
International Construction Costs
Mai 2025
Arcadis (29 pages).
Political and economic uncertainty has increased dramatically. In times like this, the easiest reaction for many clients is to wait and see. But development is essential to meet the needs of a growing population and a rapidly evolving economy. There is a risk that opportunities for well-timed and profitable development could be missed through delay.
From the rebuilding of Los Angeles to the creation of new multifamily housing in cities like Toronto and Manchester, and the adaptation of existing buildings in New York and London to meet changing client expectations, a constant cycle of building is an essential part of the resilience and adaptability of the modern economy.
Some markets, including the data center market, continue to boom. However, for many sectors, the mood is more hesitant. High financing costs, ongoing economic uncertainty and the lingering effects of the pandemic on how space is used have created a challenging environment for development. Rising tariffs and other trade barriers risk compounding these issues, further slowing growth. The consequences are far-reaching — from a deepening housing crisis to growing gaps in healthcare, education and commerce as owners struggle to adapt their existing buildings to meet rapidly evolving needs.
It has become significantly more challenging for visionary clients to advance new projects, as assembling teams and securing development financing become increasingly difficult in an uncertain and unpredictable environment. But clients aren’t powerless, and there are many steps that can be taken to have better control over of their projects. By aligning proposals with real market needs and partnering with designers and other consultants who understand how buildings function and how people and the environment interact with them, clients can create more resilient, future-ready developments.
With the help of experts in data and AI, it’s possible to identify the critical success factors that drive both viability and long-term performance. At the same time, project teams can harness the power of digital platforms to develop proposals to a higher level of maturity — giving contractors and investors the confidence that plans are robust, deliverable and investment-ready before construction begins.
Arcadis (29 pages).
Political and economic uncertainty has increased dramatically. In times like this, the easiest reaction for many clients is to wait and see. But development is essential to meet the needs of a growing population and a rapidly evolving economy. There is a risk that opportunities for well-timed and profitable development could be missed through delay.
From the rebuilding of Los Angeles to the creation of new multifamily housing in cities like Toronto and Manchester, and the adaptation of existing buildings in New York and London to meet changing client expectations, a constant cycle of building is an essential part of the resilience and adaptability of the modern economy.
Some markets, including the data center market, continue to boom. However, for many sectors, the mood is more hesitant. High financing costs, ongoing economic uncertainty and the lingering effects of the pandemic on how space is used have created a challenging environment for development. Rising tariffs and other trade barriers risk compounding these issues, further slowing growth. The consequences are far-reaching — from a deepening housing crisis to growing gaps in healthcare, education and commerce as owners struggle to adapt their existing buildings to meet rapidly evolving needs.
It has become significantly more challenging for visionary clients to advance new projects, as assembling teams and securing development financing become increasingly difficult in an uncertain and unpredictable environment. But clients aren’t powerless, and there are many steps that can be taken to have better control over of their projects. By aligning proposals with real market needs and partnering with designers and other consultants who understand how buildings function and how people and the environment interact with them, clients can create more resilient, future-ready developments.
With the help of experts in data and AI, it’s possible to identify the critical success factors that drive both viability and long-term performance. At the same time, project teams can harness the power of digital platforms to develop proposals to a higher level of maturity — giving contractors and investors the confidence that plans are robust, deliverable and investment-ready before construction begins.