escalation 2018:   
Cost escalation 2019: 6.0% 6.0% 3.0%
Contractor’s margin: 7.0%  
Preliminaries: 10.0% 7.0% 10.6%
Location factor (USD):   103.6
PPP coefficient: 2.1 1.9 1.6

103
Around the globe
South America

Argentina Economic overview

The economy dived into recession in
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Buenos Aires economy in 2019, has raised the
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Recession constrains opportunities
in construction Argentina has suffered the impact of
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LQFUHDVHVDQGKDVVHHQDQQXDOLQÀDWLRQ
ULVHIURPWRSHUFHQWGXULQJ
Construction market and trends
The construction sector is under
VLJQL¿FDQWSUHVVXUH1HYHUWKHOHVV
several projects are under construction
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developments, residential apartment
towers and restoration of historic
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reclamation at Parque Paseo
del Bajo in Buenos Aires.

eduardo.morelli@turntown.com

USD
(exchange
International building costs per m of internal area, in 2018
2
ARS rate: 38.5)
Airports (Building only)
Domestic terminal, full service 66,262 1,721
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH  1,321
Car parks
0XOWLVWRUH\±DERYHJURXQG 16,810 
0XOWLVWRUH\±EHORZJURXQG  
Commercial
2I¿FHV±%XVLQHVV3DUN  
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH 37,680 979
&%'2I¿FHV±KLJKULVHSUHVWLJH  
Education
Primary and secondary  
University  1,666
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV  1,092
Regional hospital  1,333
General hospital (e.g. city teaching hospital)  
Hotels
3 Star travellers  
6WDUOX[XU\ 98,230 
Resort style  2,168
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF  
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH  619
+LJKWHFKIDFWRU\ODERUDWRU\ 116,103 3,016
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG  
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH  
7RZQKRXVHV±PHGLXPVWDQGDUG 39,230 1,019
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG  718
$SDUWPHQWV±KLJKULVH  
$JHGFDUHDIIRUGDEOHXQLWV 36,160 939
Retail
Large shopping centre including mall  
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  1,038
Prestige car showroom 63,670 

International construction
 market survey 2019
The stronger sectors are road, rail
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oil and gas, and mining and metals.
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in Neuquén Basin is attracting huge
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JDVH[SRUWV
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are proceeding. A China-Argentina
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hydroelectric power plant at La
Argentina international building costs
Composite trade rates
%DUUDQFRVDNPVRXWKRI%XHQRV
Aires, and discussions are underway
ZLWK&KLQDWREXLOGDQXFOHDUSRZHU
plant Atucha 3, near Buenos Aires.
Among several real estate projects
XQGHUZD\LV+DUERXU7RZHUDVWRUH\
KLJKULVHUHVLGHQWLDOWRZHUEHLQJEXLOWDW
3XHUWR0DGHUR¶V'RFNZLWKLQWKH
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Future outlook
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injection into the economy should help
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:LWKKLJKLQÀDWLRQJHQHUDOO\
construction cost rises are the
highest of any region in this survey,
DWSHUFHQWLQ
USD
(exchange
ARS rate: 38.5)
([FDYDWHEDVHPHQWP3) (1800m3MRE  
([FDYDWHIRRWLQJVP 199 
&RQFUHWHLQVODEP3P3MRE 3,890 101
5HLQIRUFHPHQWLQEHDPVWRQQH 62,977 1,636
)RUPZRUNWRVRI¿WRIVODEP2) 379 10
%ORFNZRUNLQZDOOP2EORFNMRE  16
6WUXFWXUDOVWHHOEHDPVWRQQH  969
Pre-cast concrete wall (m2) 2,672 69
Curtain wall glazing incl support system (m2) (1000m2MRE  168
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE  
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE  
Painting to walls primer + 2 coats (m2)  
Ceramic tiling (m2) (1000m2MRE 210 
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE  13
Carpet medium tufted (m2P2MRE  
Lighting installation (m2P2MRE  37
&RSSHUSLSHPPWRZDOOPPMRE 728 19
)LUHVSULQNOHUVSHUP2P2MRE 800 21
Air conditioning incl main plant (m2P2MRE  92
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ 107 3
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU 91 2
Group 3 Tradesman eg carpet layer, tiler, plasterer 80 2
*HQHUDOODERXUHU 78 2
Site foreman  6
Material costs
Concrete 30 MPa (m3P3MRE  113
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE  
&RQFUHWHEORFN[SHU!EORFNMRE  818
6WDQGDUGEULFNSHU 6,983 181
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE 67,297 
Glass pane 10mm tempered (m2)  126
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 98 3
PPSODVWHUERDUGP2) 181 
Emulsion paint (litre)  23
&RSSHUSLSHPPPHWUHPMRE 230 6
&RSSHUFDEOHPHWUH&(PP39&PMRE 21 1
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\  686

