New global ranking shows that in complex buildings markets, the ability to assure cost, schedule and delivery confidence is becoming a source of competitive advantage
AMSTERDAM, July 13, 2026 /PRNewswire/ -- Arcadis (EURONEXT: ARCAD), the world's leading company delivering data-driven sustainable design, engineering, and consultancy solutions for natural and built assets, today announced that Geneva remains the world's most expensive city in which to build, ahead of London and Zurich, according to its 2026 International Construction Cost Index.
The annual index, which compares construction costs across 100 major cities, shows that the world's highest-cost construction markets remain concentrated in mature, complex cities with deep demand and constrained delivery capacity. Geneva ranks first globally, followed by London, Zurich, Munich and Copenhagen. New York City, San Francisco, Dublin, Bristol and Philadelphia complete the global top ten.
While the top of the ranking remains broadly consistent, the wider market context has shifted. Global construction markets are moving from inflation-led uncertainty into a more selective phase of investment, where capital is being deployed more carefully rather than demand simply slowing. For buildings clients, capital is increasingly favouring complex, high-performing assets that support long-term growth - including modern workplaces, healthcare facilities, laboratories, data centres, advanced manufacturing facilities and other highly serviced buildings that underpin digital and energy transition. But higher financing costs, energy volatility, tariff uncertainty and supply-chain constraints are putting greater pressure on project viability and increasing the value of early cost intelligence, scenario planning, procurement strategy and disciplined programme delivery.
In higher-cost markets, early cost planning can help protect value and secure scarce supply-chain capacity. In lower-cost markets, clients still need to test market readiness, infrastructure availability and delivery resilience before committing capital.
Edel Christie, Global President - Places, Arcadis, said: "Construction cost is no longer just a measure of price, and Arcadis' International Construction Cost Index is no longer simply a guide to where construction is most or least expensive. It shows where cost, capacity, delivery risk and investment confidence are converging. That matters because cost is not the same as deliverability: projects should be designed, procured and planned around real-world conditions and the local realities that shape delivery.
"The need to build has not gone away. Cities still need homes, infrastructure, resilient energy systems, modern workplaces and digital infrastructure to support the next generation of economic growth. The opportunity is clear, but investment will flow to places and programmes where delivery is credible, viable and achievable - not just cheap to build."
This is particularly evident in highly serviced assets such as data centres, where power availability, successful sourcing of long lead-in equipment, supply-chain capacity and speed-to-market are now more important to investment decisions than local construction costs.
The index also highlights the breadth of cost variation across global construction markets. While high-cost locations are concentrated in Europe, the UK and North America, some of the lowest-cost locations are found across Asia, Africa and Latin America. Bengaluru ranks as the least expensive city in the index, followed by Buenos Aires, Delhi, Mumbai and Ho Chi Minh City.
The important distinction is that lower headline costs do not translate into easier or more reliable delivery. Market readiness, grid capacity, permitting, supply-chain depth, skills availability and access to specialist contractors are increasingly decisive in determining whether projects can move from planning to construction.
Todd Burns, Global Service Executive for Program Management, Arcadis, said: "In today's market, upfront cost is no longer the sole focus. The bigger questions are now about how quickly a project can generate revenue, how efficiently capital can be deployed and how confidently it can be delivered as market conditions change.
"That requires cost, schedule, procurement and risk decisions to be brought together much earlier, so clients can test trade-offs before they become expensive to change. Done well, that helps protect viability, secure the right market capacity and move more quickly from investment case to revenue."
Top ten most expensive cities to build in, 2026
- Geneva
- London
- Zurich
- Munich
- Copenhagen
- New York City
- San Francisco
- Dublin
- Bristol
- Philadelphia
The full Arcadis International Construction Cost Index 2026 report is available to read and download here.
ABOUT ARCADIS ICC
The Arcadis International Construction Cost Index compares the relative cost of construction across 100 global cities. The index is based on a survey of construction costs, review of market conditions and the professional judgement of Arcadis' global team of experts. Costs are indexed against Amsterdam, which is set at 100.
The index is designed to compare the relative costs of delivering the same building functions in different cities. It excludes land, demolition, external works and services, risk allowances, professional fees and local sales taxes. It does not account for purchasing power parity.
ABOUT ARCADIS
Arcadis is the world's leading company delivering data-driven sustainable design, engineering, and consultancy solutions for natural and built assets. We are around 34,000 architects, data analysts, designers, engineers, project planners, water management and sustainability experts, all driven by our passion for improving quality of life. As part of our commitment to accelerating a planet positive future, we work with our clients to make sustainable project choices, combining digital and human innovation, and embracing future-focused skills across the environment, energy and water, buildings, transport, and infrastructure sectors. We operate in over 30 countries, and reported €4.9 billion in gross revenues for 2025. www.arcadis.com
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