Geneva tops Arcadis' 2025 construction cost index, surpassing London as the world's most expensive city to build amid global economic uncertainty.
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| Geneva reclaims its spot as the world’s costliest city for construction, according to Arcadis' ICC 2025 report, amid shifting global investment trends. Image: Collected |
Amsterdam, Netherlands — May 13, 2025:
Geneva has reclaimed its title as the most expensive city in the world to build in, overtaking London, according to the 2025 International Construction Costs (ICC) Report published by global consultancy Arcadis. The Swiss city leads the annual index ahead of Zurich, Munich, and New York City, underscoring the sustained cost pressures impacting urban construction across Europe and North America.
The report attributes Geneva’s return to the top of the index to a mix of high labor costs, regulatory complexity, and strong market demand. Despite easing inflation in some U.S. metros like New York and San Francisco, the construction landscape remains volatile due to long-term borrowing costs, geopolitical instability, and shifting global trade policies. Arcadis emphasizes that a forward-thinking approach to planning and design remains critical to mitigating risks and capturing long-term value in such conditions.
Covering 100 major cities across six continents, the ICC index evaluates construction costs for 20 building types, from residential and commercial to public infrastructure. All data is benchmarked in U.S. dollars and indexed against building prices in Amsterdam, drawing on market surveys, economic reviews, and Arcadis’ global team expertise.
The 2025 report identifies strong growth potential in sectors like data centers, healthcare, and educational infrastructure, even in regions still battling inflation, such as parts of Asia, Australia, and Eastern Europe. In these markets, Arcadis sees innovation in design and delivery as key to unlocking efficiency and value.
Juud Tempelman, Global President of Places at Arcadis, said the current era of constrained capital and growing complexity calls for adaptable design strategies aligned with real-world needs. He highlighted that opportunities remain, from U.S. advanced manufacturing to Europe’s energy transition initiatives, and that visionary planning supported by digital tools and collaborative project management is essential to success.
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Arcadis outlines four pillars for successful construction in today’s environment. Designing for long-term value means creating adaptable, energy-efficient structures that serve evolving community needs. An example is River Grove Elementary School in Portland, Oregon, which was built with a microgrid and photovoltaic array to ensure climate resilience and energy independence.
Designing for certainty involves using parametric design and market intelligence to reduce risks and meet policy demands. Delivering with precision requires integrated project teams and digital coordination, as shown in Arcadis’ renovation of the Tiffany & Co. Landmark store in New York, where digital tools enabled elegant solutions within a heritage structure.
Finally, the report stresses the importance of design in collaboration. Arcadis advocates for cross-disciplinary teams led with shared accountability to realize complex, high-impact projects.
Mansoor Kazerouni, Global Director of Architecture and Urbanism at Arcadis, emphasized the critical role of designers in this challenging global environment. He noted that with high uncertainty in both politics and economics, design must go beyond aesthetics to address deeper functional needs, offering sustainable and valuable solutions for the long term.
As global markets navigate this uncertainty, Arcadis maintains that success in construction hinges not just on cost control, but on intelligent, adaptive, and collaborative design strategies. Geneva’s ascent in the rankings is not only a reflection of cost pressures but also a signal of broader shifts in where and how cities build for the future.