Buenos Aires
Tendering: /XNHZDUP
Market: Staying the same
Cost escalation 2018: 
Cost escalation 2019: 18.0%
Contractor’s margin: 12.0%
Preliminaries: 
Location factor (USD): 
PPP coefficient: 22.0


Around the globe
South America

Brazil Economic overview

São Paulo
Economic recovery lifts the
prospects of construction
gareth.whisson@turntown.com
Having come out of three years of
recession, the economy was growing
DWDQDQQXDOUDWHRISHUFHQWE\
late 2018.
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oil products, agricultural products,
steel, machinery and equipment.
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the USA and China, have provided
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raw materials.
Construction market and trends
&RQVWUXFWLRQLQ6mR3DXORLVYHU\EXV\
with several new developments
underway, including apartment towers,
RI¿FHWRZHUVUHWDLODQGGDWDFHQWUHV
0L[HGXVHGHYHORSPHQWLVLQFUHDVLQJ
Hotels and hospitality are at the start
of an upswing. Brazil has the largest
pipeline of hotel construction projects
in South America with more than
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construction. Accor Hotels and

USD
(exchange
International building costs per m of internal area, in 2018
2
BRL rate: 4.05)
Airports (Building only)
Domestic terminal, full service  
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH  
Car parks
0XOWLVWRUH\±DERYHJURXQG  
0XOWLVWRUH\±EHORZJURXQG 2,202 
Commercial
2I¿FHV±%XVLQHVV3DUN 3,180 
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH 3,180 
&%'2I¿FHV±KLJKULVHSUHVWLJH  
Education
Primary and secondary 3,260 
University  1,128
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV 8,170 2,017
Regional hospital 8,188 2,022
General hospital (e.g. city teaching hospital) 8,727 
Hotels
3 Star travellers  1,606
6WDUOX[XU\ 11,771 2,907
Resort style  
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF 2,360 
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH 2,360 
+LJKWHFKIDFWRU\ODERUDWRU\  
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG  
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH 3,919 968
7RZQKRXVHV±PHGLXPVWDQGDUG  
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG  
$SDUWPHQWV±KLJKULVH  737
$JHGFDUHDIIRUGDEOHXQLWV  
Retail
Large shopping centre including mall  
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW 3,662 
Prestige car showroom  

