Geneva reclaims title of world's most expensive city to build in, says Arcadis in latest International Construction Costs report

07.08.2025 - 18:08:13

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London falls to second place; Zurich, Munich, and NYC round out the top five most expensive cities. Labor shortages and regulatory complexity fuel cost escalation as new global dynamics shape development realities.Bright spots emerge in growth areas such as energy infrastructure and data centers as clients reallocate global resources to meet shifting demand.Public spending set to boost demand in healthcare and defense.Arcadis urges proactive design and planning to unlock project viability.in Portland, Oregon. The building needed to be adaptable, energy-efficient, and resilient in the face of extreme weather events. By incorporating a microgrid system, which includes a photovoltaic array, battery storage, and generator to ensure independence from the grid during disasters, the new school embraces resilience and carbon neutrality, and can still function as an effective learning environment in an increasingly hot and wildfire-prone region.Design for Certainty: Leverage knowledge of the asset, the location and its market to ensure that a scheme represents the best development that can be delivered. Parametric design tools can help to de-risk planning, enhance investor confidence, and align the project with policy and market expectations.Design for Delivery: Ensure buildability and certainty of budget by working with integrated teams who manage end-to-end project details using coordinated digital platforms and proven delivery frameworks. This was critical during the renovation of the Tiffany & Co. Landmark store on New York's Fifth Avenue. As Architect of Record, Arcadis used digital tools to test and iterate design solutions throughout the lifecycle of the project, enhancing customer movement around the store while working within the constraints of the existing historical structure.Design in Collaboration: Recognize that no-one can do it alone. High-performing, cross-disciplinary teams with strong leadership and a culture of shared accountability are essential to unlock project potential.

Mansoor Kazerouni, Global Director of Architecture and Urbanism at Arcadis, added: "Development is a hugely challenging undertaking. High levels of uncertainty triggered by economic and political change have created a tough environment for getting projects off the ground. We know that buildings need to work even harder to meet the needs of their users, and that means treating every part of a scheme as a chance to maximize impact. As designers, our role is to lead with insight, creativity and commitment at every stage of the project - unlocking potential, supporting our clients, and delivering spaces that are buildable, sustainable, and valuable for the long term."

For more information, the full report can be downloaded here.

ABOUT ARCADIS

Arcadis is a global transformation partner, driving some of the most impactful projects of our time. We help clients make sustainable choices by combining digital innovation, human expertise, and future-focused skills across environment, energy, water, buildings, transport, and infrastructure sectors. Going beyond traditional design, engineering, and consultancy, we use data-driven insights to deliver tailored solutions in the spaces and environments we shape together. With over 35,000 people, we unite global expertise to tackle challenges like climate, energy affordability, and livable cities, improving quality of life through our presence in 30+ countries. In 2024, we achieved €5.0 billion in gross revenues. Learn more at www.arcadis.com

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