Greater Kuala Lumpur, The Regional Headquarters Location For Multinational Companies In Asia

Kuala Lumpur Down 2 Places in Global Construction Cost Ranking

Kuala Lumpur down 2 places in global construction cost ranking while Asia dominates the top ten highest value construction projects in 2017
KUALA LUMPUR, 15 Mar -  Among the Asian cities included, Kuala Lumpur is the second cheapest city to build in, according to the International Construction Costs Index published recently by Arcadis, the leading global Design & Consultancy firm for natural and built assets. Kuala Lumpur moved down two positions on the global ranking from last year, making it number forty-three in the global ranking in front of Bangalore. 

The annual Arcadis index, which analyzes the relative cost of construction across 45 major cities, finds that world cities, including New York and Hong Kong, continue to be some of the most expensive locations in the world in which to build, but a slowdown in the global economy led by China and in resource economies, such as Brazil and Saudi Arabia, points to wider changes affecting the world’s construction markets. 

Whilst economic growth levels in emerging Asian economies such as Malaysia, Indonesia and Philippines are way in excess of the developed world, growth rates in established hubs such as Hong Kong and Singapore are similar to those in North American and European cities. Growth rates in many Asian construction markets have eased significantly over the past 18 months mainly due to the peak in commercial and residential development rates. Looking forward, expansion at around 5%-7% per year is the best prospect for many construction markets in Asia.

The Asian cities ranking in Arcadis’ International Construction Costs Index are below:

Asia Ranking World Ranking City
1 2 Hong Kong
2 5 Macau
3 15 Singapore
4 17 Tokyo
5 21 Seoul
6 27 Brunei
7 35 Shanghai
8 38 Manila
9 39 Bangkok
10 40 Taipei
11 41 Ho Chi Minh
12 42 Jakarta
13 43 Kuala Lumpur
14 44 Bangalore
Arcadis International Construction Costs Index 
  • Macau and Singapore trail Hong Kong as most expensive cities in Asia
  • Bangalore, Kuala Lumpur, Jakarta, Ho Chi Minh City, Taipei, Bangkok and Manila among world’s cheapest cities for construction
Alan Hearn, Head of Buildings Solutions, Asia commented: “The future of the construction industry in Asia is looking bright. However, we believe that the construction industry drivers for the future will change. Four out of 10 highest value construction projects in 2017 are located in Asia. Among them are One Belt One Road (OBOR) initiatives and the Delhi Mumbai Industrial Corridor. Mega projects like these are mainly funded by public-private partnership (PPP) and will continue to fuel the development of the construction industry in Asia.” 
The Ten highest value construction projects in 2017 
Project or programme Location Value (USD) (bn)
1. One Belt One Road China to Central Asia 150
2. Delhi Mumbai Industrial Corridor Delhi to Mumbai, India 90
3. Dubai Al Maktoum Airport Dubai, UAE 33
4. Grand Paris Express Paris, France 30
5. Hinkley Point C Somerset, UK 22
6. Hudson Yards New York City, United States 20
7. Jeddah Economic City Jeddah, Saudi Arabia 20
8. Crossrail London, UK 20
9. Beijing Daxing International Airport Beijing, China 13
10. Chengdu Tianfu International Airport Chengdu, China 11
The full report can be downloaded here.

Source: Arcadis