106 International construction

market survey 2019
Marriot International have the largest
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With economic and political uncertainty
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rise. Healthcare, life science and other
sectors that have long-term
investments will also increase.
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more is needed. Power and utilities
are undergoing major rejuvenation
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Brazil international building costs
Composite trade rates
transmission systems such as the new São Paulo and Rio de Janeiro are seeing
*:FRPELQHGF\FOHWKHUPDOSRZHU new projects moving to construction
station near Aracaju, Sergipe. DQGJUDGXDOO\FRQ¿GHQFHDQG
momentum will resume.
Future outlook
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growing demand and a strengthening
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should, with improving access to credit,
propel growth.
USD
(exchange
BRL rate: 4.05)
([FDYDWHEDVHPHQWP3) (1800m3MRE 68 17
([FDYDWHIRRWLQJVP 13 3
&RQFUHWHLQVODEP3P3MRE  86
5HLQIRUFHPHQWLQEHDPVWRQQH  
)RUPZRUNWRVRI¿WRIVODEP2)  36
%ORFNZRUNLQZDOOP2EORFNMRE 88 22
6WUXFWXUDOVWHHOEHDPVWRQQH 8,079 
Pre-cast concrete wall (m2) 297 73
Curtain wall glazing incl support system (m2) (1000m2MRE  731
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE 116 29
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE 1,069 
Painting to walls primer + 2 coats (m2) 26 6
Ceramic tiling (m2) (1000m2MRE  37
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE  
Carpet medium tufted (m2P2MRE  68
Lighting installation (m2P2MRE 380 
&RSSHUSLSHPPWRZDOOPPMRE 29 7
)LUHVSULQNOHUVSHUP2P2MRE 279 69
Air conditioning incl main plant (m2P2MRE 882 218
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ  11
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU  10
Group 3 Tradesman eg carpet layer, tiler, plasterer  9
*HQHUDOODERXUHU 30 7
Site foreman 103 
Material costs
Concrete 30 MPa (m3P3MRE  
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE  
&RQFUHWHEORFN[SHU!EORFNMRE 2,960 731
6WDQGDUGEULFNSHU 831 
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE  
Glass pane 10mm tempered (m2) 277 68
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 18 
PPSODVWHUERDUGP2) 31 8
Emulsion paint (litre) 13 3
&RSSHUSLSHPPPHWUHPMRE 28 7
&RSSHUFDEOHPHWUH&(PP39&PMRE  1
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\ 10,709 

São Paulo
Tendering: /XNHZDUP
Market: Warmer
Cost escalation 2018: 
Cost escalation 2019: 
Contractor’s margin: 
Preliminaries: 7.3%
Location factor (USD): 
PPP coefficient: 3.2

107
Around the globe
South America

Chile Economic overview

GDP growth remains solid with
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Santiago JURZWKIRUDOWKRXJKZHDNHU
PLQLQJH[SRUWVVORZHGJURZWKLQ
A sound economy provides the third quarter.
widespread opportunity
Energy prices have continued to rise.
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2.8 percent. House prices rose steadily,
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Construction market and trends
The construction sector is on an
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permits in the third quarter of 2018.
Santiago airport is undergoing a
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passengers per year. Santiago metro
has announced two new lines that
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length, connecting to more outlying
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USD
(exchange
International building costs per m of internal area, in 2018
2
CLP rate: 667)
Airports (Building only)
Domestic terminal, full service 1,932,902 2,898
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH  2,129
Car parks
0XOWLVWRUH\±DERYHJURXQG  
0XOWLVWRUH\±EHORZJURXQG 620,678 931
Commercial
2I¿FHV±%XVLQHVV3DUN  769
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH  1,238
&%'2I¿FHV±KLJKULVHSUHVWLJH 1,200,211 1,799
Education
Primary and secondary  
University  
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV 828,303 
Regional hospital  
General hospital (e.g. city teaching hospital)  2,328
Hotels
3 Star travellers  
6WDUOX[XU\  3,932
Resort style 1,987,927 2,980
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF  
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH  
+LJKWHFKIDFWRU\ODERUDWRU\  3,227
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG  929
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH  1,238
7RZQKRXVHV±PHGLXPVWDQGDUG  
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG  639
$SDUWPHQWV±KLJKULVH  897
$JHGFDUHDIIRUGDEOHXQLWV  
Retail
Large shopping centre including mall 973,072 
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  1,138
Prestige car showroom  1,809

