Construction costs rise in high-growth economies

JEDDAH — Prices for putting infrastructure in place are on the rise in growing markets — particularly Asia-Pacific, North America and parts of the Middle East, EC Harris leading global built asset consultancy said Monday in a report. Construction costs in these regions are closing in on prices in Western and Northern Europe — historically the most expensive region of the world for the industry, it noted.

"Those countries that are least constrained by debt problems are continuing to invest in construction activities to help fuel their continued growth. In such a scenario the volume of work undertaken is creating an increased demand for booth commodities and skills, which is inevitably driving costs upwards," said Mathew Riley, group head of cost and commercial at EC Harris.

Out of the 53 countries survey, Switzerland remains the most expensive with a cost index of 162, on a scale where the UK is the baseline at 100.

Costs have also risen in Japan, Canada, New Zealand and Qatar — all of which scored more than 100. Saudi Arabia up 13 percent to 70 points and the Philippines up 13 percent to 55 points. — SG