This year's ranking of Europe's most expensive capitals for construction projects has seen Brussels fall from 9th to 10th place, despite a 16% rise in building costs in Belgium, according to a new global index by consultancy Arcadis published on Wednesday.
London is currently the most expensive capital although taking non-capital cities into account, Geneva is the most expensive on a worldwide scale.
Arcadis – an international agency for design, engineering and management – explains that the growth in construction costs in Belgium has been slightly higher than the European median, mainly due to rising material and wage costs. But the rise in construction prices has affected all countries, driven by global inflation and the necessary investments in low-energy buildings.
Authors of the report were keen to stress the "clear benefits and long-term savings" of renovation works: "This is important for Brussels, as the Belgian capital has a relatively old building stock and infrastructure. Future investments in sustainable construction will be considerable and indispensable."
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The consultancy notes that the Belgian construction sector seems to be "relatively resilient to shocks" but that rising raw material prices and interest rates call for caution.
According to the global construction cost index, London is the most expensive European capital to build in, ahead of Oslo, Copenhagen, Dublin and Berlin. Geneva dominates the ranking of international cities, even outpricing major US cities such as New York, San Francisco and Munich. Brussels is ranked 47th out of the 100 cities in the panel.