108 International construction

market survey 2019
6HYHUDOURDGH[SDQVLRQDQG
rejuvenation projects are set to
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programme.
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the green light to proceed, adding to
WKHSRUWIROLRRILQYHVWPHQWVE\VWDWH
owned Codelco.
Chile international building costs
Composite trade rates
Future outlook ,WVWRXULVPLVH[SDQGLQJVWURQJO\
0RVWVHFWRUVVKRXOGH[SHFWVROLG especially in remote areas, and to
JURZWKXQGHUSLQQHGE\DKHDOWK\ date the hotel sector has not caught
economy. Real estate in particular XSSUHVHQWLQJVLJQL¿FDQWRSSRUWXQLWLHV
has shown good returns for overseas
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Chile is playing a leading role in
developing nanoparticles from
copper and lithium, which have myriad
applications in health and technology.
USD
(exchange
CLP rate: 667)
([FDYDWHEDVHPHQWP3) (1800m3MRE 10,691 16
([FDYDWHIRRWLQJVP  37
&RQFUHWHLQVODEP3P3MRE  193
5HLQIRUFHPHQWLQEHDPVWRQQH  1,228
)RUPZRUNWRVRI¿WRIVODEP2)  38
%ORFNZRUNLQZDOOP2EORFNMRE  
6WUXFWXUDOVWHHOEHDPVWRQQH  
Pre-cast concrete wall (m2)  179
Curtain wall glazing incl support system (m2) (1000m2MRE 196,700 
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE 21,173 32
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE  
Painting to walls primer + 2 coats (m2)  
Ceramic tiling (m2) (1000m2MRE 37,018 
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE  37
Carpet medium tufted (m2P2MRE 32,723 
Lighting installation (m2P2MRE 89,301 
&RSSHUSLSHPPWRZDOOPPMRE  26
)LUHVSULQNOHUVSHUP2P2MRE 13,221 20
Air conditioning incl main plant (m2P2MRE  
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ  12
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU  11
Group 3 Tradesman eg carpet layer, tiler, plasterer  7
*HQHUDOODERXUHU  6
Site foreman  
Material costs
Concrete 30 MPa (m3P3MRE  137
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE  962
&RQFUHWHEORFN[SHU!EORFNMRE  2,116
6WDQGDUGEULFNSHU  
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE  
Glass pane 10mm tempered (m2)  178
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 1,738 3
PPSODVWHUERDUGP2)  7
Emulsion paint (litre)  8
&RSSHUSLSHPPPHWUHPMRE  
&RSSHUFDEOHPHWUH&(PP39&PMRE 2,266 3
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\  1,120

Santiago
Tendering: /XNHZDUP
Market: Warmer
Cost escalation 2018: 2.1%
Cost escalation 2019: 2.6%
Contractor’s margin: 10.3%
Preliminaries: 
Location factor (USD): 
PPP coefficient: 

109
Around the globe
South America

Colombia Economic overview

GDP in the third quarter of 2018 was up
SHUFHQWRQD\HDUDJRDQGLQÀDWLRQ
UHPDLQVKHDOWK\SURYLGLQJDVROLGEDVH
for growth this year.

