While each global region has its own set of challenges, a moderate escalation of construction costs is a certainty for many regions across the world.
In 2022, the U.K. experienced some of the most abnormal construction price increases ever seen, at a rate of 9% to 15%. Energy prices and global supply chain constraints emanating from the Ukraine conflict and China’s zero-COVID policy exerted that upward cost pressure on projects. However, “there is currently a sense that construction cost escalation has peaked,” says Richard Hill, Currie & Brown director in London. He anticipates escalation of 4.3% to 5% in 2023.