Geneva Regains Status as the Most Expensive City for Construction Worldwide

Geneva: The Costliest City to Build

Geneva has recently once again taken the title as the most expensive city globally for construction, overtaking London, as indicated by the latest Arcadis International Construction Costs (ICC) Report. This ranking places Geneva at the top, followed by Zurich, Munich, and New York City in a list of the five most expensive urban environments for building projects. The report sheds light on the increasing construction costs across various metropolitan areas in Europe and North America, which are predominantly driven by high demand, increased labor constraints, and multifaceted regulations that complicate the building processes.

The ICC report, released on May 13, 2025, indicates that construction costs are influenced by new, dynamic factors in the global landscape, despite some signs of inflation easing in specific regions like New York and San Francisco. However, long-term lending rates, geopolitical tensions, and fluctuating trade policies are reshaping how investors navigate this sector. Notably, even amid these challenges, Arcadis emphasizes the value of a proactive and informed approach to design and planning, which can unlock potential and lead to successful project completion.

Among the most pertinent trends observed in the report are the continued growth opportunities in critical sectors such as data centers, healthcare, and educational or social infrastructure. These areas have become particularly pivotal as public funding is anticipated to increase, driving demand and stimulating project activities. Indeed, the report outlines that while expensive construction environments persist in locations like Australia, Eastern Europe, and parts of Asia, there is room for optimistic growth in specific sectors.

Arcadis’ comprehensive analysis covers 100 major cities across multiple continents, utilizing various building types, including residential, commercial, and public sectors. This evaluation is built upon a thorough survey of construction expenses, market conditions, and the expertise of Arcadis professionals worldwide. The costs compared are expressed in USD, with indexing based on the prices of various building types concerning Amsterdam. Judd Tempelman, Arcadis' Global President of Places, stated, "Change drives opportunity, and in a world of rising complexity and constrained capital, the most successful projects are those that marry visionary concepts with sound planning and adaptable design. Even amidst challenging times, diverse opportunities can arise in construction markets. We witness a significant reallocation of resources aimed at fulfilling shifting demands, from advanced manufacturing in the U.S. to crucial energy transition programs across the UK and Europe. A project can be deemed successful when we align it with tangible market needs, foster collaboration in design, and leverage digital maturity."

To navigate construction risks amid such a fluctuating environment, Arcadis has outlined four vital considerations to optimize project values:

1. Design for Long-Term Value: Focus on buildings that are versatile, energy-efficient, and capable of adapting to changing user needs. For instance, their innovative design for River Grove Elementary School in Portland, Oregon incorporated a microgrid system to ensure continuity during disasters while maintaining an efficient learning environment.
2. Design for Certainty: Utilize insights about the asset, locality, and market to develop plans that align with both investor confidence and regulatory expectations.
3. Design for Delivery: Enhance project feasibility and budget reliability by employing integrated teams that handle project details with coordinated digital resources.
4. Design in Collaboration: Encourage high-performing teams and adept leadership to collectively unlock project potential and maximize impact.

Mansoor Kazerouni, Arcadis' Global Director of Architecture and Urbanism, noted the challenges embedded in development, with uncertainties arising from economic and political fluctuations. Buildings must function effectively to meet diverse user requirements, emphasizing a project management strategy that maximizes functionality, sustainability, and value over time.

For those interested in a more in-depth exploration of this topic, the full report can be accessed through Arcadis’ official channels, where extensive insights into current heightening construction costs and strategic approaches can be found.