Bogotá was contained within target over 2018

A solid platform built for
construction growth
raul.hernandez@turntown.com
DWSHUFHQW
After the fall in commodity prices,
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controls, the country’s economy
Construction market and trends
The BD Bacata tower in Bogotá
was recently commissioned at
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USD
(exchange
International building costs per m of internal area, in 2018
2
COP rate: 3,007)
Airports (Building only)
Domestic terminal, full service  2,793
/RZFRVWFDUULHUWHUPLQDOEDVLFVHUYLFH 6,000,000 
Car parks
0XOWLVWRUH\±DERYHJURXQG 1,800,000 
0XOWLVWRUH\±EHORZJURXQG  798
Commercial
2I¿FHV±%XVLQHVV3DUN  
&%'2I¿FHV±XSWRÀRRUVPHGLXP$*UDGH  
&%'2I¿FHV±KLJKULVHSUHVWLJH  
Education
Primary and secondary  710
University  
Hospitals
'D\FHQWUHLQFOXGLQJEDVLFVXUJHULHV  
Regional hospital  1,929
General hospital (e.g. city teaching hospital)  2,162
Hotels
3 Star travellers  
6WDUOX[XU\  1,669
Resort style  
Industrial
:DUHKRXVHIDFWRU\XQLWV±EDVLF 1,630,000 
/DUJHZDUHKRXVHGLVWULEXWLRQFHQWUH  
+LJKWHFKIDFWRU\ODERUDWRU\ 9,000,000 2,993
Residential
,QGLYLGXDOGHWDFKHGRUWHUUDFHVW\OHKRXVH±PHGLXPVWDQGDUG 2,380,000 791
,QGLYLGXDOGHWDFKHGKRXVH±SUHVWLJH  
7RZQKRXVHV±PHGLXPVWDQGDUG  733
$SDUWPHQWV±ORZULVHPHGLXPVWDQGDUG  782
$SDUWPHQWV±KLJKULVH  
$JHGFDUHDIIRUGDEOHXQLWV 1,680,000 
Retail
Large shopping centre including mall  
1HLJKERXUKRRGLQFOXGLQJVXSHUPDUNHW  801
Prestige car showroom  878

110 International construction

market survey 2019
Among shopping mall developments
ongoing is the El Eden Shopping Centre
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320,000 square metres.
5HFHQWO\DQLQFUHDVHLQWKHEXGJHW
for education was made in order to
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there are plans to use PPP procurement
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Colombia international building costs
Composite trade rates
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FRVWLQJDSSUR[LPDWHO\86'EQLVWKH
largest infrastructure project in the
FRXQWU\:RUNLVVHWWRVWDUWLQ
Meanwhile, major highway construction
is underway including the Cartagena
Baranquilla and Ruta del Sol II highways.
Future outlook
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PDFURHFRQRPLFIUDPHZRUNDÀH[LEOH
H[FKDQJHUDWHDQGVXFFHVVIXOO\PDQDJHG
WRQDYLJDWHH[WHUQDODQGGRPHVWLFVKRFNV
to its economy. This provides a good
platform for the construction sector.
The sector is warming, and construction
FRVWVDUHLQFUHDVLQJSRVVLEO\WR
percent per annum this year.
USD
(exchange
COP rate: 3,007)
([FDYDWHEDVHPHQWP3) (1800m3MRE  8
([FDYDWHIRRWLQJVP 30,100 10
&RQFUHWHLQVODEP3P3MRE  190
5HLQIRUFHPHQWLQEHDPVWRQQH  
)RUPZRUNWRVRI¿WRIVODEP2)  
%ORFNZRUNLQZDOOP2EORFNMRE 190,000 63
6WUXFWXUDOVWHHOEHDPVWRQQH  1,330
Pre-cast concrete wall (m2) 210,000 70
Curtain wall glazing incl support system (m2) (1000m2MRE 702,000 233
3ODVWHUERDUGPPWKLFNWRVWXGZDOOP2) (3000m2MRE  
6LQJOHVROLGFRUHGRRULQFOIUDPHDQGKDUGZDUHQRGRRUMRE 2,600,000 
Painting to walls primer + 2 coats (m2)  13
Ceramic tiling (m2) (1000m2MRE 82,000 27
9LQ\OÀRRULQJWRZHWDUHDVP2P2MRE 116,000 39
Carpet medium tufted (m2P2MRE  62
Lighting installation (m2P2MRE  178
&RSSHUSLSHPPWRZDOOPPMRE 77,000 26
)LUHVSULQNOHUVSHUP2P2MRE  
Air conditioning incl main plant (m2P2MRE  
Labour costs, per hour
*URXS7UDGHVPDQHJSOXPEHUHOHFWULFLDQ 18,000 6
*URXS7UDGHVPDQHJFDUSHQWHUEULFNOD\HU 17,000 6
Group 3 Tradesman eg carpet layer, tiler, plasterer 13,000 
*HQHUDOODERXUHU 11,000 
Site foreman  6
Material costs
Concrete 30 MPa (m3P3MRE  189
5HLQIRUFHPHQWEDUPPWRQQHWRQQHMRE 3,280,000 1,091
&RQFUHWHEORFN[SHU!EORFNMRE  798
6WDQGDUGEULFNSHU 1,000,000 333
6WUXFWXUDOVWHHOEHDPVWRQQHWRQQHMRE 10,100,000 
Glass pane 10mm tempered (m2)  88
6RIWZRRGWLPEHUIRUIUDPLQJPP;PPP 20,000 7
PPSODVWHUERDUGP2) 23,000 8
Emulsion paint (litre)  7
&RSSHUSLSHPPPHWUHPMRE 16,000 
&RSSHUFDEOHPHWUH&(PP39&PMRE 7,300 2
Plant costs
+LUHWPRELOHFUDQHRSHUDWRUGD\  682

