Geneva Retains Title as World's Most Expensive City for Construction

Geneva has retained its position as the world's most expensive city for construction, according to Arcadis' 2026 International Construction Cost Index. The annual index, which compares construction costs across 100 major cities, placed Geneva at the forefront, followed by London and Zurich.

The report indicates that the highest-cost construction markets globally are concentrated in mature, complex cities characterized by strong demand and constrained delivery capacity. Completing the top ten were Munich, Copenhagen, New York City, San Francisco, Dublin, Bristol, and Philadelphia.

The wider market context has shifted from inflation-led uncertainty to a more selective investment phase. For clients, the ability to assure cost, schedule, and delivery confidence is becoming a critical competitive advantage in complex building markets.

Capital is increasingly favoring complex, high-performing assets supporting long-term growth, such as modern workplaces, healthcare facilities, and data centers. For these highly serviced buildings, factors like power availability, supply chain capacity, and speed-to-market are now more important to investment decisions than local construction costs.

The index also highlights the broad variation in costs globally. While high-cost locations are concentrated in Europe, the UK, and North America, some of the lowest-cost markets are found across Asia, Africa, and Latin America. Bengaluru was identified as the least expensive city, followed by Buenos Aires and Delhi.