Birmingham 30th most expensive city to build in - survey
A data-led study of construction costs in 88 global markets has placed Birmingham as the 30th most expensive city to build in.
Turner & Townsend 's International construction market survey 2022 revealed that globally the construction industry is facing rising demand, labour shortages and supply chain disruption, escalating the cost of construction.
Other major cities fell into the top 40 most expensive cities including London (within the top 10 globally), Edinburgh, Manchester, Bristol, Glasgow, Leeds, and Newcastle.
Overall in the UK, construction grew by a record 12.7 percent in the 12 months to December 2021, relative to the exceptional fall in construction caused by the pandemic in 2020.
Warehouses and distribution centres were a major contributor to new orders in the private sector, with growth of 144 per cent in 2021 driven by changing consumer shopping habits.
As well as this, infrastructure contributed to growth, the report stating a record 30.4 per cent increase for last year. HS2, motorway improvement and green energy developments were major contributors to this.
The report found that construction costs averaged £2,197 per sqm in Birmingham.
Inflationary pressure also remained high with the city expecting to reach 9.0 per cent in 2022, nearing the UK 's highest inflation rate of 10.0 per cent.
Out of those surveyed in the UK on what factors had a significant or high impact on the delivery of construction projects, 78 per cent said rising costs of construction, 67 per cent said labour shortages and 33 per cent said excessive lead times.
Gareth Poole, director at Turner & Townsend, Birmingham, said: “Businesses in Birmingham will need to focus on careful planning, ensuring contracts are pragmatically developed to consider potential price rises and, where necessary, to share risk in a balanced way.
“In-depth analysis of the supply chain and strong relationships with trusted suppliers will be critical to mitigating the impact of inflation. “
Read the full report: International Construction Market Survey 2022 | Turner & Townsend (turnerandtownsend.com)