Bogotá
Tendering: /XNHZDUP
Market: Warmer
Cost escalation 2018: 
Cost escalation 2019: 8.0%
Contractor’s margin: 6.0%
Preliminaries: 13.0%
Location factor (USD): 
PPP coefficient: 2078.0

111
Methodology
Comparing construction costs

Comparing
construction costs

It is important to compare construction

costs between countries to inform expansion
decisions. It can enable productivity
comparisons and highlight how different
practices and tools such as BIM can improve
design and delivery. Opportunities to improve
WKHHI¿FLHQF\RIWKHFRQVWUXFWLRQVHFWRUDQG
reduce costs are also opportunities to grow
the global economy faster.
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of three methods of comparing construction costs
XVLQJDQH[DPSOHEXLOGLQJW\SH&HQWUDO%XVLQHVV
Method one: convert to a single currency such as USD
This is the most common means of comparison, useful for a
multinational organisation paying for projects in its home currency.
Advantages
ƒ Easy to understand and visualise.
ƒ *LYHVWKHFRVWRIW\SLFDOEXLOGLQJLQHDFKFRXQWU\
Disadvantages
ƒ $FKDQJHLQWKHH[FKDQJHUDWHPDNHVDKXJHGLIIHUHQFH
LIDSDUWLFXODUFXUUHQF\LVVWURQJFRPSDUHGWRWKHEDVH
FXUUHQF\WKHFRVWRIFRQVWUXFWLRQORRNVH[SHQVLYH
ƒ ,VQRWDUHOLDEOHLQGLFDWRURIUHODWLYHFRVWVDQGHI¿FLHQF\
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CBD offices – high-rise prestige using a single currency USD exchange rates
8000

7000

6000

5000

4000

3000

2000

1000

0
New York City
Ottawa
Nairobi

Buenos Aires

Riyadh

Northern Ireland

UK Central
Bangalore
Istanbul

Jakarta

Johannesburg
Guangzhou
São Paulo

Dar es Salaam
Moscow
Beijing
Shanghai
Ho Chi Minh City
Kampala
Warsaw
Mexico City
Muscat
Kigali
Kuala Lumpur

Bogotá
UAE
Santiago
Seoul
Harare
Singapore
Auckland

Christchurch
Vancouver

Madrid
Toronto
Edmonton
Barcelona
Doha
Tokyo
Brisbane
Melbourne
Perth

Scotland
UK North
Paris
Houston
Phoenix
Indianapolis
Stockholm

UK South
Amsterdam
Atlanta

Hong Kong
Berlin
Frankfurt
Sydney
Vienna
Dublin
Munich
Zurich
London
Chicago
Seattle

San Francisco

Method two: Purchasing Power Parity (PPP) ƒ 8VHIXOIRUJRYHUQPHQWVSROLF\PDNHUVDQGUHVHDUFKHUV

