Geneva retains top spot as world's most expensive construction city: Arcadis report

Geneva has maintained its position as the world's most expensive city for construction projects, according to Arcadis' 2026 International Construction Cost Index. London and Zurich followed in second and third place, respectively. The annual report surveys construction costs in 100 major cities globally.

The index reveals that the most costly construction markets remain concentrated in mature and complex cities characterized by strong demand and limited delivery capacity. While European and North American cities dominate the top rankings, New York, San Francisco, and Philadelphia also featured among the global top ten.

The broader market context has evolved, with global construction markets moving from inflation-driven uncertainty to a more selective investment phase. Capital is being deployed more cautiously. Investors are increasingly favoring complex, high-performance assets such as modern workspaces, healthcare facilities, data centers, and advanced manufacturing sites. However, rising financing costs, energy price volatility, and supply chain constraints are exerting increased pressure on project viability.

Arcadis emphasizes that certainty of delivery—including cost control and adherence to timelines—is becoming a key competitive advantage. Edel Christie, Global President of Places at Arcadis, stated that the cost of construction is no longer solely about price, but also reflects capabilities, risks, and investor confidence. Investments will increasingly flow to locations and programs where execution is credible, viable, and achievable.

The report also notes that lower nominal costs do not automatically equate to simpler or more reliable delivery. Market maturity, network capacity, permitting processes, supply chain robustness, and the availability of specialist skills are playing increasingly critical roles in determining whether projects can move successfully from planning to construction.