The PPP measure shows costs in relation to cost of living
in the country. It indicates the construction cost per
square metre in the local currency, relative to the costs
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the cost in m2LQORFDOFXUUHQF\E\WKH333FRHI¿FLHQW
$ORZHU333FRVWJHQHUDOO\LQGLFDWHVPRUHHI¿FLHQW
construction (see page 113 for more detail).
Advantages
ƒ /HDYHVH[FKDQJHUDWHRXWRIWKHHTXDWLRQ
WRFRPSDUHFRVWVDQGHI¿FLHQF\ZLWKRWKHUFRXQWULHV
Disadvantages
ƒ )RUDJOREDO¿UPORRNLQJWREXLOGRYHUVHDVLWFDQEH
PRUHFRQYHQLHQWWRORRNDWFRVWLQLWVKRPHFXUUHQF\
ƒ 7KHFRVWRIWKHEDVNHWRIJRRGVLJQRUHVFRQWUDFWRUV¶
PDUJLQVODERXUSURGXFWLYLW\DQGSUHOLPLQDULHV

112 International construction

market survey 2019
 0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000

0
20
40
60
80
100
120
140
160
Bangalore São Paulo
Istanbul Nairobi
Jakarta Vancouver
Beijing Dar es Salaam
Guangzhou Johannesburg
Shanghai Kigali
Muscat Ottawa
Mexico City Kampala
Riyadh Edmonton
Kuala Lumpur Toronto
Warsaw Buenos Aires
UAE

Method three: location factors

Melbourne
Harare

DVRIWKH¿UVWTXDUWHURI
Zurich
Ho Chi Minh City Moscow
Moscow Ho Chi Minh City
Buenos Aires Phoenix
Johannesburg
CBD Offices – high-rise prestige using PPP

Bogotá
Kampala Atlanta
Doha Houston
Bogotá Brisbane
Seoul Indianapolis
Santiago Auckland
Dar es Salaam

CBD Offices – high-rise prestige using location factors

Santiago

conditions, contractors’ preliminaries and margins.

Nairobi Singapore
São Paulo

LQ7RURQWRORFDWLRQIDFWRUDWWKHH[FKDQJHUDWH

in London (location factor 100) should cost USD108m
Istanbul
Northern Ireland Perth

$VLPLODUO\VSHFL¿HGEXLOGLQJFRQVWUXFWHGIRU86'P
Singapore Warsaw
Kigali Christchurch

LQPHWKRGWZR333E\DGGLQJODERXUSURGXFWLYLW\PDUNHW

/RFDWLRQIDFWRUVH[WHQGWKHEDVNHWRIJRRGVDSSURDFKXVHG
Barcelona Jakarta
Madrid New York City
Tokyo
Mexico City
Scotland
Christchurch Bangalore
Auckland Chicago
UK North Sydney
UK Central Barcelona
Seattle

Advantages
Stockholm
Paris Madrid

Disadvantages
Berlin Riyadh
Perth Muscat
UK South Paris
Kuala Lumpur

a single currency.
Frankfurt
Vienna Amsterdam
Munich Tokyo
Brisbane Hong Kong
Amsterdam UK Central
Indianapolis Scotland
Hong Kong Seoul
Houston UK North
Dublin San Francisco
Edmonton UAE
London Guangzhou
Ottawa UK South
Atlanta Shanghai
Phoenix Northern Ireland
to the same disadvantages as method one.

Toronto Dublin
VSHFL¿FDWLRQVDUHGLIIHUHQWEHWZHHQUHJLRQV
Sydney Vienna
ƒ ,QSUDFWLFHORFDOEXLOGLQJFRGHVPHWKRGVDQG

Melbourne Berlin
Chicago Frankfurt
Seattle Munich
LQVHYHUDOORFDWLRQVDQGZDQWLQJWRNQRZWKHFRVWLQ

Vancouver Stockholm
ƒ :LOOVKRZWKHGLIIHUHQFHLQFRVWEHWZHHQFRXQWULHVRI

ƒ $VWKLVPHWKRGXVHVDFRPPRQFXUUHQF\LWLVVXEMHFW

San Francisco Beijing

EXLOGLQJVEXLOWZLWKVLPLODUVSHFL¿FDWLRQVDQGLQFOXVLRQV

Zurich London
ƒ 8VHIXOIRUDFRPSDQ\FRQVLGHULQJDFRPSOH[LQYHVWPHQW

New York City Harare

113
Methodology
Terms and references
Terms and references
Building costs per m2
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sometimes referred to as direct costs
(as opposed to indirect costs), are for
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preliminaries (or general conditions)
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communication systems and
transportation systems.
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Exclusions from building
costs per m2
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professional fees, demolition, loose
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IRUXQGHUJURXQGRURQVLWHFDUSDUNLQJ
LVDOVRH[FOXGHGIURPWKHEXLOGLQJ
cost unless stated otherwise.
Labour costs
/DERXUFRVWVDUHWKHDOOLQFOXVLYH
cost to the employer, which includes
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WD[HVDQQXDOOHDYHFRVWDQGZKHUH
SDLGE\WKHHPSOR\HUZRUNHUV¶
compensation and health insurance,
pensions, and travel costs and fares.
,WH[FOXGHVRYHUKHDGVPDUJLQVDQG
RYHUWLPHERQXVHV
International construction
 market survey 2019
Composite trade rates The higher the PPP cost, the higher
Composite trade rates are the the cost of construction in local
IXOO\LQVWDOOHGUDWHVFKDUJHGE\ cost-of-living terms. PPP costs can,
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materials, delivery, plant, overheads WKHUHODWLYHFRVWVRIEXLOGLQJIURP
DQGPDUJLQVDQGVDOHVWD[ country to country.
Construction costs and 7KRXJKVXFKLQGH[HVDUHXVHGLQ
exchange rates VRPHEUDQFKHVRIHFRQRPLFVLWKDV
This survey’s construction cost data QRWRIWHQEHHQXVHGWRFRPSDUH
comes from programmes underway construction costs. We have developed
DWWKHEHJLQQLQJRIDQGH[FOXGHV this methodology with the Centre for
DSSOLFDEOHWD[HV$OOH[FKDQJHUDWHV Comparative Construction Research
are from January 2019. (CCCR) at Bond University, Australia,
using its CitiBloc method for the
Purchasing Power Parity (PPP) FDOFXODWLRQRIEDVNHWLWHPFRVWV
PPP is a technique that compares
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construction costs with the cost of UDWHLQORFDOFXUUHQF\E\WKH333
living (purchasing power) in each FRHI¿FLHQWIRUWKDWFRXQWU\
FRXQWU\,QVKRUWLW¶VDEHWWHUZD\
to compare construction costs
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The PPP methodology removes the
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notoriously volatile. Often costs are
converted to USD (or any other
currency) in order to compare costs
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UDWHVKDYHÀXFWXDWHGVRPXFKLQUHFHQW
times, this can give a false impression
of how a country’s construction costs
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UDWHZLOOPDNHORFDOFRVWVORRNKLJK
against the comparison country. A low
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goods is priced in each country in the
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TXDQWLWLHVRIODERXUSODQWDQGPDWHULDOV
common to all forms of construction.
Then we compare the cost of the
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FRQVWUXFWLRQLQWKHFRXQWU\WRREWDLQ
a purchasing power parity cost.
Further reading and references
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(accessed 27.03.19)

Whitehouse, Presidential Proclamation to Facilitate Positive Adjustment to Competition from Imports of Certain Crystalline Silicon
Photovoltaic Cells, January 23, 2018
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Whitehouse, Presidential Proclamation on Adjusting Imports of Steel into the United States, March 8, 2018
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116 International construction
market survey 2019
Turner & Townsend is an independent professional services
company specialising in programme management, project
management, cost and commercial management and advisory
across the real estate, infrastructure and natural resources sectors.

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and performance during the construction and operation of our
clients’ assets.

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© Turner & Townsend. All rights reserved April 2019. This content is for
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arising from reliance on information contained in this document.